A Look Back at Custody Bank Stocks’ Q2 Earnings: StepStone Group (NASDAQ:STEP) Vs The Rest Of The Pack
The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how custody bank stocks fared in Q2, starting with StepStone Group (NASDAQ:STEP).
Custody banks safeguard financial assets and provide services like settlement, accounting, and regulatory compliance for institutional investors. Growth opportunities stem from increasing global assets under custody, demand for data analytics, and blockchain technology adoption for settlement efficiency. Challenges include fee pressure from large clients, substantial technology investment requirements, and competition from both traditional players and fintech firms entering the space.
The 16 custody bank stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 3.2%.
Thankfully, share prices of the companies have been resilient as they are up 5.6% on average since the latest earnings results.
Weakest Q2: StepStone Group (NASDAQ:STEP)
Operating as both an advisor and asset manager with over $100 billion in assets under management, StepStone Group (NASDAQ:STEP) is an investment firm that provides clients with access to private market investments across private equity, real estate, private debt, and infrastructure.
StepStone Group reported revenues of $300.6 million, up 26.6% year on year. This print fell short of analysts’ expectations by 3.9%. Overall, it was a softer quarter for the company with a significant miss of analysts’ EBITDA and AUM estimates.
StepStone Group delivered the weakest performance against analyst estimates among its peers. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $50.34.
With over $100 billion in assets under management and supervision, Hamilton Lane (NASDAQ:HLNE) is an investment management firm that specializes in private markets, offering advisory services and fund solutions to institutional and private wealth investors.
Hamilton Lane reported revenues of $275.3 million, up 56.5% year on year, outperforming analysts’ expectations by 21%. The business had an incredible quarter with a beat of analysts’ EPS and AUM estimates.
Hamilton Lane pulled off the biggest analyst estimate beat in the group. The market seems happy with the results as the stock is up 11.7% since reporting. It currently trades at $106.04.
Originally spun off from Dutch financial giant ING in 2013 and rebranded with a name suggesting “voyage,” Voya Financial (NYSE:VOYA) provides workplace benefits and savings solutions to U.S. employers, helping their employees achieve better financial outcomes through retirement plans and insurance products.
Voya Financial reported revenues of $1.88 billion, flat year on year, in line with analysts’ expectations. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates.
Voya Financial delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 2.9% since the results and currently trades at $103.61.
With roots dating back to 1955 and a pioneering role in money market funds, Federated Hermes (NYSE:FHI) is an investment management firm that offers a wide range of funds and strategies for institutional and individual investors.
Federated Hermes reported revenues of $502.8 million, up 18.3% year on year. This print surpassed analysts’ expectations by 2.3%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ AUM and EPS estimates.
The stock is up 8.6% since reporting and currently trades at $64.57.
Originally founded as a financial media company before pivoting to ETF management in 2006, WisdomTree (NYSE:WT) is a financial services company that creates and manages exchange-traded funds (ETFs) and other investment products for individual and institutional investors.
WisdomTree reported revenues of $177.2 million, up 57.3% year on year. This number beat analysts’ expectations by 3.4%. It was an exceptional quarter as it also put up an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
WisdomTree achieved the fastest revenue growth among its peers. The stock is up 30.2% since reporting and currently trades at $24.48.
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
