Bank of New York Mellon (BK) AI Stock Analysis

• Market Cap: $80.21B
• Dividend Yield: 1.71%
• Average Volume (3M): 3.65M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.91
• Revenue Growth: 4.22%
• EPS Growth: 51.01%
• Country: US
• Employees: 51,000
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 2.02
• Shares Outstanding: 688,236,000
• 10 Day Avg. Volume: 3,664,082
• 30 Day Avg. Volume: 3,653,287
• PEG Ratio: 0.53
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 2.08
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -0.17
• Enterprise Value/Revenue: -0.35
• Enterprise Value/Gross Profit: -0.69
• Enterprise Value/Ebitda: -1.64
• 1Y Price Target: $136.21
• Price Target Upside: 13.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 8.35
• Revenue Forecast (FY): $21.16B

• Rating: 72 Outperform
• Price Target: $135.00 ▲(12.21% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by improved profitability and healthier leverage, supported by upbeat guidance and raised medium-term targets from the latest earnings call. Offsetting these positives are volatile cash flow and uneven revenue trends in the financial statements, plus mixed near-term technical momentum; valuation appears reasonable with a modest dividend yield.

Positive Factors

Improved profitability and margins

Sustained margin expansion and rising net income reflect structural gains from efficiency and scale rather than one-off items. Higher EBIT/pre-tax margins and ROTCE improvement support durable earnings power and greater capacity for reinvestment, capital returns and shock absorption.

Exceptional custody and AUM scale

Huge custody footprint and multi‑trillion AUM create a durable competitive moat through high switching costs, recurring fee opportunities and cross‑sell potential. Scale supports pricing power in servicing, stable fee pools and resilience through market cycles.

Material operating leverage and platform transformation

Repeated positive operating leverage plus a clear platform/AI rollout indicate sustainable productivity gains. Management targets higher pretax margins and ROTCE, implying structural cost discipline and tech-driven efficiency that can sustain margin upside over the medium term.

Negative Factors

Weak top-line momentum

Negative revenue growth in 2025 shows earnings improvement was driven more by expense control than organic top‑line expansion. If revenue recovery lags, margins and returns may be harder to sustain and upside from operational leverage could be constrained.

Volatile cash generation

Large year‑to‑year swings in free cash flow reduce predictability for buybacks, dividends and reinvestment. Cash conversion inconsistency increases sensitivity to market/working capital swings and complicates capital allocation decisions over the medium term.

Fee mix pressure and wealth outflows

Declining/pressured fee businesses and net outflows in parts of Wealth create structural revenue mix risk. A shift toward interest‑driven income or volatile fee lines reduces predictable recurring revenue and heightens exposure to deposit margin cycles.

Bank of New York Mellon Business Overview & Revenue Model

Company Description

The Bank of New York Mellon Corporation provides a range of financial products and services in the United States and internationally. The company operates through Securities Services, Market and Wealth Services, Investment and Wealth Management, and Other segments. The Securities Services segment offers custody, trust and depositary, accounting, exchange-traded funds, middle-office solutions, transfer agency, services for private equity and real estate funds, foreign exchange, securities lending, liquidity/lending services, prime brokerage, and data analytics. This segment also provides trustee, paying agency, fiduciary, escrow and other financial, issuer, and support services for brokers and investors. The Market and Wealth Services segment offers clearing and custody, investment, wealth and retirement solutions, technology and enterprise data management, trading, and prime brokerage services; and clearance and collateral management services. This segment also provides integrated cash management solutions, including payments, foreign exchange, liquidity management, receivables processing and payables management, and trade finance and processing services. The Investment and Wealth Management segment offers investment management strategies and distribution of investment products, investment management, custody, wealth and estate planning, private banking, investment, and information management services. The Other segment engages in the provision of leasing, corporate treasury, derivative and other trading, corporate and bank-owned life insurance, renewable energy investment, and business exit services. It serves central banks and sovereigns, financial institutions, asset managers, insurance companies, corporations, local authorities and high net-worth individuals, and family offices. The company was founded in 1784 and is headquartered in New York, New York.

