Jefferies Financial Group reported fiscal Q3 earnings and revenue that exceeded Wall Street consensus estimates, though the stock slid 3.1% in Monday after-hours trading. GAAP EPS of $1.08 topped the average analyst estimate of $0.99, up from $1.02 in Q2 and $1.01 in last year's Q3, while total net revenue for the quarter ended Aug. 31, 2026, was $2.22B, beating the $2.20B consensus and rising from $2.21B in the prior quarter and $2.05B a year ago. The company also said its alliance with Sumitomo Mitsui Financial Group, also called SMBC, continued to expand, with SMBC increasing its ownership in Jefferies to about 20% as expected to become the company's largest shareholder. Investment banking net revenue of $1.33B grew 10% quarter over quarter and 17% year over year, and capital markets net revenue rose 0.4% quarter over quarter and 11% year over year to $802.2M, while asset management net revenue sank 54% quarter over quarter and 51% year over year to $85.6M. CEO Richard Handler and President Brian Friedman said the Investment Banking and Equities businesses continued to gain momentum, driving quarterly record net revenues in Advisory, total Investment Banking, Equities, and combined Investment Banking and Capital Markets.
Jefferies Financial Group IncFiscal Q3 EPS of $1.08 and revenue of $2.22B beat consensus estimates, with record Investment Banking and Equities revenues.
Sumitomo Mitsui Financial Group, Inc.SMBC increased its ownership stake in Jefferies to about 20%, becoming its largest shareholder as part of the expanding alliance.
