Jefferies Highlights Strong 2025 Rebound and SMBC Alliance

Jefferies ( (JEF) ) has shared an update.

In its annual shareholder letter dated January 7, 2026, Jefferies reported that fiscal 2025 was a “tale of two halves,” with a weak first half followed by a markedly stronger second half as macro and regulatory conditions improved, spurring greater strategic activity and capital markets issuance. The firm generated $7.3 billion in net revenues, $0.9 billion in pre-tax income from continuing operations, diluted EPS of $2.85 from continuing operations and a 10.1% return on adjusted tangible shareholders’ equity, with second-half net revenues 28% higher than the first half and investment banking net revenues more than 50% higher, underscoring building momentum. Management highlighted Jefferies’ strengthened standing as a top-tier advisor and underwriter, its long-term growth trajectory and ongoing technology investments, while also acknowledging the material setback from the fraud and bankruptcy of First Brands, which significantly affected Point Bonita, a fund it advises, prompting a renewed focus on controls. The letter also emphasized the deepening strategic alliance with SMBC, including plans for SMBC to lift its stake to up to 20%, provide $2.5 billion in new credit facilities and launch a joint venture in Japanese equities and broader leveraged lending collaboration in EMEA and the U.S., moves that are expected to support Jefferies’ expansion and reinforce its competitive position as it enters 2026.

The most recent analyst rating on (JEF) stock is a Buy with a $76.00 price target. To see the full list of analyst forecasts on Jefferies stock, see the JEF Stock Forecast page.

Spark’s Take on JEF Stock

According to Spark, TipRanks’ AI Analyst, JEF is a Neutral.

Jefferies’ overall stock score is driven by a challenging financial performance, offset by positive technical indicators and strategic corporate events. The company’s high leverage and weak cash flow management are significant concerns, but recent acquisitions and partnerships provide growth opportunities. The fair valuation and positive market momentum further support the stock’s potential.

To see Spark’s full report on JEF stock, click here.

More about Jefferies

Jefferies is a global, full-service investment banking and capital markets firm, providing advisory, underwriting and research services across sectors and geographies. Positioned as a leading Wall Street player, it focuses on investment banking advisory and equity capital markets, where it ranked sixth globally in both categories for fiscal 2025, and continues to build scale, technology capabilities and strategic alliances, notably with Sumitomo Mitsui Banking Corporation, to enhance its reach and competitiveness.

Average Trading Volume: 2,363,289

Technical Sentiment Signal: Strong Buy

Current Market Cap: $13.3B

For detailed information about JEF stock, go to TipRanks’ Stock Analysis page.