Core Insights - Jefferies Financial Group Inc. reported strong earnings for the quarter ending August 2025, showcasing its robust financial health and market performance [1][2][4]. Financial Performance - The company achieved earnings per share (EPS) of $1.01, exceeding the estimated $0.79 and reflecting a year-over-year improvement from $0.75 [2][6]. - Jefferies reported revenue of approximately $2.05 billion, surpassing the estimated $1.92 billion, marking a substantial year-over-year increase of 21.6% from $1.68 billion [3][6]. - Net earnings attributable to common shareholders reached approximately $224 million, up from $167 million in the same quarter of the previous year [4][6]. - The return on adjusted tangible shareholders' equity from continuing operations was 13.6%, an increase from 10.3% in the prior year [4]. Market Metrics - Jefferies has a price-to-earnings (P/E) ratio of approximately 22.16, indicating the price investors are willing to pay for each dollar of earnings [5]. - The price-to-sales ratio stands at about 1.32, suggesting that investors are paying $1.32 for every dollar of the company's sales [5]. - The company maintains a strong current ratio of 8.56, highlighting its ability to cover short-term liabilities with its short-term assets [5].

Core Insights - Jefferies Financial Group Inc. reported its highest fiscal third-quarter revenue ever, driven by a strengthening environment for dealmaking and trading activity globally [1][2]. Revenue Performance - Total revenue for the three months ending in August increased by nearly 22% to $2.05 billion, marking the highest third quarter in the firm's history and the most revenue for any quarter since Q1 2021 [2]. - Investment banking revenue grew by 17% to $1.09 billion, with advisory revenue reaching almost $656 million, the best quarter ever for this segment [8]. Trading and Advisory Strength - The last quarter was noted as the best period for advisory revenue, attributed to increased deal activity and improved market conditions [3]. - Trading activity also saw a year-over-year increase, with Jefferies' capital-markets unit generating $723 million in revenue, up 6.9% from the previous year [6]. Market Outlook - Jefferies' executives expressed optimism about the near- and long-term outlook, citing a rebound in market sentiment and a trend of strengthening corporate mergers and acquisitions [4][7]. - The firm indicated that the momentum seen since May and June is expected to continue, with increasing dialogue around initial public offerings and mergers and acquisitions [5][9]. Asset Management Growth - Asset-management net revenue nearly tripled to almost $177 million from $59 million a year earlier, driven by improved performance across fund strategies [9].

