Jefferies Financial Group Reports $156M Quarterly Profit on $2.87B Revenue in Q1 2026

Jefferies Financial Group Inc. (NYSE: JEF), a global investment banking and capital markets firm, reported net income of $156 million for the quarter ending February 28, 2026, compared to $130 million for the same period a year earlier. Diluted earnings per share rose to $0.70 from $0.57. Read more earnings reports.

Total revenue climbed 16% to $2.87 billion from $2.47 billion in the first quarter of fiscal 2025. Net revenue, which accounts for interest expense and other costs, increased to $2.02 billion from $1.59 billion in the year-ago period.

Revenue Breakdown

Investment banking fees totaled $1.46 billion, up 27% from $1.14 billion in the prior-year quarter. Within that segment, capital markets revenue reached $1.38 billion, while asset management contributed $79.6 million. Trading revenue for the quarter stood at $1.07 billion, compared to $820 million a year earlier.

Merchant banking revenue was $291 million, up from $232 million in the first quarter of fiscal 2025. The firm also recorded $96.7 million in other revenue, compared to $92.8 million in the year-ago period.

Operating Expenses

Compensation and benefits expense rose to $1.09 billion from $841 million in the prior-year quarter. Non-compensation expenses totaled $720 million, compared to $582 million a year earlier. Operating income for the quarter was $211 million, up from $149 million.

Income tax expense increased to $52.9 million from $14.2 million in the first quarter of fiscal 2025.

Balance Sheet Snapshot

Total assets declined to $74.38 billion as of February 28, 2026, from $76.01 billion at the end of November 2025. Cash and cash equivalents dropped to $11.96 billion from $14.04 billion over the same period.

Long-term debt increased to $17.23 billion from $15.90 billion. Total stockholders' equity stood at $10.61 billion, up slightly from $10.57 billion at the end of the prior quarter. Goodwill fell to $1.73 billion from $1.84 billion.

Cash Flow

Cash used in operations was $1.74 billion for the quarter, compared to $2.67 billion used in the year-ago period. Cash used in investing activities totaled $129 million, versus $58 million a year earlier. Cash from financing activities was $627 million, down from $2.03 billion in the first quarter of fiscal 2025.

The firm reported 204.4 million common shares outstanding as of February 28, 2026, down from 206.3 million at the end of November 2025. Weighted average diluted shares for the quarter were 223.3 million.