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Raymond James Financial (RJF)
NYSE:RJF
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Raymond James Financial
(NYSE:RJF)
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Select Model
Rating:78Outperform
Price Target:
$193.00
â–²(13.60% Upside)
The score is driven primarily by strong financial performance (high profitability and stable leverage) and supportive earnings-call takeaways (record results and continued capital returns). Technicals are constructive but not strong, while valuation is reasonable with a modest dividend; near-term rate-related headwinds and higher expense guidance temper the upside.
Positive Factors
Record Client Asset Growth
The significant growth in client assets under administration indicates strong market demand and effective client acquisition strategies, enhancing long-term revenue potential.
Technology and AI Investments
Substantial investments in technology and AI position the company for future innovation, operational efficiency, and competitive advantage in financial services.
Strong Financial Performance
Consistent revenue growth and record financial performance reflect robust business operations and market positioning, supporting long-term financial stability.
Negative Factors
Decline in Pretax Income
A decline in pretax income suggests potential challenges in maintaining profitability, which could impact future earnings and financial health.
Interest Rate Impact
Interest rate reductions have negatively impacted income, potentially affecting future profitability and financial performance in a low-rate environment.
Expense Growth
Rising expenses, driven by growth initiatives, may pressure margins and require careful management to sustain profitability and operational efficiency.
Raymond James Financial (RJF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.55B
Dividend Yield1.26%
Average Volume (3M)1.03M
Price to Earnings (P/E)16.2
Beta (1Y)1.10
Revenue Growth6.45%
EPS Growth5.85%
CountryUS
Employees19,000
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)2.86
Shares Outstanding197,469,900
10 Day Avg. Volume1,299,926
30 Day Avg. Volume1,026,411
Financial Highlights & Ratios
PEG Ratio2.75
Price to Book (P/B)2.79
Price to Sales (P/S)2.19
P/FCF Ratio15.52
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue2.08
Enterprise Value/Gross Profit2.35
Enterprise Value/Ebitda11.64
Forecast
1Y Price Target
$187.40Price Target Upside10.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Raymond James Financial Business Overview & Revenue Model
Company DescriptionRaymond James Financial, Inc., a diversified financial services company, provides private client group, capital markets, asset management, banking, and other services to individuals, corporations, and municipalities in the United States, Canada, and Europe. The Private Client Group segment offers investment services, portfolio management services, insurance and annuity products, and mutual funds; support to third-party product partners, including sales and marketing support, as well as distribution and accounting, and administrative services; margin loans; and securities borrowing and lending services. The Capital Markets segment provides investment banking services, including equity underwriting, debt underwriting, and merger and acquisition advisory services; and fixed income and equity brokerage services. The Asset Management segment offers asset management, portfolio management, and related administrative services to retail and institutional clients; and administrative support services, such as record-keeping. The Raymond James Bank segment provides insured deposit accounts; commercial and industrial, commercial real estate (CRE) and CRE construction, tax-exempt, residential, securities-based, and other loans; and loan syndication services. The Other segment engages in the private equity investments, including various direct and third-party private equity investments; and legacy private equity funds. The company was founded in 1962 and is headquartered in St. Petersburg, Florida.
How the Company Makes MoneyRaymond James Financial generates revenue through multiple streams. Primarily, the company earns money from advisory fees, commissions on trades, and interest income from loans and investments. The Private Client Group segment contributes significantly through wealth management services, where financial advisors charge fees based on assets under management and commissions from investment products. The Capital Markets segment earns revenue from investment banking activities, including underwriting and advisory fees from public offerings and mergers and acquisitions. Additionally, the Asset Management segment provides investment solutions and earns fees from managed funds. The company also benefits from its banking operations through interest income from loans and mortgages. Strategic partnerships and relationships with various financial institutions enhance its service offerings and revenue potential.
