A Business at a Glance
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NORTHERN TRUST CORP
NTRS
$35.0B
Mkt Cap
$180.52
+1.44%
NORTHERN TRUST CORP (NTRS) has a current P/E ratio of 20.7, compared to its historical median P/E of 14.7. The stock is currently considered Expensive based on its historical valuation range.
NORTHERN TRUST CORP (NTRS) has a 5-year average return on invested capital (ROIC) of 12.3%. This indicates solid capital allocation.
NORTHERN TRUST CORP (NTRS) has a market capitalization of $33.4B. It is classified as a large-cap stock.
Yes, NORTHERN TRUST CORP (NTRS) pays a dividend with a trailing twelve-month yield of 1.78%. The company also returns capital through share buybacks, with a buyback yield of 4.03%.
Based on historical P/E analysis, NORTHERN TRUST CORP (NTRS) appears expensive. The current P/E of 20.7 is 41% above its historical median of 14.7. The estimated fair value CAGR (P/E method) is 2.9%.
NORTHERN TRUST CORP (NTRS) operates in the State Commercial Banks industry, within the Financials sector.
NORTHERN TRUST CORP (NTRS) reported annual revenue of $14.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
Northern Trust Corporation is a leading global financial services provider offering wealth management, asset servicing, asset management, and banking solutions to corporations, institutions, families, and individuals. The company operates through two primary client-focused segments: Asset Servicing, which provides custody, fund administration, investment operations outsourcing, securities lending, treasury management, and related services to institutional investors globally, and Wealth Management, which serves high-net-worth individuals, families, business owners, and established privately-held businesses with trust, investment management, custody, philanthropic services, and family office solutions. Asset Management supports both segments by delivering investment solutions across active and passive equity and fixed income, alternatives, cash management, and multi-asset strategies through separately managed accounts, collective funds, ETFs, and private investment funds. The company operates on a fee-based business model emphasizing scalable, sustainable revenue generation, with a global footprint spanning 24 U.S. states and Washington, D.C., plus offices across 22 locations in Canada, Europe, the Middle East, and the Asia-Pacific region. Northern Trust's competitive differentiation rests on its trusted brand, deep expertise, tailored technology, proven client relationships, and strong balance sheet, positioning it to serve targeted client segments with specialized solutions in select geographies.
【Margin expansion and organic growth acceleration】 Management expects to continue driving higher margins in Asset Servicing while maintaining strong performance in Wealth Management, with the combination expected to increase toward the medium-term pre-tax margin target of 33%. Organic growth is projected to accelerate across all three businesses toward and above the 3% target, supported by maturing initiatives, workforce improvements, and broader AI deployment. The company expects to generate more than 100 basis points of positive operating leverage in 2026 while maintaining disciplined expense management and returning at least 100% of earnings to shareholders. Management remains focused on the current footprint and service offerings, targeting continued profitable growth through enhanced client acquisition, particularly in the ultra-high net worth and family office segments, and expects alternatives to remain a key growth driver with an accelerated fund launch cadence in 2026.
| Metric | Target | Period |
|---|---|---|
| Net Interest Income (NII) growth | mid to high single digits | FY2026 |
| Operating leverage | more than 100 basis points | FY2026 |
| Shareholder returns | at least 100% | FY2026 |
| Effective tax rate | approximately 26%-26.5% | FY2026 |
Net Interest Income (NII) growth (FY2026): “For the full year, we now expect NII to grow by mid to high single digits over the prior year, which is an increase from our previous guide of low to mid single digits.”
