Bank Of New York Mellon Posts Solid Q4, Outlook Reflects More Durable EPS Growth

Bank of New York Mellon Corp (NYSE:BK) reported strong fourth-quarter results, and its 2026 and medium-term outlook "underscores a more durable mid-teens % EPS growth…with signs of accelerating organic growth further supporting the stock’s valuation," according to Goldman Sachs.

The Bank of New York Mellon Analyst: Analyst Alexander Blostein reiterated a Buy rating, while raising the price target from $136 to $143.

The firm reported net interest income (NII) of $1.346 billion, beating consensus of $1.289 billion, Blostein said in the note.

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Management guided to total revenue growth ex-notable items of around 5% year-on-year, with accelerating organic fee growth, the analyst stated. Management's conservative outlook leaves "room for upside," he added.

Bank of New York Mellon has a "clear path" to expand its pre-tax margins to 38%, from 36% in 2025, over the next few years and offer "consistent capital returns with ~90%-100% payout," Blostein further wrote.

BK Price Action: Shares of Bank of New York Mellon had risen by 0.50% to $123.56 at the time of publication on Wednesday.

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