Raymond James Financial (RJF) Q1 2026 earnings summary

Executive summary

• Achieved record net revenues of $3.74 billion for Q1 FY2026, up 6% year-over-year, with net income available to common shareholders of $562 million ($2.79 per diluted share) and adjusted net income of $577 million ($2.86 per diluted share), driven by strong client asset growth and robust advisor recruiting momentum.

• Client assets under administration reached a record $1.77 trillion, with $1.04 trillion in fee-based accounts, and domestic PCG net new assets grew at 8.0%.

• Continued focus on long-term growth through organic expansion, technology investments, and strategic acquisitions, including Clark Capital Management and GreensLedge.

• Maintained a strong balance sheet, high advisor retention, and a differentiated culture emphasizing independence and personal relationships.

• Increased quarterly dividend by 8% to $0.54 per share and repurchased $400 million of shares; board authorized up to $2 billion in share repurchases.

Financial highlights

• Net revenues grew 6% year-over-year to $3.74 billion; pre-tax income was $728 million, down 3% year-over-year; net income available to common shareholders declined 6% year-over-year and 7% sequentially, mainly due to a higher effective tax rate.

• Adjusted net income available to common shareholders was $577 million, down 6% year-over-year; adjusted diluted EPS was $2.86.

• Asset management and related fees grew 15% year-over-year to nearly $2 billion; record PCG fee-based assets of $1.04 trillion, up 19% year-over-year.

• Book value per share increased 10% year-over-year to $63.41; tangible book value per share rose 11% to $54.82.

• Bank segment loans reached a record $53.4 billion, up 13% year-over-year and 4% sequentially; net interest margin for the bank segment was 2.81%.

Outlook and guidance

• Management expects net interest income and RJBDP fees to be unfavorably impacted in Q2 FY2026 by the full-quarter effect of recent Fed rate cuts, with the magnitude dependent on further rate changes and client cash balances.

• Asset management and related fees are expected to rise ~1% in fiscal Q2 2026, partially offset by two fewer billing days.

• Non-compensation expenses projected to grow ~8% for the fiscal year, mainly from technology and recruiting investments.

• Effective tax rate for fiscal 2026 estimated at 24%-25%.

• Announced acquisitions of GreensLedge and Clark Capital are expected to close in fiscal 2026, funded with cash on hand.