Record Assets Under Management, Administration and Advisement
AUM/A reached $1.7 trillion ( $1,700,000,000,000 ), a new high, up 11% year‑over‑year, demonstrating strong market and flow-driven asset growth.
Strong Revenue and Earnings Growth
Adjusted operating revenue for the quarter grew 10% to $4.9 billion and adjusted operating EPS was $10.83 (up 16% year‑over‑year for the quarter). For full year 2025, revenues grew 6% and adjusted EPS increased ~12%.
Exceptional Profitability and Margins
Firm‑wide operating margin was 27%. Return on equity reached a record 53.2% (up >100 basis points), and Asset Management margins hit ~40% in the quarter, reflecting high operating leverage and profitability.
Very Strong Client Flows and Asset Gains
Total client assets rose to $1.2 trillion (up 13% YoY). Total client inflows were $13.3 billion (up 18% YoY; ~4.7% annualized flow rate). Wrap assets increased 17% to $670 billion with $12.1 billion net inflows (~7.4% annualized flow rate). Transactional activity up 5%.
Adviser Productivity and Recruiting Momentum
Adviser productivity increased 8% to $1.1 million per adviser. The firm added 91 experienced advisers in the quarter (adviser count up ~1% YoY) and reported a strong recruiting pipeline.
Capital Return and Strong Balance Sheet
Q4 capital return was $1.1 billion (101% of operating earnings in the quarter); full‑year 2025 capital returned $3.4 billion (≈88% of operating earnings). Excess capital of ~$2.1 billion and holding company liquidity of ~$2.2 billion provide flexibility.
Asset Management Performance and Net Inflows
Asset Management AUM/A reached $721 billion (up 6% YoY). Revenues grew 12% to ~$1.0 billion, operating earnings rose 17% to $293 million, net inflows were $1.9 billion, and the firm highlighted strong Morningstar ratings and successful ETF launches.