Operating leverage (FY2026): “We still expect to generate more than 100 basis points of positive operating leverage”
Shareholder returns (FY2026): “we expect to return at least 100% of our earnings to shareholders”
Effective tax rate (FY2026): “We still expect the effective tax rate in 2026 to be approximately 26%-26.5%.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Segment | 2021 | 2022 | 2023 | 2024 | 2025 | % of Total |
|---|---|---|---|---|---|---|
Investment Management and Advisory | $2.14B | $2.30B | $2.23B | $2.49B | $2.66B | 51% |
Custody and Fund Administration | $1.92B | $1.82B | $1.81B | $1.92B | $2.03B | 39% |
Other | $227M | $236M | $240M | $247M | $248M | 5% |
Securities Commission and Trading | $112M | $117M | $116M | $144M | $163M | 3% |
Securities Lending | $77M | $82M | $84M | $74M | $83M | 2% |
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 8.4B | 14.3B | 15.9B | 12.1B | 7.8B | 6.5B |
| Net Income | 1.8B | 1.7B | 2.0B | 1.1B | 1.3B | 1.5B |
| EPS | $9.74 | $8.74 | $9.77 | $5.08 | $6.14 | $7.14 |
| Free Cash Flow | 2.4B | 5.5B | -588M | 2.5B | 2.3B | 1.3B |
| ROIC | 14.0% | 12.9% | 15.9% | 9.1% | 11.1% | 12.7% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 0.26 | 0.26 | 0.22 | 0.23 | 0.24 | 0.21 |
| Dividends/Share | $3.21 | $3.10 | $3.00 | $3.00 | $2.90 | $2.80 |
| Operating Income | 227M | 208M | 1.2B | 229M | 191M | 244M |
| Operating Margin | 2.7% | 1.5% | 7.3% | 1.9% | 2.5% | 3.8% |
| ROE | 14.1% | 13.2% | 16.1% | 9.2% | 11.1% | 12.7% |
| Shares Outstanding | 185M | 194M | 204M | 210M | 211M | 211M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 4.5B | 4.9B | 5.1B | 5.7B | 6.7B | 6.9B | 6.3B | 6.5B | 7.8B | 12.1B | 15.9B | 14.3B | 8.4B |
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 3.1B | 3.3B | 3.5B | 3.8B | 4.0B | 4.1B | 4.3B | 4.5B | 5.0B | 5.3B | 5.6B | 5.8B | 5.2B |
| EBIT | 154M | 247M | 241M | 158M | 128M | 146M | 194M | 244M | 191M | 229M | 1.2B | 208M | 227M |
| Op. Margin | 3.4% | 5.1% | 4.7% | 2.8% | 1.9% | 2.1% | 3.1% | 3.8% | 2.5% | 1.9% | 7.3% | 1.5% | 2.7% |
| Net Income | 802M | 950M | 1.0B | 1.1B | 1.5B | 1.4B | 1.2B | 1.5B | 1.3B | 1.1B | 2.0B | 1.7B | 1.8B |
| Net Margin | 17.8% | 19.6% | 19.6% | 20.1% | 22.7% | 21.0% | 18.3% | 23.2% | 16.7% | 8.8% | 12.5% | 11.9% | 21.9% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 85M | 59M | 59M |
| Returns on Capital | |||||||||||||
| ROIC | 9.8% | 11.0% | 10.9% | 11.5% | 14.5% | 13.3% | 10.1% | 12.7% | 11.1% | 9.1% | 15.9% | 12.9% | 14.0% |
| ROE | 9.8% | 11.1% | 10.9% | 11.5% | 14.6% | 13.4% | 10.1% | 12.7% | 11.1% | 9.2% | 16.1% | 13.2% | 14.1% |
| ROA | 0.8% | 0.8% | 0.8% | 0.9% | 1.1% | 1.1% | 0.8% | 0.8% | 0.8% | 0.7% | 1.3% | 1.0% | 1.0% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 936M | 1.8B | 1.5B | 1.7B | 1.8B | 2.6B | 1.9B | 1.4B | 2.4B | 2.6B | -486M | 5.5B | 2.5B |
| Free Cash Flow | 854M | 1.7B | 1.4B | 1.6B | 1.7B | 2.4B | 1.8B | 1.3B | 2.3B | 2.5B | -588M | 5.5B | 2.4B |
| Owner Earnings | 768M | 1.7B | 1.3B | 1.5B | 1.5B | 2.4B | 1.7B | 1.1B | 2.2B | 2.4B | -715M | 5.3B | 1.6B |
| CapEx | 82M | 99M | 111M | 92M | 98M | 158M | 136M | 96M | 129M | 117M | 102M | 74M | 71M |
