Raymond James (RJF) Stock Climbs After Q4 Earnings Rekindle Value Debate

Raymond James Financial stock closed at US$157.42 before the Q4 2026 release and is now trading around US$161.29, up about 2.5%. On the surface that looks like a clean earnings win. The real story is that the move comes after record quarterly revenue of US$4.28b and net income of US$666m, which sharpen the focus on valuation.

Short-term traders are reacting to the print. Long-horizon investors are weighing those record profits against a P/E near 13x and a discounted cash flow value that sits far above the current share price.

Like the record revenue at Raymond James Financial but wondering how many other financials combine strong earnings power with what looks like a value gap on cash flows? Line this up against our 30 high quality undervalued stocks to see peers that pair robust fundamentals with discounted valuations.

Q4 2026 Earnings Summary

• Q4 2026 Revenue: US$4,277m vs. US$3,708m in Q4 2025 (+15.4%)
• Q4 2026 Net Income (Excl. Extra Items): US$666m vs. US$602m in Q4 2025 (+10.6%)
• Q4 2026 Basic EPS: US$3.47 vs. US$3.03 in Q4 2025 (+14.6%)
• Trailing 12-Month Net Income (Excl. Extra Items): US$2,365m for the twelve months to Q4 2026 vs. US$2,127m for the twelve months to Q4 2025 (+11.2%)

Record ROTCE topped 26% even as they kept spending on growth. Ask Charlie what makes Raymond James' record ROTCE look sustainable.

Raymond James bullish story meets real operating milestones

Supporters argue the Raymond James Financial growth engine hinges on adviser momentum and heavy tech spend turning into higher productivity, not just headline revenue.

"Continued adviser satisfaction, net new asset flows, and the deployment of more than US$1.1b in annual technology and AI investment are expected to support stable margins and productivity."

Record client assets at US$1.87t, US$1.16t of fee based balances, and US$98b of domestic net new assets for FY26 all line up with that ambition. Adjusted pretax margin of 21.3% also sits above the 20% target, so the margin side of the story is holding for now.

Bear narrative on costs and volatility only partly confirmed

The cautionary view says rising legal and operating costs could quietly eat into Raymond James Financial profitability even when revenue and flows look healthy.

"Non compensation expenses have risen in part due to higher legal costs related to a putative class action lawsuit on cash sweep programs and other professional fees, and if these costs remain elevated or new matters emerge they could offset revenue growth and compress net margins."

Management now guides FY27 non compensation expenses to roughly US$2.5b, an 8% rise, and keeps spending on recruiting and AI high. Yet adjusted pretax margin finished FY26 above the 20% goal and ROTCE stayed in the mid 20s, so cost pressure is present but not yet eroding profitability targets.

That disagreement has a full argument behind it. → Uncover the higher Fair Value this Narrative argues for.

Hunt For Quiet Valuation Gaps

Raymond James Financial just reported record earnings while its share price showed limited reaction. The real opportunity is researching stocks that may be mispriced before sentiment potentially shifts toward them.

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