Raymond James Q4 Revenue Rises 15% as Asset-Based Fees Grow

Raymond James Financial (NYSE: RJF) reported higher fourth-quarter and fiscal 2026 earnings as asset-based fees and investment-banking revenue supported growth across its main businesses. Quarterly net revenue rose 15% from a year earlier to $4.27 billion, while diluted earnings per share increased 15% to $3.40.

For the three months ended September 30, 2026, net income available to common shareholders was $666 million, up 10% year over year and 12% from the preceding quarter. Pre-tax income increased 18% from both a year earlier and the third quarter to $862 million.

Adjusted net income, which excludes acquisition-related expenses, rose 11% year over year to $703 million. Adjusted diluted EPS increased 15% to $3.59, and adjusted pre-tax income advanced 18% to $909 million.

Profitability also increased. The GAAP pre-tax margin was 20.2%, compared with 19.6% in the prior-year quarter and 19.1% in the third quarter. The adjusted pre-tax margin was 21.3%, up from 20.7% a year earlier. Annualized return on common equity reached 20.6%, while adjusted return on tangible common equity was 26.6%.

Asset-based fees lead revenue growth

Asset management and related administrative fees increased 23% year over year and 11% sequentially to $2.31 billion, making them the largest contributor to quarterly revenue growth. Investment-banking revenue rose 17% from a year earlier and 27% from the previous quarter to $370 million.

Account and service fees increased 12% year over year to $333 million, while brokerage revenue edged up 1% to $614 million. Interest income rose 2% to $1.03 billion. After $470 million of interest expense, consolidated net revenue totaled $4.27 billion.

Client assets under administration stood at $1.94 trillion at quarter-end, including $1.16 trillion of Private Client Group assets in fee-based accounts. Domestic Private Client Group net new assets were $22.8 billion, representing a 5.3% annualized growth rate based on beginning domestic PCG assets under administration.

Clients’ domestic cash sweep and Enhanced Savings Program balances were $58.0 billion, up 3% year over year but down 1% sequentially. Those balances represented 3.4% of domestic PCG assets under administration, compared with 3.7% a year earlier. Firmwide net interest income and fees from third-party banks totaled $674 million, up 3% year over year and 2% sequentially. Firmwide and Bank segment net interest margins were both 2.60%.

Growth across operating segments

Private Client Group net revenue rose 15% year over year to $3.06 billion, while pre-tax income increased 10% to $458 million. For the full fiscal year, the segment generated $11.48 billion in revenue, up 13%, and $1.74 billion in pre-tax income, up 1%.

Asset Management posted the strongest quarterly revenue growth, with net revenue increasing 30% to $409 million and pre-tax income rising 29% to $170 million. Fiscal-year revenue advanced 20% to $1.42 billion, while pre-tax income grew 18% to $593 million.

Capital Markets revenue increased 7% from a year earlier and 15% sequentially to $549 million. Pre-tax income rose 18% year over year to $106 million and more than doubled from the third quarter. Its fiscal 2026 pre-tax income increased 47% to $214 million; the prior-year result included a $58 million reserve increase tied to the settlement of a legal matter.

Bank segment revenue rose 5% year over year to $483 million but declined 1% sequentially. Pre-tax income increased 35% from a year earlier to $180 million, although it fell 13% from the previous quarter. Net bank loans were $57.5 billion, up 11% year over year and 2% sequentially.

Expenses, capital and full-year results

Total non-interest expense increased 14% year over year to $3.41 billion. Compensation, commissions and benefits rose 16% to $2.77 billion, producing a total compensation ratio of 65.0%, or 64.6% on an adjusted basis. Non-compensation expenses increased 5% to $633 million. The quarter included an $8 million benefit for bank loan credit losses.

For fiscal 2026, Raymond James generated net revenue of $15.79 billion, up 12%, and net income available to common shareholders of $2.37 billion, up 11%. Diluted EPS increased 16% to $11.91. Adjusted diluted EPS was $12.41, also up 16%, while adjusted net income rose 12% to $2.46 billion.

The company ended the period with $2.9 billion of corporate cash and an estimated Tier 1 leverage ratio of 12.1%. Total common equity attributable to Raymond James was $13.1 billion, and book value per share rose 9% year over year to $68.38.

Raymond James returned $1.7 billion to shareholders through repurchases and dividends during fiscal 2026. Fourth-quarter repurchases totaled $50 million, and common-stock dividends paid were $104 million. At September 30, $1.05 billion remained under the company’s current repurchase authorization.

The presentation did not provide quantified fiscal 2027 guidance. It cautioned that future results may be affected by interest rates, inflation, economic and market conditions, demand for and pricing of cash sweep and deposit products, acquisition integration, litigation outcomes and regulatory developments.