Northern Trust Corporation (NTRS)

FairStock Score: 65/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I see Northern Trust as a high-quality trust franchise in asset servicing and wealth management, where institutional relationships and scale can create a real moat. The filed figures show fiscal Q2 2026 net income of $792.2 million, up from $421.3 million in fiscal Q2 2025, a sharp rebound. Revenue was reported at $1.3 billion in both fiscal Q2 2026 and fiscal Q2 2025, so the profit swing came from something other than reported revenue growth in those filings. On the longer record, fiscal 2025 revenue was $5.0 billion versus $4.7 billion in fiscal 2024, but net income fell to $1.7 billion from $2.0 billion and diluted EPS declined to $8.74 from $9.77. FairStock's slow-grower label fits: profit growth of 7.5% a year over five years and revenue growth of 4.7%. The FairStock return measure of 18.44% ROE is attractive, and the 2.08% dividend yield is a modest plus. At the 2026-10-26 close of $169.55, FairStock shows 13.30 times EPS of $12.75 and 2.46 times book. That is not demanding, but FairStock's Graham Number of $144.96 puts the price 15.84% above a conservative value line, so there is no margin of safety. I also note trailing free cash flow of negative $217.9 million, FairStock's 4/9 Piotroski score and a low 0.26 Altman score. I would call this a good franchise at a fair-to-full price, not a classic Graham bargain.

In plain English: Northern Trust serves institutions and wealthy families with asset servicing, wealth management, asset management and banking. The business looks profitable and pays a dividend, but it generated negative cash flow and its financial strength checks are mixed. At $169.55, the price looks fair to slightly rich compared with the company's earnings and a conservative value estimate.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer