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Raymond James Q4 Earnings Beat Estimates, Revenues Rise Y/Y
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Key Takeaways
Raymond James' Q4 adjusted earnings rose 15% year over year to $3.59, topping estimates of $3.28.
Quarterly revenues grew 15% to $4.27B, led by strong Private Client Group and Asset Management.
Client assets under administration hit $1.94T, up 12% year over year, while non-interest expenses rose 14%.
Raymond James (RJF - Free Report) reported fourth-quarter fiscal 2026 (ended Sept. 30) adjusted earnings of $3.59 per share, which beat the Zacks Consensus Estimate of $3.28. The bottom line also increased 15% from the prior-year quarter.
The reported quarter’s results benefited from record revenues, driven by strong growth in the Private Client Group and Asset Management segment. Higher revenues in the Capital Markets and Bank segments also supported performance. However, higher non-interest expenses, primarily due to increased compensation, commissions and benefits, partially offset these gains.
Net income available to common shareholders (GAAP basis) was $666 million, or $3.40 per share, compared with $603 million, or $2.95 per share, in the prior-year quarter.
For fiscal 2026, adjusted earnings were $12.41 per share, which beat the Zacks Consensus Estimate of $11.78 The bottom line increased 16% from the previous year. Net income available to common shareholders (GAAP basis) was $2.37 billion, or $11.91 per share, up from $2.13 billion, or $10.30 per share, in fiscal 2025.
RJF’s Revenues Improve, Expenses Rise
Quarterly net revenues were a record $4.27 billion, up 15% year over year. The top line beat the Zacks Consensus Estimate of $4.19 billion.
Fiscal 2026 net revenues were a record $15.79 billion, up 12% year over year. The top line beat the Zacks Consensus Estimate of $15.53 billion.
Segment-wise, in the reported quarter, the Private Client Group recorded 15% year-over-year growth in net revenues. Asset Management’s net revenues rose 30%, while Capital Markets’ top line increased 7%. The Bank segment registered a 5% rise in net revenues from the prior-year quarter.
Non-interest expenses increased 14% from the prior-year quarter to $3.41 billion, primarily due to higher compensation, commissions and benefits, which rose 16% to $2.77 billion. Total non-compensation expenses increased 5% to $633 million. The bank loan provision for credit losses was a benefit of $8 million, compared with a provision of $6 million in the prior-year quarter.
As of Sept. 30, 2026, client assets under administration were a record $1.94 trillion, up 12% from the prior-year period. Financial assets under management were $342.9 billion, up 25% year over year.
RJF’s Balance Sheet & Capital Ratios Strong
As of Sept. 30, 2026, Raymond James had total assets of $94.4 billion, up 7% from the prior-year quarter-end. Total common equity attributable to Raymond James Financial was $13.1 billion, up 6% year over year.
Book value per share was $68.38, up from $62.72 as of Sept. 30, 2025.
As of Sept. 30, 2026, the total capital ratio was 24.2%, compared with 24.1% as of Sept. 30, 2025. The Tier 1 capital ratio was 23.2%, compared with 23% a year ago. The Tier 1 leverage ratio was 12.1%, down from 13.1% as of Sept. 30, 2025.
Annualized return on common equity was 20.6% at the end of the reported quarter, compared with 19.6% a year ago. For fiscal 2026, return on common equity was 18.7%, up from 17.7% in fiscal 2025.
Update on Raymond James’ Share Repurchases
In the reported quarter, RJF repurchased common stock worth $50 million.
For fiscal 2026, the company repurchased $1.25 billion of common stock at an average price of $156 per share. As of Sept. 30, 2026, $1.05 billion remained available under the board-approved share repurchase authorization.
During fiscal 2026, Raymond James returned approximately $1.7 billion of capital to shareholders through common share repurchases and dividends.
Our View on Raymond James
Raymond James’ record revenues, strong growth in the Private Client Group and Asset Management segment, and rising client assets continue to support its financial performance. Further, solid capital ratios and ample liquidity are positives for the company. However, rising non-interest expenses remain a concern.
Raymond James Financial, Inc. Price, Consensus and EPS Surprise
Morgan Stanley (MS - Free Report) reported third-quarter 2026 earnings of $3.03 per share, which surpassed the Zacks Consensus Estimate of $2.83. The bottom line also increased 8.2% from the prior-year quarter.
Morgan Stanley’s results benefited from strong equity trading performance and growth in wealth management. Equity trading revenues surged 40.9% year over year to $5.8 billion, while Wealth Management revenues increased 10.1% to a record $9.07 billion. Higher advisory revenues, reflecting increased completed merger and acquisition activity in the Americas, also supported results.
Charles Schwab (SCHW - Free Report) reported third-quarter 2026 adjusted earnings of $1.69 per share, surpassing the Zacks Consensus Estimate of $1.66. The bottom line increased 29% year over year.
