📜 What This Document Is 📰

This filing is a press release and an 8-K supplement detailing the financial results for Raymond James Financial, Inc. (RJF) for the second quarter of 2026. This document is crucial because it tells investors how the company is performing right now, providing metrics on revenue, profitability, and asset growth. You should expect to learn about record financial numbers, how their core business segments are doing, and what management predicts for the rest of the year.

🏢 What Raymond James Financial Does 💰

In simple terms, Raymond James is a major, diversified financial services company. They don't just do one thing; they provide a comprehensive suite of services for wealthy individuals, major corporations, and local governments (municipalities). Their core services include managing investments (asset management), handling capital markets activities, and providing banking services.

• Service Scope: RJF provides a full spectrum of services, including private client group management, capital markets, and asset management.
• Client Scale: The firm manages an immense amount of money, reporting that total client assets are $1.76 trillion.
• Industry Standing: Publicly listed on the New York Stock Exchange (NYSE: RJF) since 1983, the company is a mature and deeply established player in the financial services industry.

📈 Financial Performance Highlights 💰

The top section of the report covers the company’s quarterly financial performance. The headline finding is that while revenue was record-breaking, the drop in net income was partly due to tax rate changes, making the adjusted figures important for context.

• Net Revenues: For the second quarter of 2026, net revenues reached a record $3.86 billion. This represents a significant 13% increase compared to the same quarter in the prior year.
  • Why it matters: The increase signals strong demand for their services across asset management and related administrative fees.
• Net Income (GAAP): Net income available to common shareholders was $542 million, or $2.72 per diluted share. This is the official GAAP (Generally Accepted Accounting Principles) figure.
• Adjusted Net Income: The company also reported an adjusted net income of $564 million, or $2.83 per diluted share. This figure is helpful because it excludes $22 million in acquisition-related expenses, providing a clearer picture of core operating profitability.
• Quarterly Comparison: While net revenues showed growth (3% over the preceding quarter), net income actually decreased 4% due to a higher effective tax rate.

🌴 Client Asset Growth & Management 🌳

For a financial services firm, the amount of money they manage is the ultimate measure of health. RJF reported substantial growth across multiple client asset metrics, reinforcing their scale and client trust.

• Total Client Assets: Total client assets under administration reached $1.76 trillion. This represents a notable 15% increase compared to March 2025, though it was slightly down 1% compared to December 2025.
  • Why it matters: Sustained growth in total assets confirms that clients are entrusting Raymond James with more of their wealth.
• Private Client Group Assets (Fee-Based): The assets in the Private Client Group (PCG) in fee-based accounts hit a record $1.04 trillion. This number is up 20% compared to March 2025.
  • Why it matters: This is a key revenue driver. The 20% growth suggests that the high-touch, advisory services provided to high-net-worth clients are booming.
• Net New Assets: The PCG achieved $23.0 billion in net new assets for the quarter. This translates to an annualized growth of 5.8% from the beginning of the quarter.
  • Why it matters: "Net new assets" means that the money brought in by new clients or investments exceeded the money withdrawn by existing clients, signaling solid client acquisition and retention.

🏦 Lending and Capital Markets Strength 💸

The company's lending activity is also a primary source of revenue and indicates its involvement in capital markets. RJF reported record metrics in its lending book.

• Net Bank Loans: The company recorded net bank loans totaling $54.8 billion.
• Securities-Based Loans: This specific type of loan saw significant activity, reaching $23.0 billion.
  • The growth here is impressive: $23.0 billion is up 31% compared to March 2025, and up 6% compared to December 2025.
  • Why it matters: High growth in securities-based lending shows that RJF's investment banking and capital markets divisions are actively engaging with borrowers and structuring financing deals.

💡 Management Commentary and Outlook 🚀

The CEO, Paul Shoukry, provided strong commentary emphasizing the company's resilience, technological focus, and robust future pipelines. This section is vital as it dictates the company's self-assessed trajectory.

• Historical Performance Summary: Paul Shoukry stated, "We generated record results for the first half of the fiscal year by leveraging the firm’s expertise and resources to support advisors and their clients during this period of market uncertainty."
  • Interpretation: This message frames the recent successes not just as luck, but as a direct result of the firm's established knowledge and strong service model, especially during challenging economic times.
• H1 Guidance: The CEO also noted, "Our ongoing focus and disciplined execution have led to record PCG fee-based assets and annualized net new asset growth of 7% for the first half of the fiscal year."
  • Interpretation: The 7% H1 annualized net new asset growth suggests management is highly confident in the continued flow of wealth into the firm.
• Future Strategy & Tech: The firm plans to improve efficiency and service through technology, specifically citing efforts to increase AI integration in its industry-leading technology solutions.
• Recruiting and Pipelines: Management stated that "financial advisor recruiting activity across all our affiliation options remains robust, and the investment banking pipeline continues to be strong."
  • Interpretation: This addresses two core growth pillars: ensuring they have enough skilled people (advisors) and ensuring they have enough deals (investment banking pipeline) to keep the revenues flowing.

🛣️ Business Drivers and Key Movements 📊

The filing provided deeper context on why the revenue was up and why other figures changed, which helps readers understand the operational levers pulling the financials.

• Revenue Growth Drivers: The increase in net revenues was largely driven by continued growth in asset management and related administrative fees. These fees specifically increased 17%, totaling over $2.0 billion.
  • Why it matters: This confirms that the management and advisory side of the business (asset management) is the primary engine powering the revenue growth, outweighing other revenue sources in the quarter.
• Pre-Tax vs. Net Income: While pre-tax income increased 1% compared to the preceding quarter, the net income available to common shareholders decreased 4%.
  • Why it matters: This divergence points directly to the "higher effective tax rate" mentioned in the release. This is a technical detail, but it’s key for investors to understand that profit didn't fall because of poor operations, but because of tax structuring.

🗓️ Connect and Learn More 🌐

If you want to follow up on these results, the filing provided specific contacts and resources. This is where you go for more details or to ask questions.

• Media Inquiries: Steve Hollister can be reached at 727.567.2824.
• Investor Relations: Kristina Waugh can be reached at 727.567.7654.
• Online Resources: The company website for further information is raymondjames.com/news-and-media/press-releases.

🧠 The Analogy

Think of Raymond James like a highly successful, multi-department hospital. Their core revenue comes from the skilled doctors and nurses (advisors and asset managers) who treat patients (clients) by helping them build wealth. The private client group is the specialized wing where the most expensive care happens (the record $1.04 trillion assets). The lending division is like the hospital’s pharmacy and equipment financing arm, making money by structuring large loans ($54.8 billion). The overall story is that the "hospital" is busier and wealthier than ever, even if the tax department (corporate tax structure) made the final bill look a little different than expected.

🧩 Final Takeaway

RJF reported record financial results in Q2 2026, driven by significant growth in assets under management and record lending activity. The firm signals strong confidence through record H1 performance and a strategic focus on adopting AI and bolstering its advisory workforce.