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).

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).

The Best Stocks for High-Quality Investors

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.