Raymond James Reports Mixed Q1 Results, Authorizes $2B Share Buyback, and Boosts Dividend
RJF sits 46% above its 52-week low of $117.565.
Summary
Raymond James Financial reported mixed fiscal Q1 2026 results with a 6% revenue increase but a 3% decrease in pre-tax income year-over-year. The company demonstrated strong capital management by authorizing a new $2 billion share repurchase program and increasing its quarterly common stock dividend by 8%.
Key Events · Earnings and Guidance · RJF
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Mixed Fiscal Q1 2026 Financial Performance
Net revenues increased 6% to $3.74 billion, driven by higher asset management and brokerage revenues. However, pre-tax income decreased 3% to $728 million, and diluted EPS fell 2% to $2.79 compared to the prior-year quarter, primarily due to lower investment banking revenues and higher expenses.
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Significant Share Repurchase Authorization
The Board of Directors authorized a new common stock repurchase program of up to $2 billion, replacing the previous authorization. The company repurchased 2.5 million shares for $400 million at an average price of $162 per share during the quarter.
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Increased Quarterly Dividend
The quarterly cash dividend on common shares was raised by 8% to $0.54 per share, reflecting a dividend payout ratio of 19.4%.
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Strong Capital and Liquidity Position
The company maintains robust capital ratios, with a Tier 1 leverage ratio of 12.7% and a total capital ratio of 24.3%, both well above regulatory minimums. Corporate cash stood at $3.31 billion as of December 31, 2025.
Analysis · RJF · Finance
Raymond James Financial's fiscal Q1 2026 results present a mixed operational picture with revenue growth but a slight decline in profitability. However, the company's robust capital management decisions, including a substantial new $2 billion share repurchase authorization and an 8% increase in its quarterly dividend, signal strong confidence in its financial health and future outlook. These capital return initiatives, coupled with a solid balance sheet and the lifting of a UK regulatory restriction, are likely to be viewed positively by investors, despite the dip in quarterly earnings.
At the time of this filing, RJF was trading at $172.14 on NYSE in the Finance sector, with a market capitalization of approximately $34B. The 52-week trading range was $117.57 to $177.66. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.