A month has gone by since the last earnings report for Raymond James Financial, Inc. (RJF Quick QuoteRJF - Free Report) . Shares have lost about 8.3% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Raymond James Financial due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

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

Raymond James’ 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.

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.

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 Share Repurchases

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

Outlook

The company expects fiscal first-quarter 2026 asset management and related administrative fees to be 6.5% higher, sequentially, driven by higher PCG assets and fee-based accounts at quarter end.

Including the full-quarter impact of the September rate cut, management expects the aggregate of NII and Raymond James Bank Deposit Program (RJBDP) third-party fees in the fiscal first quarter of 2026 to be stable on a sequential basis. This is largely the result of the positive impact of a higher interest earning asset balance as of the starting of September, offsetting the full-quarter impact of the September Fed rate action.

For fiscal 2026, management estimates the effective tax rate to be approximately 24-25%.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

VGM Scores

Currently, Raymond James Financial has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock has a grade of B on the value side, putting it in the second quintile for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Raymond James Financial has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Raymond James Financial is part of the Zacks Financial - Investment Bank industry. Over the past month, Goldman Sachs (GS Quick QuoteGS - Free Report) , a stock from the same industry, has gained 3.1%. The company reported its results for the quarter ended September 2025 more than a month ago.

Goldman reported revenues of $15.18 billion in the last reported quarter, representing a year-over-year change of +19.6%. EPS of $12.25 for the same period compares with $8.40 a year ago.

Goldman is expected to post earnings of $11.52 per share for the current quarter, representing a year-over-year change of -3.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.1%.

Goldman has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.