Jefferies Beats on Profit and Revenue as SMBC Lifts Stake to About 20%
Revenue reached $2.22bn against expectations of $2.10bn, and the bank raised its buyback authorization back to $250m
Published
Jefferies Financial Group reported third-quarter earnings of $1.08 a share on a GAAP basis, $0.15 above expectations. Revenue came in at $2.22bn, ahead of the $2.10bn analysts had forecast.
Chief executive Richard Handler and president Brian Friedman said record quarterly results in investment banking and equities were offset by a subdued fixed income market and weaker performance across several asset management fund strategies.
The board declared a quarterly dividend of $0.40 a share, payable November 25, 2026 to holders of record on November 16, 2026. Jefferies repurchased 1.3 million shares for $70m during the quarter and reinstated its buyback authorization to $250m for future repurchases.
SMBC has raised its equity stake in Jefferies to about 20%, making it the company's largest shareholder. The two firms plan a Japan-based equities and equity capital markets joint venture that is expected to begin serving clients in January 2027. The increase extends a relationship between the two firms that dates to 2021 and has been expanded several times since, with SMBC's stake previously standing at 14.5%. Taken together with the earnings and revenue beat, the record results in investment banking and equities, and the restored buyback authorization, the quarter points to a more bullish setup, even as soft results in fixed income and asset management temper that picture.