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    SF
    Earnings call· Jun 2026(Q2 FY26)

    STIFEL FINANCIAL CORP SF

    Jul 22, 2026 Source

    Executive summary

    Stifel Q2 FY26 — Record First Half Driven by Wealth Management and Institutional Strength

    Stifel delivered a record first half, driven by strong performance in Global Wealth Management and a rebound in its Institutional Group, with significant revenue and EPS growth. The firm is on track with its balance sheet expansion goals and is opportunistically deploying excess capital, including share repurchases. Management expressed optimism for the second half, citing robust pipelines and improved operating efficiencies, while acknowledging ongoing market volatility and geopolitical uncertainties.

    Highlights

    5

    • Net revenue increased 13% year-over-year to $1.45 billion, marking the second highest Q2 in history.

    • Non-GAAP EPS increased 25% year-over-year to $1.42, also the second highest Q2 in history.

    • Record first half net revenue of $2.9 billion, up 15% from prior record, and record EPS of $2.87, up 28%.

    • Return on tangible common equity was approximately 24% for both the quarter and first half.

    • Loan book increased by $2.6 billion during the quarter, on pace for full-year guidance of up to $4 billion.

    Concerns

    4

    • Transactional revenue decreased 3% from the prior year, primarily due to lower fixed income revenue.

    • Equity transactional revenue was down 4% reflecting the impact of European restructuring.

    • Adviser recruiting remains highly competitive, with elevated transaction packages.

    • Sequential cash balances impacted by seasonal tax payments, with sweep and smart rate balances declining by $670 million and $930 million, respectively.

    Guidance & targets

    6
    CategoryTargetConfidence
    Loan book growth
    up to $4 billion
    high materiality
    High
    Net Interest Income (NII)
    $290 million to $300 million
    medium materiality
    High
    Operating non-compensation ratio
    18% to 20%
    medium materiality
    High
    Comp ratio
    midpoint to the lower half of the overall comp guidance range of $56.5 million to $57.5 million
    medium materiality
    Medium
    Fully diluted share count
    approximately 160.5 million shares
    low materiality
    High
    Venture deposits growth
    $1 billion
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Global Wealth Management
    Generated record net revenue, driven by transactional revenue, NII, and asset management revenue. Record total client assets and fee-based assets benefited from stronger equity markets and net new asset growth. Excluding SIA impact, total client assets increased >14% and fee-based assets >19%.
    Total client assets: $580 billionFee-based assets: $240 billionTotal client assets growth: 12% YoYFee-based assets growth: 16% YoYNet new assets growth: low single digits
    		$957 million13%——
    Institutional Group
    Posted its second strongest Q2 in history, driven by increased capital raising. Investment Banking saw strong growth across advisory and capital raising. Pretax margin improved significantly from 11% in H1 FY25 to 19.5% in H1 FY26 due to revenue growth and efficiency initiatives.
    Investment Banking revenue: $332 millionInvestment Banking revenue growth: 42% YoYAdvisory revenue: $157 millionAdvisory revenue growth: 24% YoYCapital raising revenue: $102 millionCapital raising revenue growth: 121% YoYFixed income underwriting revenue: $64 millionFixed income underwriting revenue growth: 18% YoYTransactional revenue decline: 19% YoY
    		$481 million15%—19.5% pretax margin (H1 FY26)

    Operational metrics

    27
    Net revenue
    $1.45 billion13% YoY increase
    Q2 FY26

    Second highest Q2 results in company history.

    Non-GAAP EPS
    $1.4225% increase
    Q2 FY26

    Second highest Q2 results in company history.

    Net revenue
    $2.9 billion15% above previous record
    H1 FY26

    Record first half results.

    EPS
    $2.8728% up from prior record
    H1 FY26

    Record first half results.

    Return on tangible common equity
    24%
    Q2 FY26

    Approximately 24% for both the quarter and the first half of the year.

    Loan book growth
    $2.6 billion
    Q2 FY26

    Incremental growth in fund banking loans.

