We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Raymond James Financial (RJF) Down 2% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for Raymond James Financial, Inc. (RJF - Free Report) . Shares have lost about 2% in that time frame, underperforming the S&P 500.
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 latest earnings report in order to get a better handle on the important drivers.
Raymond James Q2 Earnings Beat on Higher Revenues, Cost Woes Remain
Raymond James’ 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.
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.
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 Share Repurchases
In the reported quarter, the company repurchased shares worth $400 million at an average price of $155 per share.
Outlook
The company expects fiscal third-quarter 2026 asset management and related administrative fees to be 1% higher, sequentially, driven by the impact of one additional billing day in the third quarter, along with slightly higher PCG assets and fee-based accounts balance at quarter end.
Based on static interest rates and assuming unchanged quarter end balances, net of the fiscal third quarter fee billing collection of $1.9 billion, the company expects the aggregate of NII and RJBDP third-party fees in the third fiscal quarter to be up 1% sequentially.
For fiscal 2026, management expects non-compensation expenses, excluding the bank loan loss provision for credit losses, unexpected legal and regulatory items, and non-GAAP adjustments to be $2.3 billion, representing 8% year-over-year growth.
The effective tax rate for fiscal 2026 is expected to be approximately 24-25%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
VGM Scores
Currently, Raymond James Financial has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a score 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 broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, 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, Morgan Stanley (MS - Free Report) , a stock from the same industry, has gained 6.3%. The company reported its results for the quarter ended March 2026 more than a month ago.
Morgan Stanley reported revenues of $20.58 billion in the last reported quarter, representing a year-over-year change of +16%. EPS of $3.43 for the same period compares with $2.60 a year ago.
Morgan Stanley is expected to post earnings of $2.71 per share for the current quarter, representing a year-over-year change of +27.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.
Morgan Stanley has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Raymond James Financial (RJF) Down 2% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Raymond James Financial, Inc. (RJF - Free Report) . Shares have lost about 2% in that time frame, underperforming the S&P 500.
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 latest earnings report in order to get a better handle on the important drivers.
Raymond James Q2 Earnings Beat on Higher Revenues, Cost Woes Remain
Raymond James’ 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.
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.
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 Share Repurchases
In the reported quarter, the company repurchased shares worth $400 million at an average price of $155 per share.
Outlook
The company expects fiscal third-quarter 2026 asset management and related administrative fees to be 1% higher, sequentially, driven by the impact of one additional billing day in the third quarter, along with slightly higher PCG assets and fee-based accounts balance at quarter end.
Based on static interest rates and assuming unchanged quarter end balances, net of the fiscal third quarter fee billing collection of $1.9 billion, the company expects the aggregate of NII and RJBDP third-party fees in the third fiscal quarter to be up 1% sequentially.
For fiscal 2026, management expects non-compensation expenses, excluding the bank loan loss provision for credit losses, unexpected legal and regulatory items, and non-GAAP adjustments to be $2.3 billion, representing 8% year-over-year growth.
The effective tax rate for fiscal 2026 is expected to be approximately 24-25%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
VGM Scores
Currently, Raymond James Financial has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a score 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 broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, 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, Morgan Stanley (MS - Free Report) , a stock from the same industry, has gained 6.3%. The company reported its results for the quarter ended March 2026 more than a month ago.
Morgan Stanley reported revenues of $20.58 billion in the last reported quarter, representing a year-over-year change of +16%. EPS of $3.43 for the same period compares with $2.60 a year ago.
Morgan Stanley is expected to post earnings of $2.71 per share for the current quarter, representing a year-over-year change of +27.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.
Morgan Stanley has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.