Northern Trust Corporation reported on Tuesday that its first-quarter net income rose 34% from a year earlier, as the Chicago-based financial services firm benefited from significant client inflows and strength in global equity and bond markets. For the quarter ending March 31, 2026, the company posted net income of $525.5 million, or $2.71 per diluted share. This performance represents a sharp increase from the $392 million, or $1.90 per share, recorded during the same period in 2025.
The results comfortably exceeded the expectations of analysts surveyed by FactSet, who had projected earnings of $2.33 per share. Total revenue on a fully taxable equivalent basis climbed 14% to $2.21 billion, surpassing the average analyst target of $2.12 billion. Management attributed the growth to a combination of improved organic business, elevated client activity, and favorable interest rate and market conditions.
Trust, investment, and other servicing fees, the company’s primary revenue driver, rose 11% year-over-year to $1.34 billion. Within this segment, asset servicing fees reached $740.5 million, up 10% from the prior year, while wealth management fees grew 11% to $600.9 million. These increases were supported by higher market valuations and net new business. As of March 31, total assets under custody or administration reached $18.554 trillion, a 10% increase from $16.9 trillion a year ago. Assets under management also grew 11% to $1.78 trillion.
Net interest income on a fully taxable equivalent basis rose 15% to $661.6 million, compared to $573.7 million in the first quarter of 2025. The company reported that average earning assets expanded 11% to $142.1 billion, driven by higher deposit levels. Although net interest income grew year-over-year, the company noted that net interest margins faced some sequential pressure due to rising funding costs.
Northern Trust maintained disciplined expense management during the period, with noninterest expenses rising 6% to $1.51 billion. This resulted in more than 700 basis points of positive operating leverage and a pre-tax margin of 32.0%. The return on average common equity improved to 17.4%, up from 13.0% in the prior-year quarter.
In a statement, Chairman and Chief Executive Officer Michael O’Grady said the firm began 2026 with strong financial momentum, underscoring the effectiveness of its diversified business model. O’Grady noted that while global economic uncertainty persists, the firm remains focused on strengthening its global franchise and supporting its clients.
The company returned $509.7 million to common shareholders during the quarter through $150.8 million in dividends and $358.9 million in share repurchases. Northern Trust repurchased approximately 2.5 million shares at an average price of $144.25 and maintained its quarterly dividend at $0.80 per share.