Stifel earnings reached a third-quarter record on an adjusted basis in 2026 as wealth management growth and lower compensation costs offset weaker institutional activity. The company reported adjusted diluted earnings of $1.46 per share, up 12% from a year earlier, on essentially unchanged net revenue of $1.43 billion for the quarter ended September 30.
Key Takeaways
- Adjusted EPS rose 12%, while GAAP diluted EPS increased to $1.40 from $1.22.
- Record wealth management revenue of $980.3 million contrasted with a 14% decline in institutional revenue.
- Management expects fourth-quarter revenue to match the prior-year record of $1.56 billion, with higher EPS.
Table of Contents
- Stifel earnings improve despite flat revenue
- Wealth management offsets institutional weakness
- Loan growth and buybacks share available capital
- Fourth-quarter outlook calls for higher earnings
- Conclusion
Stifel earnings improve despite flat revenue
Stifel’s third-quarter results announcement, released October 21, 2026, showed GAAP net income available to common shareholders of $224.8 million, compared with $202.1 million a year earlier. Adjusted, or non-GAAP, net income available to common shareholders rose to $234.1 million from $214.4 million.
Cost discipline helped earnings grow without a corresponding increase in revenue. The non-GAAP compensation ratio declined to 56.6% from 58.0% a year earlier, while the adjusted pre-tax margin widened to 22.5% from 21.2%. Share repurchases also reduced the weighted average diluted share count.
For the first nine months, adjusted revenue increased 9% to $4.32 billion and adjusted EPS rose 57% to $4.33. Excluding a prior-year legal charge, EPS growth was 22%. Year-to-date return on tangible common equity was 24.1%, distinct from the third-quarter annualized figure of 23.9%.
| Item | Details |
|---|---|
| Bank loans at September 30, 2026 | $26.1 billion, compared with $21.6 billion a year earlier |
| Tier 1 leverage capital ratio | 10.8%, compared with 11.1% a year earlier |
| Tier 1 risk-based capital ratio | 17.0%, compared with 17.6% a year earlier |
| Remaining repurchase authorization | 6.2 million shares |
Wealth management offsets institutional weakness
Global Wealth Management generated record revenue of $980.3 million, up 8% from a year earlier. Asset management revenue increased 14%, reflecting higher market values and net new asset growth, while the segment’s net interest income rose 11%, primarily because of balance-sheet expansion.
Total client assets reached $576.5 billion, up 6%, and fee-based assets increased 9% to $239.7 billion. Those higher balances did not mean that quarterly inflows were positive: Chief Financial Officer James Marischen said net flows were slightly negative during the quarter.
The Institutional Group moved in the opposite direction. Revenue fell to $430.3 million from $500.4 million, while investment banking revenue declined 6% to $299.5 million. Fixed-income transactional revenue dropped 34% and equity transactional revenue fell 29%.
Stifel cited widening credit spreads, market volatility and lower realized trading gains as pressures on fixed-income transactions. Lower trading volumes and the restructuring of its European equities business also weighed on equity transactional revenue.
Loan growth and buybacks share available capital
Loans increased by approximately $1.3 billion during the quarter, taking year-to-date growth to roughly $3.6 billion against management’s $4 billion full-year target. Companywide net interest income reached $302 million, exceeding the high end of guidance.
Stifel also spent $124 million repurchasing approximately 1.6 million shares during the quarter. Marischen said the company retained nearly $360 million of excess capital relative to its 10% Tier 1 leverage target after funding both lending growth and repurchases.
Fourth-quarter outlook calls for higher earnings
Management expects fourth-quarter revenue to match the prior-year record of $1.56 billion and anticipates higher EPS. It nevertheless expects full-year revenue at the low end of its guidance range, partly reflecting the sale of Stifel Independent Advisors and European restructuring.
The fourth-quarter outlook includes net interest income of $295 million–$305 million and institutional transactional revenue of $145 million–$150 million. Marischen qualified the transactional forecast as dependent on avoiding another sharp interest-rate move.
Management also expects a fourth-quarter effective tax rate of 19%–22%, below the third quarter’s 24.4%. These figures are forecasts rather than reported results.
Conclusion
Stifel’s next quarterly results will show whether continued lending growth and wealth management revenue can support management’s fourth-quarter earnings outlook while institutional trading remains softer.
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