Jefferies Announces Second Quarter 2026 Financial Results

June 25, 2026 - 03:42

NEW YORK, June 24, 2026 -- Jefferies Financial Group Inc. released its financial results for the second quarter of fiscal 2026 on Wednesday, posting a profit that fell short of analyst expectations despite a strong showing in its investment banking division.

The firm reported net earnings of $145 million for the three months ending May 31, compared to $168 million in the same period last year. Earnings per share came in at $0.62, missing the consensus estimate of $0.71 among analysts tracked by financial data providers. Revenue for the quarter reached $1.52 billion, up slightly from $1.48 billion a year earlier.

Investment banking revenue was a bright spot, rising 12% to $890 million. The increase was driven by a surge in advisory fees from completed mergers and acquisitions, as well as a pickup in equity underwriting. However, the gains were partially offset by a decline in fixed income trading revenue, which fell 8% to $410 million. The firm cited lower volatility in interest rate and currency markets during the period.

Jefferies also noted a 5% increase in operating expenses, largely due to higher compensation costs as the company added staff in its advisory and equities divisions. The provision for credit losses remained minimal at $12 million.

Chief Executive Officer Richard Handler said the results reflect the firm's ability to capture market share in advisory work, though he acknowledged the trading environment was challenging. He pointed to a strong pipeline of pending deals heading into the second half of the fiscal year.

Shares of Jefferies closed down 1.4% in regular trading ahead of the announcement. The stock has gained about 6% year-to-date, roughly in line with the broader financial sector.