01—Abstract
Summary
Summary of the 10-Q filed February 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Raymond James Financial, Inc. reported results for its fiscal first quarter of 2026 (three months ended December 31, 2025).
Net revenues rose 6% to $3.74 billiona from $3.54 billion, while pre-tax income fell 3% to $728 million and net income available to common shareholders decreased 6% to $562 million. Diluted earnings per share were $2.79, down 2% from $2.86. Investment banking revenues declined 37% to $208 million, largely from lower merger and advisory revenues versus a strong prior-year quarter.
Asset management and related administrative fees rose to $1.999 billionb from $1.743 billion, driven by higher fee-based client assets, and net interest income increased to $566 million from $529 million. Balance sheet growth was modest. Total assets were $88.76 billion at December 31, 2025, up from $88.23 billion at September 30, 2025, with bank loans, net rising to $53.44 billion and bank deposits rising to $60.15 billion.
Cash and cash equivalents declined to $9.89 billionc from $11.39 billion. Operating cash flow was negative $10 million for the quarter. The firm repurchased 2.5 million shares for $400 million, and the Board increased the quarterly common dividend 8% to $0.54 per share and authorized up to $2 billion of repurchases.
Regulatory capital ratios remained well above requirements, with a tier 1 leverage ratio of 12.7%d and a total capital ratio of 24.3%. The filing also discloses pending acquisitions of GreensLedge Holdings LLC and Clark Capital Management Group, Inc., both expected to close in fiscal 2026 using cash on hand.
The company redeemed its Series B Preferred Stock on January 2, 2026 for $81 million. Compensation ratio rose to 65.6% from 64.2%, and the effective tax rate increased to 22.7% from 19.9%.
02—Key points
Key Highlights
- Net revenues of $3.74 billion, up 6% year over year; pre-tax income of $728 million, down 3%.
- Diluted EPS of $2.79 versus $2.86 a year earlier (down 2%); adjusted diluted EPS of $2.86 excluding acquisition-related expenses (non-GAAP).
- Investment banking revenues fell 37% to $208 million, driven by lower merger and advisory revenues.
- Asset management and related administrative fees increased to $1.999 billion from $1.743 billion, reflecting higher fee-based client assets.
- Bank loans, net rose to $53.44 billion and bank deposits rose to $60.15 billion; Bank segment net interest margin was 2.81% versus 2.60%.
- Repurchased 2.5 million shares for $400 million; quarterly common dividend raised 8% to $0.54 and a new $2 billion repurchase authorization approved.
- Pending acquisitions of GreensLedge and Clark Capital are expected to close in fiscal 2026; tier 1 leverage ratio of 12.7% and total capital ratio of 24.3%.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed February 6, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $4.18B$4.04B | +3.5% |
| Net Income | $563.00M$600.00M | −6.2% |
| EPS (Basic) | $2.85$2.94 | −3.1% |
| EPS (Diluted) | $2.79$2.86 | −2.4% |
| Shares Outstanding (Basic) | 197.10M203.70M | −3.2% |
| Shares Outstanding (Diluted) | 201.40M209.20M | −3.7% |
05—Questions
Frequently Asked Questions
How did Raymond James perform in the quarter ended December 31, 2025?
Net revenues increased 6% to $3.74 billion, but pre-tax income decreased 3% to $728 million and net income available to common shareholders fell 6% to $562 million. Diluted EPS was $2.79, compared with $2.86 a year earlier.
What drove the change in investment banking revenue?
Investment banking revenues decreased 37% to $208 million, primarily due to lower merger and advisory revenues, reflecting fewer closings compared with a strong prior-year quarter.
What capital return actions did the company take?
The company repurchased 2.5 million common shares for $400 million at an average price of $162 per share. The Board raised the quarterly common dividend 8% to $0.54 per share and authorized up to $2 billion of repurchases, with $1.9 billion remaining available at December 31, 2025.
What acquisitions are pending?
The company agreed to acquire a majority stake in GreensLedge Holdings LLC, a structured credit and securitization boutique, and all outstanding shares of Clark Capital Management Group, Inc., an wealth-focused asset manager. Both are subject to customary closing conditions, including regulatory approvals, and are expected to close in fiscal 2026 using cash on hand.
How strong is the company's capital position?
At December 31, 2025, the tier 1 leverage ratio was 12.7% and the total capital ratio was 24.3%. RJF, Raymond James Bank, and TriState Capital Bank were each categorized as well-capitalized, and the company reported $3.3 billion of RJF corporate cash.
06—Continue