State Street announced that its second-quarter profit rose 60% from a year earlier, to $366 million, or $1.07 per diluted share.
Analysts had expected the Boston company to report earnings per share of $1.01, according to Thomson Financial.
Revenue rose 11.8%, to $1.9 billion.
Ronald Logue, State Street's chairman and chief executive, said the early-July acquisition of Investors Financial Services Corp. of Boston is delivering strong results, prompting State Street to increase its revenue growth forecast for 2007.
It now expects revenue growth of 20% to 22%, Logue said in a conference call. In the first quarter it projected revenue growth of 16% to 18%.
State Street's assets under management increased 26% year over year in the second quarter, to $1.93 trillion.