    Wealth management and treasury deposits
    $3.3 billionup
    last year

    Combined deposits increased over the past year.

    Sweep balances
    $670 milliondeclined sequentially
    Q2 FY26

    Impacted by seasonal tax payments.

    Smart rate balances
    $930 milliondeclined sequentially
    Q2 FY26

    Impacted by seasonal tax payments.

    Non-Wealth client funding
    $410 millionincreased
    Q2 FY26

    Reflecting strong momentum from the venture group.

    Venture deposit growth
    $700 million
    Q2 FY26

    Within Venture, offset by some outflows within fund banking deposits.

    Available venture deposits for balance sheet
    $3 billion
    Q2 FY26

    Still available after moving $2.6 billion onto the balance sheet.

    Investment Banking revenue
    $332 million42% YoY
    Q2 FY26

    Came in slightly above recent guidance.

    Advisory revenue
    $157 million24% increase
    Q2 FY26

    With continued strength in financials, industrials, and technology.

    Capital raising revenue
    $102 million121% YoY
    Q2 FY26

    Second strongest Q2 result, led by healthcare, industrials, energy, and financials.

    Fixed income underwriting revenue
    $64 million18% YoY
    Q2 FY26

    Driven by increased public finance activity and higher corporate issuance.

    Public finance market share
    14%
    YTD

    Stifel remains the #1 negotiated issue manager in public finance.

    Comp ratio
    57%50 bps sequentially lower
    Q2 FY26

    Lowered due to strong operating environment, European reorganization, and SIA sale.

    Non-compensation expenses
    $309 million11% YoY up
    Q2 FY26

    Increases tied to business growth, including higher investment banking gross-ups, credit provisions, advertising, and data processing.

    Operating non-comp ratio
    19.6%
    Q2 FY26

    Within full-year guidance of 18% to 20%.

    Effective tax rate
    24.4%
    Q2 FY26

    Slightly below consensus but within guidance.

    Tier 1 leverage ratio
    11.2%
    Q2 FY26

    Came in at 11.2%.

    Tier 1 risk-based capital ratio
    17.3%declined
    Q2 FY26

    Reflecting deliberate deployment of capital into loan growth.

    Excess capital
    $480 million
    Q2 FY26

    After funding $2.6 billion of loan growth and repurchasing 2.4 million shares.

    Shares repurchased
    2.4 million
    Q2 FY26

    During the quarter.

    Remaining share authorization
    7.8 million
    Q2 FY26

    Under the current authorization.

    Capital deployment
    $0.5 billion
    Q2 FY26

    Combined capital deployment in the second quarter alone.

    Industry KPIs

    1
    MetricValueDetails
    Net interest income$290 million to $300 millionUSD

    Deals & partnerships

    1
    SIASale of SIA

    The first full quarter following the sale of SIA reduced the asset management and transactional revenue run rate, but record results were still achieved.

    Risks & headwinds

    5
    Adviser recruiting competitiveness

    transaction packages are elevated

    Mitigation: Stifel's adviser-first strategy, ranked #1 in employee adviser satisfaction by J.D. Power for the fourth consecutive year, and investment in technology to enhance adviser productivity.

    Market volatility

    likely to remain part of the landscape

    Mitigation: Breadth of business and depth of client relationships position Stifel to help clients navigate complexity.

    Secular forces shaping the industry

    artificial intelligence, expanding capital needs, private credit, changes in market structure and geopolitical uncertainty

    Mitigation: Stifel views AI as an accelerator for human potential and is actively advising clients on capital formation and strategy related to AI. The firm is also investing in fund banking and venture to capitalize on new economy opportunities.

    Geopolitical uncertainty

    world can change pretty quick

    Mitigation: Maintaining discipline and a long-term view in decision-making, rather than chasing short-term moments.

    Seasonal tax payments impact on cash balancesQ2 FY26

    sweep and smart rate balances declined by $670 million and $930 million, respectively

    Mitigation: Ability to fund loan growth with off-balance sheet deposits, with over $3 billion available from venture deposits and anticipated quarterly growth of $1 billion in venture deposits.

