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In the last reported quarter, RJF’s earnings surpassed the Zacks Consensus Estimate. Results benefited primarily from an increase in revenues and robust growth in assets under administration balances. However, higher expenses were the undermining factor.
Raymond James does not have an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in only two of the trailing four quarters, with the average beat being 1.85%.
Raymond James Financial, Inc. Price and EPS Surprise
The Zacks Consensus Estimate for the company’s fiscal second-quarter earnings is currently pegged at $2.76, unchanged over the past seven days. The figure indicates an increase of 14.1% from the year-ago quarter.
The consensus estimate for sales of $3.75 billion suggests 10.2% year-over-year growth.
Management expects fiscal second-quarter asset management and related administrative fees to grow 1% sequentially, driven by 3% rise in PCG assets and fee-based accounts at quarter's end, partially offset by the impact of two fewer billing days in the quarter.
Factors to Impact Raymond James’ Q2 Earnings
Investment Banking (IB) Fees: Deal-making activity was robust in the to-be-reported quarter despite the Middle Eastern conflict and the ensuing uncertainty about its impact on the economy in the last month of the quarter. While global mergers and acquisitions (M&As) volume declined year over year, deal value rose as big transactions dominated the space. Unlike 2025, when President Donald Trump’s announcement of ‘Liberation Day’ tariff plans led to the deal drought for several months, this time, companies acknowledged that volatility is part of life, and they will have to do business around it. Lower capital costs and a focus on scale and AI integration drove the M&As. Thus, Raymond James’ advisory fees are expected to have been positively impacted.
The quarter saw decent IPO activity, with issuance volume improving despite fewer companies getting listed. On the other hand, global bond issuance volume was solid. Thus, RJF’s underwriting fees are expected to have been positively impacted.
The consensus estimate for RJF’s IB fees is pegged at $215.5 million, relatively stable on a year-over-year basis.
Trading Revenues: The performance of RJF’s trading business is expected to have been strong in the to-be-reported quarter, supported by increased client activity and market volatility. Major factors that influenced trading business in the quarter included shifting expectations around AI, rising geopolitical tensions, particularly concerns over the Middle East and the risk of an oil shock, persistent inflation concerns and uncertainty around the Fed’s monetary policy stance. Volatility was high in equity markets and other asset classes, including commodities, bonds and foreign exchange.
Net Interest Income (NII): The Federal Reserve kept interest rates unchanged in the quarter. However, relatively lower rates, a solid lending scenario and stabilizing funding/deposit costs are expected to have offered much-needed support. Hence, Raymond James’ NII might have witnessed a modest improvement in the quarter.
The Zacks Consensus Estimate for NII is pegged at $539.8 million, indicating a year-over-year jump of 28.8%.
Including the full impact of the October and December 2025 rate cuts and assuming unchanged quarter-end balances (net of the $1.8 billion fiscal second-quarter fee billing collections), management expects the aggregate of NII and RJBDP third-party fees in the second fiscal quarter to decline 3% sequentially.
Expenses: Raymond James consistently hires advisors and invests in franchises. Thus, overall expenses are expected to have increased in the to-be-reported quarter. Due to a highly competitive environment and inflationary pressure, expenses are likely to have risen.
Major Developments During the Quarter
In March, Raymond James completed the acquisition of a majority interest in GreensLedge Holdings LLC, a boutique investment bank recognized for its expertise in structured credit and securitization. Founded in 2008, GreensLedge is known for advising on and arranging CLOs, CDOs, Rated Feeders, CFOs, ABS and a range of debt offerings.
In January, Raymond James agreed to acquire Clark Capital Management Group, a Philadelphia-based asset management company with more than $46 billion in discretionary assets under management and non-discretionary assets. The deal is anticipated to close by the third quarter of 2026 and is subject to regulatory approvals and closing conditions. Clark Capital has established a powerful brand and provides wealth-oriented investment solutions.
What the Zacks Model Unveils for Raymond James
Our proven model does not conclusively predict that RJF will beat the Zacks Consensus Estimate this time. This is because it doesn’t have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Raymond James is 0.00%.
Zacks Rank: The company currently has a Zacks Rank #3.
Finance Stocks Worth Considering
Here are a couple of finance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
Over the past seven days, the Zacks Consensus Estimate for Capital One’s quarterly earnings has been lowered to $4.61.
The Earnings ESP for East West Bancorp (EWBC - Free Report) is +0.44%, and it carries a Zacks Rank #3. The company is also slated to report first-quarter 2026 results on April 21.
Over the past seven days, the Zacks Consensus Estimate for East West Bancorp’s quarterly earnings has remained unchanged at $2.46.
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Impressive Trading & IB Performance to Aid RJF's Q2 Earnings
Key Takeaways
Raymond James (RJF - Free Report) is set to announce second-quarter fiscal 2026 (ended March 31) results on April 22, after market close. The company’s earnings and revenues are expected to have risen on a year-over-year basis.