| Maint. CapEx | 91M | 90M | 89M | 101M | 109M | 103M | 117M | 111M | 110M | 116M | 110M | 101M | 867M |
| Growth CapEx | 0 | 8.1M | 22M | 0 | 0 | 55M | 19M | 0 | 18M | 600K | 0 | 0 | 0 |
| D&A | 91M | 90M | 89M | 101M | 109M | 103M | 117M | 111M | 110M | 116M | 110M | 101M | 867M |
| CapEx/OCF | 8.8% | 5.4% | 7.4% | 5.3% | 5.5% | 6.1% | 7.2% | 7.0% | 5.4% | 4.4% | N/A | 1.3% | 2.9% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 303M | 321M | 333M | 357M | 405M | 530M | 585M | 583M | 750M | 622M | 602M | 592M | 594M |
| Dividend Yield | 2.6% | 2.5% | 2.6% | 2.1% | 2.2% | 3.2% | 3.9% | 2.9% | 3.9% | 4.0% | 3.5% | 2.6% | 1.8% |
| Share Buybacks | 481M | 497M | 411M | 523M | 924M | 1.1B | 300M | 268M | 35M | 348M | 938M | 1.3B | 1.3B |
| Buyback Yield | 3.9% | 3.8% | 2.5% | 2.8% | 6.1% | 5.7% | 1.8% | 1.2% | 0.2% | 2.1% | 4.6% | 4.7% | 4.0% |
| Stock-Based Comp | 78M | 76M | 87M | 128M | 131M | 108M | 91M | 96M | 125M | 118M | 119M | 127M | 2.1M |
| Debt Repayment | 640M | 231M | 6.7M | 209M | 314M | 0 | 2.7B | 427M | 4.0B | 1.1B | 104M | 567M | 567M |
| Balance Sheet | |||||||||||||
| Net Debt | -31.1B | -34.2B | -39.4B | -36.8B | -39.5B | -40.8B | -43.3B | -62.1B | -53.8B | -51.3B | -53.2B | -60.0B | -63.7B |
| Cash & Equiv. | 3.0B | 3.4B | 5.3B | 4.5B | 4.6B | 4.5B | 4.4B | 3.1B | 4.7B | 4.8B | 4.7B | 5.9B | 67.0B |
| Long-Term Debt | 38M | 24M | 26M | 39M | 45M | 38M | 27M | 21M | 44M | 147M | 224M | 221M | 46M |
| Debt/Equity | 0.18 | 0.17 | 0.15 | 0.15 | 0.19 | 0.23 | 0.27 | 0.21 | 0.24 | 0.23 | 0.22 | 0.26 | 0.26 |
| Interest Coverage | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.9 |
| Equity | 8.4B | 8.7B | 9.8B | 10.2B | 10.5B | 11.1B | 11.7B | 12.0B | 11.3B | 11.9B | 12.8B | 13.0B | 13.0B |
| Total Assets | 109.9B | 116.7B | 123.9B | 138.6B | 132.2B | 136.8B | 170.0B | 183.9B | 155.0B | 150.8B | 155.5B | 177.1B | 174.6B |
| Total Liabilities | 101.5B | 108.0B | 114.2B | 128.4B | 121.7B | 125.7B | 158.3B | 171.9B | 143.8B | 138.9B | 142.7B | 164.2B | 161.6B |
| Intangibles | 60M | 47M | 42M | 161M | 139M | 121M | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | 7.6B | 8.2B | 8.9B | 9.7B | 10.8B | 11.7B | 12.2B | 13.1B | 13.8B | 14.2B | 15.6B | 16.7B | 17.1B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 3.32 | 3.99 | 4.32 | 4.92 | 6.64 | 6.63 | 5.46 | 7.14 | 6.14 | 5.08 | 9.77 | 8.74 | 9.74 |
| Owner EPS | 3.18 | 7.00 | 5.71 | 6.38 | 6.72 | 10.92 | 8.00 | 5.46 | 10.23 | 11.40 | -3.51 | 27.36 | 8.62 |
| Book Value | 34.96 | 36.55 | 41.83 | 43.74 | 46.21 | 50.81 | 55.34 | 57.07 | 53.42 | 56.73 | 62.81 | 66.81 | 70.18 |
| Cash Flow/Share | 3.87 | 7.70 | 6.46 | 7.37 | 7.77 | 11.89 | 8.98 | 6.44 | 11.35 | 12.52 | -2.39 | 28.53 | 14.57 |
| Dividends/Share | 1.25 | 1.35 | 1.43 | 1.60 | 1.94 | 2.60 | 2.80 | 2.80 | 2.90 | 3.00 | 3.00 | 3.10 | 3.21 |
| Shares Out. | 241.7M | 238.2M | 233.6M | 233.6M | 227.4M | 218.1M | 211.2M | 210.6M | 210.8M | 209.7M | 203.6M | 193.9M | 185.0M |
| Valuation | |||||||||||||
| P/E Ratio | 15.3 | 13.9 | 16.1 | 16.2 | 10.1 | 13.4 | 14.5 | 14.8 | 12.9 | 15.7 | 10.3 | 16.0 | 18.5 |
| P/FCF | 14.4 | 7.6 | 11.6 | 11.4 | 9.1 | 8.0 | 9.5 | 17.7 | 7.3 | 6.7 | N/A | 5.0 | 14.0 |
| EV/EBIT | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | -133.1 |
