Global financial services company BNY NYSE:BK) reported revenue ahead of Wall Streets expectations in Q4 CY2025, with sales up 6.8% year on year to $5.18 billion. Its non-GAAP profit of $2.08 per share was 4.9% above analysts’ consensus estimates.
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BNY (BK) Q4 CY2025 Highlights:
- Revenue: $5.18 billion vs analyst estimates of $5.14 billion (6.8% year-on-year growth, 0.7% beat)
- Adjusted EPS: $2.08 vs analyst estimates of $1.98 (4.9% beat)
- Adjusted EBITDA: $1.87 billion (36% margin, 8.6% year-on-year growth)
- Operating Margin: 35.8%, in line with the same quarter last year
- Market Capitalization: $84.6 billion
StockStory’s Take
BNY’s fourth quarter results were well received by the market, with management crediting the strong performance to ongoing execution in its platform model, expanded client relationships, and notable progress in digital assets and AI integration. CEO Robin Vince emphasized that the company achieved “record sales performance for the year,” citing new wins in banking as a service and integrated data analytics as key contributors. Expense control and operational leverage also played a role, with CFO Dermot McDonogh highlighting efficiency gains from digitization and automation, as well as investments in new capabilities.
Looking ahead, BNY’s guidance for 2026 is shaped by its commitment to positive operating leverage and scaling its AI-driven platform model. Management believes that continued investment in digital infrastructure and product innovation will drive deeper client engagement and improved profitability. Vince stated that “AI will allow us to remake many of our processes and systems,” while McDonogh highlighted the expectation for higher organic growth and margin expansion as the commercial model matures. The company also raised its medium-term targets for pretax margin and return on tangible common equity, reflecting confidence in its ability to execute through varied market scenarios.
Key Insights from Management’s Remarks
Management attributed the quarter’s performance to deepening client relationships, advances in AI deployment, and the successful roll-out of new digital products.
- Client relationship expansion: The number of clients using three or more BNY services increased by over 60% in two years, reflecting effective cross-selling through the new commercial model and driving organic fee growth.
- AI and automation integration: BNY’s enterprise AI platform, Eliza, is now embedded in workflows across the company, supporting over 130 digital employees that automate tasks and enhance productivity, which management expects will drive future efficiency and higher-value client work.
- Digital asset and tokenization initiatives: BNY launched the Dreyfus Stablecoin Reserves Fund and began offering tokenized deposit capabilities, aiming to support stablecoin issuers and enable programmable, on-chain cash management for institutional clients.
- Platform operating model transformation: Around 70% of BNY’s workforce now operate within platform-based structures, a shift that management says is reducing friction, supporting agility, and improving productivity across business lines.
- Segment momentum: Security Services saw strong growth with double-digit fee increases in asset servicing and alternatives, while Markets and Wealth Services benefited from new client wins and expanded collateral management activity, though Wealth Management continued to face margin pressure despite flat expenses.
Drivers of Future Performance
BNY’s outlook for 2026 centers on scaling its AI-enabled platform, deepening client relationships, and expanding digital asset capabilities while maintaining disciplined expense growth.
- AI-powered operational efficiency: Management expects that further integration of AI, particularly through the Eliza platform, will unlock capacity, streamline processes, and enable BNY to serve clients more effectively, supporting margin expansion and cost discipline.
- Product and market expansion: New digital products, such as tokenized deposits and stablecoin reserve solutions, are targeted to attract both traditional and digital-native clients, with management seeing these innovations as key to sustaining organic growth and deepening relationships.
- Balanced growth and risk management: The company is positioning its business mix to reduce sensitivity to market volatility and interest rates, while maintaining flexibility to adjust expenses and capital returns depending on macroeconomic conditions. Management identified ongoing investments in cybersecurity and continued product hiring as priorities for 2026.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the adoption and monetization of BNY’s digital asset products, including tokenized deposits and stablecoin solutions; (2) the pace and scale of AI integration through the Eliza platform and resulting operational efficiencies; and (3) further expansion of multi-product client relationships, particularly among institutional and wealth management segments. Execution on these fronts and resilience in the face of market volatility will be important indicators of BNY’s ability to achieve its raised medium-term targets.
BNY currently trades at $123.05, up from $120.66 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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