Raymond James Financial Key Performance Indicators (KPIs)
Any
Assets Under Management
Tracks the total value of assets the company manages on behalf of clients, reflecting its scale, client confidence, and ability to generate management fees.
Tracks the total value of assets the company manages on behalf of clients, reflecting its scale, client confidence, and ability to generate management fees.
Data provided by:
The Fly
The FlyRaymond James Financial Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: record consolidated revenues, strong EPS, achievement of the firm's adjusted pretax margin target, robust adviser recruiting and net new assets, record fee-based assets and solid bank loan growth. These positives are balanced against near-term headwinds — notably lower interest rates, deposit mix shifts, continued volatility and timing uncertainty in Capital Markets, and ongoing elevated non-compensation investment spending. Management emphasized long-term strategy, continued investments in technology (including AI), acquisitions, and strong capital returns while acknowledging short-term variability in revenue drivers.Q1-2026 Updates
Positive Updates
Record Consolidated Net Revenues and Strong Earnings
Reported record net revenues of $3.7 billion for the fiscal first quarter; net income available to common shareholders of $562 million and diluted EPS of $2.79. Adjusted net income was $577 million with adjusted diluted EPS of $2.86.
Adjusted Pretax Margin Target Achieved
Delivered a pretax margin of 19.5% and an adjusted pretax margin of 20.0%, meeting the firm's 20% adjusted pretax margin objective despite rate and capital markets headwinds.
Strong Returns on Equity
Generated annualized return on common equity of 18.0% and annualized adjusted return on tangible common equity of 21.4%.
Robust Net New Assets and Recruiting Momentum
Net asset annualized growth of 8% in the quarter with $31 billion of net new assets (the firm's second-best quarter). Over the past 12 months recruited advisers with nearly $460 million of trailing 12-month production and over $63 billion of client assets (over $69 billion across all platforms including RIA/custody).
Record Fee-Based Assets and Asset Management Performance
PCG fee-based assets reached a record $1.04 trillion (up 19% year-over-year and 3% sequentially). Asset Management reported record net revenues of $326 million and record pretax income of $143 million; asset management and related administrative fees nearly $2.0 billion, up 15% year-over-year and 6% sequentially.
Private Client Group Revenue Strength
Private Client Group posted record quarterly net revenues of $2.77 billion and pretax income of $439 million, driven by higher assets under administration from market appreciation, retention and net new assets.
Bank Loan Growth and Improving Bank Margins
Bank loans ended the quarter at a record $53.4 billion. Combined net interest income and RJBDP fees from third-party banks totaled $667 million (up 2% sequentially). Bank segment net interest margin increased 10 basis points to 2.81%.
Capital Deployment and Shareholder Returns
Repurchased $400 million of common stock in the quarter (avg. price $162); repurchased $1.45 billion over the past 12 months. Returned nearly $1.87 billion to shareholders over the past 12 months (including dividends), representing ~89% of earnings. Targeting ~$400 million of repurchases next quarter and maintaining a $400–$500 million quarterly repurchase framework.
Strong Capital and Liquidity Position
Tier 1 leverage ratio of 12.7% and total capital ratio of 24.3%. Corporate cash at parent approximately $3.3 billion (liquidity of $2.1 billion, above $1.2 billion target) and approximately $2.4 billion of excess capital capacity before reaching the firm's targeted 10% Tier 1 ratio threshold.
Strategic Acquisitions and Platform Investments
Announced acquisitions (Clark Capital Management and Greens Labs) to strengthen asset management and investment banking capabilities; continuing technology investments (~$1.1 billion annual pace cited) and launched proprietary AI operations agent (RA) to automate and enhance adviser service.
Negative Updates
Capital Markets Revenue Decline and Low Pretax Income
Capital Markets net revenues declined to $380 million with pretax income of only $9 million; revenues declined year-over-year and sequentially due to lower M&A/advisory, debt underwriting and affordable housing investment revenues. Prior quarter Capital Markets revenues exceeded $500 million, illustrating quarter-to-quarter volatility.
