- Price
- $156.78
- Fair value
- $187.00
- Discount
- 16.2%
- Uncertainty
- Medium
- LSEG rating
- 2.59
- Moat
- Narrow
- Next earnings
- 2026-10-28
- Next earnings is estimate
- No
- Company name
- Raymond James Financial
- Sector
- Wealth management & investment banking
- About
- Raymond James Financial is a diversified financial services company with its head office in St. Petersburg, Florida. It reports four main segments. The Private Client Group, its largest, serves individual clients through financial advisors who are employees or independent contractors, and it earns mostly fees on assets in fee-based accounts. Capital Markets does investment banking (mergers and acquisitions advice and underwriting) and trades fixed income and equities. Asset Management manages money for clients, with $345 billion of financial assets under management at June 30, 2026. The Bank segment, through Raymond James Bank and TriState Capital Bank, makes securities-based loans, mortgages and corporate loans, funded largely with client cash. Client assets under administration were a record $1.97 trillion at August 31, 2026. Its fiscal year ends on September 30.
- Thesis
- The market prices Raymond James for the risk that the income it earns on client cash falls, through rate changes or pressure to pay clients more, and for the risk that earnings fall when markets fall. In the fiscal third quarter of 2026, Private Client Group revenue rose 14%, but its pre-tax income rose only 3%, because of lower interest rates and the cost of recruiting advisors. A large part of revenue is fees that move with asset values. Lawsuits about the rates paid on client cash sweep balances also remain open, and the SEC asked for information on these programs in 2024. For the gap to close, three things must be true. Domestic Private Client Group net new assets must keep growing at about 5% or more a year. Client cash balances must stay near $57 billion or grow, so that interest income holds up. Investment banking revenue must keep its recovery, as the firm says its pipelines are strong. The fiscal fourth quarter report on October 28, 2026, gives the first test, and the next quarterly reports through 2027 give more. If these checks pass, the gap can close over the next three to five quarters. The main reason it may not close is a fall in equity markets, which lowers fee-based assets and fees.
- Risks
- Lower short-term interest rates, or higher rates paid to clients, lower the fees that Raymond James earns on client cash placed at third-party banks and the net interest margin of its banks. The Bank segment's net interest margin was 2.71% in the fiscal third quarter of 2026, 3 basis points lower than a year earlier.
Asset management and administrative fees, about $2.1 billion a quarter, move with the value of client assets. A large fall in equity markets lowers fees quickly.
Class action lawsuits and an SEC inquiry concern the rates paid to clients on cash sweep balances. An adverse result can bring payments and force higher rates to clients, which lowers interest income.
The firm competes for financial advisors with other brokerages and independent platforms. Higher recruiting costs or the loss of advisors can slow asset growth and lower margins.
- Balance sheet
- Raymond James funds its banks mostly with client cash deposits and holds high capital. At June 30, 2026, total assets were $94.2 billion and net bank loans were $56.2 billion, of which $24.8 billion were securities-based loans. Corporate cash at the parent company was $2.52 billion. Senior notes were $3.52 billion, with maturities from April 2030 to September 2055, up from $2.04 billion a year earlier. The tier 1 leverage ratio was 11.7% and the total capital ratio was 22.5%, well above regulatory requirements. Total common equity was $12.7 billion, book value was $66.11 per share and tangible book value was $53.74 per share. The firm bought back $400 million of shares in the fiscal third quarter and had $1.1 billion left under its authorization.
As of 2026-06-30.
- Checkpoints
- Oct 28, 2026: Fiscal Q4 2026 results: net new assets and cash. Pending. Watch: Domestic Private Client Group net new asset growth of about 5% or more annualized, stable client cash balances and continued investment banking growth pass; outflows or a large fall in client cash fail.
Jan 2027 (estimate): Fiscal Q1 2027 results: margins. Pending. Watch: A stable Private Client Group pre-tax margin and bank net interest margin pass; a large fall in either fails.
- Recent events
- 2026-09-23: Raymond James reported August 2026 operating data. Client assets under administration were a record $1.97 trillion, up 16% from a year earlier. Client cash sweep and Enhanced Savings Program balances were $57.4 billion, up 6%. Net bank loans were $56.4 billion.
2026-08-27: The board appointed William W. Weatherford, managing partner of Weatherford Capital and a former Speaker of the Florida House of Representatives, as a director from December 15, 2026.
2026-07-22: Raymond James reported fiscal third quarter 2026 results. Net revenues were a record $3.93 billion, up 16%. Net income available to common shareholders was $595 million, or $3.01 per diluted share, and adjusted EPS was $3.14. Investment banking revenues rose 40% to $285 million. Domestic Private Client Group net new assets were $21.7 billion, an annualized growth of 5.5%. The firm bought back $400 million of shares at an average price of $152.
2026-04-30: Raymond James completed the purchase of Clark Capital Management Group, which added $36 billion of financial assets under management and $47 billion of total client assets.
2026-03-27: A federal court dismissed some of the claims in the consolidated class action about the rates that Raymond James paid on client cash sweep balances. The case remains open with two named plaintiffs.