Core Insights - Raymond James Financial, Inc. reported record net revenues of $3.74 billion and net income of $562 million for the fiscal first quarter ended December 31, 2025, reflecting a 6% increase year-over-year [1][2] - The company achieved record client assets of $1.77 trillion and an annualized net new asset growth of 8% [2] - The firm announced an 8% increase in its quarterly dividend and repurchased $400 million of shares during the quarter [2] Financial Performance - Quarterly adjusted net income available to common shareholders was $577 million, or $2.86 per diluted share, after excluding $15 million of acquisition-related expenses [1][2] - Pre-tax income was largely unchanged from the preceding quarter, while net income available to common shareholders decreased by 7% due to a higher effective tax rate [2] - Annualized return on common equity and annualized adjusted return on tangible common equity were 18.0% and 21.4%, respectively [2] Segment Results Private Client Group - Quarterly net revenues rose 9% year-over-year, driven by higher asset management and related administrative fees, which increased 15% to $1.69 billion [5][6] - Record client assets under administration reached $1.77 trillion, with fee-based accounts growing to $1.04 trillion, up 14% and 19% respectively [5][6] - Domestic Private Client Group net new assets totaled $30.8 billion for the fiscal first quarter, reflecting an annualized growth rate of 8% [5][6] Capital Markets - Quarterly net revenues decreased by 21% compared to the prior year, primarily due to lower M&A and advisory revenues [9] - Sequentially, net revenues declined by 26%, largely driven by lower debt underwriting and M&A revenues [9] Asset Management - The increase in quarterly net revenues and pre-tax income was attributed to higher financial assets under management due to market appreciation and net inflows into fee-based accounts [11] Banking - Net bank loans grew by 13% year-over-year, with securities-based and residential mortgage loans increasing by 28% and 10%, respectively [14] - Bank segment net interest income rose by 14% compared to the prior year, driven by loan growth and lower funding costs [14] Acquisitions and Investments - The firm announced the acquisition of Clark Capital Management Group, which specializes in wealth-focused solutions and has over $46 billion in combined assets under management [12] - Continued investments in technology and platform enhancements were highlighted as part of the company's long-term growth strategy [2] Shareholder Returns - The quarterly cash dividend on common shares was increased by 8% to $0.54 per share, with a total of $2 billion authorized for stock repurchases [20] - During the fiscal first quarter, the firm repurchased $400 million of common stock at an average price of $162 per share [20]

Financial Performance - Record net revenues of $3.74 billion for the fiscal first quarter, up 6% year-over-year[4] - Net income available to common shareholders was $562 million, or $2.79 per diluted share; adjusted net income was $577 million, or $2.86 per diluted share[3] - Total revenues for the three months ended December 31, 2025, were $4,176 million, representing a 3% increase from $4,035 million in the same period of 2024[27] - Net income for the same period was $563 million, a decrease of 6% compared to $600 million in the prior year[27] - Earnings per common share (basic) decreased to $2.85, down 3% from $2.94 in the previous year[27] - The overall pre-tax income for the company was $728 million, a slight decrease of 3% from $749 million in the previous year[32] - Pre-tax income for the Bank segment increased by 47% to $173 million, compared to $118 million in the same quarter last year[32] - Pre-tax income decreased by 5% to $439 million from $462 million year-over-year[35] Client Assets and Growth - Record client assets under administration reached $1.77 trillion, with Private Client Group assets in fee-based accounts increasing 19% to $1.04 trillion[4] - Domestic Private Client Group net new assets totaled $30.8 billion for the quarter, reflecting annualized growth of 8%[4] - Client assets under administration reached $1,773.1 billion, a 14% increase from $1,557.5 billion in December 2024[28] - Private Client Group assets in fee-based accounts grew by 19% to $1,040.1 billion from $876.6 billion in the previous year[28] - Domestic Private Client Group net new assets were $30,828 million, showing an annualized growth rate of 8.0%[28] Revenue Segments - Capital Markets segment revenues decreased by 21% year-over-year, primarily due to lower M&A and advisory revenues[8] - The Private Client Group generated revenues of $2,768 million, reflecting a 9% increase from $2,548 million year-over-year[32] - The Bank segment reported revenues of $487 million, up 15% from $425 million in the previous year[32] - Asset Management revenues rose by 11% to $326 million, compared to $294 million in the same quarter last year[32] - Total brokerage revenues increased by 9% to $470 million compared to $433 million in the previous year[35] - Total investment banking revenues decreased by 37% to $200 million from $317 million in the previous year[38] Assets and Liabilities - Total assets as of December 31, 2025, increased to $88.8 billion, an 8% rise from $82.3 billion a year earlier[28] - Total assets increased to $66.7 billion as of December 31, 2025, representing a 7% increase from $62.3 billion in 2024[49] - Interest-earning assets in the Bank segment totaled $65,520 million, with a net interest margin of 2.81%[30] - Total interest-bearing liabilities amounted to $70,650 million, with an average interest rate of 2.48%[30] Dividends and Stock Repurchase - The quarterly dividend was increased by 8% to $0.54 per share, with $400 million of common stock repurchased during the quarter[19] Equity and Returns - Annualized return on common equity was 18.0%, while adjusted return on tangible common equity was 21.4%[4] - Book value per share increased to $63.41, reflecting a 10% growth from $57.89 in the prior year[28] - Return on common equity for the three months ended December 31, 2025, was 18.0%, down from 20.4% for the same period in 2024[60] - Adjusted return on common equity was 18.5% for the three months ended December 31, 2025, compared to 20.9% for the same period in 2024[60] Expenses - Total non-interest expenses rose by 12% to $2,329 million compared to $2,086 million in the previous year[35] - Compensation, commissions, and benefits expense rose to $2,450 million, up from $2,272 million in 2024[52] Nonperforming Assets - Total nonperforming assets rose to $208 million, a 29% increase from $161 million in 2024[49] - Total criticized loans were $611 million, a slight increase of 2% from $599 million in 2024[49]

