Raymond James increased recruiting and retention spending by 25% to $111 million in fiscal Q2, treating talent acquisition as a strategic alternative to acquisitions. This targeted investment prioritized cultural fit and drove $23 billion in domestic net new assets, representing a 5.8% annualized growth rate.

The Private Client Group reported record quarterly net revenue of $2.81 billion, though pre-tax income declined 3% to $416 million due to higher advisor and technology costs. Total firm net revenue rose to $3.86 billion, and adjusted EPS reached $2.83, surpassing analyst forecasts.

CEO Paul Shoukry highlighted trailing 12-month recruited advisor production of $141 million and nearly $21 billion in prior-firm assets, marking the second-highest quarterly totals. He emphasized a robust recruitment pipeline and high retention as drivers of future growth in a competitive recruiting environment.

Raymond James’ research team upgraded On Holding from Outperform to Strong Buy with a $52 price target, citing 22% projected EBITDA growth for 2027, and downgraded Deckers to Outperform despite expecting revenue and margin outperformance. The firm noted consumer tailwinds from tax refunds and potential margin cushioning from tariff rate assumptions.