Let’s dig into the relative performance of StepStone Group (NASDAQ: STEP) and its peers as we unravel the now-completed Q1 custody bank earnings season.
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 Q1. As a group, revenues beat analysts’ consensus estimates by 2.5%.
In light of this news, share prices of the companies have held steady as they are up 4.7% on average since the latest earnings results.
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 $305.8 million, up 3.4% year on year. This print exceeded analysts’ expectations by 3.2%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA and EPS estimates.
Interestingly, the stock is up 3.3% since reporting and currently trades at $53.74.
Best Q1: Franklin Resources (NYSE: BEN)
Operating under the widely recognized Franklin Templeton brand since 1947, Franklin Resources (NYSE: BEN) is a global investment management organization that offers financial services and solutions to individuals, institutions, and wealth advisors worldwide.
Franklin Resources reported revenues of $2.29 billion, up 8.7% year on year, outperforming analysts’ expectations by 11.8%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.
The market seems happy with the results as the stock is up 12.5% since reporting. It currently trades at $31.02.
Is now the time to buy Franklin Resources? Access our full analysis of the earnings results here, it’s free.
Slowest Q1: Hamilton Lane (NASDAQ: HLNE)
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 $193.6 million, down 2.2% year on year, falling short of analysts’ expectations by 3.4%. It was a slower quarter as it posted a miss of analysts’ revenue estimates.
Hamilton Lane delivered the slowest revenue growth in the group. Interestingly, the stock is up 6.1% since the results and currently trades at $90.32.
Read our full analysis of Hamilton Lane’s results here.
Invesco (NYSE: IVZ)
With roots dating back to 1935 when it pioneered the first mutual fund with an objective of capital growth, Invesco (NYSE: IVZ) is a global asset management firm that offers investment solutions across equities, fixed income, alternatives, and multi-asset strategies.
Invesco reported revenues of $1.26 billion, up 14% year on year. This result was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it also logged a narrow beat of analysts’ EBITDA estimates but EPS in line with analysts’ estimates.
The stock is up 6.2% since reporting and currently trades at $27.05.
Read our full, actionable report on Invesco here, it’s free.
Federated Hermes (NYSE: FHI)
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 $479 million, up 13.1% year on year. This number topped analysts’ expectations by 1.2%. It was a strong quarter as it also recorded a beat of analysts’ EPS estimates and a narrow beat of analysts’ revenue estimates.
The stock is down 5.6% since reporting and currently trades at $54.81.
Read our full, actionable report on Federated Hermes here, it’s free.
Market Update
Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?
These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.
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