Northern Trust (NTRS) Q4 2025 earnings summary

Executive summary

• Achieved strong financial and operational momentum in Q4 2025, with trust fees up 7%, net interest income up 14%, and revenue up 9% year-over-year, excluding notable items.

• Net income for Q4 2025 was $466 million, EPS $2.42, and ROE 15.4%, reflecting strong execution of strategic priorities and positive operating leverage.

• Returned $1.9 billion to shareholders in 2025, including a record $1.3 billion in share repurchases, reducing share count by 5%.

• Advanced strategic pillars: optimized growth, productivity, and resiliency, with significant investments in AI, operational efficiency, and risk management.

• Raised medium-term targets for pre-tax margin and ROE, reflecting confidence in scalable growth strategies.

Financial highlights

• Q4 2025 revenue (FTE) grew 8% year-over-year to $2.14 billion; net income up 2% YoY to $466 million; EPS up 7% YoY to $2.42.

• Net interest income (FTE) reached $654.3 million, up 14% year-over-year, with net interest margin at 1.81%.

• Assets under custody/administration reached $18.7 trillion, up 11% year-over-year; assets under management $1.8 trillion, up 12%.

• Pre-tax margin (FTE) for Q4 2025 was 30.3%; full-year 2025 pre-tax margin was 29.2%.

• Full-year 2025 revenue (FTE) was $8.11 billion, net income $1.74 billion, and EPS $8.74.

Outlook and guidance

• Targeting pre-tax margin of 33% and ROE in the mid-teens for the medium term.

• 2026 NII expected to grow low to mid-single digits; focus on generating over 100 basis points of positive operating leverage.

• Expect to return more than 100% of earnings to shareholders in 2026.

• Mid-single digit revenue growth anticipated for 2026, with expense growth managed to maintain positive leverage.