Edward Jones Posts Record Revenue in Second Quarter
Edward Jones added $18 billion in net new assets during the second quarter, up 6% from the year-over-year, according to its second-quarter regulatory update. Total assets under care were $2.6 trillion, up 15% from a year ago.
Average client assets under care were $2.58 billion, up 17% from the year-ago quarter, which the firm attributed to increases in the market value of client assets and net new assets gathered. Average client assets in advisory programs were up 30% due to market appreciation and increased investment of client dollars.
Net revenue reached about $5 billion in the quarter, up 18% on an increase in asset-based fee revenue. But that was offset by the lower interest-rate environment, which led to a decline in interest and dividend revenue.
“Edward Jones delivered strong business results in the first half of 2026, highlighted by a record second quarter that saw total revenue reach $5 billion, growth in client assets and advisory services, and continued momentum in net new assets,” said an Edward Jones spokesperson. “We continue to invest in our people, technology and capabilities to meet the evolving needs of clients while maintaining a strong capital position.”
The gains, however, were offset by another quarter of increased spending, with expenses up 17% to nearly $4.4 billion. The company increased advisor compensation and benefits, variable compensation and communications and data processing.
“Financial advisor compensation and benefits increased primarily due to an increase in revenue on which commissions are earned,” the company stated. “Variable compensation increased due to increased branch profitability and overall firm profitability. Communications and data processing increased due to continued investments in new tools and technology, and related higher depreciation expense as a result of these recent investments.”
Advisor compensation increased 18% in the second quarter, while variable compensation increased 33% and communications and data processing expenses increased 29% during the quarter.
The cost increases come with other efforts Edward Jones has been making to retain its advisors and entice more to join. Last year, the firm announced to employees that it would introduce a new limited partnership structure to expand associate ownership in its capital structure. It also began trimming some home office roles it said were redundant, while keeping its advisor base intact.
The firm recently said it is on track to launch its in-house bank for advisors in January of next year to give clients more lending options, according to a top executive.
David Chubak, head of wealth management and field management, said he is “cautiously optimistic” that Edward Jones Bank will be up and running in January, and described it as another lever for the firm’s roughly 20,000 advisors to offer clients who are increasingly seeking more services from their wealth manager.
