Question · Q1 2026
Michael Blostein asked for elaboration on the specific investments driving the projected non-compensation growth for 2026, particularly in technology and recruiting efforts.
Answer
CEO Paul Shoukry detailed investments in cybersecurity, AI development across businesses, and infrastructure, emphasizing the scale required to maintain competitiveness. He highlighted the recent launch of 'Rai,' an AI operations agent, as an example of efficiency-generating tools, noting that over 10,000 associates already use AI regularly. In a follow-up on share repurchases, CFO Butch Oorlog confirmed $400 million repurchased this quarter and a target of $400 million for the current quarter, noting an additional $80 million preferred equity redemption. He reiterated the commitment to the $400-$500 million quarterly repurchase level, while monitoring the Tier 1 leverage ratio.
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