Core Insights - Raymond James Financial, Inc. reported $3.73 billion in revenue for the quarter ended September 2025, marking a year-over-year increase of 7.7% and an EPS of $3.11 compared to $2.95 a year ago, exceeding the Zacks Consensus Estimate of $3.6 billion by 3.52% [1] - The company delivered an EPS surprise of 15.19%, with the consensus EPS estimate being $2.70 [1] Financial Performance Metrics - Private Client Group Asset Under Management reached $1.67 billion, surpassing the three-analyst average estimate of $1.63 billion [4] - Tier 1 Leverage Ratio was reported at 13.1%, slightly above the 13% average estimate [4] - Private Client Group assets in Fee-based Accounts totaled $1.01 billion, exceeding the estimated $987.34 million [4] - Total Capital Ratio was 24.1%, compared to the 24.5% estimated by two analysts [4] - Other Revenues were reported at $80 million, significantly higher than the estimated $50.89 million, reflecting a 33.3% year-over-year increase [4] - Total brokerage revenues amounted to $606 million, exceeding the four-analyst average estimate of $581.56 million, with a year-over-year change of 8% [4] - Account and service fees generated $297 million, below the average estimate of $312.22 million, representing a year-over-year decline of 10.5% [4] - Investment banking revenues were $316 million, compared to the average estimate of $257.71 million, showing a slight year-over-year increase of 0.3% [4] - Interest income was reported at $1.01 billion, slightly above the estimated $991.48 million, but reflecting a year-over-year decrease of 5.5% [4] - Asset management and related administrative fees totaled $1.88 billion, exceeding the average estimate of $1.85 billion, with a year-over-year increase of 12.9% [4] - Private Client Group- Asset Management and Related Administrative Fees reached $1.59 billion, close to the three-analyst average estimate of $1.6 billion, with a year-over-year change of 12.6% [4] - Private Client Group- Total Brokerage Revenues were $465 million, surpassing the three-analyst average estimate of $445.36 million, reflecting a year-over-year increase of 7.4% [4] Stock Performance - Shares of Raymond James Financial have returned -5.7% over the past month, while the Zacks S&P 500 composite has changed by +1.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Raymond James Financial, Inc. (RJF) reported quarterly earnings of $3.11 per share, exceeding the Zacks Consensus Estimate of $2.7 per share, and up from $2.95 per share a year ago, representing an earnings surprise of +15.19% [1] - The company posted revenues of $3.73 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.52%, and compared to year-ago revenues of $3.46 billion [2] - The stock has gained approximately 6.7% since the beginning of the year, while the S&P 500 has increased by 14.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.85 on revenues of $3.69 billion, and for the current fiscal year, it is $11.63 on revenues of $15.1 billion [7] - The estimate revisions trend for Raymond James Financial was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Financial - Investment Bank industry, to which Raymond James Financial belongs, is currently in the top 10% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [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]

Financial Data and Key Metrics Changes - The company reported record quarterly net revenues of $3.7 billion, an increase of 8% year-over-year and 10% sequentially [7] - For fiscal 2025, record net revenues reached $14.1 billion, representing a 10% growth compared to fiscal 2024 [7] - Pre-tax income for the quarter was $731 million, a decline of 4% year-over-year but an increase of 30% from the preceding quarter [7] - The adjusted pre-tax margin for the quarter was 20.7%, with an annualized return on common equity of 19.6% [15][25] Business Line Data and Key Metrics Changes - The Private Client Group achieved record quarterly net revenues of $2.66 billion, with pre-tax income of $416 million [15][16] - The Capital Markets segment generated quarterly net revenues of $513 million, a 6% year-over-year increase, driven by higher debt underwriting and strong growth in affordable housing investments [16] - The Asset Management segment reported record pre-tax income of $132 million on net revenues of $314 million, attributed to higher financial assets under management [17] - The Bank segment generated net revenues of $459 million and pre-tax income of $133 million, with a strong focus on loan growth [17] Market Data and Key Metrics Changes - The company ended the quarter with record client assets under administration of $1.6 trillion, reflecting an 11% year-over-year growth [8] - Quarterly domestic net new assets were nearly $18 billion, representing a 5% annualized growth rate [9] - The bank segment's loans reached a record $51.6 billion, primarily due to a 22% annual growth in securities-based lending balances [13] Company Strategy and Development Direction - The company is focused on sustainable growth and quality over