Raymond James delivered solid QQ2 2025 results anchored by a diversified business mix and ongoing investments in growth platforms. Net revenues reached $3.4 billion, up 9% year over year, with pretax income of $671 million (pretax margin 19.7%) and net income of $493 million ($2.36 diluted EPS). Adjusted measures also reflect strength: adjusted net income $507 million and adjusted EPS $2.42, with an adjusted pretax margin of 20.3%. Through the first half of FY2025, RJF posted record net revenues ($6.9 billion) and pretax income ($1.4 billion), underscoring the resilience of its Private Client Group (PCG) and complementary platforms.
The PCG remains the growth engine, ending the quarter with $1.54 trillion in client assets under administration and net new assets (NNA) of $8.8 billion, equating to a 2.6% annualized growth on the starting PCG asset base. Asset inflows into managed fee-based programs remained robust, with Y/Y inflows contributing to record year-to-date revenues in Asset Management. The Bank segment posted loans of $48.3 billion and higher net interest income, aided by a 7bp rise in net interest margin to 2.67%. Management reiterated a balanced capital deployment strategy: organic growth first, selective acquisitions, and an active buyback program (Q2: $250 million; April: $190 million; plan to run at a higher cadence than the prior quarter).
Management signaled a cautious but constructive outlook amid macro volatility (tariffs, market uncertainty). They expect Q3 Asset Management to be relatively flat, NII/JBPD fees to be broadly unchanged, and a steady buyback cadence to maintain capital flexibility. Strategic initiatives highlighted include a dedicated Chief AI Officer and an in-house AI search tool, plus a restructured private capital leadership to better serve high-net-worth advisers and clients. The company remains confident in its culture, balance sheet, and long-run growth trajectory, though near-term earnings will continue to hinge on market dynamics and policy developments.