Raymond James Financial Inc (NYSE:RJF) reported financial results for its fiscal first quarter of 2026, delivering record revenues and client assets while falling short of Wall Street's top and bottom-line expectations. The market's initial reaction was muted, with shares showing little change in after-hours trading.
Earnings Versus Estimates
The diversified financial services firm posted adjusted earnings per share (EPS) of $2.86 on net revenues of $3.74 billion for the quarter ended December 31, 2025. This performance came in below the consensus estimates from analysts.
- Adjusted EPS: Reported $2.86 vs. Estimate of $2.90
- Net Revenue: Reported $3.74 billion vs. Estimate of $3.96 billion
While the company celebrated record highs in several key metrics, the revenue miss of approximately $220 million appears to be the primary focus for analysts. The earnings per share shortfall was relatively narrow, coming in just a few cents below expectations.
Market Reaction and Performance Context
Following the earnings release, RJF stock exhibited minimal movement in after-hours trading, indicating a neutral to slightly negative initial reception from investors. This tepid response follows a period of modest performance for the stock.
- Last Month Performance: +2.6%
- Last Two Weeks Performance: +0.7%
- Last Week Performance: -1.0%
The lack of a significant sell-off suggests the market may have anticipated a mixed quarter or is looking past the headline miss toward underlying business strength. The company's robust capital return program, including an 8% dividend hike and $400 million in share repurchases during the quarter, may also be providing support.
Key Takeaways from the Quarterly Report
Beyond the earnings comparison, Raymond James highlighted several areas of record-setting growth and strategic execution.
Record Client Assets and Organic Growth: Total client assets under administration reached a new high of $1.77 trillion. The firm's core Private Client Group (PCG) saw strong organic growth, with $30.8 billion in net new assets, representing an annualized growth rate of 8.0% from the beginning of the quarter.
Segment Performance Varied: The company's business segments showed divergent trends:
- Private Client Group & Asset Management: Both segments delivered record net revenues, driven by higher asset management fees from market appreciation and client inflows.
- Capital Markets: This segment was a notable weak spot, with net revenues down 21% year-over-year. Management attributed the decline to lower M&A and advisory revenues and the timing of deal closings, though they noted the pipeline remains strong.
- Bank Segment: Performance was robust, with net revenues up 15% and the net interest margin expanding to 2.81%, benefiting from loan growth and lower funding costs.
Capital Management: The company demonstrated a strong commitment to returning capital to shareholders, repurchasing $400 million of stock and raising its quarterly dividend to $0.54 per share.
Looking Ahead
The press release did not provide specific quantitative financial guidance for the coming quarters. Analyst estimates for the upcoming fiscal second quarter project revenue of approximately $3.99 billion and EPS of $2.94. For the full 2026 fiscal year, the current consensus sales estimate stands at $16.08 billion.
The recent acquisition of asset manager Clark Capital, with over $46 billion in assets, signals Raymond James's continued strategy of bolstering its investment management offerings through strategic additions.
For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the data on the RJF earnings estimates page.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, an endorsement, or a recommendation to buy, sell, or hold any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