quantity, emphasizing a long-term approach to client relationships and advisor retention [28][29] - Significant investments of approximately $1 billion in technology, including AI initiatives, are aimed at enhancing advisor efficiency and client experience [5][6] - The company is pursuing both organic and inorganic growth opportunities, maintaining a share repurchase program to manage capital levels effectively [14][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the competitive positioning and growth prospects entering fiscal 2026, highlighting a strong recruiting pipeline and advisor retention [28] - The company anticipates continued demand for securities-based loans in a lower interest rate environment, which is expected to drive growth [43][71] - Management noted that the investment banking pipeline remains strong, with a commitment to enhancing capabilities through strategic hiring and acquisitions [11][12] Other Important Information - The company repurchased $350 million of common stock during the quarter, maintaining a Tier 1 leverage ratio of 13.1% [14][27] - The effective tax rate for the quarter was 17.4%, with an estimated rate of 24%-25% for fiscal 2026 [27] Q&A Session Summary Question: Can you elaborate on the recruiting success across segments? - Management indicated that recruiting success has been broad-based across all affiliation options, with a strong pipeline entering fiscal 2026 [32][34] Question: What are the goals for AI initiatives? - The company aims to enhance infrastructure resilience, increase service efficiency, and provide tailored advice through AI investments [35][37] Question: What is the outlook for loan growth in a lower interest rate environment? - Management expects securities-based loans to continue being the highest growth category, with potential acceleration in demand as rates decrease [42][43] Question: How will the company fund growth? - The company has diversified funding sources and plans to utilize third-party deposits and run down some securities to support growth [59][60] Question: What are the criteria for larger acquisitions? - The company emphasizes cultural fit, strategic alignment, and financial sensibility as key criteria for acquisitions [82][84]

Financial Data and Key Metrics Changes - The company reported quarterly net revenues of $3.7 billion, an increase of 8% year-over-year and 10% sequentially [6][18] - For fiscal 2025, record net revenues reached $14.1 billion, representing a 10% growth, while record pre-tax income was $2.71 billion, up 3% from fiscal 2024 [7][15] - Quarterly pre-tax income was $731 million, a decline of 4% compared to the previous year but an increase of 30% from the preceding quarter [6][15] Business Line Data and Key Metrics Changes - The Private Client Group achieved record quarterly net revenues of $2.66 billion, with pre-tax income of $416 million, driven by higher assets under administration [16][17] - The Capital Markets segment generated net revenues of $513 million, a 6% year-over-year increase, and pre-tax income of $90 million, with a robust 35% sequential growth [17][18] - The Asset Management segment reported record pre-tax income of $132 million on net revenues of $314 million, attributed to higher financial assets under management and strong net inflows [17][18] - The Bank segment's net revenues were $459 million, with pre-tax income of $133 million, reflecting continued loan growth [18][19] Market Data and Key Metrics Changes - The company ended the quarter with record client assets under administration of $1.6 trillion, an 11% year-over-year growth [8] - Domestic net new assets were nearly $18 billion for the quarter, representing a 5% annualized growth rate [9] - The bank segment's loans reached a record $51.6 billion, primarily due to a 22% annual growth in securities-based lending balances [12][25] Company Strategy and Development Direction - The company is focused on organic growth complemented by strategic acquisitions, maintaining a disciplined approach to capital deployment [13][14] - Investments in technology, including a $1 billion commitment to enhance advisor efficiency and client experience, are a priority [4][10] - The acquisition of Greensledge, a boutique investment bank, is expected to enhance the company's capabilities in structured credit and securitizations [11][73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's competitive positioning and long-term growth strategy, emphasizing a stable platform for advisors [30][31] - The company anticipates continued strong demand for securities-based loans in a lower interest rate environment [44][68] - Management highlighted the importance of maintaining a strong balance sheet and liquidity to support growth initiatives [27][28] Other Important Information - The company returned over $1.5 billion to shareholders through dividends and share repurchases in fiscal 2025 [15][29] - The effective tax rate for the quarter was 17.4%, with an estimated rate of 24% to 25% for fiscal 2026 [28] Q&A Session Summary Question: Can you elaborate on the