| Price/Book | 1.5 | 1.5 | 1.7 | 1.8 | 1.4 | 1.7 | 1.4 | 1.9 | 1.5 | 1.4 | 1.6 | 2.1 | 2.6 |
| Price/Sales | 2.7 | 2.8 | 2.5 | 3.1 | 3.1 | 2.8 | 2.5 | 3.1 | 2.8 | 2.3 | 2.1 | 2.8 | 4.0 |
| FCF Yield | 6.9% | 13.1% | 8.6% | 8.8% | 11.0% | 12.6% | 10.5% | 5.7% | 13.6% | 15.0% | -2.9% | 20.1% | 7.2% |
| Market Cap | 12.3B | 13.2B | 16.2B | 18.6B | 15.2B | 19.4B | 16.8B | 22.3B | 16.6B | 16.8B | 20.6B | 27.2B | 33.4B |
| Avg. Price | 47.58 | 54.32 | 53.82 | 71.10 | 82.09 | 76.84 | 71.56 | 96.67 | 91.11 | 73.40 | 85.05 | 115.43 | 180.52 |
| Year-End Price | 50.95 | 55.59 | 69.45 | 79.49 | 66.87 | 88.81 | 79.42 | 105.70 | 78.93 | 79.95 | 101.05 | 140.14 | 180.52 |
NORTHERN TRUST CORP passes 4 of 9 quality checks, suggesting mixed fundamentals.
NORTHERN TRUST CORP trades at 20.7x trailing earnings, compared to its 15-year median P/E of 14.7x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 6.1x vs a median of 9.1x. The company's 5-year average ROIC is 12.3%. Total shareholder yield (dividends + buybacks) is 5.8%. At current prices, the estimated annualized return to fair value is +9.5%.
NORTHERN TRUST CORP (NTRS) has a net profit margin of 11.9%. This is a healthy margin.
NORTHERN TRUST CORP (NTRS) generated $5.5 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
NORTHERN TRUST CORP (NTRS) has a debt-to-equity ratio of 0.26. This indicates a conservatively financed balance sheet.
NORTHERN TRUST CORP (NTRS) reported earnings per share (EPS) of $8.74 in its most recent fiscal year.
NORTHERN TRUST CORP (NTRS) has a return on equity (ROE) of 13.2%. This indicates moderate shareholder returns.
The Ledger Terminal provides 19 years of financial data for NORTHERN TRUST CORP (NTRS), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
NORTHERN TRUST CORP (NTRS) has a book value per share of $66.81, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects to continue driving higher margins in Asset Servicing while maintaining strong performance in Wealth Management, with the combination expected to increase toward the medium-term pre-tax margin target of 33%. Organic growth is projected to accelerate across all three businesses toward and above the 3% target, supported by maturing initiatives, workforce improvements, and broader AI deployment. The company expects to generate more than 100 basis points of positive operating leverage in 2026 while maintaining disciplined expense management and returning at least 100% of earnings to shareholders. Management remains focused on the current footprint and service offerings, targeting continued profitable growth through enhanced client acquisition, particularly in the ultra-high net worth and family office segments, and expects alternatives to remain a key growth driver with an accelerated fund launch cadence in 2026.
Based on recent SEC filings and earnings calls, NORTHERN TRUST CORP (NTRS) has provided the following forward guidance: Net Interest Income (NII) growth: mid to high single digits (FY2026); Operating leverage: more than 100 basis points (FY2026); Shareholder returns: at least 100% (FY2026); Effective tax rate: approximately 26%-26.5% (FY2026).
No recent press releases.