Core Insights - Jefferies (JEF) reported quarterly earnings of $1.05 per share, exceeding the Zacks Consensus Estimate of $0.79 per share, and up from $0.75 per share a year ago, representing an earnings surprise of +32.91% [1] - The company posted revenues of $2.05 billion for the quarter ended August 2025, surpassing the Zacks Consensus Estimate by 8.20%, compared to year-ago revenues of $1.68 billion [2] - Jefferies shares have underperformed the market, losing about 14.9% since the beginning of the year, while the S&P 500 gained 13% [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.75 on revenues of $1.94 billion, and for the current fiscal year, it is $2.52 on revenues of $7.06 billion [7] - The estimate revisions trend for Jefferies was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Financial - Miscellaneous Services industry, to which Jefferies belongs, is currently in the top 31% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Insights - Jefferies reported a higher profit for the third quarter, driven by record advisory fees and a rebound in dealmaking activity [1] Financial Performance - The company experienced a significant increase in advisory fees, contributing to the overall profit growth [1] - The rebound in dealmaking indicates a positive trend in the investment banking sector, suggesting potential for continued growth [1]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Jefferies Financial Group reported strong Q3 2025 results, with significant net earnings and revenue growth from Investment Banking and Capital Markets [Q3 & YTD Financial Highlights](index=1&type=section&id=Q3%20%26%20YTD%20Financial%20Highlights) Q3 2025 financial highlights show significant year-over-year growth in net earnings and total revenues, driven by Investment Banking and Capital Markets Key Financial Highlights ($ thousands, except per share amounts) | Quarter End 3Q25 | Quarter End 3Q24 | Year-to-Date 2025 | Year-to-Date 2024 | | :--------------- | :--------------- | :---------------- | :---------------- | | Net earnings attributable to common shareholders | $223,986 | $167,128 | $439,912 | $462,719 | | Diluted EPS from continuing operations | $1.01 | $0.72 | $1.98 | $2.06 | | Return on adjusted tangible shareholders' equity from continuing operations | 13.6 % | 10.3 % | 9.3 % | 10.0 % | | Total net revenues | $2,047,432 | $1,683,552 | $5,274,898 | $5,078,200 | | Investment banking net revenues | $1,135,325 | $943,566 | $2,602,324 | $2,457,963 | | Capital markets net revenues | $723,382 | $676,525 | $2,125,821 | $2,107,863 | | Asset management net revenues | $176,882 | $59,012 | $523,218 | $488,919 | | Book value per common share | $50.60 | $48.89 | $50.60 | $48.89 | | Adjusted tangible book value per fully diluted share | $33.38 | $31.87 | $33.38 | $31.87 | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted continued market position growth, record Investment Banking Advisory results, and optimism for long-term value delivery - Net revenues of **$2.05 billion** for Q3 2025 reflect continued growth in market position amid a strengthening environment for services[4](index=4&type=chunk) - Investment Banking Advisory business delivered record quarterly results, driven by increased market share, human capital investments, and improved M&A and capital formation environments[4](index=4&type=chunk) - Management is optimistic about the near and long-term outlook for Jefferies, citing strong positioning with talent, global reach, product offerings, client relationships, and brand[5](index=5&type=chunk) [Quarterly Cash Dividend](index=1&type=section&id=Quarterly%20Cash%20Dividend) The Board declared a **$0.40** per common share quarterly cash dividend, payable in November 2025 - Quarterly cash dividend declared: **$0.40** per Jefferies common share[3](index=3&type=chunk) - Payment Date: November 26, 2025[3](index=3&type=chunk) - Record Date: November 17, 2025[3](index=3&type=chunk) [Detailed Financial Performance (Unaudited)](index=2&type=section&id=Detailed%20Financial%20Performance%20(Unaudited)) This section details Jefferies' unaudited financial performance, covering net revenues by source, non-interest expenses, and consolidated earnings [Net Revenues by Source](index=2&type=section&id=Net%20Revenues%20by%20Source) Q3 2025 total net revenues increased to **$2.05 billion**, primarily from strong Investment Banking and Capital Markets, with overall year-to-date growth Net Revenues by Source ($ thousands) | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 31, 2024 | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 31, 2024 | | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Total Investment Banking | $1,135,325 | $943,566 | $2,602,324 | $2,457,963 | | Total Capital Markets | $723,382 | $676,525 | $2,125,821 | $2,107,863 | | Total Asset Management Net revenues | $176,882 | $59,012 | $523,218 | $488,919 | | Other | $11,843 | $4,449 | $23,535 | $23,455 | | **Total Net revenues by source** | **$2,047,432** | **$1,683,552** | **$5,274,898** | **$5,078,200** | [Investment Banking](index=2&type=section&id=Investment%20Banking) Investment Banking net revenues grew **20.3%** year-over-year in Q3 2025 to **$1.14 billion**, driven by record Advisory and improved underwriting Investment Banking Net Revenues ($ thousands) | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 31, 2024 | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 31, 2024 | | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Advisory | $655,578 | $592,462 | $1,511,218 | $1,214,927 | | Equity underwriting | $181,205 | $150,096 | $432,091 | $608,586 | | Debt underwriting | $249,525 | $183,078 | $654,250 | $517,771 | | Other investment banking | $49,017 | $17,930 | $4,765 | $116,679 | | **Total Investment Banking** | **$1,135,325** | **$943,566** | **$2,602,324** | **$2,457,963** | - Advisory net revenues of **$656 million** represent the best quarter ever, driven by increased deal values in M&A across most sectors due to improved market conditions[7](index=7&type=chunk) - Underwriting net revenues of **$431 million** were higher than the prior year quarter, as market conditions for Equity and Debt underwriting improved, leading to increased activity levels[7](index=7&type=chunk) [Capital Markets](index=2&type=section&id=Capital%20Markets) Capital Markets net revenues increased **6.9%** in Q3 2025 to **$723 million**, primarily from stronger Equities, offsetting Fixed Income declines year-to-date Capital Markets Net Revenues ($ thousands) | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 31, 2024 | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 31, 2024 | | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Equities | $486,695 | $387,342 | $1,421,997 | $1,182,025 | | Fixed income | $236,687 | $289,183 | $703,824 | $925,838 | | **Total Capital Markets** | **$723,382** | **$676,525** | **$2,125,821** | **$2,107,863** | - Equities net revenues increased from the prior year quarter due to higher global volumes, particularly in U.S. and Europe equity cash business, and strong results in equity options, corporate derivatives, and global electronic trading[7](index=7&type=chunk) - Fixed Income net revenues decreased from the prior year quarter as strong results from global structured products were offset by lower results in client flow trading businesses due to tight credit conditions[7](index=7&type=chunk) [Asset Management](index=2&type=section&id=Asset%20Management) Asset Management net revenues significantly increased to **$176.9 million** in Q3 2025, driven by higher fees and improved investment returns from fund performance Asset Management Net Revenues ($ thousands) | Three Months Ended Aug 31, 2025 | Three Months Ended Aug 31, 2024 | Nine Months Ended Aug 31, 2025 | Nine Months Ended Aug 31, 2024 | | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Asset management fees and revenues | $15,916 | $13,261 | $125,312 | $89,736 | | Investment return | $68,026 | $(40,135) | $112,796 | $110,447 | | Allocated net interest | $(18,550) | $(16,016) | $(54,915) | $(47,031) | | Other investments, inclusive of net interest | $111,490 | $101,902 |

