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On CNBC's “Halftime Report Final Trades,” Stephen Weiss, chief investment officer and managing partner of Short Hills Capital Partners, picked FTAI Aviation Ltd. (NASDAQ:FTAI).
The S&P 500 (^GSPC +0.54%) index is trading at a Shiller Cyclically Adjusted Price-to-Earnings (CAPE) ratio of 41, the second-highest valuation in its history behind only the peak of the dot-com internet bubble in the year 2000. The index crashed by 49% when that bubble eventually burst, and while I'm not predicting a similar decline this time around, the risks to the current bull market are clearly mounting.
The Federal Reserve recently hiked interest rates to tame the rising inflation rate, which is generally bad news for stocks. Moreover, the artificial intelligence (AI) stocks that led the S&P 500 higher over the last few years have run into some turbulence, as investors question the sustainability of the data center spending boom.
It's entirely possible for those headwinds to spark a bear-market decline of 20% or more in the S&P 500. However, periods of heightened volatility tend to benefit one particular company: Interactive Brokers (IBKR +2.59%). Here's why its stock could be a great buy right now.
Image source: Getty Images.
One of the world's largest online brokerages
Interactive Brokers operates one of the world's most popular online investing platforms, where its clients buy and sell stocks, options contracts, futures contracts, and even cryptocurrencies. It had a record 5.58 million client accounts at the conclusion of the third quarter (ended Sept. 30), which was up by a whopping 35% from the year-ago period. That growth rate actually accelerated from 34% in the second quarter.
Client equity -- which represents the total value of all financial assets held in Interactive's custody -- also jumped by 27% to $964.7 billion. This number is important because Interactive earns volume-based commissions when clients buy and sell stocks or derivatives, so more equity means the platform has a bigger fee base.
In terms of transactions, Interactive processed 4.27 million daily average revenue trades (DARTS) during the third quarter, up 18%. But volume was a mixed bag; while clients were more active in the futures market compared to the year-ago period, they were less active in the stock and options markets. This is likely because the stock market traded in a relatively narrow range during the July to September period, with minimal volatility.
With that said, one metric suggests investors remained extremely bullish during the quarter. Interactive's outstanding margin loan balances ballooned by 36% to $105.2 billion, so clients still felt comfortable borrowing money to buy stocks and other financial assets. The company earns a significant amount of interest on those loans, so this revenue source might take a hit if a stock market downturn forces clients to deleverage.
Ideal conditions for faster revenue growth
Interactive generated $1.91 billion in revenue during the third quarter, a 15% increase from the year-ago period. There were two main components to that number:
$602 million in commission revenue, which grew by 12%.
$1.15 billion in net interest income, up 19%. This represented the interest Interactive earned on margin loans, client cash balances, and its own corporate cash balance.
If stock market volatility ramps up, I would expect commission revenue growth to accelerate as investors buy dips and hedge their potential downside risk using options and other derivatives. But net interest income might also grow at a faster pace in the near future as interest rates rise.
The Consumer Price Index (CPI) measure of inflation increased at an annualized rate of 3.7% in September, well above the Federal Reserve's 2% target. To make matters worse, it accelerated from 3.4% in August. The Fed already hiked interest rates once at its September meeting, but policymakers might feel compelled to execute further hikes to ensure inflation doesn't get out of control (like it did in 2022).
Therefore, although margin loan balances typically decline during bear markets, Interactive can still earn more net interest income overall if rates continue to rise. That will be especially true if cash balances climb as investors exit stocks and move to the sidelines for a while.
Interactive stock looks attractive on a forward basis
Interactive generated earnings of $2.61 per share over the last four quarters, placing its stock at a price-to-earnings (P/E) ratio of 31.6. Therefore, it's currently more expensive than both the S&P 500 and Nasdaq-100 indexes, which trade at P/E ratios of 23.5 and 30.2, respectively.
But Wall Street's average estimate (provided by Yahoo! Finance) suggests Interactive could grow its earnings to $3.31 per share in 2027, placing its stock at a forward P/E of 24.9. That earnings estimate could even be revised higher if stock market volatility and higher interest rates persist over the next few quarters, so it's possible the stock is cheaper than it currently appears at face value.
As a result, I think Interactive stock might be a great buy right now.
Recently, Zacks.com users have been paying close attention to Interactive Brokers (IBKR). This makes it worthwhile to examine what the stock has in store.
[url="]Interactive Brokers[/url] (Nasdaq: IBKR), an automated global broker, today announced IBKR Autonomous Trading, a new capability that allows eligible clie
DUTCH ASSET Corp increased its stake in shares of Interactive Brokers Group, Inc. (NASDAQ:IBKR – Free Report) by 10.2% in the third quarter, according to its most recent Form 13F filing with the SEC. The fund owned 87,858 shares of the financial services provider’s stock after buying an additional 8,133 shares during the period. Interactive Brokers Group comprises about 3.5% of DUTCH ASSET Corp’s holdings, making the stock its 7th biggest position. DUTCH ASSET Corp’s holdings in Interactive Brokers Group were worth $7,505,000 as of its most recent filing with the SEC.