How the Company Makes Money

Bank of New York Mellon generates revenue primarily through fees charged for its various services. The main revenue streams include investment management fees from asset management services, which are based on a percentage of assets under management (AUM), and servicing fees from custody and administration services, which are derived from the safekeeping of client assets and related operational services. Additionally, the company earns revenue from foreign exchange services, securities lending, and other ancillary services. Strategic partnerships with financial institutions and technology providers also enhance its service offerings and contribute to its earnings by expanding its client base and improving operational efficiency.

Bank of New York Mellon Financial Statement Overview

Summary

Profitability and margins improved materially (higher net income and EBIT margin) and leverage improved (lower debt-to-equity, higher ROE). Offsetting this, revenue momentum is uneven (negative in 2025 in the provided statements) and free cash flow has been notably volatile, including a negative year in 2024.

Income Statement

Profitability has improved meaningfully over the last three annual periods, with net income rising from $3.3B (2023) to $5.5B (2025) and net margins expanding from ~9.8% to ~14.1%. Operating performance also strengthened as EBIT margin improved from ~12.7% (2023) to ~18.0% (2025). The key weakness is top-line momentum: revenue growth turned negative in 2025 (-2.9%) after modest growth in 2024 (~0.2%), suggesting earnings gains were driven more by efficiency/expense control than by sustained revenue expansion.

Balance Sheet

Leverage has improved, with debt-to-equity falling from ~1.10 (2024) to ~0.76 (2025) as total debt declined and equity increased. Returns are solid and trending up, with return on equity improving from ~8.1% (2023) to ~12.5% (2025). The main constraint is that the balance sheet still carries substantial absolute debt ($33.9B in 2025), and prior-year leverage was higher, indicating sensitivity if operating conditions weaken.

Cash Flow

Cash generation is volatile. 2025 showed strong cash performance with operating cash flow of $6.7B and free cash flow of $5.2B, a sharp rebound from negative free cash flow in 2024 (-$0.8B) despite positive net income. The swing from 2024 to 2025 is a clear positive, but the inconsistency year-to-year reduces confidence in durability and makes cash conversion less predictable.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	39.24B	39.55B	33.79B	19.80B	15.86B
Gross Profit	19.86B	18.19B	17.37B	16.15B	15.86B
EBITDA	8.36B	7.65B	6.17B	5.26B	6.51B
Net Income	5.55B	4.53B	3.30B	2.56B	3.76B
Balance Sheet
Total Assets	472.30B	416.06B	409.88B	405.78B	444.44B
Cash, Cash Equivalents and Short-Term Investments	190.69B	200.61B	238.93B	225.56B	266.75B
Total Debt	33.88B	45.44B	46.24B	43.19B	38.25B
Total Liabilities	427.49B	374.30B	368.97B	364.93B	401.05B
Stockholders Equity	44.31B	41.32B	40.77B	40.73B	43.03B
Cash Flow
Free Cash Flow	5.18B	-782.00M	4.69B	13.72B	1.62B
Operating Cash Flow	6.73B	687.00M	5.91B	15.07B	2.84B
Investing Cash Flow	-44.28B	-9.48B	-5.81B	19.87B	19.67B
Financing Cash Flow	39.71B	6.34B	-3.52B	-33.65B	-21.96B

Bank of New York Mellon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 120.31
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BK, the sentiment is Positive. The current price of 120.31 is above the 20-day moving average (MA) of 120.14, above the 50-day MA of 119.00, and above the 200-day MA of 105.15, indicating a bullish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 52.00 is Neutral, neither overbought nor oversold. The STOCH value of 38.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BK.

