Jefferies Financial Group reported stronger-than-expected third-quarter profit on Monday, helped by increased investment banking activity and a record performance in equities trading.

The New York-based investment bank said investment banking revenue rose 17% to $1.33 billion, supported by advisory work and equity underwriting. Revenue from its capital markets business increased 11% to $802 million, driven by record equities trading.

Jefferies reported $260.6 million in profit attributable to shareholders, or $1.08 per share, for the three months ended August 31. Analysts had expected about $1 per share, according to LSEG data.

The results also offered an early indication of the health of U.S. investment banking and corporate dealmaking before larger banks report their own quarterly results. Reuters reported that global dealmaking has exceeded $4 trillion in 2026 as companies continue pursuing expansion and other strategic transactions.

However, Jefferies' asset-management business faced pressure, with fees and investment-return revenue falling to $34 million from $84 million a year earlier.

The results highlight continued activity across Wall Street dealmaking, equity markets and corporate finance, even as financial markets remain sensitive to economic and geopolitical developments.