JEF · Jefferies Financial Group Inc.

Jefferies Financial Group reported record second-quarter fiscal 2026 results, with total net revenues of $2.21 billion, up 35% year-over-year, driven by strength across Investment Banking and Capital Markets. Investment Banking net revenues soared 57% to a record $1.21 billion, fueled by a 47% increase in Advisory to $674 million and a 203% surge in Equity Underwriting to $371 million, reflecting market share gains and increased deal volumes. Capital Markets net revenues rose 14% to $799 million, with Equities achieving a record $601 million (up 14%) on higher global trading volumes and prime services expansion, while Fixed Income grew 12% to $199 million on distressed, municipal, and emerging markets strength. Asset Management net revenues increased 21% to $188 million, though core management fees and investment returns were mixed due to restructuring. Net earnings attributable to common shareholders more than doubled to $226 million, and diluted EPS improved to $1.02 from $0.40, with return on adjusted tangible equity at 12.8% versus 5.5% a year ago. The effective tax rate dropped to 20.8% from 32.3% due to investment tax credits, boosting net income. The board declared a $0.40 quarterly dividend, and repurchased $197 million of common stock during the quarter, with a new $250 million buyback authorization. Management expressed optimism about the second half, citing a strong backlog and new business bookings, though no specific numeric guidance was provided. The record results were underpinned by balanced, broad-based growth and cost discipline, with non-compensation expenses declining as a percentage of revenues to 31.8% from 39.4%.