Raymond James (RJF) Stock Faces Slower 6% Earnings Outlook Despite Solid Q3 EPS Result

Raymond James Financial (RJF) has reported Q3 2026 revenue of US$3.95 billion and basic EPS of US$3.07, with trailing twelve month EPS at US$11.70 on revenue of US$15.25 billion, setting a clear benchmark for its latest quarter. The company has seen quarterly revenue move from US$3.40 billion in Q2 2025 to US$3.95 billion in Q3 2026, while quarterly EPS shifted from US$2.41 to US$3.07 over the same period, giving investors a concrete view of its recent earnings run rate and how it feeds into trailing performance. With net profit margins in the mid teens and only slightly below last year, the focus is now on how consistently Raymond James Financial can translate its topline into steady, shareholder focused profitability.

See our full analysis for Raymond James Financial.

With the latest results on the table, the next step is to see how these numbers line up against the prevailing narratives about Raymond James Financial, highlighting where the story is supported and where expectations might need adjustment.

See what the community is saying about Raymond James Financial

TTM earnings growth supports Raymond James trend

• Over the last twelve months, Raymond James Financial generated basic EPS of US$11.70 on about US$15.3b of revenue, with net income of roughly US$2.3b and net profit margin at 15.1%, compared with 15.4% a year earlier.
• Analysts' consensus view links this steady backdrop to two key expectations:
  • Revenue is forecast to grow around 6.4% per year and earnings about 6% per year. This sits below the cited broader US market forecasts of 12.8% for revenue and 17.8% for earnings, so the multi year earnings growth of 10.9% a year and 8.2% over the last year carries more weight in judging how durable that trend looks.
  • The focus on high net worth clients and AI enabled efficiency in the consensus narrative leans on this history of consistent earnings rather than rapid growth. Any change in margins from the current 15.1% level would be important to watch against those assumptions.

Margins steady while growth forecasts cool

• Net profit margin for Raymond James Financial sits at 15.1% on trailing earnings of about US$2.3b, just below the prior 15.4%, at the same time as analysts project earnings growth of roughly 6% per year and revenue growth of about 6.4% per year.
• From a bearish angle, critics highlight that these mid single digit growth forecasts are slower than the broader market, and the slightly softer margin feeds that concern:
  • Forecast earnings growth of around 6% versus the 17.8% figure quoted for the US market, and revenue growth of 6.4% versus 12.8%, suggests bears see limited scope for Raymond James to be treated like a higher growth stock unless something changes in the run rate.
  • The move from a 15.4% to 15.1% net margin is small in absolute terms, yet bears can argue that any further pressure here would make it harder for the company to hit the higher profit margin levels that some narratives associate with AI investments and loan growth.

For a closer look at how skeptics frame these risks against the recent numbers, check out how their full argument stacks up in practice 🐻 Raymond James Financial Bear Case

Valuation gap vs DCF and peers

• At a share price of US$166.14, Raymond James Financial trades on a 13.9x P/E, below the 18.8x peer level and the 39x US Capital Markets industry average, and below the stated DCF fair value of roughly US$260.77.
• The bullish narrative leans heavily on this valuation gap, but the numbers also create some tension:
  • Bulls point to multi year EPS growth of 10.9% per year and trailing twelve month earnings growth of 8.2% as a foundation for arguing that a P/E closer to peers or nearer the DCF fair value could be justified if those trends continue.
  • At the same time, the forecast shift to around 6% annual earnings growth means the case for closing the gap between US$166.14 and the US$184.92 analyst target or the US$260.77 DCF fair value depends on investors accepting slower future growth than the broader market while still paying more than today.

If you want to see how bullish investors connect this valuation gap to the long run story for Raymond James, it is worth reading the full case side by side with these figures 🐂 Raymond James Financial Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Raymond James Financial on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If the mix of caution and optimism around Raymond James Financial feels familiar, use that as a prompt to review the details yourself. Then move quickly to shape your own view by looking at the 4 key rewards.

See What Else Is Out There

Raymond James Financial combines a mid teens net margin with growth forecasts that sit below broader US market expectations for both revenue and earnings.

If that slower growth profile feels limiting, push your research further by using the 40 high quality undervalued stocks to quickly spot companies where current pricing may already reflect stronger potential.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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