BNY's third quarter results exceeded Wall Street's revenue and profit expectations, but the market responded negatively, likely reflecting caution around the sustainability of recent growth drivers. Management attributed the quarter’s performance to broad-based expansion across Security Services and Market and Wealth Services, emphasizing double-digit revenue gains in these segments and strong client activity. CEO Robin Vince noted, “We reported another quarter of strong results,” highlighting progress from the company’s commercial and platform operating model transformations. Despite resilient markets and favorable operating conditions, investors may be weighing ongoing uncertainty in global economic and regulatory environments.
Is now the time to buy BK? Find out in our full research report (it’s free for active Edge members).
BNY (BK) Q3 CY2025 Highlights:
- Revenue: $5.08 billion vs analyst estimates of $4.96 billion (9.3% year-on-year growth, 2.4% beat)
- Adjusted EPS: $1.91 vs analyst estimates of $1.77 (8.1% beat)
- Adjusted EBITDA: $1.93 billion (38% margin, 24.5% year-on-year growth)
- Operating Margin: 37.7%, up from 33.1% in the same quarter last year
- Market Capitalization: $74.64 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From BNY’s Q3 Earnings Call
- Mike Mayo (Wells Fargo Securities) asked about the split between growth from internal initiatives versus favorable markets. CFO Dermot McDonogh explained that both played a role, with platform diversification allowing BNY to benefit more broadly from constructive markets.
- Glenn Schorr (Evercore ISI) questioned how BNY is managing balance sheet risk amid anticipated rate cuts. McDonogh emphasized improved risk tools and a proactive approach to deposit and asset management, noting confidence in the company’s positioning.
- Brennan Hawken (Bank of Montreal) inquired about the impact of capital markets activity on securities lending and recent wins. CEO Robin Vince explained that while securities lending remains important, broader collateral management and platform solutions are key revenue drivers.
- David Smith (Truist Securities) asked about potential fee pressure from stablecoins and digital money market evolution. Vince viewed these trends as opportunities for BNY, citing ongoing investments in digital asset infrastructure and participation across multiple touchpoints in the ecosystem.
- Alex Blostein (Goldman Sachs) sought clarity on the sustainability of operating leverage and long-term margin expansion. Management did not set firm targets but indicated ongoing transformation and efficiency gains, especially from AI, would support margins over several years.
Catalysts in Upcoming Quarters
In the coming quarters, StockStory analysts will be monitoring (1) the pace at which BNY’s AI solutions and platform operating model deliver measurable efficiency gains, (2) signs of sustained multi-line client wins and cross-selling momentum, and (3) the company’s ability to manage through evolving interest rate and deposit trends. Developments in digital asset adoption and regulatory clarity will also be key markers for future growth.
BNY currently trades at $107.97, in line with $109.01 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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