Northern Trust (NASDAQ:NTRS) Releases Quarterly Earnings Results, Beats Estimates By $0.32 EPS

Northern Trust (NASDAQ:NTRS) issued its quarterly earnings results on Thursday. The asset manager reported $2.69 earnings per share for the quarter, beating analysts’ consensus estimates of $2.37 by $0.32, Zacks reports. Northern Trust had a net margin of 12.15% and a return on equity of 14.87%. The firm had revenue of $2.14 billion for the quarter, compared to analyst estimates of $2.05 billion. During the same period last year, the company posted $2.26 EPS. Northern Trust’s quarterly revenue was up 8.4% compared to the same quarter last year.

Here are the key takeaways from Northern Trust’s conference call:

• Northern reported strong core results—excluding notables Q4 revenue rose ~9%, pre-tax margin expanded to ~33%, EPS grew ~19% year-over-year, and the firm returned $1.9 billion to shareholders in 2025 including a record $1.3 billion of buybacks (shares down ~5%).
• Management raised medium-term targets, now targeting a 33% pre-tax margin, return on equity in the mid-teens, and expense-to-trust-fee below 110%, signaling higher confidence in sustaining improved profitability.
• Productivity and AI initiatives are driving efficiency—2025 productivity savings exceeded 4% of expenses, managerial spans increased and layers were reduced, and the company plans to lift its productivity target for 2026 (broader AI deployment via its NT Byron platform).
• Business momentum is broad-based—Wealth (Global Family Office and new Family Office Solutions) recorded record wins and flows, Asset Servicing saw strong capital markets and private markets revenue, and NTAM posted 12 consecutive quarters of positive liquidity flows and elevated product launches.
• There are near-term headwinds and risks—Q4 included $69 million of net unfavorable notables (severance and Visa swap items), guidance assumes only low- to mid-single-digit NII growth for 2026, and management warns market moves, rate volatility, or operational shocks could materially affect results.

Northern Trust Stock Performance

NASDAQ NTRS opened at $148.63 on Friday. The stock has a market cap of $28.11 billion, a PE ratio of 17.01, a P/E/G ratio of 1.27 and a beta of 1.27. Northern Trust has a twelve month low of $81.62 and a twelve month high of $157.60. The stock has a fifty day simple moving average of $137.87 and a 200-day simple moving average of $131.83. The company has a current ratio of 0.69, a quick ratio of 0.70 and a debt-to-equity ratio of 0.57.

Northern Trust Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Friday, March 6th will be issued a dividend of $0.80 per share. The ex-dividend date is Friday, March 6th. This represents a $3.20 dividend on an annualized basis and a dividend yield of 2.2%. Northern Trust’s dividend payout ratio is currently 37.30%.

Insiders Place Their Bets

In other news, insider John Landers sold 766 shares of the company’s stock in a transaction that occurred on Monday, November 17th. The shares were sold at an average price of $124.35, for a total value of $95,252.10. Following the transaction, the insider directly owned 7,313 shares in the company, valued at approximately $909,371.55. This represents a 9.48% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Robert Edward Jr. Moritz bought 3,891 shares of the company’s stock in a transaction that occurred on Tuesday, November 4th. The stock was bought at an average price of $128.57 per share, with a total value of $500,265.87. Following the acquisition, the director directly owned 6,686 shares in the company, valued at $859,619.02. The trade was a 139.21% increase in their position. The SEC filing for this purchase provides additional information. 0.77% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Northern Trust

A number of institutional investors have recently modified their holdings of the company. NorthRock Partners LLC lifted its stake in Northern Trust by 2.2% during the 3rd quarter. NorthRock Partners LLC now owns 3,812 shares of the asset manager’s stock worth $513,000 after acquiring an additional 83 shares in the last quarter. Fiduciary Trust Co increased its stake in Northern Trust by 1.1% during the third quarter. Fiduciary Trust Co now owns 11,289 shares of the asset manager’s stock worth $1,520,000 after purchasing an additional 118 shares during the period. Parallel Advisors LLC lifted its position in shares of Northern Trust by 8.2% during the third quarter. Parallel Advisors LLC now owns 1,701 shares of the asset manager’s stock worth $229,000 after purchasing an additional 129 shares in the last quarter. Norinchukin Bank The lifted its position in shares of Northern Trust by 1.3% during the third quarter. Norinchukin Bank The now owns 10,980 shares of the asset manager’s stock worth $1,478,000 after purchasing an additional 145 shares in the last quarter. Finally, Private Advisor Group LLC boosted its stake in shares of Northern Trust by 3.0% in the third quarter. Private Advisor Group LLC now owns 5,270 shares of the asset manager’s stock valued at $709,000 after purchasing an additional 153 shares during the period. 83.19% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research analysts have weighed in on NTRS shares. Truist Financial set a $148.00 price objective on Northern Trust in a report on Wednesday, January 7th. TD Cowen restated a “buy” rating on shares of Northern Trust in a research report on Wednesday, January 7th. BMO Capital Markets started coverage on shares of Northern Trust in a report on Friday, October 3rd. They issued a “market perform” rating and a $142.00 price objective for the company. Wall Street Zen upgraded Northern Trust from a “sell” rating to a “hold” rating in a report on Saturday, December 27th. Finally, Keefe, Bruyette & Woods lifted their price objective on Northern Trust from $123.00 to $125.00 and gave the stock an “underperform” rating in a research report on Thursday, October 23rd. Four analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $142.46.

More Northern Trust News

Here are the key news stories impacting Northern Trust this week:

• Positive Sentiment: Q4 results topped estimates — Northern Trust reported stronger-than-expected quarterly results with year-over-year net interest income and asset growth helping revenue and EPS beat consensus, a core bullish catalyst for the stock. Q4 Beat: Zacks
• Positive Sentiment: Management highlighted record NII and raised targets on the earnings call — the company pointed to higher net interest income and stronger fee/servicing trends on the call, which prompted some analysts to lift forecasts. Earnings Call Summary: TipRanks
• Positive Sentiment: RBC raised its price target to $159 and moved to an outperform view — a bullish analyst action that signals upside expectations following the quarter. RBC Raise: The Fly
• Positive Sentiment: Board approved/announced quarterly dividend — Northern Trust declared a quarterly dividend of $0.80 (record March 6), supporting income-oriented investor interest.
• Neutral Sentiment: Several firms nudged up targets but kept neutral/in-line ratings (Evercore to $155 in-line; Wells Fargo to $150 equal weight) — these moves recognize better results but stop short of a strong buy endorsement. Evercore: TickerReport Wells Fargo: TickerReport
• Negative Sentiment: Morgan Stanley raised its target to $140 but kept an “underweight” rating — the firm’s stance signals limited confidence in near-term upside and likely contributed to selling pressure. MS PT Change: Benzinga
• Negative Sentiment: Costs and valuation concerns persist — several write-ups note elevated expenses are trimming margin expansion and that valuation may be rich after the run, which can temper enthusiasm despite the beat. Valuation Concerns: Seeking Alpha

About Northern Trust

Northern Trust Corporation (NASDAQ: NTRS) is a global financial services firm headquartered in Chicago that provides asset servicing, asset management and wealth management solutions to institutions, corporations and high-net-worth individuals. The company’s core businesses include custody and fund administration, investment operations outsourcing, trust and fiduciary services, private banking, and retirement and defined contribution plan services.

Northern Trust’s product and service offerings span custody and fund accounting, portfolio and performance analytics, securities lending, cash management and foreign exchange, as well as discretionary and non-discretionary investment management.