Core Insights - Raymond James has launched a proprietary digital AI operations agent named Rai, which utilizes natural language processing and generative AI to provide curated answers and guidance for operational questions [1][2] - The implementation of Rai is part of a broader strategy to enhance service models and maintain personal relationships within the firm, with plans for an enterprise-wide rollout following a successful pilot [2][3] AI Strategy and Investment - The company is committed to a multi-year investment in AI tools, with an annual budget of $1.1 billion dedicated to technology advancements that foster innovation and solutions across the enterprise [4] - Rai is designed to learn from user interactions, providing a personalized experience while ensuring human oversight in decision-making processes [2][3] AI Utilization and Development - There are over 10,000 regular users of conversational AI within the firm, indicating high associate utilization rates [3] - The development team is generating approximately 3.2 million lines of code monthly under AI supervision, showcasing the scale of AI integration in the company's operations [3] Additional AI Tools - Recent enhancements include a CRM AI note assistant for optimizing note-taking and identifying action items, Zoom AI meeting summaries for tracking activities, and generative AI search capabilities for improved internal knowledge database queries [6]

Core Insights - Raymond James (RJF) is expected to report a decline in earnings for the first quarter of fiscal 2026, while revenues are projected to increase [1][2] Revenue and Earnings Estimates - The Zacks Consensus Estimate for RJF's fiscal first-quarter earnings is $2.83, reflecting a 3.4% decline year-over-year [2] - The consensus estimate for sales is $3.73 billion, indicating a 5.4% year-over-year growth [2][9] Asset Management and Fees - Management anticipates a 6.5% sequential growth in asset management and related administrative fees, driven by higher PCG assets and fee-based accounts [3] Investment Banking Performance - Global M&A activity surged in the December quarter, positively impacting RJF's advisory fees due to an easing buyer-seller valuation gap and lower capital costs [4] - The consensus estimate for RJF's investment banking fees is $276.4 million, which represents a 15% decline year-over-year [5] Trading Revenues - RJF's trading business is expected to perform strongly due to increased client activity and market volatility, influenced by factors such as the longest U.S. government shutdown and easing monetary policy [6] Net Interest Income - The Zacks Consensus Estimate for net interest income (NII) is $551.8 million, indicating a year-over-year increase of 33.3% [8][9] - Management expects NII and third-party fees from the Raymond James Bank Deposit Program to remain stable sequentially [8] Expense Outlook - Overall expenses are anticipated to rise due to consistent hiring of advisors and investments in franchises, compounded by a competitive environment and inflationary pressures [10] Earnings Surprise Potential - The likelihood of RJF beating the Zacks Consensus Estimate is considered high, supported by a positive Earnings ESP of +1.06% and a Zacks Rank of 3 (Hold) [11]

Core Viewpoint - Analysts project that Raymond James Financial, Inc. (RJF) will report quarterly earnings of $2.87 per share, reflecting a 2.1% decline year over year, while revenues are expected to increase by 5.4% to $3.73 billion [1]. Earnings Estimates - The consensus EPS estimate for the quarter has been adjusted upward by 0.9% over the past 30 days, indicating a reassessment by covering analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts predict 'Revenues- Other' to reach $41.94 million, a 7.5% increase from the prior-year quarter [5]. - 'Net Revenues- Total brokerage revenues' are expected to be $583.97 million, reflecting a 4.5% increase year over year [5]. - 'Revenues- Account and service fees' are projected at $300.41 million, indicating a 12.2% decline year over year [5]. - 'Revenues- Investment banking' is expected to be $276.36 million, a 15% decrease from the previous year [6]. - 'Revenues- Interest income' is forecasted to reach $970.30 million, showing a 5.5% decline year over year [6]. Asset Management Metrics - 'Private Client Group Asset Under Management' is projected to be $1.67 billion, up from $1.49 billion in the same quarter last year [6]. - 'Assets Under Management' is expected to reach $281.46 billion, compared to $243.90 billion a year ago [8]. - 'Total Interest-Earning Assets' is projected at $80.57 billion, an increase from $76.49 billion year over year [8]. Capital Ratios - The average prediction for 'Tier 1 Leverage Ratio' is 12.9%, slightly down from 13.0% a year ago [7]. - The consensus estimate for 'Total Capital Ratio' stands at 24.4%, compared to 25.0% in the previous year [7]. - The estimated 'Tier 1 Capital Ratio' is 23.2%, down from 23.7% reported in the same quarter last year [9]. Stock Performance - Over the past month, Raymond James Financial shares have returned +3.5%, outperforming the Zacks S&P 500 composite's +0.6% change [10].

