Bank of New York Mellon (NYSE:BK) Announces Earnings Results, Beats Estimates By $0.11 EPS

Bank of New York Mellon (NYSE:BK) issued its quarterly earnings results on Tuesday. The bank reported $2.08 earnings per share for the quarter, beating analysts’ consensus estimates of $1.97 by $0.11, FiscalAI reports. The firm had revenue of $5.18 billion for the quarter, compared to analyst estimates of $5.11 billion. Bank of New York Mellon had a net margin of 13.62% and a return on equity of 14.37%. Bank of New York Mellon’s quarterly revenue was up 6.8% compared to the same quarter last year. During the same period last year, the company posted $1.72 EPS.

Here are the key takeaways from Bank of New York Mellon’s conference call:

• BNY reported record 2025 results — net income $5.3B, $20.1B revenue, 26% ROTCE, EPS up 28% to $7.40, and returned $5B to shareholders.
• Management raised medium‑term financial targets to a 38% pre‑tax margin and 28% ROTCE, signaling stronger confidence in sustained margin expansion from the transformation.
• 2026 guidance targets ~5% revenue growth, 3–4% expense growth and >100 bps of positive operating leverage, indicating management expects continued top‑line growth with disciplined cost control.
• The firm is accelerating its platform and AI strategy — >70% of employees in the platform operating model, an enterprise AI platform “Eliza” with Google/OpenAI collaborations, and 130+ digital employees — which management says will unlock capacity, productivity and new product opportunities.
• Investment & Wealth Management underperformed (revenue down 2%, 17% pre‑tax margin) with $23B of long‑term strategy outflows in Q4 and ongoing deposit margin compression that could weigh on NII if sustained.

Bank of New York Mellon Trading Up 1.2%

BK opened at $124.43 on Thursday. The company has a quick ratio of 0.70, a current ratio of 0.71 and a debt-to-equity ratio of 0.81. The firm has a market cap of $86.77 billion, a P/E ratio of 16.79, a P/E/G ratio of 0.95 and a beta of 1.11. Bank of New York Mellon has a 52 week low of $70.46 and a 52 week high of $124.93. The business has a fifty day simple moving average of $114.53 and a 200-day simple moving average of $107.18.

Bank of New York Mellon Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, February 5th. Shareholders of record on Friday, January 23rd will be paid a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date is Friday, January 23rd. Bank of New York Mellon’s dividend payout ratio is 28.61%.

Analyst Upgrades and Downgrades

BK has been the topic of a number of research reports. Barclays raised their target price on shares of Bank of New York Mellon from $120.00 to $143.00 and gave the stock an “overweight” rating in a research note on Monday, January 5th. Citigroup upped their target price on Bank of New York Mellon from $120.00 to $136.00 and gave the company a “neutral” rating in a report on Wednesday. BMO Capital Markets began coverage on shares of Bank of New York Mellon in a research report on Friday, October 3rd. They set an “outperform” rating and a $125.00 price target on the stock. Wells Fargo & Company lifted their target price on shares of Bank of New York Mellon from $119.00 to $122.00 and gave the stock an “equal weight” rating in a research note on Wednesday. Finally, Weiss Ratings reissued a “buy (b+)” rating on shares of Bank of New York Mellon in a research note on Monday, December 29th. Eleven research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, Bank of New York Mellon presently has a consensus rating of “Moderate Buy” and an average price target of $124.67.

Institutional Investors Weigh In On Bank of New York Mellon

Large investors have recently added to or reduced their stakes in the business. Morse Asset Management Inc purchased a new position in Bank of New York Mellon in the third quarter worth approximately $50,000. Headlands Technologies LLC purchased a new stake in shares of Bank of New York Mellon during the 2nd quarter worth $65,000. Johnson Financial Group Inc. acquired a new position in shares of Bank of New York Mellon during the third quarter worth $85,000. Osterweis Capital Management Inc. increased its holdings in Bank of New York Mellon by 11,890.0% in the second quarter. Osterweis Capital Management Inc. now owns 1,199 shares of the bank’s stock valued at $109,000 after buying an additional 1,189 shares during the last quarter. Finally, Triumph Capital Management acquired a new stake in Bank of New York Mellon in the third quarter valued at $149,000. 85.31% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Bank of New York Mellon

Here are the key news stories impacting Bank of New York Mellon this week:

• Positive Sentiment: Q4 beat — BK reported Q4 EPS of $2.08 vs. consensus $1.97 and revenue $5.18B vs. $5.11B, driven by higher net interest income, fee growth and rising asset balances; company materials and the press release provide the details. BNY Reports Fourth Quarter 2025 Results
• Positive Sentiment: Multiple analysts raised targets — Citi bumped its PT to $136 (neutral), Morgan Stanley to $132 (overweight), RBC to $130 (sector perform) and BofA reiterated a Buy with a $142 PT — these revisions imply further upside and helped lift sentiment. Analyst Coverage Roundup
• Positive Sentiment: Dividend declared — Board approved a $0.53 quarterly common dividend (ex-div Jan 23, payable Feb 5), supporting yield-focused investors and signaling capital return commitment. BNY Declares Dividends
• Positive Sentiment: Management raising medium‑term targets — CEO commentary and the earnings call highlighted improved profitability and higher medium-term targets, reinforcing the narrative of a turnaround at the custody bank. CNBC: BNY raises profit target
• Neutral Sentiment: Earnings call / transcripts available — Full Q4 earnings call transcript and slide deck are published for deeper diligence on guidance, margin drivers and segment performance. Earnings Call Transcript
• Positive Sentiment: Share-price momentum — BK recently hit an all‑time high on the earnings/upgrade flow, which can attract momentum and quant flows. Investing.com: Stock hits all-time high
• Negative Sentiment: Growth/margin caution — Commentary from Barron’s and other coverage notes management expects revenue growth to slow in 2026 and that prior margin expansion tailwinds may moderate, which could limit multiple expansion. Barron’s: Why the stock is falling
• Negative Sentiment: Mixed analyst signals — Wells Fargo’s modest PT raise to $122 (equal-weight) implies limited upside from current levels; some coverage noted the stock dipped initially despite the beat, reflecting profit-taking or valuation concerns. Analyst note

About Bank of New York Mellon

Bank of New York Mellon Corporation (BNY Mellon) is a global financial services company headquartered in New York City that provides a wide range of asset servicing, custody, and related financial infrastructure solutions to institutional clients. Its core businesses include custody and asset servicing, clearing and collateral management, treasury services, securities lending, corporate trust services, and depositary receipt administration. The company also offers investment management and advisory services through its asset management arm and provides technology-enabled solutions for trade processing, foreign exchange, and liquidity management.

BNY Mellon serves a broad client base that includes asset managers, pension funds, corporations, banks, broker-dealers and sovereign entities.