Raymond James delivered fourth-quarter results that saw sales rise year-on-year, though revenue slightly missed Wall Street’s expectations. Management pointed to robust adviser recruiting and retention as significant contributors to the quarter’s growth, with net new asset inflows reaching one of the highest levels in company history. CEO Paul Shoukry emphasized continued success in attracting high-quality advisers, stating, “The recruiting activity is robust...and the retention of our existing advisers remains very strong.” While capital markets performance was impacted by lower M&A and advisory revenues, the private client and asset management segments remained resilient.
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Raymond James (RJF) Q4 CY2025 Highlights:
- Revenue: $3.74 billion vs analyst estimates of $3.77 billion (5.6% year-on-year growth, 0.9% miss)
- Adjusted EPS: $2.86 vs analyst estimates of $2.83 (1.1% beat)
- Adjusted EBITDA: $728 million (19.5% margin, 2.8% year-on-year decline)
- Operating Margin: 19.8%, in line with the same quarter last year
- Market Capitalization: $32.78 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Raymond James’s Q4 Earnings Call
- Michael Cho (JPMorgan): Asked about the sustainability of accelerated net new asset inflows. CEO Paul Shoukry explained the growth was broad-based, with both strong recruiting and adviser retention, and cited investments in technology as supporting these trends.
- Benjamin Budish (Barclays): Inquired about increasing competition in adviser recruiting. Shoukry acknowledged heightened competition from private equity-backed roll-ups but emphasized Raymond James’ long-term stability and investment in technology as differentiators.
- Craig Siegenthaler (Bank of America): Questioned whether the recent 8% net new asset growth is sustainable. Shoukry attributed the strong quarter to year-end dynamics and reiterated a focus on quality over quantity in recruiting.
- William Katz (TD Cowen): Sought details on the Clark Capital acquisition and future inorganic growth. Shoukry described the acquisition as a strategic and cultural fit, with ongoing interest in similar opportunities that align with Raymond James’ values.
- Steven Chubak (Wolfe Research): Probed the gap in M&A advisory performance versus peers. Shoukry said differences in sector focus and market timing drove the variance, and reiterated confidence in Raymond James’ long-term investment banking growth trajectory.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will be watching (1) whether adviser recruiting and retention sustain current momentum, (2) the impact of AI and technology investments on operational efficiency and adviser productivity, and (3) signs of a rebound in capital markets activity, particularly M&A and advisory revenues. Execution of recent acquisitions and adaptation to the interest rate environment will also be key indicators of Raymond James’ ability to deliver on its growth strategy.
Raymond James currently trades at $166.20, down from $168.31 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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