Jefferies Q3 revenue beats estimates on growth in advisory, underwriting fees
JEF•Jefferies’ preliminary Q3 revenue rose 9% year over year to $2.22 billion, above the $2.08 billion analyst estimate, while net income was $260.58 million. The company repurchased 1.3 million shares for $70 million and raised its buyback authorization to $250 million.
1. Revenue and earnings
Jefferies reported preliminary Q3 revenue of $2.22 billion, up 9% year over year and above the $2.08 billion analyst estimate. Net income was $260.58 million, compared with an estimate of $187.72 million; adjusted EPS was not disclosed.
2. Business performance
Investment banking net revenues reached a record, driven by advisory and equity underwriting activity, which the company attributed to market share gains and increased market opportunity. Equities net revenues also reached a record, supported by higher global trading volumes in cash and electronic trading and an expansion of prime services. Fixed income net revenues declined 26% year over year, reflecting continued lower industry volumes.
3. Outlook and buybacks
Jefferies said it was optimistic about the balance of 2026 and momentum heading into 2027. It expects higher operating margins and earnings as it completes the sale of Tessellis, and said its joint venture with SMBC in Japan is expected to begin serving clients in January 2027. The company repurchased 1.3 million shares for $70 million and raised its buyback authorization to $250 million.