Key Takeaways Morgan Stanley's IB revenues rose 36% last year, aided by robust deal-making activities.Jefferies' IB fees jumped 51.6% in fiscal 2024, supported by mid-market advisory and capital markets.Analysts expect JEF's 2026 earnings to surge 70.8% versus steadier growth forecasts for Morgan Stanley.Investment banking (IB) is at the center of global capital flows, from multibillion-dollar mergers and acquisitions (M&A) transactions to high-profile IPOs. Among the sector’s key players, Morgan Stanley (M ...

Core Viewpoint - Jefferies Financial Group Inc. is experiencing a shift in analyst expectations regarding its stock performance, with a notable decline in consensus price targets and an upcoming earnings report that could further influence these targets [2][3][6]. Company Overview - Jefferies Financial Group Inc. is a global financial services company that provides investment banking, capital markets, and asset management services, competing with other major financial institutions [1]. Price Target Adjustments - The consensus price target for Jefferies has decreased from $78.29 to $72, reflecting a more cautious outlook from analysts [2][6]. - Chris Kotowski from Oppenheimer has set a significantly lower price target of $47, indicating a conservative perspective on the company's future performance [2][6]. Upcoming Earnings Report - Jefferies is expected to release its third-quarter earnings results soon, which are crucial for assessing the company's financial health and future prospects [3][6]. - Analysts anticipate earnings growth, although it may not surpass expectations, making the earnings report a key focus for investors [3]. Market Conditions and Strategic Initiatives - Recent market conditions, including economic changes, interest rates, and regulations, may impact Jefferies' stock performance [4]. - Management has expressed optimism regarding deal activity, which could enhance the company's growth prospects [4]. Stock Performance - Jefferies' stock has seen a 5.8% increase in the last trading session, supported by strong earnings estimate revisions [5][6]. - Analyst Chris Kotowski's upgrade from 'hold' to 'buy' reflects confidence in Jefferies' resilience and growth potential despite recent market volatility [5][6].

Earnings Expectations - Carnival Corp (NYSE: CCL) is expected to report quarterly earnings of $1.32 per share on revenue of $8.10 billion [2] - Progress Software Corp (NASDAQ: PRGS) is anticipated to post earnings of $1.30 per share on revenue of $240.11 million [2] - Jefferies Financial Group Inc (NYSE: JEF) is projected to report quarterly earnings of 80 cents per share on revenue of $1.92 billion [2] - Vail Resorts Inc (NYSE: MTN) is expected to report a quarterly loss of $4.75 per share on revenue of $273.91 million [2] Stock Movements - Carnival shares increased by 0.1% to $30.65 in after-hours trading [2] - Progress Software shares rose by 0.4% to $42.20 in after-hours trading [2] - JFB Construction Holdings (NASDAQ: JFB) shares surged by 95.5% to $13.39 following a $44 million private placement announcement [2] - Vail Resorts shares gained 0.6% to $148.58 in after-hours trading [2] - Jefferies Financial shares slightly declined to $66.70 in after-hours trading [2]

Earnings Report - Jefferies Financial Group Inc. is set to release its third-quarter earnings results on September 29, with analysts expecting earnings of 80 cents per share, an increase from 75 cents per share in the same period last year [1] - The projected quarterly revenue is $1.92 billion, compared to $1.68 billion a year earlier [1] Strategic Alliance - On September 19, Jefferies Financial and Sumitomo Mitsui Financial Group announced a significant expansion of their global strategic alliance, which began in 2021 and has since extended across multiple regions and services [2] - Following the announcement, Jefferies Financial shares experienced a decline of 1.2%, closing at $65.93 [2] Analyst Ratings - Morgan Stanley analyst Ryan Kenny maintained an Equal-Weight rating and increased the price target from $54 to $72 [5] - Goldman Sachs analyst James Yaro maintained a Buy rating and raised the price target from $55 to $62 [5] - Oppenheimer analyst Chris Kotowski downgraded the stock from Outperform to Perform [5]

Jefferies Financial Group Inc. (NYSE: JEF) will release earnings results for the third quarter, after the closing bell on Monday, Sept. 29.Analysts expect the New York-based company to report quarterly earnings at 80 cents per share, up from 75 cents per share in the year-ago period. Jefferies Financial projects to report quarterly revenue of $1.92 billion, compared to $1.68 billion a year earlier, according to data from Benzinga Pro.On Sept. 19, Jefferies Financial and Sumitomo Mitsui Financial Group Inc. ...