Earnings in the fourth quarter of 2025 improved for the majority of broker-dealers, although one of the largest firms did see a year-over-year decline in net income of 13%. On the upside, one financial firm with a large BD improved earnings over 50% from a year ago.
According to FactSet Research, 73% of S&P 500 companies reported both a positive earnings-per-share surprise and a positive revenue surprise. The average growth rate in Q4 2025 was 14%, the fifth consecutive quarter of double-digit earnings growth for the index.
"We continue to deploy capital with a focus on the long term, as evidenced by our robust organic growth, continued investments in our technology and platform, and our recently announced acquisition of Clark Capital," Paul Shoukry, Raymond James' CEO, said in the firm's earnings report.
The average earnings growth rate for S&P 500 firms in the quarter was 14.2%, topping FactSet's initial estimate of 8.3%. Earnings growth at firms in the financial sector hit 9.3%, up from the expected 6.4%.
The U.S. economy "has remained resilient," JPMorgan CEO Jamie Dimon said earlier this year, when the firm released its latest results. Still, the bank remains "vigilant, and markets seem to underappreciate the potential hazards — including from complex geopolitical conditions, the risk of sticky inflation and elevated asset prices."
Citigroup, JPMorgan and Wells Fargo will release first-quarter results April 14.
See the accompanying gallery for a ranking of the 11 reporting broker-dealers in the latest quarter.
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