Canaccord Genuity Group TSE: CF reported a record fiscal 2026 revenue total and sharply higher adjusted profitability, as stronger capital markets activity and continued growth in wealth management helped offset uneven market conditions during the fourth quarter.
Chairman and CEO Dan Daviau said the quarter began with constructive markets in January, supported by strong earnings and enthusiasm around artificial intelligence-driven productivity, before sentiment weakened amid geopolitical conflict, volatility in oil, bonds and currencies, and a rotation away from growth and technology stocks. Gold prices also reached a record high in January before selling off by nearly 17% by quarter-end, he said.
Against that backdrop, Daviau said Canaccord’s teams remained focused on “disciplined execution,” contributing to firm-wide fourth-quarter revenue of CAD 613 million, up 33% from a year earlier and the company’s third-highest quarterly revenue on record. For the full fiscal year, revenue reached a record CAD 2.2 billion.
Excluding significant items, firm-wide pre-tax net income rose 176% year-over-year to CAD 89 million in the fourth quarter. Adjusted diluted earnings per share increased 300% to CAD 0.48. For the full year, adjusted diluted EPS was CAD 1.26, up 107% from fiscal 2025.
Capital Markets Revenue Rebounds
Canaccord’s capital markets division generated fourth-quarter revenue of CAD 292 million, up 37% year-over-year, and CAD 1 billion for fiscal 2026, up 26%. Chief Financial Officer Nadine Ahn said the quarterly increase was driven primarily by investment banking revenue, which rose 161%, along with stronger advisory and commissions and fees revenue.
Daviau said the division benefited from stronger investment banking and commissions and fees revenue led by Canada and Australia, where mining-sector activity remained robust, though modestly below the “exceptional levels” of the prior quarter. He also said the Canadian business delivered an “exceptional advisory result” in the quarter.
For fiscal 2026, capital markets revenue reached its highest level since fiscal 2022. Daviau said Canaccord participated in 472 capital-raising transactions during the year, raising more than CAD 63 billion for growth companies, a 70% increase from the prior year.
Ahn said capital markets adjusted pre-tax net income was CAD 58 million in the fourth quarter, bringing the full-year contribution to CAD 141 million, up 222% from fiscal 2025. The division’s adjusted pre-tax profit margin was 20% in the quarter and 13.5% for the year, up 8.2 percentage points from the prior year.
Advisory revenue was CAD 119 million in the fourth quarter, up 32% from a year earlier, with the U.S. remaining the largest contributor and Canada posting a particularly strong quarter. For the full year, advisory revenue of CAD 312 million was the third-highest annual result on record for that business line, Ahn said.
Wealth Management Posts Record Revenue and Assets
The global wealth management division delivered its tenth consecutive quarter of revenue growth. Revenue was CAD 307 million in the fourth quarter, up 28% year-over-year, and a record CAD 1.1 billion for fiscal 2026, up 24% from fiscal 2025.
Fourth-quarter wealth management revenue growth was driven primarily by commissions and fees revenue of CAD 248 million, up 30%, reflecting higher contributions from all geographies as well as higher investment banking revenue in Canada and Australia, Ahn said.
Adjusted pre-tax net income for the division increased 10% year-over-year to CAD 45 million in the fourth quarter. For the full year, the contribution was CAD 195 million, up 31% from fiscal 2025.
Client assets ended the year at a record CAD 148 billion, up 23% year-over-year. Daviau attributed the growth to market appreciation, strong organic net inflows and the addition of Wilsons Advisory in Australia. Ahn said client assets reached CAD 74 billion in the U.K. and Crown dependencies, CAD 56 billion in Canada and CAD 18 billion in Australia.
In Australia, client assets rose by CAD 10 billion, or 113%, year-over-year, with approximately CAD 7 billion of the increase attributable to Wilsons Advisory, which Canaccord acquired during the second half of the fiscal year.
Expenses, Margins and Acquisitions
Ahn said operating discipline was a key driver of the company’s improved profitability. For fiscal 2026, Canaccord’s pre-tax operating margin improved by 3.5 percentage points from fiscal 2025. Firm-wide non-compensation expenses, excluding significant items, were CAD 155 million in the fourth quarter and CAD 601 million for the year, with the full-year increase reflecting acquisition-related growth, higher activity levels and continued platform investment.
The company’s non-compensation expense ratio improved by 5.6 percentage points year-over-year to 27.2%, while the firm-wide compensation ratio was 60.9% for fiscal 2026.
Canaccord also highlighted two acquisitions completed or integrated during the year. Daviau said Wilsons Advisory strengthened the company’s Australian platform by adding 60 advisors and creating a national wealth management footprint. In the U.S., the acquisition of CRC enabled the formation of a new Energy Transformation group, expanding advisory capabilities in higher-growth segments tied to sustainability and energy transition mandates.
During the question-and-answer session, Daviau said CRC’s energy transition focus has become “massive” given power needs tied to artificial intelligence, data centers and crypto. He said the business is performing well and has potential synergies with Canaccord’s broader global platform.
Outlook and Dividend Increase
Canaccord ended the fiscal year with cash and cash equivalents of CAD 2 billion and working capital of CAD 787 million. Ahn said the company expects firm-wide pre-tax operating margin to improve by low single digits in fiscal 2027, supported by strategic progress, operating leverage and expense discipline.
Daviau said conditions across core capital markets activities remain “broadly supportive,” while noting that geopolitical uncertainty, market volatility and shifts in investor sentiment could affect the pace and timing of activity. He said the company has good visibility on advisory pipelines in Canada and the U.S. and a constructive outlook for corporate financing.
In response to an analyst question, Daviau said capital markets are difficult to predict, particularly in volatile environments. He said the M&A pipeline remains strong, while the new-issue pipeline is heavily concentrated in the mining sector, especially in Canada and Australia.
Daviau also reiterated that Canaccord continues to assess strategic options for its wealth management business in the U.K. and Crown dependencies. He said those activities have been limited to discussions and assessment of potential opportunities, with no fixed timeline for completion, and added that the business remains a meaningful contributor to financial performance.
Reflecting management’s confidence in the outlook, Daviau said the board approved a 17.6% increase to the quarterly common share dividend to CAD 0.10 per share.
About Canaccord Genuity Group TSE: CF
Canaccord Genuity Group Inc, a full-service financial services company, provides investment products, and investment banking and brokerage services to institutional, corporate, and private clients. It operates in two segments, Canaccord Genuity Capital Markets and Canaccord Genuity Wealth Management. The Canaccord Genuity Capital Markets segment offers investment banking, advisory, research, merger and acquisition, sales, and trading services. The Canaccord Genuity Wealth Management segment provides wealth management solutions, and brokerage and financial planning services to individual investors, private clients, charities, and intermediaries.
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