The Boston company's shares at last check were off 6.9% at $80.55.
State Street reported adjusted earnings of $1.47 a share as revenue fell nearly 4% from a year-earlier to $2.95 billion.
Analysts were expecting earnings of $1.35 a share on revenue of $2.87 billion.
Net interest income of $467 million was short of the consensus estimate of $470 million. Net interest income decreased 30% year over year.
"Our product innovation and enhancements of our operating model continue to make contributions across our businesses, as reflected in our strong new business results including demand for Charles River Development and State Street Alpha.," Chief Executive Ron O'Hanley said in a statement.
Fee revenue increased 4% in the quarter while servicing fees increased 7%, management fees rose 6% and securities finance increased 8% in the quarter.
Total expenses increased 3%, which the firm said reflection mainly unfavorable currency translation.
"Core operating expenses continue to be controlled and we remain committed to expense discipline by driving productivity gains through automation and process reengineering, while investing back into our businesses," O'Hanley said.
The company completed a $475 million stock buyback. It recently unveiled a buyback of up to $425 million, which is consistent with the limit set by the Federal Reserve.