stockrowLatest quarter
Stifel reported second-quarter net revenue of $1.5 billion, up 13.0% from $1.3 billion a year earlier. Diluted earnings per share rose to $1.34 from $0.89.
For the later quarter ended September 30, Stifel reported adjusted earnings per share of $1.46, above the consensus of $1.43. Revenue of $1.4 billion was below the consensus of $1.5 billion.
In the second quarter, investment banking revenue rose to $332.0 million from $233.5 million. The filing attributed higher equity capital-raising revenue to increased volume and larger deals, and higher advisory revenue to more completed transactions. Global Wealth Management net revenue increased to $956.5 million from $845.6 million.
Principal transactions revenue fell to $140.1 million from $172.6 million, which Stifel attributed primarily to lower realized aircraft trading gains. Operating margin rose to 20.6% from 16.6%, while free cash flow fell to $61.3 million from $670.5 million.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $1.5 billion | $1.3 billion | 13.0% |
| Diluted EPS | $1.34 | $0.89 | 50.0% |
| Gross margin | 99.0% | 98.7% | 0.3 percentage points |
| Operating margin | 20.6% | 16.6% | 4.0 percentage points |
| Free cash flow | $61.3 million | $670.5 million | −90.9% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $1.46 | $1.43 | Beat by 2.10% |
| Revenue | $1.4 billion | $1.5 billion | Missed by 1.59% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
In its filing, Stifel attributed higher asset management revenue to higher asset values and net new asset growth. The company said increased market volatility drove higher commission revenue through increased trading volumes.
Stifel attributed the decline in compensation and benefits expense as a percentage of net revenue primarily to revenue growth, partly offset by higher revenue-related compensation.
Guidance
Stifel plans to focus on revenue growth and recruiting experienced financial advisors with established client relationships. In capital markets, the company plans to focus on client management and product diversification, while seeking consolidation opportunities to increase market share in its private client and institutional businesses.