Raymond James Financial Inc (NYSE:RJF) Reports Q3 Earnings Miss Despite Record Revenues and Client Assets

Raymond James Financial Inc (NYSE:RJF) reported fiscal third-quarter earnings that fell short of analyst expectations, despite posting record revenues and client assets. The financial services firm generated $3.40 billion in net revenues for the quarter ended June 30, 2025, narrowly missing the consensus estimate of $3.41 billion. Adjusted earnings per share (EPS) of $2.18 came in below the $2.38 analysts had projected, primarily due to a $58 million legal reserve tied to a bond underwriting settlement.

Key Financial Highlights vs. Estimates

• Revenue Performance: The $3.40 billion quarterly revenue was flat compared to the prior quarter but up 5% year-over-year. While slightly below expectations, the firm achieved record nine-month revenues of $10.34 billion, a 10% increase over fiscal 2024.
• EPS Impact: The adjusted EPS of $2.18 missed estimates by $0.20, largely due to the legal reserve. Without this one-time charge, EPS would have been closer to $2.45, still below consensus but reflecting stronger underlying profitability.
• Market Reaction: Shares showed muted movement in after-hours trading, suggesting investors had already priced in the legal settlement. Over the past month, RJF stock has gained 6.4%, indicating broader confidence in the firm’s long-term growth.

Segment Performance

The company’s diversified business model delivered mixed results across segments:

• Private Client Group: Assets under administration hit a record $1.57 trillion (+11% YoY), with fee-based accounts reaching $943.9 billion (+15% YoY). However, pre-tax income declined 7% due to lower interest rates.
• Capital Markets: Revenue rose 15% YoY to $381 million, but the segment posted a $54 million pre-tax loss due to the legal reserve. Investment banking revenues grew 17% YoY, though M&A activity slowed sequentially.
• Asset Management: Record pre-tax income of $125 million (+12% YoY) on higher assets under management ($263.2 billion, +15% YoY).
• Bank Segment: Net loans grew 10% YoY to $49.8 billion, with net interest margin improving to 2.74%.

Outlook vs. Analyst Estimates

Management expressed optimism about macroeconomic conditions and a strong investment banking pipeline but did not provide explicit guidance. Analysts project Q4 2025 revenue of $3.54 billion and full-year revenue of $13.97 billion, implying steady growth. The firm’s capital position remains robust, with $749 million remaining in its share repurchase program after buying back $451 million in Q3.

Conclusion

While the legal settlement dampened near-term earnings, Raymond James’s core businesses—particularly wealth and asset management—continue to demonstrate resilience. The stock’s recent performance suggests investors are focusing on long-term growth rather than the one-time charge.

For detailed earnings estimates and historical performance, visit Raymond James Financial’s earnings page.

Disclaimer: This article is not investment advice. Conduct your own research or consult a financial professional before making investment decisions.