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SEC filingRaymond James delivered solid Q2 FY2026 results with revenue up 10.8% to $4.3B and net income up 9.9% to $544.0M, driven by higher PCG client activity, investment banking underwriting, and brokerage revenues — not interest income.
Revenue for Q2 FY2026 totaled $4.3 billion, an increase of 10.8% from $3.8 billion in Q2 FY2025. This growth was not attributable to interest income but rather to higher investment banking revenues — particularly underwriting — and higher brokerage revenues stemming from increased client activity in the Private Client Group (PCG) segment. The firm’s advisor-driven model continues to benefit from sustained asset growth and elevated capital markets engagement, consistent with broader industry trends in equity issuance and advisory mandates.
Net income for the quarter was $544.0 million, up 9.9% year-over-year from $495.0 million. Diluted earnings per share were $2.72, an increase of 15.3% compared to $2.36 in the prior-year quarter. The stronger EPS growth relative to net income reflects ongoing capital discipline, though specific share count changes or buyback activity are not quantified in the authoritative financial packet and therefore omitted from explanation.
Net cash provided by operating activities was $1.09 billion, a 15.0% increase from $947.0 million in Q2 FY2025. A key driver was a $493 million decrease in accrued compensation, commissions and benefits, which the business context explicitly attributes to the payment of prior-year bonuses and certain benefits during the period — a timing-related item rather than a structural cost shift.
Capital expenditures totaled $91.0 million, consistent with ongoing technology and infrastructure investments. Free cash flow — defined as operating cash flow less capital expenditures — amounted to $998.0 million. This liquidity position supported the firm’s strategic posture, including the April 30, 2026 acquisition of Clark Capital, an asset management firm specializing in wealth-focused solutions. As noted in Management Discussion, Clark Capital will operate as an independent boutique under Raymond James Investment Management, expanding the firm’s capabilities in the asset management segment without requiring new debt or equity issuance.