As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the custody bank industry, including WisdomTree (NYSE:WT) and its peers.
Custody banks safeguard financial assets and provide services like settlement, accounting, and regulatory compliance for institutional investors. Growth opportunities stem from increasing global assets under custody, demand for data analytics, and blockchain technology adoption for settlement efficiency. Challenges include fee pressure from large clients, substantial technology investment requirements, and competition from both traditional players and fintech firms entering the space.
The 16 custody bank stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.4%.
While some custody bank stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.6% since the latest earnings results.
Best Q4: WisdomTree (NYSE:WT)
Originally founded as a financial media company before pivoting to ETF management in 2006, WisdomTree (NYSE:WT) is a financial services company that creates and manages exchange-traded funds (ETFs) and other investment products for individual and institutional investors.
WisdomTree reported revenues of $147.4 million, up 33.4% year on year. This print exceeded analysts’ expectations by 3%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS and EBITDA estimates.
“We closed 2025 with strong momentum, delivering $8.5 billion in net inflows, approximately 8% organic growth, and meaningful margin expansion. Model portfolios and SMAs continue to be a major growth engine, with model AUA surpassing $6 billion as adoption deepens across our client base. Combined with continued strength in ETFs and early traction in digital assets and private markets, we enter 2026 well positioned for sustained growth.”
Unsurprisingly, the stock is down 1.1% since reporting and currently trades at $16.36.
Read why we think that WisdomTree is one of the best custody bank stocks, our full report is free.
Franklin Resources (NYSE:BEN)
Operating under the widely recognized Franklin Templeton brand since 1947, Franklin Resources (NYSE:BEN) is a global investment management organization that offers financial services and solutions to individuals, institutions, and wealth advisors worldwide.
Franklin Resources reported revenues of $1.75 billion, up 3.8% year on year, outperforming analysts’ expectations by 1.9%. The business had an exceptional quarter with a beat of analysts’ EPS estimates and a decent beat of analysts’ revenue estimates.
The market seems happy with the results as the stock is up 5.9% since reporting. It currently trades at $27.42.
Is now the time to buy Franklin Resources? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Voya Financial (NYSE:VOYA)
Originally spun off from Dutch financial giant ING in 2013 and rebranded with a name suggesting "voyage," Voya Financial (NYSE:VOYA) provides workplace benefits and savings solutions to U.S. employers, helping their employees achieve better financial outcomes through retirement plans and insurance products.
Voya Financial reported revenues of $2.01 billion, up 5.7% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates and revenue in line with analysts’ estimates.
As expected, the stock is down 1.3% since the results and currently trades at $74.54.
Read our full analysis of Voya Financial’s results here.
State Street (NYSE:STT)
Dating back to 1792 when Boston's Long Wharf was the center of global shipping and trade, State Street (NYSE:STT) provides custody, investment management, and other financial services to institutional investors like pension funds, asset managers, and central banks worldwide.
State Street reported revenues of $3.67 billion, up 7.5% year on year. This print topped analysts’ expectations by 1.5%. It was a strong quarter as it also put up an impressive beat of analysts’ AUM estimates and a beat of analysts’ EPS estimates.
The stock is down 6.1% since reporting and currently trades at $127.97.
Read our full, actionable report on State Street here, it’s free.
Invesco (NYSE:IVZ)
With roots dating back to 1935 when it pioneered the first mutual fund with an objective of capital growth, Invesco (NYSE:IVZ) is a global asset management firm that offers investment solutions across equities, fixed income, alternatives, and multi-asset strategies.
Invesco reported revenues of $1.26 billion, up 8.8% year on year. This result surpassed analysts’ expectations by 0.9%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
The stock is down 7.2% since reporting and currently trades at $26.56.
Read our full, actionable report on Invesco here, it’s free.
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