recruiting success across segments? - Management noted broad-based recruiting success across all affiliation options, with a strong pipeline entering fiscal 2026 [33][35] Question: What are the goals for AI initiatives? - The company aims to enhance infrastructure resilience, improve service efficiency, and provide tailored advice through AI investments [36][38] Question: What is the outlook for loan growth in a lower interest rate environment? - Management expects securities-based loans to continue being the highest growth category, with potential acceleration as rates decrease [44][68] Question: How will the company fund growth? - The company plans to utilize third-party deposits and manage its securities portfolio to support growth [58][60] Question: What are the criteria for future acquisitions? - The company emphasizes cultural fit, strategic alignment, and financial sensibility as key criteria for acquisitions [79][80]

Financial Data and Key Metrics Changes - The company reported record net revenues of $3.7 billion for Q4 2025, an increase of 8% year-over-year and 10% sequentially [8][20] - For fiscal year 2025, record net revenues reached $14.1 billion, representing a 10% growth, while record pre-tax income was $2.71 billion, up 3% from fiscal year 2024 [9][10] - Quarterly pre-tax income was $731 million, a decline of 4% year-over-year but an increase of 30% from the previous quarter [9][20] Business Line Data and Key Metrics Changes - The Private Client Group generated record quarterly net revenues of $2.66 billion, with pre-tax income of $416 million, driven by higher assets under administration [17][18] - The Capital Markets segment achieved quarterly net revenues of $513 million, with a pre-tax income of $90 million, reflecting a 6% year-over-year growth [19] - The Asset Management segment reported record pre-tax income of $132 million on net revenues of $314 million, attributed to higher financial assets under management and strong net inflows [19] - The Bank segment generated net revenues of $459 million and pre-tax income of $133 million, with a strong loan growth primarily in securities-based lending [15][19] Market Data and Key Metrics Changes - The company ended the quarter with record client assets of $1.73 trillion and a record number of financial advisors at 8,943 [5][10] - Domestic net new assets were nearly $18 billion for the quarter, representing a 5% annualized growth rate [11] - The company reported a 22% annual growth in securities-based lending balances, reflecting strong demand [15][27] Company Strategy and Development Direction - The company is focused on long-term growth, emphasizing a stable platform for advisors and clients, differentiating itself from competitors who prioritize short-term gains [32][33] - Significant investments of approximately $1 billion in technology, including AI initiatives, are aimed at enhancing advisor efficiency and client experience [6][12] - The company plans to continue pursuing both organic and inorganic growth opportunities, including strategic acquisitions [16][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's competitive positioning and growth momentum entering fiscal year 2026, despite a competitive environment [32][63] - The investment banking pipeline remains strong, with expectations for continued growth in various segments [14][19] - Management highlighted the importance of maintaining a strong balance sheet and liquidity to support growth initiatives [30][31] Other Important Information - The company returned over $1.5 billion in capital through common dividends and share repurchases during fiscal year 2025 [17][31] - The effective tax rate for the quarter was 17.4%, with an estimated rate of 24% to 25% for fiscal year 2026 [30] Q&A Session Summary Question: Can you elaborate on the recent recruiting success and which segments are seeing more uplift? - Management noted broad-based recruiting success across all affiliation options, with a record production of over $400 million from recruited advisors, up 21% year-over-year [36][37] Question: What are the goals for the AI initiatives and how will they impact future technology spending? - The company aims to enhance infrastructure, increase service efficiency, and provide tailored advice through AI, with significant budget increases planned for AI initiatives [39][41] Question: What are the expectations for loan growth in a lower interest rate environment? - Management expects securities-based loans to continue being the highest growth category, with potential acceleration as rates decrease [48][50] Question: How has M&A activity impacted the recruiting pipeline? - M&A activity creates opportunities for advisors to seek new homes, benefiting the company's recruiting efforts [88][89] Question: What are the criteria for future acquisitions? - The company looks for cultural fit, strategic alignment, and favorable financial terms in potential acquisitions [100][101]

Fourth Quarter and Fiscal 2025 Results October 22, 2025 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 c ...