Other institutional investors have also bought and sold shares of the company. Nykredit A S bought a new stake in Interactive Brokers Group during the second quarter valued at $15,348,000. Engineers Gate Manager LP lifted its position in Interactive Brokers Group by 831.3% during the second quarter. Engineers Gate Manager LP now owns 108,359 shares of the financial services provider’s stock valued at $9,432,000 after purchasing an additional 96,724 shares during the last quarter. TD Waterhouse Canada Inc. grew its stake in Interactive Brokers Group by 79.4% in the 2nd quarter. TD Waterhouse Canada Inc. now owns 516,646 shares of the financial services provider’s stock worth $48,185,000 after buying an additional 228,716 shares in the last quarter. AXQ Capital LP increased its holdings in shares of Interactive Brokers Group by 69.6% in the 2nd quarter. AXQ Capital LP now owns 45,065 shares of the financial services provider’s stock worth $3,922,000 after buying an additional 18,499 shares during the last quarter. Finally, Cetera Investment Advisers raised its position in shares of Interactive Brokers Group by 30.1% during the 1st quarter. Cetera Investment Advisers now owns 209,311 shares of the financial services provider’s stock valued at $14,038,000 after buying an additional 48,443 shares in the last quarter. Hedge funds and other institutional investors own 23.80% of the company’s stock.
Analyst Ratings Changes Several brokerages have recently commented on IBKR. Capital One Financial set a $105.00 price objective on Interactive Brokers Group in a research report on Tuesday, October 6th. CICC Research raised their price objective on Interactive Brokers Group from $90.00 to $110.00 and gave the company an “outperform” rating in a research note on Thursday, July 23rd. BMO Capital Markets reaffirmed an “outperform” rating and issued a $100.00 target price (down from $105.00) on shares of Interactive Brokers Group in a research note on Friday. Evercore began coverage on shares of Interactive Brokers Group in a report on Monday, October 12th. They issued an “outperform” rating and a $100.00 price target on the stock. Finally, Rothschild & Co Redburn boosted their price target on Interactive Brokers Group from $94.00 to $95.00 and gave the company a “buy” rating in a report on Monday, September 21st. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $102.87.
Get Our Latest Research Report on Interactive Brokers Group Interactive Brokers Group Stock Up 1.9% Shares of Interactive Brokers Group stock opened at $82.91 on Wednesday. The company’s 50 day moving average is $90.00 and its 200 day moving average is $87.50. The company has a market cap of $141.06 billion, a price-to-earnings ratio of 31.89, a price-to-earnings-growth ratio of 1.36 and a beta of 1.37. Interactive Brokers Group, Inc. has a twelve month low of $58.95 and a twelve month high of $98.75.
Interactive Brokers Group (NASDAQ:IBKR – Get Free Report) last issued its quarterly earnings results on Thursday, October 15th. The financial services provider reported $0.67 earnings per share for the quarter, hitting the consensus estimate of $0.67. The business had revenue of $1.87 billion for the quarter, compared to analysts’ expectations of $1.86 billion. Interactive Brokers Group had a net margin of 10.03% and a return on equity of 5.38%. The company’s revenue was up 15.6% compared to the same quarter last year. During the same quarter last year, the company posted $0.57 EPS. Sell-side analysts expect that Interactive Brokers Group, Inc. will post 2.69 EPS for the current fiscal year.
Interactive Brokers Group Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Monday, December 14th. Shareholders of record on Tuesday, December 1st will be paid a dividend of $0.15 per share. The ex-dividend date of this dividend is Tuesday, December 1st. This is an increase from Interactive Brokers Group’s previous quarterly dividend of $0.0875. This represents a $0.60 annualized dividend and a yield of 0.7%. Interactive Brokers Group’s payout ratio is presently 13.46%.
Interactive Brokers Group Company Profile (Free Report)
Interactive Brokers Group, Inc is a global electronic brokerage company that provides trading, investment and portfolio management services to individual investors, institutional clients, financial advisers, hedge funds, proprietary trading firms and introducing brokers. Through its subsidiaries, the company offers access to a broad range of markets and financial instruments, including stocks, options, futures, foreign exchange, bonds, mutual funds, exchange-traded funds and certain digital assets.
Interactive Brokers provides its services through platforms such as Trader Workstation, IBKR Mobile and the Client Portal, as well as application programming interfaces for automated and institutional trading.
