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Raymond James reported $4.4 billion of revenue for Q3 FY2026, compared with $3.8 billion a year earlier, while diluted EPS was $3.01, compared with $2.12. The consensus comparison lists adjusted EPS of $3.14 against $2.91, with adjusted EPS 7.90% above the consensus. It also lists revenue of $3.9 billion against a $3.9 billion consensus estimate and reports revenue 1.68% above the consensus.
The filing attributed the year-over-year increase in net revenues primarily to higher asset-management and related administrative fees, higher investment-banking revenue and higher brokerage revenue in Private Client Group. The filing said fee-based client assets grew through market appreciation and net new assets associated with financial-advisor recruiting and retention. Raymond James reported an operating margin of 26.5%, versus 26.6% a year earlier, while free cash flow was −$308.0 million, versus $634.0 million a year earlier.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $4.4 billion | $3.8 billion | 13.5% |
| Diluted EPS | $3.01 | $2.12 | 42.0% |
| Gross margin | 100.0% | 100.0% | 0.0 percentage points |
| Operating margin | 26.5% | 26.6% | −0.1 percentage points |
| Free cash flow | −$308.0 million | $634.0 million | −148.6% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $3.14 | $2.91 | Beat by 7.90% |
| Revenue | $3.9 billion | $3.9 billion | Beat by 1.68% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
Chief Executive Officer Paul Shoukry said financial sponsors held substantial capital to deploy and had portfolio companies beyond their original holding periods. He said the company’s activity levels, dialogues and signed engagement letters indicated potential for additional investment-banking revenue, but said industry-specific concerns and the gap between seller and buyer valuation expectations would need to narrow first. Shoukry said AI-related concerns had affected technology investment banking, including fintech and software, and the timing of a recovery was uncertain.
In response to a question about AI adoption, Shoukry said Raymond James completed the full rollout of Raymond on June 15 and had 6,500 unique users after a little over a month. He said the large-language model can answer questions concerning customer and client accounts, while the company’s AI Academy is intended to educate advisors, their teams and associates. Shoukry said the company was managing AI costs closely and expected the long-term return on its AI investments to exceed the cost of using the technology.
On advisor recruiting, Shoukry said Raymond James sought competitive economics but led with culture and capabilities rather than the highest payment. He said the company had remained disciplined on transaction assistance, transition assistance and advisor economics, and described recruiting and retention as activities that require consistency rather than quarter-to-quarter changes.
Chief Financial Officer Butch Orlog said Raymond James expected some additional litigation-related expense in near-term quarters, although not at the level incurred during the third quarter. The filing said compensation, commissions and benefits expense increased as commissions rose with asset-management fees and brokerage revenue, alongside compensation costs associated with growth, acquisitions and advisor recruiting and retention.
Guidance
Management guidance is not available in the provided material. Raymond James’ available call commentary addressed possible additional litigation-related expense in near-term quarters, which Butch Orlog said would be below the third-quarter level, rather than providing a formal company outlook.