Bank of New York Mellon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BK	72 Outperform	$80.21B	15.75	12.96%	1.71%	4.22%	51.01%
BEN	69 Neutral	$14.12B	24.96	4.58%	5.33%	2.31%	5.71%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AMP	67 Neutral	$42.51B	12.85	60.51%	1.26%	5.76%	39.77%
IVZ	66 Neutral	$11.63B	-16.56	-2.10%	3.08%	6.64%	―
STT	66 Neutral	$35.46B	13.53	11.07%	2.43%	5.62%	49.49%
NTRS	58 Neutral	$26.74B	16.19	13.37%	2.21%	-4.52%	7.01%

Bank of New York Mellon Corporate Events

BNY Mellon Plans Series M Preferred Stock Offering

On February 26, 2026, Bank of New York Mellon announced a proposed public offering of depositary shares, each representing a 1/100th interest in a new Series M Noncumulative Perpetual Preferred Stock, with final pricing yet to be determined. The bank plans to use any net proceeds for general corporate purposes, which may include redeeming some or all of its existing Series F and Series H preferred stock in March and September 2026, respectively, though any such redemptions and the closing of the offering remain contingent on market conditions and further decisions by the company.

The most recent analyst rating on (BK) stock is a Buy with a $143.00 price target. To see the full list of analyst forecasts on Bank of New York Mellon stock, see the BK Stock Forecast page.

BNY Mellon Issues $1.55 Billion Callable Senior Notes

On January 22, 2026, The Bank of New York Mellon Corporation issued $1.25 billion of 4.026% Fixed Rate / Floating Rate Callable Senior Medium-Term Notes Series J due 2030 and $300 million of Floating Rate Callable Senior Medium-Term Notes Series J due 2030, all registered under the Securities Act of 1933 via an existing shelf registration. The transaction enhances BNY Mellon’s funding profile and capital markets flexibility by adding a combined $1.55 billion in callable senior debt maturing in 2030, which may support ongoing balance sheet management and future growth initiatives while signaling continued access to investment-grade debt markets.

The most recent analyst rating on (BK) stock is a Buy with a $143.00 price target. To see the full list of analyst forecasts on Bank of New York Mellon stock, see the BK Stock Forecast page.

BNY Mellon Posts Record 2025 Earnings and Revenue

On January 13, 2026, BNY reported its financial results for the fourth quarter and full year ended December 31, 2025, posting diluted earnings per share of $2.02 for the quarter, or $2.08 on an adjusted basis, and full-year EPS of $7.40, or $7.50 adjusted. The bank delivered record 2025 net income of $5.3 billion on record revenue of $20.1 billion, achieved a return on tangible common equity of 26%, and generated eight consecutive quarters of positive operating leverage, leading to a 28% year-over-year increase in EPS and $5.0 billion of capital returned to shareholders. Fourth-quarter revenue rose 7% year-on-year to $5.18 billion, driven by higher fee revenue and net interest income, while assets under custody and/or administration reached $59.3 trillion and assets under management $2.2 trillion, underscoring the scale of its franchise. Key profitability metrics also improved, with a 36% pre-tax operating margin, 14.5% return on equity and 26.6% ROTCE in the quarter, supporting management’s view that its multi-year transformation program is delivering results and enabling the company to raise its medium-term financial targets and pursue greater scale and growth across its platforms.

The most recent analyst rating on (BK) stock is a Buy with a $143.00 price target. To see the full list of analyst forecasts on Bank of New York Mellon stock, see the BK Stock Forecast page.

BNY Mellon Elects Charles F. Lowrey to Board

On December 9, 2025, BNY Mellon’s Board of Directors elected Charles F. Lowrey as an independent member, effective February 15, 2026, expanding the board to 12 directors. Additionally, the Human Resources and Compensation Committee awarded CEO Robin Vince a $25 million equity award and stock options, recognizing his leadership and commitment to shareholder value. This move underscores the company’s focus on leadership continuity and aligning executive compensation with shareholder interests.

The most recent analyst rating on (BK) stock is a Hold with a $109.00 price target. To see the full list of analyst forecasts on Bank of New York Mellon stock, see the BK Stock Forecast page.