Raymond James Financial, Inc.

Record quarterly performance; strong momentum into fiscal Q4 - Q3 results: Net revenues $3.93B (+16% YoY, +2% QoQ); pretax income $750M (+33% YoY, +2% QoQ); EPS (diluted) $3.01 record; adjusted EPS $3.14 record. - Margins/ROE: Pretax margin 19.1% (adjusted 19.9%, in line with guidance ~20%); annualized ROCE 18.8%; annualized adjusted ROTCE 23.5%. - Outlook tone: Management is “optimistic” and expects continued strength in drivers (adviser recruiting, pipelines, and ample capital), though they explicitly caution transaction timing is unpredictable.

Private Client Group (PCG): client asset growth and adviser recruiting remain the growth engine - Client assets under administration (AUA): $1.86T, +18% YoY and +9% QoQ (record). - Net new assets (NNA): $21.7B in Q3; 5.5% annualized growth rate. - Recruiting pipeline strength: Recruited advisers in the quarter with TTM production $156M and ~$23B of assets from prior firms; YTD: $393M TTM production and >$56B assets—management says this puts them on a “clear path” to beat the record fiscal 2025 recruiting outcomes. - Quality focus + retention: Emphasized adviser satisfaction ~97% (best-in-industry claim) and that retention is the foundation; adviser “choice” across affiliation options supports recruiting durability.

Capital Markets + Asset Management: improving revenue drivers, but margins affected by mix/timing and acquisition costs - Capital Markets: Net revenues $477M; pretax income $48M. Growth driven mainly by stronger M&A/advisory and higher debt underwriting, but they state activity is still below “normalized”, especially in middle market/sponsor segments. - Guidance-style implication: Management expects a margin path back toward targets (they cited ~15% target for Capital Markets pretax margin) when M&A revenues normalize. - Asset Management: Net revenues $362M (record); pretax income $143M. Performance supported by market appreciation + strong fee-based inflows and partial-quarter contribution from the Clark Capital acquisition (acquired April 30). - Surprise/negative in details: Slight margin softness vs revenue strength was attributed largely to acquisition-related costs and deal-related expenses; management says quarter-to-quarter operating leverage is noisy because segment results can include acquisition-related items.