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Raymond James Q4 Earnings Beat Estimates, Revenues Rise Y/Y

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Key Takeaways

  • Raymond James' Q4 adjusted EPS of $3.11 topped estimates and rose 5% y/y.
  • Quarterly revenues hit a record $3.73B, up 8% from last year, led by asset management gains.
  • Client assets under administration reached $1.73T, with assets under management up 12% y/y.

Raymond James’ (RJF - Free Report) fourth-quarter fiscal 2025 (ended Sept. 30) adjusted earnings of $3.11 per share beat the Zacks Consensus Estimate of $2.70. The bottom line also increased 5% from the prior-year quarter.

The reported quarter’s results benefited primarily from an increase in revenues. Continued growth in asset management and related administrative fees was recorded. Robust growth in assets under administration balances to record levels further supported results. However, an increase in expenses was a headwind.

Net income available to common shareholders (GAAP basis) was $603 million or $2.95 per share, up from $601 million or $2.86 in the prior-year quarter.

For fiscal 2025, adjusted earnings were $10.66 per share, which beat the Zacks Consensus Estimate of $10.27. The bottom line increased 6% from the previous year. Net income available to common shareholders (GAAP basis) was $2.13 billion or $10.30 per share, up from $2.06 billion or $9.70 in fiscal 2024.

RJF’s Revenues Improve, Expenses Rise

Quarterly net revenues were a record $3.73 billion, up 8% year over year. The top line beat the Zacks Consensus Estimate of $3.60 billion.

Fiscal 2025 net revenues were $14.07 billion, up 10% year over year. The top line beat the Zacks Consensus Estimate of $13.94 billion.

Segment-wise, in the reported quarter, the Private Client Group recorded 7% year-over-year growth in net revenues. Asset Management’s net revenues rose 14% and Capital Markets’ top line jumped 6%. Further, Bank registered a rise of 6% from the prior year's net revenues, while Others recorded a 57% decline in the same.

Non-interest expenses jumped 11% from the prior-year quarter to $3 billion. The increase was due to a rise in all cost components except for bank loan provision for credit losses. Our estimate for non-interest expenses was $2.85 billion.

As of Sept. 30, 2025, client assets under administration were a record $1.73 trillion, up 10% from the prior-year period. Financial assets under management of $274.9 billion grew 12% year over year. Our estimates for client assets under administration and financial assets under management were $1.62 trillion and $267.8 billion, respectively.

RJF’s Balance Sheet & Capital Ratios Strong

As of Sept. 30, 2025, Raymond James had total assets of $88.2 billion, up 4% from the prior quarter end. Total common equity was $12.4 billion, up 2% sequentially.

Book value per share was $62.72, up from $57.03 as of Sept. 30, 2024.

As of Sept. 30, 2025, the total capital ratio was 24.1%, unchanged from the level as of Sept. 30, 2024. The Tier 1 capital ratio was 23% compared with 22.8% as of Sept. 30, 2024.

Return on common equity (annualized basis) was 19.6% at the end of the reported quarter compared with 21.2% a year ago.

Update on Raymond James’ Share Repurchases

In the reported quarter, RJF repurchased shares worth $350 million at an average price of $166 per share.

As of Sept. 30, 2025, $399 million remained available under the repurchase authorization.

Our View on Raymond James

Raymond James’ global diversification efforts, strategic acquisitions and relatively high rates are expected to support top-line growth. Also, a rebound in the capital markets business is a positive. However, elevated operating expenses remain a major 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

Morgan Stanley’s (MS - Free Report) third-quarter 2025 earnings of $2.80 per share handily surpassed the Zacks Consensus Estimate of $2.08. Also, the bottom line soared 49% from the prior-year quarter.

Morgan Stanley’s investment banking business gained from a frenzy of deal-making activities and IPOs. Also, the company posted a solid trading performance. The performance of MS’ wealth management and investment management businesses was impressive too, driven by a rise in client assets and assets under management.

Charles Schwab’s (SCHW - Free Report) third-quarter 2025 adjusted earnings of $1.31 per share beat the Zacks Consensus Estimate of $1.23. The bottom line soared 70% year over year.

SCHW’s results benefited from the solid performance of the asset management business and higher trading revenues. Higher net interest revenues and solid brokerage account numbers were other positives. However, an increase in expenses acted as a headwind for Schwab.


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