Raymond James delivered revenue and non-GAAP profit above Wall Street expectations in Q3, prompting a positive market reaction. Management attributed the results to broad-based growth across core business lines, particularly the Private Client Group, which benefited from record adviser recruiting and elevated client asset inflows. CEO Paul Shoukry highlighted that the firm’s adviser-focused culture and continued platform enhancements allowed the company to attract high-quality talent and expand client relationships, while investments in technology and AI supported operational efficiency. The Capital Markets segment also contributed, with strong debt underwriting and advisory activity.
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Raymond James (RJF) Q3 CY2025 Highlights:
- Revenue: $3.73 billion vs analyst estimates of $3.63 billion (7.7% year-on-year growth, 2.7% beat)
- Adjusted EPS: $3.11 vs analyst estimates of $2.83 (10% beat)
- Adjusted EBITDA: $978 million (26.2% margin, 7.6% year-on-year decline)
- Operating Margin: 20.4%, down from 23.1% in the same quarter last year
- Market Capitalization: $31.63 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 Q3 Earnings Call
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Michael Cho (JPMorgan) asked about which adviser channels are seeing the most recruiting uplift. CEO Paul Shoukry responded that growth was broad-based across employee, independent contractor, and RIA custody channels, driven by culture and stability amid industry noise.
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Devin Ryan (Citizens Bank) questioned the sustainability and drivers behind securities-based loan growth. Shoukry indicated that lower rates should further accelerate demand, especially given the Private Client Group’s expanding asset base.
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Daniel Fannon (Jefferies) asked if recent elevated net new asset growth is sustainable. Shoukry pointed to strong recruiting pipelines and adviser retention, suggesting the pace reflects a "new normal" as the firm capitalizes on industry disruption.
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William Katz (TD Cowen) inquired about funding sources for continued asset growth and margin targets. Shoukry noted diversified funding options—including deposits and third-party sweep balances—and confirmed the firm’s 20%+ pretax margin goal remains in place.
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Michael Cyprys (Morgan Stanley) sought clarity on digital asset product availability. Shoukry explained that access is currently limited to Bitcoin ETFs on a selective basis, with broader adoption contingent on regulatory developments and adviser demand.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be watching (1) whether Raymond James can sustain its strong adviser recruiting momentum and translate this into ongoing net new asset inflows, (2) the impact of accelerated AI and technology investments on adviser productivity and margin trajectory, and (3) the extent to which lower interest rates drive increased demand for securities-based and mortgage lending. The integration of acquisitions like GreensLedge and evolving digital asset offerings will also be key areas to monitor.
Raymond James currently trades at $161, down from $166.05 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).
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