Interest Rate Cuts Weigh on Revenue Mix
Interest rate reductions (125 basis points since early Nov 2024) reduced interest-related revenue and noncompensable revenues, contributing to a 5% year-over-year decline in PCG pretax income and pressure on bank yields (average RJBDP yield down 15 basis points to 2.76%). Management expects aggregate NII and RJBDP to be down in fiscal Q2 given rate cuts and two fewer interest-earning days.
Pressure on Cash Sweep / Enhanced Savings Balances
Domestic cash sweep and enhanced savings program balances ended at $58.1 billion (3% sequentially higher at quarter end), but came under pressure in January: combined program balances down $2.6 billion since quarter end (including $1.8 billion one-time fee billing), with $2.1 billion of that coming from sweep and ~$500 million from ESP as clients reinvest cash following rate declines.
Non-Comp Expenses Growing and Ongoing Investment Needs
Non-compensation expenses were $557 million (up 8% year-over-year, down 7% sequentially). The firm expects fiscal-year non-comp expenses (exclusions) of ~ $2.3 billion (~8% growth YoY) driven by continued technology investment, recruiting/transition support and growth-related costs.
Compensation Ratio Slightly Above Target
Total compensation ratio was 65.6% (65.4% adjusted), slightly above the 65% target, driven by revenue mix (higher payout in independent channels) and elevated recruiting/retention-related compensation; recruiting-related costs are being presented in PCG going forward.
Timing Uncertainty and Volatility in Investment Banking
Management highlighted robust pipelines but emphasized the unpredictable timing of M&A deal closings and quarter-to-quarter volatility in Capital Markets revenues — introduces near-term forecasting uncertainty.
Competition in Adviser Recruiting Environment
Competitive intensity increased (private equity roll-ups paying higher incentives), creating near-term noise in recruiting and retention; management believes this is short-term but acknowledges elevated competitive pressure.
Q2 Seasonal and Rate Headwinds
Near-term headwinds cited for fiscal Q2: fewer billing days, payroll tax resets, and recent Fed rate cuts are expected to partially offset asset growth and weigh on reported revenue and NII in the short term.
Bank Yield Compression Outlook
Average yield on RJBDP balances fell 15 bps and management expects future NII/RJBDP outcomes to be sensitive to further rate moves and quarter-end balance changes; modeling for Q2 assumes a decline absent favorable balance sheet shifts.
Company Guidance
Management guided that fiscal Q2 asset‑management and related administrative fees are expected to be roughly +1% versus Q1 (despite two fewer billing days and after a Q1 PCG assets/fee‑based accounts increase of ~3%), while combined NII and RJBDP fees are expected to be down Q2 versus Q1 assuming current rates (including the Oct/Dec Fed cuts) and unchanged quarter‑end balances after the $1.8B Q2 fee billing collections; FY‑2026 non‑comp expense (ex specified items) is guided to ~ $2.3B (~+8% YoY), the FY tax rate ~24–25%, and management reiterated a ~20% adjusted pretax‑margin target (Q1 adj. pretax margin = 20%) and a ~65% compensation ratio goal (Q1 adj. comp ratio = 65.4%). Capital actions: Q1 repurchased $400M common