Raymond James Q4 Earnings Beat Estimates, Revenues Rise Y/Y

Core Insights - Raymond James (RJF) reported fourth-quarter fiscal 2025 adjusted earnings of $3.11 per share, exceeding the Zacks Consensus Estimate of $2.70, and reflecting a 5% increase from the prior-year quarter [1][11] - The company's net revenues reached a record $3.73 billion, up 8% year over year, surpassing the Zacks Consensus Estimate of $3.60 billion [4][11] - For fiscal 2025, adjusted earnings were $10.66 per share, beating the Zacks Consensus Estimate of $10.27, and net income available to common shareholders increased to $2.13 billion from $2.06 billion in fiscal 2024 [3] Revenue and Earnings Performance - The reported quarter's results were driven by increased revenues, particularly in asset management and related administrative fees, alongside record levels of assets under administration [2][11] - Fiscal 2025 net revenues totaled $14.07 billion, marking a 10% year-over-year increase and exceeding the Zacks Consensus Estimate of $13.94 billion [4] - Segment-wise, the Private Client Group saw a 7% growth in net revenues, Asset Management's net revenues rose 14%, and Capital Markets' top line increased by 6% [5] Expense Analysis - Non-interest expenses rose 11% year over year to $3 billion, attributed to increases across all cost components except for bank loan provisions for credit losses [6] - The estimate for non-interest expenses was $2.85 billion, indicating a higher-than-expected cost structure [6] Asset Management and Client Growth - As of September 30, 2025, client assets under administration reached a record $1.73 trillion, up 10% from the prior year, while financial assets under management grew 12% year over year to $274.9 billion [7][11] - The estimates for client assets under administration and financial assets under management were $1.62 trillion and $267.8 billion, respectively [7] Balance Sheet and Capital Ratios - Raymond James reported total assets of $88.2 billion, a 4% increase from the previous quarter, and total common equity of $12.4 billion, up 2% sequentially [8] - The book value per share increased to $62.72 from $57.03 as of September 30, 2024, while the total capital ratio remained stable at 24.1% [8] Share Repurchase Activity - In the reported quarter, Raymond James repurchased shares worth $350 million at an average price of $166 per share, with $399 million remaining available under the repurchase authorization as of September 30, 2025 [12]