Jefferies Financial stock slips 3% as Fixed Income, Asset Management revenues fall

Investing.com -- Jefferies Financial Group Inc (NYSE: JEF) reported third quarter adjusted earnings per share of $1.08, beating the analyst consensus of $1.00, though shares fell 3% following the results.

Revenue for the quarter reached $2.22 billion, slightly above the consensus estimate of $2.20 billion and up 9% YoY from $2.05 billion in the prior year period. Net earnings attributable to common shareholders totaled $260.6 million, compared to $224.0 million in the third quarter of 2025.

The company achieved record quarterly results in Investment Banking and Equities, though these gains were partially offset by weaker Fixed Income performance and challenges in Asset Management.

Investment Banking net revenues of $1.33 billion increased 17% YoY, driven by record Advisory revenues of $818 million, up 25% from the prior year. Equity Underwriting surged 69% YoY to $305.5 million, while Debt Underwriting declined to $177.1 million from $249.5 million. Capital Markets net revenues rose 11% to $802.2 million, with Equities posting record quarterly revenues of $626.2 million, up 29% YoY. Fixed Income revenues decreased 26% to $176.0 million.

"Our third quarter net revenues were $2.22 billion, net earnings attributable to common shareholders were $261 million, diluted earnings per voting common share were $1.08 and return on adjusted tangible shareholders’ equity was 13.5%, reflecting record quarterly results in Investment Banking and Equities," said CEO Richard Handler and President Brian Friedman.

Asset Management revenues fell to $85.6 million from $176.9 million in the prior year quarter, reflecting weaker performance across several fund strategies. The compensation ratio increased to 53.7% from 52.9% in the prior year quarter, while the non-compensation ratio improved to 30.5% from 30.9%.

The company repurchased 1.3 million shares for $70 million during the quarter at an average price of $52.34 per share. The Board declared a quarterly dividend of $0.40 per share, payable November 25, 2026.

Original Article

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