stock (avg $162) and management plans ≈$400M repurchases in Q2, with Tier‑1 leverage at 12.7%, total capital ratio 24.3%, ~$3.3B parent cash (liquidity ~$2.1B above a $1.2B target) and ~ $2.4B excess capital capacity before reaching a 10% Tier‑1 target. Key Q1 metrics referenced: net revenues $3.7B, net income to common $562M (EPS $2.79; adj net income $577M, adj EPS $2.86), annualized ROE 18% (adj ROTE 21.4%), PCG fee‑based assets $1.04T (+19% YoY), record bank loans $53.4B, and combined NII+RJBDP of $667M (bank NIM 2.81%, RJBDP yield 2.76%).Raymond James Financial Financial Statement Overview
Summary
Strong profitability and improving operating margins with solid revenue growth support the score, alongside a stable balance sheet (manageable leverage). The main drag is weaker cash conversion (low operating cash flow to net income) despite positive free cash flow growth.Income Statement
Raymond James Financial has demonstrated consistent revenue growth with a 2.58% increase in the latest year. The company maintains strong profitability with a high gross profit margin of 88.15% and a solid net profit margin of 13.42%. The EBIT and EBITDA margins have improved significantly, indicating efficient operational management.85
Very Positive
Balance Sheet
The company's balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.35. The return on equity is robust, highlighting effective use of equity to generate profits. However, the equity ratio suggests a moderate reliance on debt financing.78
Positive
Cash Flow
Raymond James Financial shows positive free cash flow growth of 14.94%, indicating strong cash generation capabilities. However, the operating cash flow to net income ratio is low, suggesting potential challenges in converting income into cash flow.70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 15.91B | 14.74B | 12.84B | 11.16B | 9.78B |
| Gross Profit | 14.03B | 12.59B | 11.34B | 10.75B | 9.66B |
| EBITDA | 4.76B | 2.82B | 2.44B | 2.17B | 1.93B |
| Net Income | 2.13B | 2.07B | 1.74B | 1.51B | 1.40B |
Balance Sheet | |||||
| Total Assets | 88.23B | 82.99B | 78.36B | 80.95B | 61.89B |
| Cash, Cash Equivalents and Short-Term Investments | 18.28B | 19.25B | 18.47B | 15.99B | 15.52B |
| Total Debt | 4.54B | 4.03B | 3.48B | 3.79B | 3.17B |
| Total Liabilities | 75.73B | 71.33B | 68.17B | 71.52B | 53.59B |
| Stockholders Equity | 12.50B | 11.67B | 10.21B | 9.46B | 8.24B |
Cash Flow | |||||
| Free Cash Flow | 2.25B | 1.95B | -3.69B | -19.00M | 6.57B |
| Operating Cash Flow | 2.43B | 2.15B | -3.51B | 72.00M | 6.65B |
| Investing Cash Flow | -4.32B | -968.00M | -274.00M | -7.15B | -5.14B |
| Financing Cash Flow | 2.36B | 438.00M | 1.44B | 5.88B | 5.23B |
Raymond James Financial Technical Analysis
Positive
169.89
Price Trends
164.29
Positive
164.08
Positive
159.01
Positive
Market Momentum
0.81
Positive
55.34
Neutral
42.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RJF, the sentiment is Positive. The current price of 169.89 is above the 20-day moving average (MA) of 168.87, above the 50-day MA of 164.29, and above the 200-day MA of 159.01, indicating a bullish trend. The MACD of 0.81 indicates Positive momentum. The RSI at 55.34 is Neutral, neither overbought nor oversold. The STOCH value of 42.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RJF.
