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Results benefited primarily from an increase in revenues to record levels. Robust growth in assets under administration balances further supported results. However, an increase in expenses was a headwind.
Net income available to common shareholders (GAAP basis) was $542 million or $2.72 per share, up from $493 million or $2.36 in the prior-year quarter.
RJF’s Revenues Improve, Expenses Rise
Net revenues were a record $3.86 billion, up 13.4% year over year. The top line beat the Zacks Consensus Estimate of $3.75 billion.
Segment-wise, in the reported quarter, the Private Client Group recorded 13% year-over-year growth in net revenues. Asset Management’s net revenues also rose 13%, while Capital Markets’ top line increased 17%. Bank registered a rise of 12% from the prior year's net revenues, while Others recorded negative revenues.
Non-interest expenses jumped 14.3% from the prior-year quarter to $3.12 billion. The increase was due to a rise in all cost components except for bank loan provision for credit losses.
As of March 31, 2026, client assets under administration were $1.76 trillion, up 15% from the prior-year period. Financial assets under management of $282.4 billion grew 15% year over year.
RJF’s Balance Sheet & Capital Ratios Strong
As of March 31, 2026, Raymond James had total assets of $91.9 billion, up 3% from the prior-quarter end. Total common equity was $12.6 billion, up 1% from the previous quarter.
Book value per share was $64.58, up from $59.74 as of March 31, 2025.
As of March 31, 2026, the total capital ratio was 24%, down from 24.8% as of March 31, 2025. The Tier 1 capital ratio was 22.9% compared with 23.5% as of March 31, 2025.
Return on common equity (annualized basis) was 17.3% at the end of the reported quarter compared with 16.4% a year ago.
Update on Raymond James’ Share Repurchases
In the reported quarter, RJF repurchased shares worth $400 million at an average price of $155 per share.
As of March 31, 2026, $1.5 billion remained available under the repurchase authorization.
Our Take on Raymond James
Raymond James’ global diversification efforts, along with its strategic acquisitions (completed the buyout of a majority interest in GreensLedge Holdings in March 2026 and announced a deal to acquire Clark Capital Management Group in January), are expected to keep supporting top-line growth in the near term. Also, a robust capital markets business is a positive for the company. However, elevated operating expenses remain a major concern.
Raymond James Financial, Inc. Price, Consensus and EPS Surprise
Morgan Stanley’s (MS - Free Report) first-quarter 2026 earnings were $3.43 per share, which outpaced the Zacks Consensus Estimate of $3.06. The bottom line jumped 32% from the prior-year quarter.
Morgan Stanley’s results benefited from robust client engagement, strength in investment banking and trading activities, as well as growth in net interest income.
Charles Schwab’s (SCHW - Free Report) first-quarter 2026 adjusted earnings of $1.43 per share outpaced the Zacks Consensus Estimate of $1.38. The bottom line soared 38% year over year.
SCHW’s results benefited from the robust performance of the asset management business and an increase in trading revenues. Higher net interest revenues and solid brokerage account numbers were other positives. However, an increase in expenses was the undermining factor.
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Raymond James Q2 Earnings Beat on Higher Revenues, Cost Woes Remain
Key Takeaways
Raymond James’ (RJF - Free Report) second-quarter fiscal 2026 (ended March 31) adjusted earnings of $2.83 per share beat the Zacks Consensus Estimate of $2.76. Also, the bottom line increased 16.9% from the prior-year quarter.
Results benefited primarily from an increase in revenues to record levels. Robust growth in assets under administration balances further supported results. However, an increase in expenses was a headwind.
Net income available to common shareholders (GAAP basis) was $542 million or $2.72 per share, up from $493 million or $2.36 in the prior-year quarter.
RJF’s Revenues Improve, Expenses Rise
Net revenues were a record $3.86 billion, up 13.4% year over year. The top line beat the Zacks Consensus Estimate of $3.75 billion.
Segment-wise, in the reported quarter, the Private Client Group recorded 13% year-over-year growth in net revenues. Asset Management’s net revenues also rose 13%, while Capital Markets’ top line increased 17%. Bank registered a rise of 12% from the prior year's net revenues, while Others recorded negative revenues.
Non-interest expenses jumped 14.3% from the prior-year quarter to $3.12 billion. The increase was due to a rise in all cost components except for bank loan provision for credit losses.
As of March 31, 2026, client assets under administration were $1.76 trillion, up 15% from the prior-year period. Financial assets under management of $282.4 billion grew 15% year over year.
RJF’s Balance Sheet & Capital Ratios Strong
As of March 31, 2026, Raymond James had total assets of $91.9 billion, up 3% from the prior-quarter end. Total common equity was $12.6 billion, up 1% from the previous quarter.
Book value per share was $64.58, up from $59.74 as of March 31, 2025.
As of March 31, 2026, the total capital ratio was 24%, down from 24.8% as of March 31, 2025. The Tier 1 capital ratio was 22.9% compared with 23.5% as of March 31, 2025.
Return on common equity (annualized basis) was 17.3% at the end of the reported quarter compared with 16.4% a year ago.
Update on Raymond James’ Share Repurchases
In the reported quarter, RJF repurchased shares worth $400 million at an average price of $155 per share.
As of March 31, 2026, $1.5 billion remained available under the repurchase authorization.
Our Take on Raymond James
Raymond James’ global diversification efforts, along with its strategic acquisitions (completed the buyout of a majority interest in GreensLedge Holdings in March 2026 and announced a deal to acquire Clark Capital Management Group in January), are expected to keep supporting top-line growth in the near term. Also, a robust capital markets business is a positive for the company. However, elevated operating expenses remain a major concern.
Raymond James Financial, Inc. Price, Consensus and EPS Surprise
Raymond James Financial, Inc. price-consensus-eps-surprise-chart | Raymond James Financial, Inc. Quote
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) first-quarter 2026 earnings were $3.43 per share, which outpaced the Zacks Consensus Estimate of $3.06. The bottom line jumped 32% from the prior-year quarter.
Morgan Stanley’s results benefited from robust client engagement, strength in investment banking and trading activities, as well as growth in net interest income.
Charles Schwab’s (SCHW - Free Report) first-quarter 2026 adjusted earnings of $1.43 per share outpaced the Zacks Consensus Estimate of $1.38. The bottom line soared 38% year over year.
SCHW’s results benefited from the robust performance of the asset management business and an increase in trading revenues. Higher net interest revenues and solid brokerage account numbers were other positives. However, an increase in expenses was the undermining factor.