Core Insights - Raymond James Financial, Inc. reported record net revenues of $3.73 billion and net income of $603 million for the fiscal fourth quarter ended September 30, 2025, marking a significant achievement in a challenging market environment [1][2] - The company achieved record annual net revenues of $14.07 billion for fiscal 2025, reflecting a 10% increase compared to fiscal 2024, with earnings per diluted share also reaching record levels [3][4] Financial Performance - Quarterly net revenues increased by 8% year-over-year and 10% sequentially, driven by higher asset management and investment banking revenues [2][4] - Quarterly adjusted net income available to common shareholders was $635 million, or $3.11 per diluted share, excluding acquisition-related expenses [1][2] - For fiscal 2025, record earnings per diluted share were $10.30, a 6% increase from fiscal 2024 [3][4] Client and Asset Management - The Private Client Group generated record net revenues, with assets under administration reaching $1.73 trillion, up 10% from September 2024 [4][10] - Domestic Private Client Group net new assets for the fiscal fourth quarter were $17.9 billion, reflecting an annualized growth rate of 5.0% [4][10] Investment Banking and Capital Markets - Quarterly net revenues in the Capital Markets segment increased by 6% year-over-year, with a notable 35% increase sequentially, driven by higher debt underwriting and advisory revenues [8][11] - The investment banking pipeline remains strong, with the recent acquisition of GreensLedge Holdings LLC expected to enhance the company's capital markets capabilities [8] Technology and Innovation - The company invested approximately $1 billion in technology, including AI, to improve service delivery and client insights [2] - New leadership positions were created, including Chief AI Officer and Head of AI Strategy, to spearhead ongoing technological advancements [2] Shareholder Returns - Over $1.5 billion was returned to shareholders through common share repurchases and dividends in fiscal 2025 [4][16] - The company repurchased $350 million of common stock during the fiscal fourth quarter, with $399 million remaining under the repurchase authorization [16]

Financial Performance - Record net revenues of $3.73 billion for the fiscal fourth quarter, up 8% year-over-year and 10% sequentially[4] - Net income available to common shareholders for the fourth quarter was $603 million, or $2.95 per diluted share; adjusted net income was $635 million, or $3.11 per diluted share[4] - Annual net revenues reached $14.07 billion for fiscal 2025, a 10% increase from fiscal 2024, with earnings per diluted share of $10.30, up 6%[5] - Total revenues for the twelve months ended September 30, 2025, were $15,912 million, a 7% increase from $14,923 million in 2024[30] - Total revenues for the twelve months ended September 30, 2025, increased by 7% to $10,282 million compared to $9,578 million for the same period in 2024[45] - Total net revenues for the fiscal year ended September 30, 2025, increased by 10% to $14,065 million compared to $12,821 million for the previous year[39] Client Assets and Growth - Record client assets under administration of $1.73 trillion, with Private Client Group assets in fee-based accounts increasing by 15% year-over-year to $1.01 trillion[4] - Domestic Private Client Group net new assets for the fourth quarter totaled $17.9 billion, reflecting an annualized growth rate of 5.0%[4] - Client assets under administration reached $1,730.6 billion, marking a 10% increase from $1,571.1 billion year-over-year[32] - Private Client Group assets in fee-based accounts grew to $1,008.1 billion, a 15% increase from $875.2 billion year-over-year[32] - Domestic Private Client Group net new assets totaled $17,930 million, with an annualized growth rate of 5.0%[32] Investments and Acquisitions - Significant investments of approximately $1 billion in technology, including AI, to enhance service and deliver data-driven insights[3] - The recently announced acquisition of GreensLedge Holdings LLC is expected to close later in fiscal 2026, enhancing the capital markets business[13] Income and Expenses - Pre-tax income decreased by 4% to $731 million compared to $760 million in the prior year quarter, but increased by 30% from $563 million in the previous quarter[26] - Total non-interest expenses for the quarter were $2,996 million, an increase of 11% from $2,702 million in the prior year