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Results were aided by record Investment Banking revenues, strength in Equities and improved Asset Management investment returns. However, lower Fixed Income results, a goodwill write-down associated with Tessellis and losses tied to Market Financial Solutions and First Brands acted as headwinds.
Results included certain non-recurring charges. After considering these, net earnings attributable to common shareholders (GAAP) increased 21.8% to $155.7 million.
Jefferies’ Revenues Rise, Expenses Increase
Quarterly net revenues were $2.02 billion, up from $1.59 billion in the prior-year quarter. The top line marginally beat the Zacks Consensus Estimate of $2.01 billion.
Total quarterly non-interest expenses were $1.80 billion, up from $1.44 billion in the year-ago quarter. Higher compensation and benefits expenses, brokerage and clearing fees, technology and communications expenses, and a write-down associated with Tessellis were the main reasons behind the increase.
As of Feb. 28, 2026, book value per common share was $51.91, up from $49.48 as of Feb. 28, 2025. Furthermore, adjusted tangible book value per fully diluted share increased from $32.57 to $34.24.
JEF’s Balance Sheet Solid
As of Feb. 28, 2026, total assets were $74.38 billion, down from $76.01 billion as of Nov. 30, 2025, while total shareholders’ equity was $10.61 billion, up modestly from $10.58 billion.
The leverage ratio was 7.0 compared with 6.8 in the prior-year quarter, and the tangible gross leverage ratio was 8.4 compared with 8.3.
Return on adjusted tangible shareholders’ equity was 10.9%, up from 8.0% in the prior-year quarter.
JEF’s Quarterly Segment Performance
Investment Banking and Capital Markets: Net revenues were $1.80 billion, rising 28.4% from the prior-year quarter. Investment Banking net revenues were $1.02 billion, up from $700.7 million, driven by higher advisory and equity underwriting revenues, while debt underwriting remained solid but was lower year over year. Capital Markets net revenues were $778.8 million, up from $698.3 million, as Equities net revenues rose 36.5%, partially offset by a decline in Fixed Income net revenues.
Asset Management: Net revenues were $220.3 million, up from $191.7 million in the year-ago quarter. Asset management fees and revenues declined year over year, but investment return soared significantly, driven by improved performance across several fund strategies, particularly those with a long equity bias. Results also included a final $10 million pre-tax loss that fully wrote off Jefferies’ direct exposure to First Brands.
JEF’s Share Repurchase Update
In the reported quarter, Jefferies repurchased 3.0 million common shares for $174 million, at an average price of $58.18 per share.
Its board also increased the share buyback authorization to a total of $250 million.
Our Take on Jefferies
Private credit concerns, a lawsuit for breach of contract related to loans tied to the collapse of First Brands and geopolitical upheaval are some of the near-term headwinds faced by JEF. While expense pressure was evident, management highlighted ongoing technology investments, market share gains and initiatives aimed at supporting long-term growth.
Jefferies Financial Group Inc. Price, Consensus and EPS Surprise
JPMorgan (JPM - Free Report) is scheduled to report first-quarter 2026 results on April 14.
Over the past 30 days, the Zacks Consensus Estimate for JPMorgan’s quarterly earnings has been revised upward to $5.42. The estimated figure indicates 6.9% growth from the prior-year quarter.
Bank of America (BAC - Free Report) is slated to announce first-quarter 2026 results on April 15.
Over the past 30 days, the Zacks Consensus Estimate for BAC’s quarterly earnings has been revised north to 99 cents. This implies a 10% rise from the prior-year quarter.
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JEF's Q1 Earnings Meet Estimates, Revenues Up on Solid IB Performance
Key Takeaways
Jefferies Financial Group’s (JEF - Free Report) first-quarter fiscal 2026 (ended Feb. 28) adjusted earnings per share from continuing operations of 89 cents were in line with the Zacks Consensus Estimate. The bottom line jumped 45.9% year over year.
Results were aided by record Investment Banking revenues, strength in Equities and improved Asset Management investment returns. However, lower Fixed Income results, a goodwill write-down associated with Tessellis and losses tied to Market Financial Solutions and First Brands acted as headwinds.
Results included certain non-recurring charges. After considering these, net earnings attributable to common shareholders (GAAP) increased 21.8% to $155.7 million.
Jefferies’ Revenues Rise, Expenses Increase
Quarterly net revenues were $2.02 billion, up from $1.59 billion in the prior-year quarter. The top line marginally beat the Zacks Consensus Estimate of $2.01 billion.
Total quarterly non-interest expenses were $1.80 billion, up from $1.44 billion in the year-ago quarter. Higher compensation and benefits expenses, brokerage and clearing fees, technology and communications expenses, and a write-down associated with Tessellis were the main reasons behind the increase.
As of Feb. 28, 2026, book value per common share was $51.91, up from $49.48 as of Feb. 28, 2025. Furthermore, adjusted tangible book value per fully diluted share increased from $32.57 to $34.24.
JEF’s Balance Sheet Solid
As of Feb. 28, 2026, total assets were $74.38 billion, down from $76.01 billion as of Nov. 30, 2025, while total shareholders’ equity was $10.61 billion, up modestly from $10.58 billion.
The leverage ratio was 7.0 compared with 6.8 in the prior-year quarter, and the tangible gross leverage ratio was 8.4 compared with 8.3.
Return on adjusted tangible shareholders’ equity was 10.9%, up from 8.0% in the prior-year quarter.
JEF’s Quarterly Segment Performance
Investment Banking and Capital Markets: Net revenues were $1.80 billion, rising 28.4% from the prior-year quarter. Investment Banking net revenues were $1.02 billion, up from $700.7 million, driven by higher advisory and equity underwriting revenues, while debt underwriting remained solid but was lower year over year. Capital Markets net revenues were $778.8 million, up from $698.3 million, as Equities net revenues rose 36.5%, partially offset by a decline in Fixed Income net revenues.
Asset Management: Net revenues were $220.3 million, up from $191.7 million in the year-ago quarter. Asset management fees and revenues declined year over year, but investment return soared significantly, driven by improved performance across several fund strategies, particularly those with a long equity bias. Results also included a final $10 million pre-tax loss that fully wrote off Jefferies’ direct exposure to First Brands.
JEF’s Share Repurchase Update
In the reported quarter, Jefferies repurchased 3.0 million common shares for $174 million, at an average price of $58.18 per share.
Its board also increased the share buyback authorization to a total of $250 million.
Our Take on Jefferies
Private credit concerns, a lawsuit for breach of contract related to loans tied to the collapse of First Brands and geopolitical upheaval are some of the near-term headwinds faced by JEF. While expense pressure was evident, management highlighted ongoing technology investments, market share gains and initiatives aimed at supporting long-term growth.
Jefferies Financial Group Inc. Price, Consensus and EPS Surprise
Jefferies Financial Group Inc. price-consensus-eps-surprise-chart | Jefferies Financial Group Inc. Quote
At present, Jefferies carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates of JEF’s Peers
JPMorgan (JPM - Free Report) is scheduled to report first-quarter 2026 results on April 14.
Over the past 30 days, the Zacks Consensus Estimate for JPMorgan’s quarterly earnings has been revised upward to $5.42. The estimated figure indicates 6.9% growth from the prior-year quarter.
Bank of America (BAC - Free Report) is slated to announce first-quarter 2026 results on April 15.
Over the past 30 days, the Zacks Consensus Estimate for BAC’s quarterly earnings has been revised north to 99 cents. This implies a 10% rise from the prior-year quarter.