Jefferies Financial Group reported a decline in its fiscal first-quarter earnings, with adjusted earnings per share (EPS) of $0.61 and revenues of $1.59 billion, marking an 8.35% year-over-year decrease. The company attributed the downturn to challenging capital markets and a drop in investment-banking revenue, which was impacted by uncertainties surrounding U.S. policy and geopolitical events. CEO Rich Handler and President Brian Friedman noted that the capital markets have become increasingly difficult as companies hesitate to engage in mergers and acquisitions (M&A) due to ongoing tariff uncertainties. Analysts across Wall Street have expressed concerns that the anticipated M&A boom under President Trump's administration has not materialized, leading to a cautious approach among clients. Jefferies' results, which missed earnings estimates by $0.20, reflect broader trends in the investment banking sector, where deal-making activity has slowed amid economic uncertainty.