In the last reported quarter, RJF’s earnings surpassed the Zacks Consensus Estimate. Results benefited primarily from an increase in revenues and robust growth in assets under administration balances. However, higher expenses were the undermining factor.
Raymond James does not have an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in only two of the trailing four quarters, with the average beat being 1.85%.
Raymond James Financial, Inc. Price and EPS Surprise
Raymond James Financial, Inc. price-eps-surprise | Raymond James Financial, Inc. Quote
The Zacks Consensus Estimate for the company’s fiscal second-quarter earnings is currently pegged at $2.76, unchanged over the past seven days. The figure indicates an increase of 14.1% from the year-ago quarter.
The consensus estimate for sales of $3.75 billion suggests 10.2% year-over-year growth.
Management expects fiscal second-quarter asset management and related administrative fees to grow 1% sequentially, driven by 3% rise in PCG assets and fee-based accounts at quarter's end, partially offset by the impact of two fewer billing days in the quarter.
Factors to Impact Raymond James’ Q2 Earnings
Investment Banking (IB) Fees: Deal-making activity was robust in the to-be-reported quarter despite the Middle Eastern conflict and the ensuing uncertainty about its impact on the economy in the last month of the quarter. While global mergers and acquisitions (M&As) volume declined year over year, deal value rose as big transactions dominated the space. Unlike 2025, when President Donald Trump’s announcement of ‘Liberation Day’ tariff plans led to the deal drought for several months, this time, companies acknowledged that volatility is part of life, and they will have to do business around it. Lower capital costs and a focus on scale and AI integration drove the M&As. Thus, Raymond James’ advisory fees are expected to have been positively impacted.
The quarter saw decent IPO activity, with issuance volume improving despite fewer companies getting listed. On the other hand, global bond issuance volume was solid. Thus, RJF’s underwriting fees are expected to have been positively impacted.
The consensus estimate for RJF’s IB fees is pegged at $215.5 million, relatively stable on a year-over-year basis.
Trading Revenues: The performance of RJF’s trading business is expected to have been strong in the to-be-reported quarter, supported by increased client activity and market volatility. Major factors that influenced trading business in the quarter included shifting expectations around AI, rising geopolitical tensions, particularly concerns over the Middle East and the risk of an oil shock, persistent inflation concerns and uncertainty around the Fed’s monetary policy stance. Volatility was high in equity markets and other asset classes, including commodities, bonds and foreign exchange.
Net Interest Income (NII): The Federal Reserve kept interest rates unchanged in the quarter. However, relatively lower rates, a solid lending scenario and stabilizing funding/deposit costs are expected to have offered much-needed support. Hence, Raymond James’ NII might have witnessed a modest improvement in the quarter.
The Zacks Consensus Estimate for NII is pegged at $539.8 million, indicating a year-over-year jump of 28.8%.
Including the full impact of the October and December 2025 rate cuts and assuming unchanged quarter-end balances (net of the $1.8 billion fiscal second-quarter fee billing collections), management expects the aggregate of NII and RJBDP third-party fees in the second fiscal quarter to decline 3% sequentially.
Expenses: Raymond James consistently hires advisors and invests in franchises. Thus, overall expenses are expected to have increased in the to-be-reported quarter. Due to a highly competitive environment and inflationary pressure, expenses are likely to have risen.
Major Developments During the Quarter
In March, Raymond James completed the acquisition of a majority interest in GreensLedge Holdings LLC, a boutique investment bank recognized for its expertise in structured credit and securitization. Founded in 2008, GreensLedge is known for advising on and arranging CLOs, CDOs, Rated Feeders, CFOs, ABS and a range of debt offerings.
In January, Raymond James agreed to acquire Clark Capital Management Group, a Philadelphia-based asset management company with more than $46 billion in discretionary assets under management and non-discretionary assets. The deal is anticipated to close by the third quarter of 2026 and is subject to regulatory approvals and closing conditions. Clark Capital has established a powerful brand and provides wealth-oriented investment solutions.
What the Zacks Model Unveils for Raymond James
Our proven model does not conclusively predict that RJF will beat the Zacks Consensus Estimate this time. This is because it doesn’t have the right combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Raymond James is 0.00%.
Zacks Rank: The company currently has a Zacks Rank #3.
Finance Stocks Worth Considering
Here are a couple of finance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
Capital One (COF - Free Report) is scheduled to report quarterly results on April 21. The company has an Earnings ESP of +1.76% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past seven days, the Zacks Consensus Estimate for Capital One’s quarterly earnings has been lowered to $4.61.
The Earnings ESP for East West Bancorp (EWBC - Free Report) is +0.44%, and it carries a Zacks Rank #3. The company is also slated to report first-quarter 2026 results on April 21.
Over the past seven days, the Zacks Consensus Estimate for East West Bancorp’s quarterly earnings has remained unchanged at $2.46.