Raymond James Reports 6% Q1 Revenue Growth to $3.74B, Assets Up 14%
Raymond James reported fiscal Q1 net revenues of $3.74 billion, up 6% year-over-year, and net income of $562 million ($2.79 EPS; $2.86 adjusted EPS). Client assets under administration hit a record $1.77 trillion, up 14%, with net new assets of $30.8 billion.
1. Strong Quarterly Financial Results
Raymond James Financial reported record net revenues of $3.74 billion for the fiscal first quarter ended December 31, 2025, representing a 6% increase year-over-year. Net income available to common shareholders was $562 million, or $2.79 per diluted share. Excluding $15 million of acquisition-related expenses, adjusted net income rose to $577 million, or $2.86 per diluted share, topping consensus estimates by three cents. Annualized return on common equity reached 18.0% and annualized adjusted return on tangible common equity was 21.4%, underscoring the firm’s ability to convert revenue growth into shareholder value.
2. Robust Growth Across Core Segments
The Private Client Group delivered record net revenues of $2.77 billion, up 9% from the prior year’s first quarter, driven by a 15% increase in asset management and administrative fees to $1.69 billion. Client assets under administration climbed 15% to $1.71 trillion, while fee-based accounts in the segment reached a record $1.04 trillion, up 19% over December 2024. The Capital Markets segment generated $380 million in revenues and maintained a strong advisory pipeline despite a 21% revenue decline, and the Asset Management division posted record net revenues of $326 million and financial assets under management of $280.8 billion, up 15%. The Banking segment saw net revenues grow 15% to $487 million, with net bank loans rising 13% to $53.4 billion and net interest margin expanding by 21 basis points year-over-year to 2.81%.
3. Capital Deployment and Shareholder Returns
During the quarter, the Board increased the quarterly cash dividend by 8% to $0.54 per common share and authorized a new $2 billion share repurchase program, of which $400 million was executed at an average price of $162 per share. At quarter end, $1.9 billion remained available under the repurchase authorization. The firm’s total capital ratio stood at 24.3% and tier 1 leverage ratio at 12.7%, both well above regulatory requirements. Domestic net new assets in the Private Client Group totaled $30.8 billion, reflecting an 8.0% annualized growth rate from beginning-of-quarter assets, while securities-based lending balances grew 28% year-over-year to $21.7 billion.