quarter[28] - Total non-interest expenses for the twelve months ended September 30, 2025, were $8,462 million, reflecting a 10% increase from $7,674 million in 2024[45] Equity and Capital Ratios - Annualized return on common equity for the fourth quarter was 19.6%, while the adjusted return on tangible common equity was 23.9%[5] - Total capital ratio at the end of the quarter was 24.1%, well above regulatory requirements[19] - Total common equity attributable to Raymond James Financial, Inc. rose to $12.4 billion, reflecting a 7% increase from $11.6 billion year-over-year[32] - Common equity tier 1 capital ratio remained stable at 22.9% compared to 22.6% year-over-year[32] Interest Income and Loans - Net interest income and RJBDP fees for the quarter were $653 million, a 4% decrease from $678 million year-over-year[33] - The bank segment reported a net interest income of $551 million for the quarter, compared to $532 million in the previous quarter[34] - Total bank deposits rose to $57,634 million, reflecting a cost of 2.68%, compared to $54,862 million at 3.40% in the previous quarter[34] - Bank loans, net, increased by 12% to $51.6 billion as of September 30, 2025, compared to $46.0 billion in 2024[58] Earnings Per Share - Basic earnings per share increased by 3% to $3.03 from $2.93 in the prior year quarter, and diluted earnings per share also rose by 3% to $2.95 from $2.86[26] - Adjusted diluted earnings per share for the twelve months ended September 30, 2025, was $10.66, up from $10.05 in the previous year, indicating a growth of 6.1%[65] - Adjusted basic earnings per share rose to $3.19 in Q4 2025, compared to $3.03 in Q4 2024, reflecting a year-over-year increase of 5.3%[65] Tax and Regulatory Compliance - The effective tax rate for the quarter was 17.4%, down from 20.8% in the same quarter of 2024[26] - Total criticized loans as of September 30, 2025, were $660 million, a decrease of 3% from $679 million in 2024[58] Miscellaneous - The firm returned over $1.5 billion to shareholders through common share repurchases and dividends in fiscal 2025[4] - The company experienced a $58 million reserve increase associated with a legal settlement, impacting the Capital Markets segment for both Q4 2025 and the twelve months ended September 30, 2025[71]

Core Viewpoint - Raymond James (RJF) is expected to report a decline in earnings for the fourth quarter of fiscal 2025, while revenues are anticipated to increase [1][3]. Financial Performance - Earnings for RJF are projected at $2.70, reflecting an 8.5% year-over-year decline, while revenues are estimated at $3.60 billion, indicating a 4% growth [3]. - The last reported quarter saw RJF's earnings miss the Zacks Consensus Estimate, primarily due to a $58 million reserve increase related to a legal settlement and higher expenses [2]. Revenue Drivers - Asset management and related administrative fees are expected to rise by 9% sequentially, driven by higher PCG assets and fee-based accounts [4]. - Investment Banking (IB) fees are estimated at $258 million, representing an 18.1% year-over-year decline, although advisory fees are expected to benefit from a rebound in global M&A activity [5][6]. - Trading revenues are likely to show solid growth due to strong client activity and market volatility driven by geopolitical and macroeconomic factors [7]. Interest Income and Expenses - Net Interest Income (NII) is projected at $991 million, indicating a 7.6% year-over-year decline, but is expected to be positively impacted by stable funding costs and a favorable lending environment [8][9]. - Total non-interest expenses are anticipated to increase by 5.4% year-over-year to $2.85 billion, driven by advisor hiring and inflationary pressures [10]. Earnings Surprise Potential - The company has a positive Earnings ESP of +2.00% and a Zacks Rank of 3, indicating a reasonable chance of beating the consensus estimate [11][12].

Group 1 - The Value Lab focuses on long-only value investment ideas, aiming for a portfolio yield of about 4% and has performed well over the last 5 years by engaging in international markets [1][2] - Raymond James has experienced a positive trend in dealmaking, particularly with an increase in megadeals, although it is perceived as somewhat conservative [2] - The Valkyrie Trading Society consists of analysts sharing high conviction investment ideas that are expected to yield non-correlated and outsized returns in the current economic environment [3]