State Street vs Brown & Brown

State Street Corporation and Brown & Brown Inc. This page compares their business models, financial performance, and market context in a neutral, accessible way, outlining how each organisation approaches its market and services. Educational content, not financial advice.

State Street Corporation and Brown & Brown Inc. This page compares their business models, financial performance, and market context in a neutral, accessible way, outlining how each organisation approa...

Comparison Snapshot

Key Financial Metrics

STT

Metric

BRO

$35.62B

Market Cap

$27.18B

10.78%

Potential Profit

22.87%

Buy

Analyst Rating

Hold

Why It's Moving

State Street Shares Slide on Higher 2026 Expenses Despite Q4 Earnings Beat

Q4 EPS beat estimates by 6%, yet stock tumbled 6% on the earnings day amid no fresh medium-term targets.
2026 expenses now guided 3%-4% higher year-over-year, topping the 1.6% consensus and signaling rising operational strain.
Analysts split: Morgan Stanley and Truist cut price targets citing expenses, while TD Cowen hiked theirs on banking tailwinds.

Sentiment:

🐻Bearish

State Street Shares Slide on Higher 2026 Expenses Despite Q4 Earnings Beat

Q4 EPS beat estimates by 6%, yet stock tumbled 6% on the earnings day amid no fresh medium-term targets.
2026 expenses now guided 3%-4% higher year-over-year, topping the 1.6% consensus and signaling rising operational strain.
Analysts split: Morgan Stanley and Truist cut price targets citing expenses, while TD Cowen hiked theirs on banking tailwinds.

Sentiment:

🐻Bearish

Investment Analysis

State Street

STT

Pros

State Street reported strong fee revenue growth of 11% in Q2 2025 and achieved record assets under management and custody levels, positioning for sustained growth.
The company maintains a solid payout with an 11% planned dividend increase to $0.84 per share, reflecting confidence in cash flow generation.
With a diversified financial services portfolio and strategic acquisitions such as Mizuho’s custody business, State Street enhances scale and market reach.

Considerations

Despite revenue growth, earnings per share rose modestly by only 1% year-on-year, indicating margin pressure or increased expenses.
The stock experienced significant volatility in 2025, impacted by broader banking sector weaknesses and interest rate uncertainties.
State Street’s return on equity is modest compared to peers, suggesting efficiency or profit generation challenges relative to larger competitors.

Brown & Brown

BRO

Pros

Brown & Brown operates a broad insurance and risk management platform focused on efficient service delivery to multinational corporations and individuals.
The company benefits from a strong executive leadership team experienced in acquisitions and specialty segment operations to drive growth.
Brown & Brown’s consistent focus on expanding specialty and retail insurance segments supports diversified revenue streams and resilience.

Considerations

Being heavily exposed to insurance markets, Brown & Brown faces risks from regulatory changes and potential increases in claims costs.
Growth can be susceptible to economic cycles affecting insurance demand and pricing power.
The company’s public information shows less emphasis on recent financial performance data compared to peers, reflecting potential transparency or reporting lags.

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