0000096223-26-000017
SEC filingStrong revenue growth of 26.6% driven by Investment Banking and Equities, partially offset by higher expenses and a tax rate increase.
For the three months ended February 28, 2026, Jefferies reported a strong quarter with net revenues of $2.02 billion, up 26.6% from $1.59 billion in the prior year quarter. The growth was primarily driven by a 45.2% increase in Investment Banking revenues and a 36.5% increase in Equities revenues. Non-interest expenses rose 25.2% to $1.80 billion, largely due to higher compensation and benefits, which increased 29.1% to $1.09 billion. Earnings from continuing operations before income taxes grew 40.5% to $212.2 million. Net earnings from continuing operations increased 16.4% to $159.3 million, while net earnings attributable to common shareholders rose 21.8% to $155.7 million. The effective tax rate increased significantly to 24.9% from 9.4% in the prior year, primarily due to the resolution of certain state and local tax matters in the prior year quarter.
Investment Banking and Capital Markets: Net revenues for this segment increased 28.4% to $1.80 billion. Investment Banking net revenues were $1.02 billion, up 45.2%, driven by a 32.5% increase in Advisory revenues to $527.1 million and a 138.1% surge in Equity underwriting to $305.9 million. Debt underwriting decreased 8.8% to $181.9 million. Equities net revenues rose 36.5% to a record $558.5 million, driven by market share gains and higher global trading volumes. Fixed Income net revenues declined 23.8% to $220.3 million, impacted by a $42.8 million mark-to-market loss in securitized products. Asset Management: Net revenues increased 14.9% to $220.3 million. Asset management fees and revenues decreased 21.1% to $69.9 million, reflecting lower performance fees. Investment return was $89.0 million, compared to a loss of $5.6 million in the prior year, due to improved returns across fund strategies. Other investments net revenues decreased 33.6% to $83.6 million.
Management noted that the investment banking backlog remains strong, though the timing of revenue realization is subject to change. The company expects the sale of Tessellis to close during the first quarter of 2027. The company continues to monitor geopolitical conflicts and the impact of tariffs on global markets. No specific financial guidance was provided for future periods.