Core Insights - Raymond James Financial reported a 22% increase in recruiting and retention-related compensation in its fiscal first quarter ending December 31, 2025, as part of its strategy to attract financial advisors [1][5] - The firm successfully recruited advisors with approximately $13 billion in client assets and a trailing 12-month production of $96 million, marking a strong performance despite seasonal slowdowns [2] - The company achieved an annualized net new asset growth of 8%, totaling $31 billion, which is the second-best result in its history [2] Recruitment and Advisor Growth - The recruiting activity at Raymond James is described as robust and broad-based, with a recent tilt towards independent contractor channels [3] - As of the end of fiscal year 2025, the firm reached a record of 8,943 financial advisors, reflecting a 2% increase from the previous year [3] Competitive Landscape - Increased competition is noted in the financial advisory space, particularly from private equity-backed firms, but Raymond James emphasizes its long-term stability and ongoing investments in technology [4] - The firm recently introduced a proprietary artificial intelligence agent for advisors, named Rai, to enhance its service offerings [4] Financial Metrics - The recruiting and retention-related compensation for the first fiscal quarter was reported at $107 million, a 22% increase quarter-over-quarter [5] - The average compensation ratio for advisors was 65.4%, excluding acquisition-related expenses, with total compensation expenses amounting to $2.45 billion [6]

Key Takeaways RJF posted fiscal Q1 adjusted EPS of $2.86, beating estimates but down 2% year over year.Revenues rose 6% to a record $3.74B, driven by asset management and client asset growth.Capital markets revenues fell 21%, and non-interest expenses climbed 8% from the prior year.Raymond James’ (RJF)  first-quarter fiscal 2026 (ended Dec. 31) adjusted earnings of $2.86 per share beat the Zacks Consensus Estimate of $2.83. However, the bottom line declined 2% from the prior-year quarter.Results benefited p ...

In order to continue retaining and attracting the best advisers, we continue making investments in our platform and offerings. For example, our private wealth adviser program and expanded alternative investments platform supports advisers and focus on high net worth clients. We continue to make investments and implement solutions to automate and streamline processes that provide advisers with incremental time to invest in their client relationships. Highlighting this is our newly launched proprietary digita ...

Financial Data and Key Metrics Changes - The company reported record net revenues of $3.7 billion for the fiscal first quarter, with net income available to common shareholders at $562 million and earnings per diluted share of $2.79 [12] - Adjusted net income available to common shareholders was $577 million, resulting in adjusted earnings per diluted share of $2.86, with a pre-tax margin of 19.5% and an adjusted pre-tax margin of 20% [13] - The annualized return on common equity was 18%, and the annualized adjusted return on tangible common equity was 21.4% [13] Business Line Data and Key Metrics Changes - The Private Client Group generated pre-tax income of $439 million on record quarterly net revenues of $2.77 billion, driven by higher assets under administration [14] - The Capital Markets segment generated quarterly net revenues of $380 million and a pre-tax income of $9 million, with revenues declining year-over-year and sequentially due to lower M&A and advisory revenues [14][15] - The asset management segment achieved record pre-tax income of $143 million on record net revenues of $326 million, attributed to higher financial assets under management and strong net inflows [15] - The bank segment generated net revenues of $487 million and record pre-tax income of $173 million, with net interest income growing 6% sequentially [15] Market Data and Key Metrics Changes - The company reported net new asset annualized growth of 8% this quarter, with $31 billion of net new assets, marking the second-best quarter ever [5][31] - Total client assets recruited over the past twelve months exceeded $69 billion across all platforms, reflecting strong recruiting momentum [6] Company Strategy and Development Direction - The company is focused on long-term capital deployment, including investments in technology, acquisitions, and share repurchases, with a commitment to maintaining a strong balance sheet [5][10] - Recent acquisitions, including Clark Capital Management and GreensLedge, are aimed at enhancing the platform and expanding capabilities [9][11] - The company emphasizes a culture that respects advisor independence and ownership, which is seen as a differentiator in attracting and retaining financial advisors [7][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth driven by a robust advisor recruiting pipeline and strong commitments from prospective advisors [7] - The company acknowledged headwinds from lower interest rates and seasonal impacts typical in the second fiscal quarter but remains focused on generating long-term sustainable growth [27][28] - Management highlighted the importance of personal relationships and a stable platform for advisors, which is expected to differentiate the company in a competitive environment [28][41] Other Important Information - The company repurchased $400 million of common stock at an average share price of $162 during the quarter, with a Tier 1 Leverage Ratio of 12.7% [11][24] - The effective tax rate for the quarter was 22.7%, with an expectation of approximately 24%-25% for fiscal 2026 [24] Q&A Session Summary Question: On net new assets and areas of strength - Management noted that $31 billion of net new assets in the quarter was broad-based, with strong retention of existing advisors and a robust recruiting activity [31][32] Question: On sustainability of net new assets growth - Management expressed confidence in sustaining growth based on strong pipelines and advisor satisfaction, despite competitive pressures [41][54] Question: On capital markets outlook and revenue growth - Management indicated a strong pipeline in capital markets, with expectations for revenue to improve above the current quarter's level [46][61] Question: On M&A results and advisory performance - Management acknowledged challenges in comparing results with peers but emphasized long-term growth trends and sector expertise [82][84] Question: On non-compensation expenses and technology investments - Management highlighted ongoing investments in technology as a key driver of non-compensation expenses, balancing growth with operational efficiency [88][89]

Raymond James Financial (NYSE:RJF) Q1 2026 Earnings call January 28, 2026 05:00 PM ET Company ParticipantsButch Oorlog - CFOCraig Siegenthaler - Managing Director and the North American Head of Diversified FinancialsDevin Ryan - Director of Financial Technology ResearchKristie Waugh - SVP of Investor RelationsPaul Shoukry - CEOConference Call ParticipantsBen Budish - Senior Equity AnalystBill Katz - Senior Equity AnalystBrennan Hawken - Managing Director and Senior Equity AnalystDan Fannon - Managing Direct ...

Raymond James Financial (NYSE:RJF) Q1 2026 Earnings call January 28, 2026 05:00 PM ET Speaker8Good evening, and welcome to Raymond James Financial's Fiscal First Quarter 2026 earnings call. This call is being recorded and will be available for replay for 30 days on the company's investor relations website. I'm Christie Waugh, Senior Vice President of Investor Relations. Thank you for joining us. With me on the call today are Chief Executive Officer, Paul Shoukry, and Chief Financial Officer, Butch Oorlog. T ...

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Forward-looking statements Certain statements made in this presentation and the associated conference call may constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions (including changes in interest rates, inflatio ...

St. Petersburg, Fla., Jan. 28, 2026 (GLOBE NEWSWIRE) -- Record client assets under administration of $1.77 trillion and record Private Client Group assets in fee-based accounts of $1.04 trillion, up 14% and 19%, respectively, over December 2024Record quarterly net revenues of $3.74 billion, up 6% over the prior year’s fiscal first quarter and just above the preceding quarterQuarterly net income available to common shareholders of $562 million, or $2.79 per diluted share; quarterly adjusted net income avail ...

RAYMOND JAMES FINANCIAL REPORTS FISCAL FIRST QUARTER OF 2026 RESULTS ST. PETERSBURG, Fla. – Raymond James Financial, Inc. (NYSE: RJF) today reported net revenues of $3.74 billion and net income available to common shareholders of $562 million, or $2.79 per diluted share, for the fiscal first quarter ended December 31, 2025. Excluding $15 million of expenses, net of tax, related to acquisitions, quarterly adjusted net income available to common shareholders was $577 million , or $2.86 per diluted share . (1) ...