Raymond James Financial, Inc. (RJF) Business Profile

What it does

Raymond James Financial is a financial services company that helps individuals manage and invest money and provides financial services to businesses, institutions and municipalities. Its activities span financial advice, investment banking, asset management, banking and trust services. Founded in 1962, the company is headquartered in St. Petersburg and led by Chief Executive Officer Paul Shoukry.

Its Private Client Group connects clients with financial advisors who provide planning, investment advice and help with securities transactions. Advisors can work as employees or independent contractors. Raymond James also serves independent advisory firms and broker-dealers, holding client assets for them and providing trade execution, research and other support.

The Capital Markets business helps organizations raise money and advises on transactions such as mergers and acquisitions. It also trades securities for institutional clients and manages investments in affordable housing projects. The Asset Management business manages portfolios and provides administrative services for retail and institutional clients. Its banking operations make loans, take deposits and offer cash-management services.

The businesses can work together. For example, clients of the brokerage subsidiaries can hold bank deposits, and the asset management business oversees some investments in Private Client Group fee-based accounts. Raymond James also offers trust services and investment products from both its own businesses and third parties.

How it makes money

Raymond James earns money from fees tied to client assets, transaction commissions, investment banking services and the spread between interest earned and interest paid. Its reporting segments are Private Client Group, Capital Markets, Asset Management, Bank and Other.

In Private Client Group, financial advisors provide advice and execute transactions. The company earns asset management and administrative fees on fee-based accounts, as well as commissions on securities trades and revenue from distributing funds, annuities and insurance products. It also receives account fees and fees from banks for administering client cash deposits swept into the Raymond James Bank Deposit Program. Those third-party bank fees vary with client cash balances and short-term interest rates.

Asset Management earns fees for portfolio management and administration, generally calculated as a percentage of fee-billable assets. Fee rates depend on the services provided, the assets in a client relationship and, for some accounts, the investment objective. Fees are generally collected quarterly, with balances measured at the beginning or end of the quarter or averaged daily. Market movements and client inflows or withdrawals therefore affect the assets on which fees are charged.

Capital Markets earns fees from advising on transactions and underwriting securities, brokerage revenue from institutional trading, and fees for originating, selling and managing affordable housing investments. Its trading business also holds debt securities to facilitate client transactions.

The Bank segment earns interest on loans and securities, offset by interest paid on deposits and borrowings. Other includes corporate cash interest, private equity investments and unallocated corporate costs. Some fees between segments are eliminated when consolidated.

For the year ended September 30, 2025, net revenues were $14.07 billion; for the fiscal fourth quarter of 2026, net revenues were $4.27 billion.

Customers and how it sells

Raymond James serves individuals, corporations and municipalities, as well as retail and institutional investment clients. Retail clients can receive financial planning, investment advice, brokerage and trust services. Institutional clients use services such as securities trading, research, investment management and investment banking.

Clients reach the company through several advisor channels. Employee advisors generally work from branches and serve retail clients. Independent contractor advisors can affiliate directly or through an affiliated bank or credit union. Other independent advisory firms and broker-dealers use Raymond James for custody, trade execution, research and support while retaining the fees they charge their own clients.

As of September 30, 2025, the company had 8,943 affiliated employee and independent contractor financial advisors. Advisors associated with firms using its RIA and Custody Services division were not included in that count, although their client assets were included in assets under administration. Those custody-service firms accounted for $217.3 billion of assets under administration as of September 30, 2025.

Raymond James operates predominantly in the United States and to a lesser extent in Canada, the United Kingdom and other parts of Europe. Its UK businesses serve predominantly high-net-worth individuals through retail investment and planning services, alongside institutional brokerage and investment banking clients.

Suppliers and costs

People and compensation are central to Raymond James’s cost structure. Employee financial advisors are paid primarily through a share of the revenue they generate and also participate in employee benefit plans. Independent contractor advisors generally pay their own direct costs and receive a higher payout percentage on the revenues they generate. The company had approximately 19,500 associates as of September 30, 2025.

