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Jefferies reported Q3 FY2026 revenue of $2.2 billion, above the consensus by 0.42%, although both figures were $2.2 billion as rounded. Adjusted earnings per share were $1.09, above the consensus of $1.04. Revenue rose from $2.0 billion a year earlier, while diluted earnings per share increased to $1.18 from $1.01.
The company’s 10-Q shows investment banking net revenues rose to $1.33 billion from $1.14 billion, with advisory gains attributed to market share gains across multiple sectors. Equities net revenues increased to $626.2 million from $486.7 million, which Jefferies attributed to market share gains and higher global trading volumes. Fixed income net revenues fell to $176.0 million from $236.7 million; the company said less favorable market conditions affected several businesses.
Jefferies’ operating margin was 24.8%, compared with 25.1% a year earlier, while free cash flow increased to $2.5 billion from $126.0 million. The 10-Q said post-closing tax adjustments increased quarterly net earnings attributable to common shareholders by $23.3 million compared with the amount previously reported.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $2.2 billion | $2.0 billion | 8.52% |
| Diluted EPS | $1.18 | $1.01 | 16.8% |
| Gross margin | 99.0% | 98.3% | 0.6 percentage points |
| Operating margin | 24.8% | 25.1% | −0.3 percentage points |
| Free cash flow | $2.5 billion | $126.0 million | 1,917.3% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $1.09 | $1.04 | Beat by 4.81% |
| Revenue | $2.2 billion | $2.2 billion | In line |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
Jefferies’ latest earnings call is not available. In its filing, the company attributed higher equities revenue to market share gains and higher global trading volumes.
Guidance
Jefferies’ management guidance is not available. In its filing, the company said it was repositioning its asset management business in recognition of its upcoming acquisition of Hildene Holdings.