Raymond James Q4 Earnings Beat Estimates, Revenues Rise Y/Y

Raymond James’ RJF fourth-quarter fiscal 2025 (ended Sept. 30) adjusted earnings of $3.11 per share beat the Zacks Consensus Estimate of $2.70. The bottom line also increased 5% from the prior-year quarter.The reported quarter’s results benefited primarily from an increase in revenues. Continued growth in asset management and related administrative fees was recorded. Robust growth in assets under administration balances to record levels further supported results. However, an increase in expenses was a headwind.Net income available to common shareholders (GAAP basis) was $603 million or $2.95 per share, up from $601 million or $2.86 in the prior-year quarter.For fiscal 2025, adjusted earnings were $10.66 per share, which beat the Zacks Consensus Estimate of $10.27. The bottom line increased 6% from the previous year. Net income available to common shareholders (GAAP basis) was $2.13 billion or $10.30 per share, up from $2.06 billion or $9.70 in fiscal 2024.RJF’s Revenues Improve, Expenses RiseQuarterly net revenues were a record $3.73 billion, up 8% year over year. The top line beat the Zacks Consensus Estimate of $3.60 billion.Fiscal 2025 net revenues were $14.07 billion, up 10% year over year. The top line beat the Zacks Consensus Estimate of $13.94 billion.Segment-wise, in the reported quarter, the Private Client Group recorded 7% year-over-year growth in net revenues. Asset Management’s net revenues rose 14% and Capital Markets’ top line jumped 6%. Further, Bank registered a rise of 6% from the prior year's net revenues, while Others recorded a 57% decline in the same.Non-interest expenses jumped 11% from the prior-year quarter to $3 billion. The increase was due to a rise in all cost components except for bank loan provision for credit losses. Our estimate for non-interest expenses was $2.85 billion.As of Sept. 30, 2025, client assets under administration were a record $1.73 trillion, up 10% from the prior-year period. Financial assets under management of $274.9 billion grew 12% year over year. Our estimates for client assets under administration and financial assets under management were $1.62 trillion and $267.8 billion, respectively.RJF’s Balance Sheet & Capital Ratios StrongAs of Sept. 30, 2025, Raymond James had total assets of $88.2 billion, up 4% from the prior quarter end. Total common equity was $12.4 billion, up 2% sequentially.Book value per share was $62.72, up from $57.03 as of Sept. 30, 2024.As of Sept. 30, 2025, the total capital ratio was 24.1%, unchanged from the level as of Sept. 30, 2024. The Tier 1 capital ratio was 23% compared with 22.8% as of Sept. 30, 2024.Return on common equity (annualized basis) was 19.6% at the end of the reported quarter compared with 21.2% a year ago.Update on Raymond James’ Share RepurchasesIn the reported quarter, RJF repurchased shares worth $350 million at an average price of $166 per share.As of Sept. 30, 2025, $399 million remained available under the repurchase authorization.Our View on Raymond JamesRaymond James’ global diversification efforts, strategic acquisitions and relatively high rates are expected to support top-line growth. Also, a rebound in the capital markets business is a positive. However, elevated operating expenses remain a major concern.Raymond James Financial, Inc. Price, Consensus and EPS Surprise Raymond James Financial, Inc. price-consensus-eps-surprise-chart | Raymond James Financial, Inc. QuoteCurrently, Raymond James carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of RJF’s PeersMorgan Stanley’s MS third-quarter 2025 earnings of $2.80 per share handily surpassed the Zacks Consensus Estimate of $2.08. Also, the bottom line soared 49% from the prior-year quarter.Morgan Stanley’s investment banking business gained from a frenzy of deal-making activities and IPOs. Also, the company posted a solid trading performance. The performance of MS’ wealth management and investment management businesses was impressive too, driven by a rise in client assets and assets under management.Charles Schwab’s SCHW third-quarter 2025 adjusted earnings of $1.31 per share beat the Zacks Consensus Estimate of $1.23. The bottom line soared 70% year over year.SCHW’s results benefited from the solid performance of the asset management business and higher trading revenues. Higher net interest revenues and solid brokerage account numbers were other positives. However, an increase in expenses acted as a headwind for Schwab.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Morgan Stanley (MS): Free Stock Analysis Report The Charles Schwab Corporation (SCHW): Free Stock Analysis Report Raymond James Financial, Inc. (RJF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks