01—Abstract
Summary
Summary of the 10-Q filed October 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Northern Trust Corporation reported third-quarter 2026 net income of $642.9 milliona, up from $457.6 million a year earlier, and diluted EPS of $3.40 versus $2.29.
Total revenue rose to $2,294.4 millionb, with growth driven by favorable markets, net new business and currency movement in fee income, plus a $34.0 million gain on the guardianship business sale and a $14.7 million gain tied to the second Visa Exchange Offer. Noninterest expense increased to $1,492.5 million, and the quarter recorded a $5.4 million provision for credit losses, compared with a negative provision of $17.0 million in the prior-year quarter. For the nine months ended September 30, 2026, net income was $1,960.6 million, up from $1,270.9 million, driven largely by a $540.1 million gain from the second Visa Exchange Offer.
Those results were partly offset by a $73.9 millionc loss on a securities repositioning, $61.5 million of software disposal charges, $51.0 million of severance-related charges and a $33.1 million Invested as One equity grant. Total assets declined to $167.3 billion from $177.1 billion, mainly reflecting lower Federal Reserve and central bank deposits and total deposits, which fell to $132.2 billion from $142.8 billion. Stockholders' equity rose to $13.4 billion, and the company's standardized Common Equity Tier 1 ratio was 12.4%.
AUC/A reached $19.82 trilliond and AUM reached $1.96 trillion at September 30, 2026, reflecting favorable markets and net client inflows. The Corporation repurchased $1.1 billion of common stock in the nine months and, on October 20, 2026, approved a new $3.5 billion repurchase authorization that takes effect after the existing $2.5 billion program is completed. The Series D preferred stock was redeemed on October 1, 2026.
02—Key points
Key Highlights
- Net income of $642.9 million for Q3 2026, up 40% from $457.6 million; diluted EPS of $3.40 versus $2.29.
- Total revenue of $2.29 billion for Q3 2026, up 13%; nine-month revenue of $7.2 billion, up 21%.
- Nine-month results include a $540.1 million gain from the second Visa Exchange Offer, partly offset by a $73.9 million securities repositioning loss and $61.5 million of software disposal charges.
- Noninterest expense rose 5% in Q3 to $1,492.5 million; nine-month expense rose 9% to $4,639.3 million, including $51.0 million severance and $33.1 million Invested as One charges.
- Total assets fell 6% to $167.3 billion and deposits fell 7% to $132.2 billion since December 31, 2025.
- AUC/A reached $19.82 trillion (up 6%) and AUM reached $1.96 trillion (up 9%) at September 30, 2026.
- New $3.5 billion share repurchase authorization approved October 20, 2026; the Series D preferred stock was redeemed October 1, 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 29, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $1.37B$1.27B | +8.5% |
| Net Income | $642.90M$457.60M | +40.5% |
| Shares Outstanding (Basic) | 182.04M190.05M | −4.2% |
| Shares Outstanding (Diluted) | 183.17M191.00M | −4.1% |
05—Questions
Frequently Asked Questions
What drove the increase in Northern Trust's third-quarter 2026 net income?
Net income rose to $642.9 million from $457.6 million, driven by higher Trust, Investment and Other Servicing Fees of $1,373.0 million (up from $1,265.5 million), primarily from favorable markets. Other Noninterest Income rose to $250.0 million, including a $34.0 million gain on the guardianship business sale and a $14.7 million Visa Exchange Offer gain. Net interest income increased to $671.4 million, and the income tax rate fell to 19.3% from 26.1%.
Why did nine-month 2026 results differ so much from the quarter?
The nine-month period includes a $540.1 million gain from Northern Trust's participation in the second Visa Exchange Offer, which was recorded in Other Operating Income. Nine-month results also include a $73.9 million loss on available-for-sale securities sold in a portfolio repositioning, $61.5 million of software disposal charges and $51.0 million of severance charges. Nine-month net income was $1,960.6 million, compared with $1,270.9 million a year earlier.
How did the balance sheet and capital position change?
Total assets decreased to $167.3 billion from $177.1 billion at December 31, 2025, and total deposits decreased to $132.2 billion from $142.8 billion. Stockholders' equity increased to $13.4 billion from $13.0 billion. The standardized Common Equity Tier 1 capital ratio for Northern Trust Corporation was 12.4% at September 30, 2026, compared with 12.6% at December 31, 2025, and the filing states that capital ratios exceeded well-capitalized requirements.
What is the outlook for asset quality and credit losses?
Nonaccrual loans fell to $55.5 million from $76.7 million at year-end 2025. For the nine months, the company recorded a negative provision for credit losses of $3.0 million, driven by a strengthening macroeconomic outlook and improved credit quality, partly offset by the charge-off of one commercial and institutional loan. The filing notes that an adjustment for higher economic uncertainty around certain C&I exposures was introduced as of September 30, 2026.
What capital return actions did Northern Trust announce or take?
The company repurchased $1.1 billion of common stock in the nine months ended September 30, 2026. On October 20, 2026, the Board approved a new repurchase authorization of up to $3.5 billion, which takes effect after the existing $2.5 billion program is completed and has no expiration date. The company also redeemed all 5,000 shares of its Series D preferred stock on October 1, 2026.
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