    What to watch in Q3 FY26

    5

    Loan book growth

    FY26
    Current$2.6 billion added in Q2 FY26
    TargetOn pace for up to $4 billion for FY26

    Why it matters

    Achievement of the full-year loan growth target is a key strategic objective and driver of NII.

    keeping us well on pace to achieve our full year guidance of up to $4 billion of balance sheet growth.

    Q&A highlights

    6

    Analyst asked about the strong backlog commentary for the institutional side, reconciling it with subdued bank M&A activity, and sought clarification on strength drivers and outlook for middle-market sponsors and bank M&A.

    Management clarified that while bank M&A is muted, their optimism is driven by a diversified platform with strength in healthcare, industrials, technology, and energy. They see upside in sponsor activity and bank M&A, with active dialogue for future transactions, though 2027 is more likely for announcements.

    “But the core fundamentals haven't changed. But that's not all that's driving my optimism. In fact, I would say it's not. It's across the other parts of Stifel's platform. And people forget that we have a diversified platform in health care, in industrials, in technology, and in energy.”

    asked by Steven Chubak · answered by Ronald J. Kruszewski

    2 min read6 chapters

    Detailed Narrative

    01

    AI and the Future of Financial Advice

    Management discussed the evolving role of AI, emphasizing its potential as a productivity accelerator rather than a replacement for human judgment and relationships. They noted a disconnect between market fears of AI diminishing financial advice and the reality of competitive adviser recruiting. Stifel believes AI will increase the value of judgment, trust, and relationships, enabling bankers, analysts, and advisers to be more efficient and focus on higher-value work, ultimately expanding human potential.

    02

    Capital Allocation Strategy

    Stifel outlined its four levers for capital deployment: reinvestment into the business, share repurchases, dividend payments, and strategic acquisitions. The firm deployed over $0.5 billion in Q2 through the first three levers. Management stressed a disciplined approach to M&A, prioritizing return on invested capital and viewing share repurchases as a compelling opportunity given current valuations, stating that investing in their own business and buying back stock offers attractive returns.

    03

    Institutional Business Momentum

    The Institutional Group posted its second strongest Q2 in history, with revenue up 15% year-over-year, driven by increased capital raising. Investment Banking revenue grew 42% year-over-year, with strong advisory and capital raising activity across financials, industrials, technology, and healthcare. The firm's pretax margins in the institutional segment improved significantly to 19.5% in H1 FY26, reflecting efficiency initiatives and revenue growth.

    04

    Global Wealth Management Performance

    Global Wealth Management achieved record net revenue of $957 million, up 13% year-on-year, driven by transactional revenue, NII, and asset management revenue. Total client assets reached a record $580 billion, and fee-based assets grew to $240 billion, benefiting from stronger equity markets and net new asset growth. Stifel was ranked #1 in employee adviser satisfaction by J.D. Power for the fourth consecutive year, highlighting its adviser-centric strategy.

    05

    Fund Banking and Venture Strategy

    Stifel significantly increased its loan book by $2.6 billion in Q2, primarily through fund banking loans. The firm is confident in funding its full-year loan growth target of up to $4 billion, with ample funding flexibility from off-balance sheet deposits, including over $3 billion available from venture deposits. Management views fund banking and venture as a broader ecosystem, generating opportunities across wealth management, investment banking, and fixed income, beyond just deposits and loans.

    06

    Operating Efficiency and Comp Ratio

    The firm demonstrated improved operating efficiencies, with the comp ratio decreasing to 57% in Q2, 50 basis points sequentially. This was attributed to a strong operating environment, benefits from European reorganization, and the sale of SIA. Management anticipates further comp flexibility in H2 FY26 if market conditions remain favorable, aiming for the midpoint to lower half of their comp guidance range.

    AI-generated summary of the company’s earnings call. Not investment advice.