A month has gone by since the last earnings report for Jefferies (JEF Quick QuoteJEF - Free Report) . Shares have lost about 7.4% 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 Jefferies due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

Jefferies Q4 Earnings Increase Y/Y Despite Rise in Expenses  

Jefferies’ fourth-quarter fiscal 2025 (ended Nov. 30) adjusted earnings from continuing operations of 96 cents per share grew 5.5% year over year. The Zacks Consensus Estimate for earnings was 83 cents.

Results were aided by strong performance and sustained momentum in Investment Banking and Equities, partially offset by lower net revenues in Fixed Income and Asset Management. However, higher expenses remained a spoilsport. 

Results excluded the impact of the Point Bonita write-down. Considering this, net income attributable to common shareholders (GAAP basis) was $190.9 million, down from $205.7 million in the prior-year quarter.  

For fiscal 2025, adjusted earnings from continuing operations were $2.94, down from $2.96 in fiscal 2024 and surpassed the Zacks Consensus Estimate of $2.81. Net income attributable to common shareholders (GAAP basis) was $630.8 million, down from $669.3 million in the prior year.

Jefferies’ Revenues Rise, Expenses Increase

Quarterly net revenues were $2.07 billion, up from $1.96 billion in the prior-year quarter. The top line surpassed the Zacks Consensus Estimate of $1.93 billion.

For fiscal 2025, net revenues of $7.34 billion grew 4.4% from the prior year. The top line also beat the consensus estimate of $7.21 billion.

Total quarterly non-interest expenses were $1.82 billion, up from $1.65 billion in the year-ago quarter. The rise reflected higher compensation and benefits, and higher non-compensation expenses (including brokerage and clearing fees, technology and communications, and business development expenses). 

As of Nov. 30, 2025, book value per common share was $51.26, up from $49.42 as of Nov. 30, 2024. Furthermore, the adjusted tangible book value per fully diluted share increased from $32.36 to $33.69.

Quarterly Segment Performance

Investment Banking and Capital Markets: Net revenues were $1.88 billion, rising 14.7% from the prior-year quarter. Investment banking net revenues were $1.19 billion, up from $986.8 million, driven by higher advisory revenues, equity underwriting and debt underwriting. Capital markets net revenues were $691.9 million, up from $651.7 million, as equities net revenues rose, partially offset by a decline in fixed income net revenues. 

Asset Management: Net revenues were $187.0 million, down from $314.8 million in the year-ago quarter. Asset management fees and revenues increased, which was more than offset by lower investment returns.

How Have Estimates Been Moving Since Then?

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

The consensus estimate has shifted 9.52% due to these changes.

VGM Scores

At this time, Jefferies has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of A on the value side, putting it in the top 20% 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. Interestingly, Jefferies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.