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Jefferies Financial Group (JEF) Q2 2026 Financial Results Summary

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Jefferies Financial Group Inc. (JEF) Q2 2026: Record Revenues and Earnings Growth — Strongly Positive

Jefferies Financial Group Inc. reported a remarkable second quarter for 2026, with net earnings attributable to common shareholders reaching $226 million, a significant increase of $138 million or +157% compared to $88 million in Q2 2025. This performance translates to diluted earnings per share of $1.02, up from $0.40 in the prior year, marking a +155% increase.

This quarter is undoubtedly a strong positive for shareholders, reflecting robust growth across multiple business segments, particularly in Investment Banking and Equities. The substantial increase in earnings and revenues indicates effective management and a favorable market environment.

Key Financial Metrics

  • Net Earnings: $226 million in Q2 2026 vs. $88 million in Q2 2025 (+157% YoY)
  • Diluted Earnings Per Share: $1.02 in Q2 2026 vs. $0.40 in Q2 2025 (+155% YoY)
  • Total Net Revenues: $2.21 billion in Q2 2026 vs. $1.63 billion in Q2 2025 (+35% YoY)
  • Investment Banking Net Revenues: $1.21 billion in Q2 2026 vs. $766 million in Q2 2025 (+57% YoY)
  • Capital Markets Net Revenues: $799 million in Q2 2026 vs. $704 million in Q2 2025 (+14% YoY)
  • Equities Net Revenues: $601 million in Q2 2026 vs. $526 million in Q2 2025 (+14% YoY)
  • Return on Adjusted Tangible Shareholders' Equity: 12.8% in Q2 2026 vs. 5.5% in Q2 2025

Dividend and Share Buyback

The Jefferies Board of Directors declared a quarterly cash dividend of $0.40 per common share, payable on August 28, 2026, to shareholders of record on August 18, 2026. Additionally, the company repurchased 4.0 million shares of common stock for $197 million at an average price of $49.83 per share. The share buyback authorization has been increased to a total of $250 million, signaling confidence in the company's future prospects.

Management Commentary

Management expressed optimism regarding the quarter's results, highlighting the acceleration in core businesses and record first-half net revenues in Advisory, total Investment Banking, and Equities. The CEO noted that the growth was driven by market share gains and a favorable environment for corporate M&A, particularly in healthcare, industrials, and energy sectors. The company anticipates continued momentum in the second half of 2026, supported by a strong backlog and new business bookings.

Forward-Looking Catalysts

Investors should closely monitor Jefferies' performance in the upcoming quarters, particularly in the context of its ongoing investment in expanding its corporate M&A business and the anticipated completion of its investment in Hildene, which is expected to be accretive to results. Additionally, the resilience of the new issue market and the company's strategic positioning in Equities and Investment Banking will be critical factors to watch.

In summary, Jefferies Financial Group's Q2 2026 results reflect a strong operational performance and a positive outlook, making it an attractive proposition for shareholders looking for growth in the financial services sector.

Note: The amounts in the following tables are in thousands/millions.

Three Months Ended Six Months Ended
May 31, 2026 May 31, 2025 May 31, 2026 May 31, 2025
Investment Banking Revenues $ 1,209,448 $ 789,269 $ 2,227,372 $ 1,518,373
Principal Transactions 488,622 338,507 976,164 745,710
Commissions and Other Fees 400,675 353,233 768,218 641,507
Asset Management Fees 9,788 20,076 77,150 105,456
and Revenues 853,923 878,025 1,667,725 1,723,070
Other Revenues 155,523 115,205 272,940 232,487
Total Revenues 3,118,047 2,494,828 5,989,880 4,967,555
Interest Expense 911,760 859,868 1,765,870 1,739,518
Net Revenues 2,206,287 1,634,960 4,223,010 3,227,037
Non-Interest Expenses
Compensation and Benefits 1,188,419 854,839 2,274,716 1,695,094
Brokerage and Clearing Fees 147,458 129,745 280,578 239,159
Underwriting Costs 26,858 14,525 58,241 32,371
Technology and Communication 162,835 146,198 322,718 285,654
Occupancy and Equipment Rent 34,499 30,711 68,359 60,910
Business Development 89,108 80,070 164,530 152,305
Professional Services 98,707 77,768 175,651 150,249
Depreciation and Amortization 47,328 52,253 104,193 83,241
Cost of Sales 31,253 42,961 61,173 84,529
Other Expenses 64,598 70,476 186,238 157,028
Total Non-Interest Expenses 1,890,792 1,499,634 3,695,270 2,941,540
Earnings Before Income Taxes 315,495 134,901 527,765 285,949
Income Tax Expense 65,571 43,506 118,441 57,722
Net Earnings 249,924 91,395 409,324 228,227
Net Loss Attributable -5,440 -7,668 -21,298 -14,682
to Noncontrolling Interest 29,184 11,046 48,461 26,940
Dividends Net Earnings $ 226,248 $ 382,161 $ 215,948
Attributable to Common Shares
May 31, 2026 February 28, 2026 May 31, 2025
Total Assets $ 79,540 $ 74,380 $ 67,285
Cash and Cash Equivalents 14,315 11,963 11,260
Financial Instruments Owned 28,038 28,079 25,570
Level 3 Financial Instruments Owned 839 849 763
Goodwill and Intangible Assets, Net 1,974 1,979 2,060
Total Equity 10,607 10,662 10,382
Total Shareholders' Equity 10,567 10,611 10,305
Tangible Shareholders' Equity 8,593 8,632

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