Raymond James Financial Risk Analysis
Raymond James Financial disclosed 28 risk factors in its most recent earnings report. Raymond James Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Raymond James Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $33.55B | 16.17 | 17.16% | 1.26% | 6.45% | 5.85% | |
78 Outperform | $32.71B | 33.75 | 20.41% | 0.46% | 11.88% | 28.96% | |
77 Outperform | $184.59B | 22.31 | 18.11% | 1.07% | 5.90% | 66.60% | |
69 Neutral | $13.12B | 21.17 | 11.72% | 1.43% | 7.54% | 2.73% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $31.13B | 35.43 | 20.86% | 0.32% | 35.19% | -18.62% | |
60 Neutral | $12.17B | 20.45 | 6.13% | 2.52% | -5.41% | 25.28% |
* Financial Sector Average
RJF
Raymond James Financial
169.89
3.64
2.19%
IBKR
Interactive Brokers
73.44
16.68
29.39%
JEF
Jefferies
58.87
-16.11
-21.48%
LPLA
LPL Financial
388.96
19.16
5.18%
SF
Stifel Financial
128.87
16.40
14.58%
SCHW
Charles Schwab
103.88
21.25
25.72%
Raymond James Financial Corporate Events
Business Operations and StrategyM&A Transactions
Raymond James to Acquire Clark Capital Management Group
Positive
Jan 15, 2026
On January 15, 2026, Raymond James announced a definitive agreement to acquire Clark Capital Management Group, a Philadelphia-based asset manager founded in 1986 that specializes in wealth-focused, multi-asset-class solutions and manages more than $46 billion in discretionary and non-discretionary assets. The deal, expected to close by the third quarter of 2026 subject to customary regulatory approvals, will see Clark Capital retain its brand, leadership team, investment capabilities and service model as an independent boutique within Raymond James Investment Management, enhancing Raymond James’ advisor-centric product lineup and distribution reach in key channels such as independent firms and turnkey asset management platforms while supporting Clark Capital’s long-term growth with additional scale, resources and operational support.
The most recent analyst rating on (RJF) stock is a Hold with a $187.00 price target. To see the full list of analyst forecasts on Raymond James Financial stock, see the RJF Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
Raymond James Reports Record Client Asset Growth
Positive
Dec 17, 2025
On December 17, 2025, Raymond James Financial reported operating data for November 2025, noting a 10% year-over-year increase in client assets under administration, reaching a record $1.77 trillion. The growth was primarily fueled by net asset inflows due to strong advisor recruiting and favorable equity market conditions. Despite strong investment banking pipelines, revenues in the segment were down 20% for the first two months of the quarter compared to the previous quarter, reflecting timing-related factors for closings.
The most recent analyst rating on (RJF) stock is a Hold with a $196.00 price target. To see the full list of analyst forecasts on Raymond James Financial stock, see the RJF Stock Forecast page.
Stock BuybackDividends
Raymond James Financial Increases Quarterly Dividend by 8%
Positive
Dec 4, 2025
On December 3, 2025, Raymond James Financial announced an 8% increase in its quarterly dividend for common stock, raising it to $0.54 per share, payable on January 16, 2026. The company also declared a quarterly dividend for its Series B Preferred Stock and authorized a $2 billion share repurchase program, replacing the previous $1.5 billion authorization. This move reflects the company’s strategy to enhance shareholder value and optimize its capital structure.
The most recent analyst rating on (RJF) stock is a Buy with a $176.00 price target. To see the full list of analyst forecasts on Raymond James Financial stock, see the RJF Stock Forecast page.
Business Operations and Strategy
Raymond James to Redeem Series B Preferred Stock
Neutral
Dec 2, 2025
On December 2, 2025, Raymond James Financial announced its decision to redeem all 80,500 outstanding shares of its Series B Preferred Stock and the related depositary shares on January 2, 2026. This move will result in no remaining outstanding shares of the Series B Preferred Stock or Series B Depositary Shares, impacting the company’s capital structure and potentially influencing its financial strategy.
The most recent analyst rating on (RJF) stock is a Buy with a $176.00 price target. To see the full list of analyst forecasts on Raymond James Financial stock, see the RJF Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
Raymond James Reports Record Client Assets in October
Positive
Nov 19, 2025
On November 19, 2025, Raymond James Financial reported its operating data for October 2025, highlighting a record $1.75 trillion in client assets under administration, a 13% year-over-year increase driven by higher equity markets and net asset inflows. Despite a 2% sequential decline in clients’ domestic cash sweep and Enhanced Savings Program balances due to quarterly fee billings, the company maintains strong pipelines for advisor recruiting and investment banking, indicating robust future prospects.
The most recent analyst rating on (RJF) stock is a Buy with a $185.00 price target. To see the full list of analyst forecasts on Raymond James Financial stock, see the RJF Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.