Raymond James delivered a fiscal second quarter that surpassed Wall Street’s revenue and adjusted profit expectations, with management attributing performance to robust adviser recruiting and high retention rates across its affiliation channels. CEO Paul Shoukry emphasized that the Private Client Group’s net new assets, paired with strategic investments in technology and ongoing support for advisers, were central to the firm’s momentum. The quarter also benefited from improved Capital Markets activity, bolstered by a strong investment banking pipeline. Shoukry noted, “We consistently retain and recruit high-quality professionals who deliver excellent service and advice to their clients.”
Is now the time to buy RJF? Find out in our full research report (it’s free for active Edge members).
Raymond James (RJF) Q1 CY2026 Highlights:
- Revenue: $3.86 billion vs analyst estimates of $3.77 billion (13.4% year-on-year growth, 2.4% beat)
- Adjusted EPS: $2.83 vs analyst estimates of $2.76 (2.5% beat)
- Adjusted EBITDA: $735 million (19% margin, 9.5% year-on-year growth)
- Operating Margin: 19.5%, in line with the same quarter last year
- Market Capitalization: $30.3 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Raymond James’s Q1 Earnings Call
- Benjamin Budish (Barclays) asked about competitive intensity in adviser recruiting. CEO Paul Shoukry cited strong home office visit volume and commitments, noting, “We’re seeing an uptick of commits in our employee affiliation option as well.”
- Devin Ryan (Citizens Bank) questioned the impact of AI on cash sweep optimization. Shoukry responded that adviser-led platforms already help clients invest cash, and AI is unlikely to materially alter this trend.
- Michael Cho (JPMorgan) inquired about the allocation of technology spend and AI success metrics. Shoukry explained that most technology investment supports adviser tools, guided by the Technology Advisory Council’s feedback.
- Alexander Blostein (Goldman Sachs) asked if AI-driven efficiencies could boost margins long-term. Shoukry stated it’s “too preliminary” to quantify margin benefits, though AI is already producing operational improvements.
- Brennan Hawken (BMO Capital Markets) probed rising compensation ratios in the Private Client Group. Shoukry attributed this to a shift towards independent advisers, who receive higher payouts due to covering their own overhead.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will watch (1) adviser recruiting and retention trends to assess organic asset growth, (2) the rollout and adviser adoption of new AI and technology tools, and (3) the impact of recent acquisitions like GreensLedge and Clark Capital on segment performance. Evolving interest rates and margin dynamics will also be important to track.
Raymond James currently trades at $154.78, in line with $154.52 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
The Best Stocks for High-Quality Investors
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
