• Northern Trust Corporation (NASDAQ:NTRS) is expected to report increased earnings and revenues in the fourth quarter of 2025, driven by higher net interest income and increased loan demand.
• The company faces challenges such as elevated expenses and asset quality risks but has a history of exceeding earnings estimates.
• Despite concerns over financial leverage and cash flow generation, Northern Trust's stock is recognized as a top-ranked momentum stock, indicating potential market outperformance.

Northern Trust Corporation, listed on NASDAQ as NTRS, is a financial services company known for its wealth management, asset servicing, and banking solutions. As a key player in the financial sector, it competes with firms like State Street and BNY Mellon. On January 22, 2026, Northern Trust is set to release its quarterly earnings, with analysts estimating an EPS of $2.37 and revenue of $2.06 billion.

Analysts expect Northern Trust to report increased earnings and revenues for the fourth quarter of 2025. This growth is anticipated due to higher net interest income and increased loan demand, supported by stabilizing funding costs. Additionally, a rise in asset servicing fees is expected to contribute positively to the company's financial performance.

Despite these positive expectations, Northern Trust faces challenges such as elevated expenses and asset quality risks, including non-performing assets. However, the company has a history of exceeding earnings estimates, as highlighted by its previous quarter's earnings surprise. This was driven by increased net interest income and higher total assets under custody and management balances.

Northern Trust's stock is recognized as a top-ranked momentum stock by Zacks Investment Research, indicating its potential to outperform the market. The company's P/E ratio of 15.78 and price-to-sales ratio of 1.89 reflect investor confidence in its earnings and sales. However, its current ratio of 0.50 suggests potential challenges in covering short-term liabilities.

The company's financial leverage is indicated by a debt-to-equity ratio of 1.21, showing reliance on debt for financing. Concerns arise from negative enterprise value to sales and operating cash flow ratios, at -0.97 and -5.56 respectively, which may signal valuation and cash flow generation issues. Investors will closely watch the upcoming earnings report and management's discussion for insights into future performance.