Group 1 - Raymond James Financial, Inc. announced its expected earnings release dates and conference call information for fiscal year 2026 [1] - Financial results will be released at approximately 4:15 p.m. Eastern time, with the live conference call starting at approximately 5:00 p.m. Eastern time on specified dates [1] - The company provides a range of financial services including private client group, capital markets, asset management, and banking, with total client assets amounting to $1.77 trillion [2] Group 2 - The earnings release dates for fiscal year 2026 are as follows: January 28, April 22, July 22, and October 28 [3]

Core Viewpoint - Raymond James Financial, Inc. (RJF) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending December 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for January 28, and better-than-expected results could lead to a stock price increase, while disappointing results may cause a decline [2]. - The consensus estimate for quarterly earnings is $2.83 per share, reflecting a year-over-year decrease of 3.4%, while revenues are projected to be $3.69 billion, up 4.2% from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 0.17% higher, indicating a collective reassessment by analysts [4]. - The Most Accurate Estimate for Raymond James Financial is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.67%, suggesting a bullish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model compares the Most Accurate Estimate to the Zacks Consensus Estimate, with a positive Earnings ESP indicating a higher likelihood of an earnings beat [8][9]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically produced positive surprises nearly 70% of the time [10]. Historical Performance - In the last reported quarter, Raymond James Financial exceeded the expected earnings of $2.7 per share, achieving actual earnings of $3.11, resulting in a surprise of +15.19% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [14]. Conclusion - Raymond James Financial is viewed as a strong candidate for an earnings beat, but investors should consider additional factors before making investment decisions [17].

Core Insights - The Invesco Raymond James SB-1 Equity ETF (RYJ US) is based on the Raymond James SB-1 Equity Index, which reflects the firm's highest conviction U.S. equity research ideas [1] - The index primarily includes U.S.-listed common stocks and depositary receipts with a "Strong Buy 1" (SB-1) recommendation, focusing on mid- and large-cap issuers [1] - The portfolio is constructed based on mechanical additions and deletions driven by rating changes and liquidity events, rather than by target stock counts, sectors, or style tilts [1] Portfolio Construction Methodology - The index employs minimum market-capitalization and trading-liquidity thresholds to ensure institutional tradability [1] - All SB-1 rated securities that meet investability criteria are included, with constituents equally weighted at each review [1] - Name-level risk is determined by the number of qualifying SB-1 securities, with no additional issuer or sector caps [1] - The index undergoes reconstitution and rebalancing on a semi-monthly basis to reflect the current SB-1 list [1]

Group 1 - A team of 10 advisors has left Raymond James & Associates to establish their own registered investment advisor, Cohen Capital Advisors, with Fidelity and Schwab as custodians [1][2] - The team, led by Benjamin Cohen, includes his father Michael Cohen and several other experienced professionals, indicating a strong leadership structure [2] - The advisors managed $1 billion in assets at Raymond James over approximately 12 years, highlighting their experience and client trust [3] Group 2 - The new firm aims to enhance its infrastructure by operating independently, allowing for better custodial and technology partnerships, improved reporting, and planning capabilities [4] - Raymond James announced the acquisition of Clark Capital Management Group, which has $46 billion in assets under management, expected to close in Q3 2026 [5]

Core Insights - Raymond James Financial, Inc. (RJF) has agreed to acquire Clark Capital Management Group, which manages over $46 billion in discretionary and non-discretionary assets, with the deal expected to close by Q3 2026, pending regulatory approvals [1][8] Company Overview - Clark Capital, founded in 1986, is known for its wealth-oriented investment solutions, focusing on multi-asset-class strategies and proprietary model portfolios, primarily targeting high-net-worth clients through financial advisors [2] Deal Structure and Implications - Post-acquisition, Clark Capital will retain its brand and operate as a separate boutique investment manager within Raymond James Investment Management, maintaining its leadership team and service model [3] - The acquisition is aligned with RJF's long-term strategy to enhance its asset management footprint and broaden investment solutions for financial advisors and their clients [4] Strategic Growth - RJF has a history of expanding its operations through acquisitions, including a majority interest in GreensLedge Holdings in October 2025 and entering the private credit business in fiscal 2024 [5][6] - The acquisition of Clark Capital is expected to strengthen RJF's multi-boutique platform and enhance advisor-focused solutions [8] Market Performance - Over the past three months, RJF's shares have increased by 6.2%, compared to a 9.5% growth in the industry [7]