Jefferies Financial

Q2 FY2026 EarningsQ2 FY26 results missed consensus on the top and bottom lines despite significant YoY growth. Total net revenue of $2.21B fell 4.04% short of the $2.30B consensus, while Diluted EPS (GAAP) of $1.02 missed the expected $1.17 by 12.71%. The performance was driven by record-setting Investment Banking and Equities revenues, which were offset by weakness in Asset Management and a contraction in Debt Underwriting. Management highlighted a strong backlog for H2 FY26, though Q2 profitability was weighed down by a higher compensation ratio of 53.9% vs. 52.3% YoY.