Jefferies misses Q2 estimates as EPS falls 17.7% below consensus

Jefferies Financial Group reported Q2 net revenue of $2.21B, narrowly missing the $2.22B consensus estimate.

"The earnings miss reflects a softer-than-expected quarter for investment banking fees," Michael Brown, an analyst at UBS who downgraded Jefferies to Neutral on June 18, said.

Earnings per share of $1.02 fell 17.7% short of the $1.24 analyst forecast. Revenue rose 35.6% from $1.63B a year earlier, while EPS more than doubled from $0.47 in the prior-year period.

The miss raises questions about deal-making momentum at mid-tier investment banks heading into the second half of 2026. Jefferies shares traded near $60.52, giving the stock a price-to-earnings multiple of 18.7x, above the peer average of 16.5x but well below the broader US Capital Markets industry average of 40.5x, according to data from Simply Wall St.

Brown lowered his rating from Buy to Neutral on June 18 while raising his price target to $67 from $59, implying limited upside from current levels. The downgrade came just days before the earnings release, signaling that the analyst expected the quarter to fall short.

Jefferies pays a quarterly dividend of $0.40 per share, or $1.60 annually, for a yield of about 2.55%. The company did not provide forward guidance with the release.

The EPS miss could pressure the stock in near-term trading and may weigh on sentiment for other mid-tier investment banks reporting this season. Investors will watch for commentary on deal pipeline and market share trends when management holds its earnings call.

This article is for informational purposes only and does not constitute investment advice.