Raymond James Q3 Earnings Beat on Higher Revenues, Provision Benefit

Net income available to common shareholders (GAAP basis) was $595 million or $3.01 per share, up from $435 million or $2.12 in the prior-year quarter.

RJF’s Revenues Improve, Expenses Rise

Net revenues were a record $3.93 billion, up 16% year over year. The top line beat the Zacks Consensus Estimate of $3.86 billion.

Asset management and related administrative fees increased 20% year over year to $2.08 billion. Brokerage revenues rose 13% to $629 million, while account and service fees increased 5% to $316 million. Investment banking (IB) revenues jumped 37% to $291 million. Interest income was relatively stable at $994 million.

Segment-wise, in the reported quarter, the Private Client Group recorded 14% year-over-year growth in net revenues. Asset Management’s net revenues rose 24%, while Capital Markets’ top line increased 25%. Bank registered a rise of 7% from the prior year’s net revenues, while Other recorded negative revenues.

Non-interest expenses increased 12% from the prior-year quarter to $3.18 billion. The increase was mainly due to a rise in compensation, commissions and benefits, communications and information processing, occupancy and equipment, business development, investment sub-advisory fees and professional fees. This was partly offset by lower other expenses and a $26-million bank loan benefit for credit losses. 

As of June 30, 2026, client assets under administration were a record $1.92 trillion, up 17% from the prior-year period. Financial assets under management of $345 billion grew 31% year over year.

RJF’s Balance Sheet & Capital Ratios Strong

As of June 30, 2026, Raymond James had total assets of $94.2 billion, up 3% from the prior-quarter end. Total common equity was $12.7 billion, up 1% from the previous quarter.

Book value per share was $66.11, up from $60.90 as of June 30, 2025.

As of June 30, 2026, the total capital ratio was 22.5%, down from 24.2% as of June 30, 2025. The Tier 1 capital ratio was 21.6% compared with 22.9% as of June 30, 2025.

Return on common equity (annualized basis) was 18.8% at the end of the reported quarter compared with 14.3% a year ago.

Update on Raymond James’ Share Repurchases

In the reported quarter, RJF repurchased shares worth $400 million at an average price of $152 per share.

As of June 30, 2026, $1.1 billion remained available under the buyback authorization.

Our View on Raymond James

Raymond James’ diversified business model and continued strength in the Private Client Group are expected to support results. Record fee-based assets, robust financial advisor recruiting, strong investment banking pipelines and ample capital and liquidity are positives for the company. 

Also, the completion of the Clark Capital acquisition supported financial assets under management. However, elevated operating expenses remain a concern.

Currently, Raymond James carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of RJF’s Peers

Charles Schwab’s SCHW second-quarter 2026 adjusted earnings of $1.62 per share outpaced the Zacks Consensus Estimate of $1.53. The bottom line soared 42% year over year.

Schwab’s results benefited from the robust performance of the asset management business and record trading revenues. Higher net interest revenues and solid brokerage account numbers were other positives. However, an increase in expenses was the undermining factor.

Jefferies Financial Group’s JEF second-quarter fiscal 2026 (ended May 31) adjusted earnings per share from continuing operations of $1.03 missed the Zacks Consensus Estimate of $1.09. However, the bottom line increased significantly from the prior-year quarter.

Results were primarily aided by record IB advisory and underwriting net revenues, as well as record equities net revenues. However, a rise in expenses hurt Jefferies’ results to an extent.

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