Compensation, commissions and benefits expense increased 10% for the year ended September 30, 2025, reflecting higher compensable revenue, costs to support growth including advisor recruiting, and salary increases. In the fiscal fourth quarter of 2026, compensation expense was $2.77 billion and the total compensation ratio was 65%.

Other costs include technology, communications and information processing, investment sub-advisory fees, business development, and legal and regulatory expenses. Raymond James uses third-party investment products alongside its own products and pays sub-advisory fees for some managed programs. Its bank also pays interest on client deposits and borrowings. The company expects fiscal 2027 noncompensation expenses, subject to its stated exclusions, to be approximately $2.5 billion.

Competitive position

Raymond James competes with securities firms, financial services companies, insurers and banks. It also competes for individual clients with web-based financial services, discount brokerages and financial technology companies. The company does not identify individual competitors by name.

Competition extends to employees and advisors. Raymond James seeks to attract and retain financial advisors, investment bankers, traders and portfolio managers, among other specialists. Employers compete for talent using measures such as upfront payments, guaranteed contracts and increased compensation. Raymond James competes on factors including its people, services, technology, product selection, performance records, location and local reputation.

Our reading: The advisor network and choice of employee, independent contractor and custody-service channels provide a meaningful competitive asset because they give advisors several ways to work with the firm, but competing firms can recruit those same advisors. Our reading: The combination of advice, banking, trust, research and investment management gives the company a breadth of services that may help it retain relationships, although other financial services firms also offer overlapping services.

Raymond James continues to invest in its advisor platform and automation. Its technology includes tools for advisor workflows and client information, as well as systems supporting trading and custody. Our reading: Technology spending supports those services, but the evidence does not establish that the platform alone is a durable barrier to competition.

Growth opportunities

Raymond James seeks to grow by recruiting and retaining advisors, attracting client assets, expanding its investment banking capabilities and investing in technology. Growth in client assets can increase the balances on which it earns asset-based fees, while market movements and client withdrawals can also change those balances.

For fiscal 2026, domestic Private Client Group net new assets were more than $98 billion. The company attributed the result to recruiting, net new assets from existing advisors and advisor retention. Advisors recruited to its domestic independent contractor and employee channels during the year had more than $82 billion of client assets at their previous firms. Those prior-firm assets are not the same as assets transferred to Raymond James.

The company acquired GreensLedge during fiscal 2026, adding origination and structuring capabilities to its structured-products distribution. It also acquired Clark Capital, which provides asset management and model portfolios for advisor-oriented channels. The addition of MBS Capital Markets expanded its land-secured public finance capabilities.

Raymond James has launched Private Wealth Guided Portfolios for clients seeking to add alternative investments to managed portfolios. It is also investing in automation and artificial intelligence tools intended to support advisors and reduce administrative work. The company believes its investment banking pipeline is strong, though its business results remain affected by market conditions and transaction activity.

Structural risks

• Markets and rates: Results are tied to equity and fixed income markets, interest rates, volatility and credit trends. Changes in asset values and client flows affect fee-billable assets, while interest rates and client cash balances affect deposit-program fees and net interest income.
• People and client relationships: The ability to compete depends substantially on recruiting and retaining advisors and other specialized personnel. Competition for talent can bring upfront payments and increased compensation, while damage to the company’s reputation could harm its businesses.
• Credit and liquidity: The bank makes securities-based, corporate, mortgage and other loans. Losses can be exacerbated if collateral cannot be realized or is sold for less than the amount owed. The company also needs funding to meet deposit withdrawals, lending commitments and debt payments.
• Regulation and legal matters: Banking, brokerage and investment management activities are extensively regulated. Regulatory actions can result in fines, penalties or other outcomes that materially affect the business, finances or reputation. Capital requirements can restrict growth or require additional capital.
• Acquisitions and costs: An acquired business may be difficult or costly to integrate, or integration may be delayed. Raymond James also incurs technology, recruiting, legal and other expenses as it invests in its businesses.

Bottom line

Our reading

Our reading: Raymond James rests on advisor relationships and client assets, with asset-based fees supported by transaction, investment banking and interest income. Its range of services provides several ways to serve clients, but results remain exposed to market values, interest rates and the cost of attracting advisors. Acquisitions and technology investment add capabilities while bringing integration and spending demands.