Raymond James Financial Stock Earnings Reports

Key points for investors: Raymond James reported fiscal Q3 net revenues of $3.4 billion (up 5% YoY) and net income available to common shareholders of $435 million (EPS $2.12). Pretax income declined 13% YoY, primarily driven by a $58 million reserve increase to settle a longstanding legal matter in the Capital Markets segment. Year-to-date (9 months) the firm delivered record net revenues of $10.3 billion and record pretax income of $1.98 billion. The Private Client Group (PCG) remains the core driver: client assets under administration hit a record $1.57 trillion (+11% YoY) and fee-based PCG assets reached $944 billion (+15% YoY). Recruiting momentum is strong — the firm recruited advisers bringing ~ $52 billion of client assets from competitors (over $60 billion across all platforms including RIAs) and reported domestic net new assets at an $11.7 billion quarterly pace (3.4% annualized), with June showing high-single-digit annualized growth. The bank grew loans to a record $49.8 billion (notably securities-based lending) and credit metrics remain healthy. Asset Management posted record quarter results with strong inflows (~$2.1 billion into managed programs). Capital markets revenues grew YoY, but the segment had a pretax loss this quarter (impacted by the legal reserve); investment banking pipeline is described as strong and expected to improve over the next two quarters. The firm continues to invest in adviser capabilities, technology (including AI), and private wealth offerings. Capital deployment: repurchased $451 million of stock this quarter and returned >$1 billion YTD in buybacks/dividends; capital metrics (Tier 1 leverage 13.1%, total capital ratio 24.3%) are strong with ample capacity for acquisitions and continued repurchases. Adjusted pretax margin for the quarter (excluding the legal reserve and acquisition expenses) was roughly 19%, slightly below the 20% target noted previously. Management reiterated conservative, disciplined M&A criteria (cultural fit, strategic fit, valuation).