Raymond James and Ameriprise Financial delivered solid quarterly earnings from their wealth management units, with both firms pointing to accelerating advisor recruiting trends that are expected to strengthen in the back half of the year.
At Raymond James, newly appointed CEO Paul Shoukry emphasized the firm’s momentum on the recruiting front. “Our advisor pipeline is the strongest it’s been in nearly two decades—across our employee, independent contractor, and RIA custody channels,” Shoukry told analysts on his second earnings call as CEO. “We haven’t seen this kind of surge in interest since the financial crisis—but now the advisors we’re attracting are significantly larger in scale.”
For the fiscal third quarter ended June 30, Raymond James added advisors with a combined $336 million in trailing 12-month production and $52 billion in client assets through its employee and independent contractor channels. That figure climbs to $60 billion when including assets from its RIA and custody service platforms.
“Given our deep recruiting pipeline and strong commitments, we’re increasingly confident in the continued growth of our advisor base,” Shoukry added.
Citizens Bank analyst Devin Ryan reiterated a “market outperform” rating on the stock following the earnings release. “Raymond James is exiting the quarter with growing momentum across business lines,” Ryan wrote. “We're particularly encouraged by the firm’s organic growth in wealth management, which has been a focus for investors.”
The firm reported a total of 8,800 advisors as of March 31, its most recent tally. Its Private Client Group—Raymond James’s largest segment—posted a 3% sequential increase in revenue to $2.49 billion, driven by stronger fee-based account growth and higher asset management fees. However, net income in the segment dropped 7% to $411 million, with the firm citing the impact of lower interest rates.
Firmwide, Raymond James generated total net revenue of $3.4 billion, a 5% year-over-year increase. Adjusted net income for the quarter was $449 million, or $2.18 per diluted share, compared with $508 million, or $2.39 per share, a year earlier.
Shoukry also addressed the competitive dynamics in advisor recruiting, particularly the influence of private equity-backed RIA aggregators offering outsized deals. “We’re competing against large checks,” he said. “But even PE firms are starting to question valuations. There’s a real discussion now about whether multiples can go much higher—and what the endgame looks like, whether that’s a public exit, a strategic buyer, or another PE-led continuation fund.”
At Ameriprise, Chairman and CEO Jim Cracchiolo struck a similarly optimistic tone. The firm reported a 4% sequential increase in net revenue to $4.3 billion, and a 7% rise in adjusted operating earnings per share to $9.11.
“Despite market volatility, client engagement remained high,” Cracchiolo told analysts. He noted that advisor productivity climbed by double digits, setting a new record for the Minneapolis-based firm.
Ameriprise’s total assets under management, administration, and advisement reached a record $1.6 trillion, up 9% from the same period last year.
The firm added 73 advisors during the second quarter, up from 52 in the year-earlier period but down from 82 in the first quarter. Cracchiolo acknowledged that recruiting has become more competitive. “There are players making irrational offers—well above economic justification,” he said. “We’ve adjusted our packages somewhat to remain competitive, but we’re staying disciplined and won’t pursue offers that don’t make strategic sense.”
When asked if that stance risks losing top talent, Cracchiolo pointed to Ameriprise’s continued advisor growth. “Our net advisor count is up, so that’s not a concern,” he said, while projecting a strong third quarter for recruiting.
The firm now reports a field force of over 10,000 advisors. It’s also currently in a legal battle with LPL Financial over allegations that former Ameriprise advisors who transitioned to LPL improperly took client data with them.
Ameriprise’s advice and wealth management segment reported adjusted pre-tax operating earnings of $812 million, a year-over-year decline from $848 million. The firm attributed the dip to market volatility’s impact on fee-based earnings and the revenue hit from a 100-basis-point cut to the federal funds rate in late 2024.
Still, adjusted operating revenue for the wealth unit rose 6% to $2.8 billion, lifted by higher client asset levels. The firm said the June equity rebound helped position it well heading into Q3.
Cracchiolo also noted the broader market backdrop. “We continue to see volatility driven by global trade uncertainty and seasonal client cash movement related to tax payments,” he said.
Major competitors including Bank of America, Morgan Stanley, and Wells Fargo have all recently reported similarly resilient results, showing that advisory firms are weathering macroeconomic headwinds and regulatory shifts while maintaining strong client and advisor engagement.
