Raymond James Financial increased its quarterly cash dividend to $0.54 per share, an 8% rise from the $0.50 dividend paid in October, and lifted its share‑repurchase authorization to $2 billion, replacing the prior $1.5 billion limit that had been in place since December 2024. The higher dividend and expanded buy‑back program signal management’s confidence in the firm’s cash‑generating ability and its commitment to returning value to shareholders while pursuing growth initiatives.
The company’s Q4 2025 earnings report, released in the same period, showed a strong performance: revenue rose 7.7% to $3.73 billion, beating analyst expectations of $3.64 billion by $90 million, while adjusted earnings per share reached $3.11, a $0.28 beat over the consensus estimate of $2.83. The revenue growth was driven by robust demand across the Private Client Group, Capital Markets, Asset Management, and Banking segments, with the Private Client Group posting record net revenues that offset modest pressure in other areas.
Margin expansion in Q4 was evident, with the gross profit margin reaching 93.13% and the adjusted pre‑tax margin at 20.7%. The company maintained a strong operating margin of 9.9% versus 10.2% in the prior year, reflecting disciplined cost management and a favorable mix of high‑margin advisory and wealth‑management services. The earnings beat was largely attributable to cost controls and the continued strength of the Private Client Group, which delivered higher fee income amid a stable client base.
Raymond James reported a cash balance of $11.4 billion as of September 30, 2025, providing ample liquidity to support the dividend increase and share‑repurchase program. The firm’s capital‑return strategy is underpinned by consistent earnings growth, a solid balance sheet, and a history of raising dividends year over year. The expanded buy‑back authorization allows the company to deploy excess cash flexibly, potentially enhancing shareholder value through share price support and earnings per share dilution mitigation.
CEO Paul Shoukry emphasized that the firm’s “unwavering commitment to clients” has driven record net revenues and net income for the fourth quarter and fiscal year, marking the fifth consecutive year of record results. He noted that the dividend increase and buy‑back authorization are part of a broader strategy to reward shareholders while maintaining the financial flexibility needed to invest in growth opportunities and navigate market volatility.
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