01—Abstract
Summary
Summary of the 10-Q filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Raymond James Financial, Inc. reported fiscal second-quarter 2026 results (three months ended March 31, 2026) with net revenues of $3.86 billiona, up 13% from the prior-year quarter, and pre-tax income of $735 million, up 10%.
Net income available to common shareholders was $542 millionb, up 10%, and diluted earnings per share were $2.72, up 15%. Management attributed the revenue growth mainly to higher asset management and related administrative fees on higher PCG fee-based client assets, which rose on market appreciation and net new assets from financial advisor recruiting and retention. Investment banking revenues rose 31%, and the total compensation ratio increased to 65.8% from 64.8%.
Non-GAAP adjusted diluted EPS was $2.83c, up 17%. For the six months, net revenues were $7.59 billion, up 9%, and diluted EPS was $5.51, up 6%. The balance sheet grew over the period.
Total assets were $91.94 billiond at March 31, 2026, versus $88.23 billion at September 30, 2025, driven mainly by bank loans, net, which rose to $54.83 billion from $51.57 billion, and bank deposits, which rose to $62.42 billion from $58.90 billion. The firm repurchased 2.5 million common shares for $400 million in the quarter, with $1.5 billion remaining under its authorization, and redeemed its Series B preferred stock on January 2, 2026 for $81 million. Regulatory capital remained above well-capitalized levels, with a tier 1 leverage ratio of 12.4% and a total capital ratio of 24.0%.
The firm completed a majority acquisition of GreensLedge Holdings LLC during the quarter and acquired Clark Capital Management Group, Inc. on April 30, 2026. Risk items disclosed include an SEC Division of Enforcement inquiry into cash sweep program practices, which the firm says it is cooperating with, and class actions over cash sweep rates, where some claims were dismissed on March 27, 2026 and the firm intends to keep defending the rest. The bank loan provision for credit losses was $5 million for the quarter, down from $16 million a year earlier, and management cited a weakened economic outlook late in the period and specific CRE reserves.
02—Key points
Key Highlights
- Net revenues were $3.86 billion for the quarter, up 13%, and pre-tax income was $735 million, up 10%.
- Diluted EPS was $2.72, up 15%; adjusted diluted EPS, a non-GAAP measure, was $2.83, up 17%.
- Return on common equity was 17.3% for the quarter, up from 16.4%; return on tangible common equity was 20.1%, compared with 19.2%.
- The total compensation ratio rose to 65.8% from 64.8%, with management citing revenue mix and recruiting-related costs.
- Bank loans, net grew to $54.83 billion and bank deposits grew to $62.42 billion at March 31, 2026 versus September 30, 2025.
- The firm repurchased $400 million of common stock in the quarter, with $1.5 billion remaining under the authorization, and acquired a majority stake in GreensLedge Holdings LLC.
- Domestic PCG net new assets were $22.95 billion for the quarter, and assets under administration were $1,699.0 billion at March 31, 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed May 6, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $4.26B$3.85B | +10.8% |
| Net Income | $544.00M$495.00M | +9.9% |
| EPS (Basic) | $2.76$2.41 | +14.5% |
| EPS (Diluted) | $2.72$2.36 | +15.3% |
| Shares Outstanding (Basic) | 196.10M204.30M | −4.0% |
| Shares Outstanding (Diluted) | 199.20M208.70M | −4.6% |
05—Questions
Frequently Asked Questions
What drove the increase in revenue this quarter?
The filing attributes the increase mainly to higher asset management and related administrative fees, which rose $291 million to $2.02 billion. These fees increased because PCG client assets in fee-based accounts were higher at the start of the billing period, reflecting market appreciation and net new assets from financial advisor recruiting and retention. Investment banking revenues also rose to $279 million from $216 million, driven by higher underwriting activity.
How are the firm's capital position and shareholder returns looking?
The tier 1 leverage ratio was 12.4% and the total capital ratio was 24.0% at March 31, 2026, both described as well above regulatory requirements. The firm repurchased 2.5 million shares for $400 million in the quarter at an average price of $155, leaving $1.5 billion available under its $2 billion authorization. Quarterly common dividends declared were $0.54 per share, compared with $0.50 a year earlier.
What is the status of the cash sweep litigation and regulatory inquiry?
The SEC Division of Enforcement has requested information about cash sweep program practices for advisory clients since August 2024, and the firm says it is cooperating. Three putative class actions were filed in 2024 alleging breaches related to rates paid on cash sweep programs. One plaintiff's claims were voluntarily dismissed in July 2025, and on March 27, 2026 the court dismissed some claims in the consolidated case. The firm intends to continue vigorously defending the remaining claims.
How is credit quality trending in the bank loan portfolio?
The bank loan provision for credit losses was $5 million for the quarter, compared with $16 million a year earlier, and the allowance for credit losses on held-for-investment loans was $440 million. Management cited a weakened economic outlook toward period end, specific reserves on certain CRE loans, and downgrades primarily in CRE and C&I loans. Nonperforming loans were $182 million, or 0.33% of total loans held for sale and investment.
What acquisitions did the firm complete?
During the quarter the firm acquired a majority stake in GreensLedge Holdings LLC, a boutique investment bank specializing in structured products advisory and placement, funded with cash on hand. The acquisition added $129 million of goodwill and $30 million of identifiable intangible assets. On April 30, 2026, after quarter end, the firm completed its acquisition of Clark Capital Management Group, Inc., an asset management firm, which will operate as a boutique investment manager under Raymond James Investment Management.
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