Jefferies Financial Group (NYSE:JEF) shares fell more than 1% after the company reported third-quarter adjusted earnings and revenue above analyst expectations, while Fixed Income and Asset Management revenue declined from the prior-year period.
Adjusted earnings per share were $1.08, compared with the analyst consensus estimate of $1.00.
Quarterly revenue increased 9% year over year to $2.22 billion from $2.05 billion, slightly above the consensus estimate of $2.20 billion. Net earnings attributable to common shareholders rose to $260.6 million from $224.0 million in the third quarter of 2025.
Investment Banking Revenue Rises 17%
Investment Banking net revenue increased 17% year over year to $1.33 billion, supported by record Advisory revenue of $818 million, up 25%.
Equity Underwriting revenue increased 69% to $305.5 million, while Debt Underwriting revenue declined to $177.1 million from $249.5 million a year earlier.
Capital Markets net revenue rose 11% to $802.2 million.
Equities generated record quarterly revenue of $626.2 million, an increase of 29% from the prior-year period. Fixed Income revenue, by comparison, declined 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,” Chief Executive Richard Handler and President Brian Friedman said.
Asset Management Revenue Falls to $85.6 Million
Asset Management revenue declined to $85.6 million from $176.9 million in the third quarter of 2025, reflecting lower performance across several fund strategies.
The compensation ratio increased to 53.7% from 52.9% a year earlier, while the non-compensation ratio decreased to 30.5% from 30.9%.
The results reflected higher revenue from Investment Banking and Equities alongside lower contributions from Fixed Income and Asset Management.
Jefferies Repurchases $70 Million of Shares
Jefferies repurchased 1.3 million shares during the quarter for $70 million at an average price of $52.34 per share.
The company’s board also declared a quarterly dividend of $0.40 per share, payable on November 25, 2026.
Jefferies Financial Group stock price
