Jefferies' Q1 revenue misses estimates; takes hit from MFS, First Brand

Jefferies Financial

25/03/2026 20:28

Overview

U.S. investment bank's Q1 revenue rose 27% yr/yr but missed analyst expectations

Diluted EPS from continuing operations grew to $0.70 from $0.57 yr/yr

Jefferies had $17 million in losses related to collapsed British lender Market Financial Solutions and bankrupt First Brands after adjusting for compensation and taxes

Company repurchased 3 mln shares for $174 mln and raised buyback authorization to $250 mln

Outlook

Company says core business momentum from late 2025 has continued into Q2 2026

Jefferies expects results to increasingly reflect core business as legacy portfolio winds down

Company aims to build on current momentum throughout fiscal 2026 and beyond

Result Drivers

EQUITIES MOMENTUM - Equities net revenues rose 37% on higher global trading volumes and strength in options, derivatives, and electronic trading, per management

ASSET MANAGEMENT RETURNS - Investment return increased significantly from the prior year quarter due to improved performance across several fund strategies, particularly those with a long equity bias

Company press release: ID:nBw1NwtqCa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$2.02 bln
$2.07 bln (3 Analysts)
Q1 Net Income
Miss
$155.70 mln
$247.29 mln (2 Analysts)
Q1 EPS Cont Ops
$0.70


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the investment banking & brokerage services peer group is "buy"

Wall Street's median 12-month price target for Jefferies Financial Group Inc is $54.00, about 33.2% above its March 24 closing price of $40.55

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 15 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)