Raymond James Financial Stock Earnings Reports

Raymond James reported a strong start to fiscal 2026 with record quarterly net revenues of $3.7 billion, net income available to common shareholders of $562 million and diluted EPS of $2.79 (adjusted EPS $2.86). Key growth drivers were robust financial adviser recruiting and strong net new assets (annualized net asset growth of 8% this quarter; $31 billion net new assets this quarter; ~ $460 million trailing 12-month production recruited and >$63 billion of client assets at prior firms; >$69 billion including RIA/custody). Private Client Group (PCG) produced record net revenues ($2.77B) and fee-based assets reached $1.04 trillion (up 19% YoY). Asset Management had record net revenues and pretax income driven by higher AUM and inflows. Capital Markets revenue weakened sequentially and YoY due to tougher comparables (lower M&A/advisory, debt underwriting), but management says the pipeline remains robust. The Bank saw record loans of $53.4 billion (28% YoY growth in securities-based lending) and improved net interest margin (2.81%); NII and RJBDP fees are expected to be pressured by lower short-term rates and fewer billing days in Q2. Expenses: total compensation ratio ~65.6% (65.4% adjusted) and non-compensation expenses rose but are guided to ~8% growth for the year (excluding certain items) as the firm continues to invest in technology (including AI) and recruiting. Capital deployment: continued M&A (announced Clark Capital and Greens Labs deals), $400M of share repurchases in the quarter (targeting ~$400M in Q2), dividends, and an opportunistic redemption of $81M preferred; Tier 1 leverage ratio 12.7% with ~ $2.4B of excess capital capacity before reaching the 10% target. Management emphasizes long-term, adviser-first strategy, investment in technology/AI (launch of “RA”), focus on quality over quantity in recruiting and product offerings, and confidence in sustainable long-term growth despite near-term headwinds from lower rates and seasonality.