BNY raised its expectation for nearly 500 basis points of positive operating leverage in 2026 after reporting third-quarter revenue of $5. 7 billion, up 12% from a year earlier. Earnings per share rose 24% to $2. 34, while the pre-tax operating margin was 38. 5% and return on tangible common equity reached 29%.
The revised outlook places full-year 2026 revenue growth, excluding notable items, around the midpoint of a 12% to 13% range, compared with the company’s earlier expectation. Net interest income is expected to rise 15%, while expense growth is projected around the midpoint of a 7% to 8% range as higher revenue brings additional related costs. The outlook assumes broadly constructive market conditions and current market-implied forward interest rates.
Management said the quarter marked the 15th consecutive quarter of year-over-year sales growth, supported by stronger pipelines across products, client groups and regions and larger mandates involving clients including Revolut and ING.
Net interest income increased 15% to $1. 4 billion. BNY also said it returned about $1. 4 billion to common shareholders during the quarter through $436 million of dividends and $937 million of share repurchases; its Tier 1 leverage ratio was 5.
The company highlighted technology and artificial intelligence as part of its growth and productivity strategy. Its AI platform has been used to develop more than 400 solutions in production, with management describing three areas of opportunity: expanding internal capacity, improving products and creating client services that may become economically viable through AI. Management also said BNY spends about $4 billion a year on technology but does not report AI spending as a separate expense line.
BNY said its digital-asset capabilities are expanding alongside those investments. The company launched Global Digital Transfer Agency capabilities in July, including a digitally native money-market fund through BNY Dreyfus whose BLIQUID tokens represent fund shares on-chain. BlackRock is using the capabilities for a tokenized share class, while the payments and trade business launched a pay-to-wallet service for cross-border transfers to participating retail wallets.
Management said the operating environment remained constructive but uneven, with persistent inflation, interest-rate repricing, geopolitical tensions and trade uncertainty contributing to market volatility. It attributed the business’s current momentum to changes in its platform and commercial operating models, alongside investment in its core businesses and execution across client opportunities.