Why Is Raymond James Financial (RJF) Down 8.3% Since Last Earnings Report?

Core Viewpoint - Raymond James Financial, Inc. reported strong earnings for Q4 fiscal 2025, with adjusted earnings per share of $3.11, surpassing estimates and reflecting a 5% year-over-year increase [3][5]. Financial Performance - The company achieved record quarterly net revenues of $3.73 billion, an 8% increase year-over-year, exceeding the Zacks Consensus Estimate of $3.60 billion [6]. - For fiscal 2025, net revenues reached $14.07 billion, up 10% year-over-year, also beating the Zacks Consensus Estimate of $13.94 billion [6]. - Net income available to common shareholders for Q4 was $603 million, or $2.95 per share, compared to $601 million, or $2.86 per share, in the prior-year quarter [4]. Revenue Segmentation - The Private Client Group saw a 7% year-over-year growth in net revenues, while Asset Management's net revenues rose by 14% and Capital Markets increased by 6% [7]. - The Bank segment recorded a 6% rise in net revenues, but the "Others" category experienced a significant decline of 57% [7]. Expense Analysis - Non-interest expenses increased by 11% year-over-year to $3 billion, driven by rising costs across all components except for bank loan provisions for credit losses [8]. Asset Management - As of September 30, 2025, client assets under administration reached a record $1.73 trillion, up 10% from the previous year, while financial assets under management grew by 12% to $274.9 billion [9]. Balance Sheet Strength - Total assets stood at $88.2 billion, a 4% increase from the prior quarter, with total common equity at $12.4 billion, up 2% sequentially [10]. - The book value per share increased to $62.72 from $57.03 a year ago [10]. Share Repurchase Activity - In the reported quarter, the company repurchased shares worth $350 million at an average price of $166 per share [12]. Future Outlook - The company anticipates a 6.5% sequential increase in asset management and related administrative fees for the first quarter of fiscal 2026 [13]. - Management expects the aggregate of net interest income and third-party fees to remain stable in the upcoming quarter, despite the impact of the September Fed rate cut [14]. - The effective tax rate for fiscal 2026 is estimated to be around 24-25% [15]. Market Position - Raymond James Financial has a Zacks Rank of 3 (Hold), indicating an expectation of an in-line return in the coming months [18].