Raymond James Financial delivered mixed results for the fiscal quarter ending March 31, reflecting the broader economic pressures facing capital markets and wealth management firms in 2025.
While the firm continues to emphasize the strength of its core wealth management operations, its investment banking segment faces mounting challenges amid a backdrop of geopolitical tension, macroeconomic volatility, and policy uncertainty out of Washington.
Adjusted earnings per share came in at $2.42, narrowly missing the consensus estimate of $2.45, though representing modest growth from $2.31 a year earlier. Net revenue for the quarter totaled $3.4 billion, just shy of analyst forecasts of $3.42 billion.
CEO Paul Shoukry attributed the slight revenue shortfall in part to delays in closing deals on the investment banking side, underscoring that while the pipeline remains strong, execution timelines are increasingly vulnerable to policy shifts and global economic sentiment. Specifically, he cited the uncertainty surrounding U.S. trade policy under the Trump administration as a key headwind.
Raymond James’ capital markets segment reported net revenue of $396 million for the quarter, a 23% year-over-year increase. However, that figure marks an 18% decline from the previous quarter, reflecting the cyclical slowdown in M&A and capital markets activity as corporate clients adopt a more cautious stance amid ambiguous macro signals.
While the firm’s capital markets business outpaced its year-ago performance, the sequential decline reinforces that deal momentum has weakened, even in traditionally active sectors.
The company’s largest revenue driver—its private client group—remains on firmer footing. That segment posted quarterly net revenue of $2.49 billion, a 6% increase driven largely by higher asset management and administrative fees, reflecting both market appreciation and sustained organic growth in fee-based business. Client assets under administration rose 6% year over year to $1.54 trillion, and assets in fee-based accounts climbed 9% to $872.8 billion, a meaningful validation of advisors’ shift toward recurring revenue models.
Notably, Raymond James no longer discloses the number of financial advisors in its private client group, but Shoukry emphasized that advisor recruitment remains robust across all affiliation models, including employee, independent contractor, and RIA channels.
He noted that periods of market volatility, while challenging, often open the door for competitive recruiting. He likened the current climate to 2008, when market instability prompted advisors to prioritize institutional strength and platform stability.
“When advisors are navigating volatility, they seek partners with a proven record of resilience,” Shoukry said. “And today, we’re seeing strong interest and continued growth in our recruiting pipeline.”
Despite that momentum, net new asset growth showed some deceleration. The firm brought in $8.8 billion in net new assets during the quarter, down from $9.6 billion in the year-ago period. Management attributed part of that decline to timing issues, noting that there is often a lag between advisor recruitment and full asset transition.
Analysts acknowledged the slowdown, with J.P. Morgan Securities' Michael Cho flagging the annualized growth rate of 2.6% as below recent trend lines, even as recruiting showed signs of re-acceleration late in the quarter. Cho maintained a Neutral rating on Raymond James shares, citing both near-term headwinds and long-term opportunity.
CFO Butch Oorlog offered additional context on business dynamics during the earnings call. He reported that while loan demand from corporate borrowers remains subdued, demand for securities-based lending has held up well.
This divergence reflects broader trends across the banking sector, where commercial credit appetite has waned under tighter financial conditions, but high-net-worth clients continue to tap portfolio-backed credit facilities for liquidity needs, investment flexibility, or opportunistic purposes.
In terms of share performance, Raymond James stock edged down 0.5% in early Thursday trading and is off 13% year to date, underperforming the S&P 500’s 8.1% decline.
Investors have rotated away from financial stocks in 2025 amid persistent concerns about slowing growth, the risk of rising delinquencies, and softer client engagement across brokerage and banking platforms. While Raymond James has thus far weathered those trends with relative strength, investor sentiment across the sector remains cautious.
Still, first-quarter results from some peers paint a more optimistic picture. For instance, Charles Schwab reported core net new asset inflows of $137.7 billion, suggesting that investor activity is not universally depressed and that market share battles continue to play out across the independent advisor landscape.
For Raymond James, the ability to maintain advisor-centric differentiation while navigating economic crosscurrents will be crucial to sustaining long-term momentum.
Looking ahead, Shoukry expressed confidence in the firm’s strategic positioning. He highlighted continued investments in technology, advisor support, and practice management resources as critical enablers of advisor productivity and client satisfaction.
He also reiterated the firm’s belief in the long-term value of its multi-channel model, which has enabled Raymond James to attract advisors from both wirehouse and independent platforms without sacrificing cultural cohesion or service quality.
Despite macro pressures, the tone from senior leadership remained forward-looking. “Periods of disruption have historically presented outsized opportunities for firms that are well-capitalized, advisor-focused, and disciplined,” Shoukry said. “We continue to invest through the cycle and are positioned to capitalize on growth as the environment stabilizes.”
In sum, Raymond James enters the second half of its fiscal year balancing resilience in wealth management against cyclical headwinds in investment banking. While headline results fell modestly short of expectations, the firm’s fundamentals remain intact, and its advisor-centric strategy continues to draw interest from across the industry.
For wealth advisors and RIAs watching competitive trends, Raymond James’ positioning highlights the importance of agility, client alignment, and consistent recruiting execution in a market still searching for clarity.