Schwab’s results benefited from higher net interest revenues, supported by growth in average interest-earning assets and an improved net interest margin. Strong asset management fees, increased trading revenues and record core net new assets also contributed to performance. However, revenues fell short of expectations, while higher expenses remained a headwind.
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Raymond James Q4 Earnings Beat Estimates, Revenues Rise Y/Y
Key Takeaways
Raymond James (RJF - Free Report) reported fourth-quarter fiscal 2026 (ended Sept. 30) adjusted earnings of $3.59 per share, which beat the Zacks Consensus Estimate of $3.28. The bottom line also increased 15% from the prior-year quarter.
The reported quarter’s results benefited from record revenues, driven by strong growth in the Private Client Group and Asset Management segment. Higher revenues in the Capital Markets and Bank segments also supported performance. However, higher non-interest expenses, primarily due to increased compensation, commissions and benefits, partially offset these gains.
Net income available to common shareholders (GAAP basis) was $666 million, or $3.40 per share, compared with $603 million, or $2.95 per share, in the prior-year quarter.
For fiscal 2026, adjusted earnings were $12.41 per share, which beat the Zacks Consensus Estimate of $11.78 The bottom line increased 16% from the previous year. Net income available to common shareholders (GAAP basis) was $2.37 billion, or $11.91 per share, up from $2.13 billion, or $10.30 per share, in fiscal 2025.
RJF’s Revenues Improve, Expenses Rise
Quarterly net revenues were a record $4.27 billion, up 15% year over year. The top line beat the Zacks Consensus Estimate of $4.19 billion.
Fiscal 2026 net revenues were a record $15.79 billion, up 12% year over year. The top line beat the Zacks Consensus Estimate of $15.53 billion.
Segment-wise, in the reported quarter, the Private Client Group recorded 15% year-over-year growth in net revenues. Asset Management’s net revenues rose 30%, while Capital Markets’ top line increased 7%. The Bank segment registered a 5% rise in net revenues from the prior-year quarter.
Non-interest expenses increased 14% from the prior-year quarter to $3.41 billion, primarily due to higher compensation, commissions and benefits, which rose 16% to $2.77 billion. Total non-compensation expenses increased 5% to $633 million. The bank loan provision for credit losses was a benefit of $8 million, compared with a provision of $6 million in the prior-year quarter.
As of Sept. 30, 2026, client assets under administration were a record $1.94 trillion, up 12% from the prior-year period. Financial assets under management were $342.9 billion, up 25% year over year.
RJF’s Balance Sheet & Capital Ratios Strong
As of Sept. 30, 2026, Raymond James had total assets of $94.4 billion, up 7% from the prior-year quarter-end. Total common equity attributable to Raymond James Financial was $13.1 billion, up 6% year over year.
Book value per share was $68.38, up from $62.72 as of Sept. 30, 2025.
As of Sept. 30, 2026, the total capital ratio was 24.2%, compared with 24.1% as of Sept. 30, 2025. The Tier 1 capital ratio was 23.2%, compared with 23% a year ago. The Tier 1 leverage ratio was 12.1%, down from 13.1% as of Sept. 30, 2025.
Annualized return on common equity was 20.6% at the end of the reported quarter, compared with 19.6% a year ago. For fiscal 2026, return on common equity was 18.7%, up from 17.7% in fiscal 2025.
Update on Raymond James’ Share Repurchases
In the reported quarter, RJF repurchased common stock worth $50 million.
For fiscal 2026, the company repurchased $1.25 billion of common stock at an average price of $156 per share. As of Sept. 30, 2026, $1.05 billion remained available under the board-approved share repurchase authorization.
During fiscal 2026, Raymond James returned approximately $1.7 billion of capital to shareholders through common share repurchases and dividends.
Our View on Raymond James
Raymond James’ record revenues, strong growth in the Private Client Group and Asset Management segment, and rising client assets continue to support its financial performance. Further, solid capital ratios and ample liquidity are positives for the company. However, rising non-interest expenses remain a 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 (MS - Free Report) reported third-quarter 2026 earnings of $3.03 per share, which surpassed the Zacks Consensus Estimate of $2.83. The bottom line also increased 8.2% from the prior-year quarter.
Morgan Stanley’s results benefited from strong equity trading performance and growth in wealth management. Equity trading revenues surged 40.9% year over year to $5.8 billion, while Wealth Management revenues increased 10.1% to a record $9.07 billion. Higher advisory revenues, reflecting increased completed merger and acquisition activity in the Americas, also supported results.
Charles Schwab (SCHW - Free Report) reported third-quarter 2026 adjusted earnings of $1.69 per share, surpassing the Zacks Consensus Estimate of $1.66. The bottom line increased 29% year over year.
Schwab’s results benefited from higher net interest revenues, supported by growth in average interest-earning assets and an improved net interest margin. Strong asset management fees, increased trading revenues and record core net new assets also contributed to performance. However, revenues fell short of expectations, while higher expenses remained a headwind.