Raymond James Q4 2025 slides: EPS beats estimates as client assets reach record $1.73T

Introduction & Market Context

Raymond James Financial (NYSE:RJF) released its fourth quarter and fiscal year 2025 results on October 22, 2025, reporting stronger-than-expected performance across key metrics. The financial services firm posted an adjusted earnings per share of $3.11, exceeding analyst expectations of $2.82 by 10.28%. Following the announcement, Raymond James stock rose 1.43% in after-hours trading to $168.12, building on a modest 0.17% gain during the regular session.

The company’s presentation slides revealed solid growth in client assets and continued strength across all business segments, despite some margin compression compared to the previous year. With a market capitalization of approximately $35.8 billion, Raymond James continues to demonstrate resilience in a competitive financial services landscape.

Quarterly Performance Highlights

Raymond James reported net revenues of $3.7 billion for the fourth quarter, representing an 8% increase year-over-year. For the full fiscal year 2025, the company achieved record net revenues of $14.1 billion, up 10% from the previous year. The firm’s adjusted diluted earnings per share reached $3.11 for Q4 and $10.66 for the full year.

As shown in the following quarterly highlights chart, client assets under administration reached a record $1.73 trillion, with fee-based accounts in the Private Client Group surpassing the $1 trillion milestone:

The company maintained strong client acquisition momentum, with domestic Private Client Group net new assets of $17.9 billion, representing a 5.0% annualized growth rate. Return on common equity stood at 19.6% for the quarter, with adjusted return on tangible common equity reaching an impressive 23.9%.

Segment Performance Analysis

All four of Raymond James’ business segments contributed positively to the quarter’s results. The Private Client Group remained the largest contributor, generating $2.66 billion in net revenues and $416 million in pre-tax income for Q4. For the full fiscal year, this segment produced $10.18 billion in revenue and $1.72 billion in pre-tax income.

The segment breakdown illustrates the diversified nature of Raymond James’ business model:

The Capital Markets segment posted $513 million in quarterly revenue with $90 million in pre-tax income, while Asset Management contributed $314 million in revenue and $132 million in pre-tax income. The Bank segment generated $459 million in revenue and $133 million in pre-tax income for the quarter.

CEO Paul Shoukry emphasized the company’s growth trajectory during the earnings call, stating, "We are a growth firm," while also highlighting the importance of Raymond James’ stable platform in attracting clients and advisors.

Financial Analysis

Raymond James’ consolidated net revenues for Q4 2025 showed balanced growth across multiple revenue streams. Asset management and related administrative fees constituted the largest component at $1.88 billion, followed by interest income at $1.01 billion and brokerage revenues at $606 million.

The company’s pre-tax margin stood at 19.6% for Q4 2025, down from 22.0% in the same quarter last year but up from 16.6% in the previous quarter. The adjusted pre-tax margin showed a similar trend, reaching 20.7% in Q4 2025 compared to 22.7% in Q4 2024.

As illustrated in the following chart, while margins have compressed year-over-year, they have rebounded from the previous quarter:

Client cash balances, an important metric for financial services firms, showed a slight year-over-year decline but increased sequentially. Total domestic cash sweep and enhanced savings program (ESP) balances stood at $56.4 billion at the end of Q4, representing 3.7% of domestic Private Client Group assets under administration:

On the expense side, compensation remains the largest component at $2.39 billion for the quarter, with total non-compensation expenses of $602 million. The company continues to invest in technology, with $1 billion allocated to technology initiatives, including artificial intelligence, as mentioned in the earnings call.

Capital Management & Balance Sheet

Raymond James maintained a strong capital position, with a Tier 1 leverage ratio of 13.1% and total capital ratio of 24.1%. The company’s balance sheet remains solid with total assets of $88.2 billion and RJF corporate cash of $3.7 billion.

The firm continued its commitment to returning capital to shareholders, with $350 million in share repurchases and $101 million in common stock dividends during the fourth quarter. Over the past five quarters, Raymond James has returned a total of $1.91 billion to shareholders through dividends and share repurchases:

According to the earnings call transcript, Raymond James has maintained dividend payments for 41 consecutive years, demonstrating consistent shareholder value creation. The company still has $399 million remaining under its current stock repurchase authorization.

Credit quality in the Bank segment remains strong, with nonperforming assets at just 0.29% of total assets and a bank loan allowance for credit losses at 0.88% of loans held for investment.

Forward Outlook

Looking ahead, Raymond James plans to continue focusing on organic and strategic growth while targeting pre-tax margins above 20%. The company expects asset management fees to grow by approximately 6.5% in the first quarter of fiscal year 2026, according to the earnings call.

The firm is accelerating its investments in artificial intelligence, with the CEO noting they are "still in early innings in terms of investing in AI." The estimated effective tax rate for fiscal year 2026 is projected to be between 24% and 25%.

Potential challenges identified include macroeconomic pressures from interest rate changes, increased competition within the financial sector, and regulatory changes that could impact financial services. Despite these challenges, Raymond James appears well-positioned for continued growth with its diversified business model and strong capital position.

The company’s recruiting pipeline remains robust, suggesting continued expansion of its advisor base, which should support further growth in client assets and revenues in the coming quarters.

Full presentation:

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