BK · Q2 2026 Earnings

Neutral

BNY Mellon

Reported July 15, 2026

30-second summary

SENTIMENT: Constructive Q2 revenue of $5.70B grew +13% YoY (+5% QoQ) and diluted EPS of $2.45 grew +27% YoY, with pre-tax operating margin stepping up to 39.8% (+250bps QoQ vs 37.3%, +320bps YoY vs 36.6%) — above the 38% medium-term target — and return on tangible common equity at 31.3%, now 330bps above the 28% medium-term target. Net income of $1.79B was +25% YoY. NIM expanded 7bps QoQ to 1.45%, and the company returned $1.47B to common shareholders in the quarter ($1.10B repurchases + $371M dividends). No earnings call transcript or updated forward guide was available in the supplied materials for this quarter, so any assessment of tone or revisions to the FY outlook is deferred.

Headline numbers

EPS

Q2 FY2026

$2.45

+12.9% vs est.

Revenue

Q2 FY2026

$5.70B

+13.3% YoY

+6.5% vs est.

Operating margin

Q2 FY2026

39.8%

Key financials

Q2 FY2026

Metric	Q2 FY2026	Q2 FY2025	YoY	Q1 FY2026	QoQ
Revenue	$5.70B	$5.03B	+13.3%	$5.41B	+5.3%
EPS	$2.45	$1.93	+26.9%	$2.24	+9.4%
Operating margin	39.8%	37.0%	+280bps	37.0%	+280bps

Guidance

Strong Q2 beats (revenue +6.5%, EPS +12.9%) yet management reaffirms FY2026 revenue guidance at ~6% YoY growth, suggesting caution on full-year momentum.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q2 FY2026	—	$5.698B	+6.5% above estimate	Beat
EPS	Q2 FY2026	—	$2.45	+12.9% above estimate	Beat

Reaffirmed unchanged this quarter: Revenue Growth (approximately 6% year-over-year), Net Interest Income Growth (approximately 10% year-over-year), Expense Growth (excluding notable items) (at the top of the 3% to 4% year-over-year growth rate range), Quarterly Tax Rate (approximately 23%)

Segment performance

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Securities Services	$2.828B	$2.474B	+14.3%
Market and Wealth Services	$1.97B	$1.742B	+13.1%
Investment and Wealth Management	$0.863B	$0.801B	+7.7%

Capital & returns

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Return on Common Equity	17.2%	—	—
Return on Tangible Common Equity (Non-GAAP)	31.3%	—	—
Common Equity Tier 1 (CET1) Ratio	11.0%	—	—
Tier 1 Capital Ratio	13.4%	14.6%	—

Other KPIs

Q2 FY2026

Segment	Q2 FY2026	Q2 FY2025	YoY
Assets Under Custody and/or Administration (AUC/A)	$62.6 trillion	—	—
Assets Under Management (AUM)	$2.2 trillion	—	—
Net Interest Margin	1.45%	1.27%	—
Pre-tax Operating Margin	39.8%	37%	—

Answers to last quarter's watch list

IWM +6% YoY revenue growth and 11% pre-tax margin sustaining in Q2 FY2026. IWM revenue grew +8% YoY to $863M, accelerating from Q1's +6%. Segment pre-tax margin printed 21.1%, well above Q1's 10.9%. Two consecutive positive quarters support the post-deconversion thesis. Status: Resolved positively

Securities Services holding double-digit YoY growth after +17% Q1. Q2 printed +15% YoY — a modest step-down from Q1 but decisively double-digit and well above the mid-single-digit fear case. Status: Resolved positively

NII Q2 pace against the ~10% FY YoY glide (prior-quarter guide) with CFO's Q1 "moderate, slightly down" balance commentary. NII grew +20% YoY and +6% QoQ; NIM expanded to 1.45% from 1.38%. Q2 pace runs ahead of the ~10% FY glide. Status: Resolved positively

CET1 trajectory after the 90bps Q1 drawdown to 11.0%. CET1 held flat at 11.0% QoQ, arresting the Q1 decline. However, Tier 1 slipped 40bps to 13.4%, worth continued monitoring. Status: Resolved positively on CET1; Continue monitoring on Tier 1.

Operating margin holding 37%+ as growth investment spend kicks in. Pre-tax operating margin expanded to 39.8% from 37.3% in Q1 — a 250bps QoQ jump that puts BNY above the 38% medium-term target. Status: Resolved positively

Whether the prior-quarter FY revenue guide (~6%, per prior transcript) proves conservative given +13% Q1. Q2 also printed +13% YoY. No updated FY guide was available in the current-quarter materials, so this remains open. Status: Continue monitoring

AI-driven productivity claims translating to measurable disclosures. The financial supplement does not surface new AI headcount or unit-cost metrics; the "218 AI solutions in production" count from Q1 has no Q2 update in the available disclosure. Status: Not resolved

What to watch into next quarter

Whether management updates the FY2026 revenue outlook after two consecutive quarters of +13% YoY prints; if the next update holds at ~6%, that would signal a genuine H2 comp headwind that needs articulation

IWM extending to three consecutive positive quarters and whether the 21.1% Q2 pre-tax margin holds — the post-deconversion re-acceleration thesis needs a third data point to be considered structural

NIM trajectory above 1.45% into Q3; the +7bps Q2 step-up ran counter to prior "moderate, slightly down" balance commentary

Tier 1 capital ratio movement below 13.4% given the 40bps Q2 slip; combined with 11.0% CET1 flat, further Tier 1 erosion would force a capital return moderation not currently in the bull case

Pre-tax operating margin defending 39%+ after the 39.8% Q2 print; a step-back would suggest Q2 included non-recurring items that flatter the "above 38% target" reading

AI production count and specific productivity disclosures (headcount avoided, unit-cost reduction) — three quarters without a hard proof point past the Q1 "218 solutions" figure would erode the operating-model narrative

Sources

BNY Mellon Q2 FY2026 Financial Supplement — SEC filing, https://www.sec.gov/Archives/edgar/data/1390777/000139077726000071/ex992_financialsupplementx.htm

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