Recommended Stories Five stocks we like better than Interactive Brokers Group Aurora Rejects Curaleaf’s Higher Bid, But the Takeover Fight Isn’t Over Centrus Energy Is Building a Nuclear Fuel Powerhouse—Why Is Its Stock Struggling? Halliburton Gains Traction: Multiyear Upcycle Ahead Meta Platforms’ AI Comeback Faces an Earnings Test—And a $10 Billion Charge Want to see what other hedge funds are holding IBKR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Interactive Brokers Group, Inc. (NASDAQ:IBKR – Free Report).
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Telegram's crypto app Walt now lets ChatGPT and Claude open and close leveraged futures trades on your behalf, but a single bad day in crypto wiped out $19 billion in positions the last time markets turned ugly.
Key Takeaways Ross Stores, Roku, Interactive Brokers, Target and Nucor have each delivered over 25% returns. ROKU's advertising revenues grew 24.8% year over year to $672.8 million in the second quarter of 2026.TGT's earnings estimate rose 23% in 60 days, while NUE benefits from steel demand and capacity expansion. Wall Street has been witnessing an astonishing rally since the beginning of 2023. The rally has primarily been driven by the global artificial intelligence (AI) technology boom. However, in the first half of October, the AI trade suffered severe hurdles. Market participants are concerned that tech giants are borrowing excessively to build AI networks. It is still not clear when AI hyperscalers will start monetizing their gigantic nearly $1 trillion per annum capital expenditures.
Last week, the tech-heavy Nasdaq Composite shed 5%, marking its worst weekly performance since the week ended April 4, 2025. The VanEck Semiconductor ETF (SMH) plummeted 10%, reflecting its worst weekly performance since April 2025.
At this stage, we have narrowed our search to five non-tech, non-AI bigwigs that have provided more than 25% returns. These stocks are currently assigned a Zacks top rank, indicating more upside going forward.
These are Ross Stores Inc. (ROST - Free Report) , Roku Inc. (ROKU - Free Report) , Interactive Brokers Group Inc. (IBKR - Free Report) , Target Corp. (TGT - Free Report) and Nucor Corp. (NUE - Free Report) . Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Ross Stores Inc.Ross Stores is well positioned for continued growth, supported by strong sales momentum, customer acquisition and a compelling value proposition. Second-quarter fiscal 2026 sales rose 13%, with broad-based strength across categories and regions.
ROST sees further upside from merchandising, marketing and store-execution initiatives that remain in the early stages. Store expansion adds another growth lever, with 115 openings planned for fiscal 2026. ROST also maintains a strong financial foundation, supported by healthy liquidity and cash generation.
ROST has an expected revenue and earnings growth rate of 12.8% and 32.7%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 11.7% in the past 60 days.
Roku Inc.Roku continues to benefit from the shift of viewing and advertising budgets from linear television to streaming, with Platform revenue growth supported by Advertising and Subscriptions. ROKU’s scale of more than 100 million streaming households, broader programmatic reach and expanding subscription offering support continued monetization of the Roku Experience.
The new Home Screen and AI-powered search could further improve content discovery, retention and advertising opportunities as the rollout expands. ROKU is broadening its advertising model across programmatic demand, enterprise campaigns and self-service tools. Advertising revenues increased 24.8% year over year in the second quarter of 2026 to $672.8 million, while advertising gross margin rose to 62.4%.
ROKU has an expected revenue and earnings growth rate of 18.5% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2.2% over the past 30 days.
Interactive Brokers Group Inc.Interactive Brokers Group continues to benefit from a widening product set that keeps clients engaged across cycles. IBKR’s automated platform, broad product set and new launches will likely support top-line growth across market cycles.
IBKR’s global reach, a conservative balance sheet and focus on direct market access support competitive pricing and help attract active traders and long-term investors. IBKR continues to broaden its product suite and enhance platform capabilities, helping expand its addressable client base, deepen engagement and diversify fee-generating opportunities.
Interactive Brokers Group has an expected revenue and earnings growth rate of 18.8% and 23.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year has improved 0.4% over the past seven days.
Target Corp.Target presents a compelling investment opportunity, supported by strengthening consumer engagement, differentiated merchandising and an expanding omnichannel ecosystem. Momentum in beauty, wellness and other strategic categories, alongside exclusive partnerships and owned-brand innovation, reinforces its competitiveness.
Rapid growth in Roundel advertising, Target+ marketplace and Circle memberships is diversifying TGT’s revenues and supporting a favorable margin mix. TGT’s continued store expansion, remodels and fulfillment optimization should enhance customer convenience and operational efficiency.
Target has an expected revenue and earnings growth rate of 5.1% and 37.8%, respectively, for the current year (ending January 2027). The Zacks Consensus Estimate for the current year has improved 23% over the past 60 days.
Nucor Corp.Nucor benefits from resilient non-residential construction demand, strength in energy markets and improving steel prices, supporting earnings and cash flow growth. Strategic acquisitions have expanded NUE’s product portfolio and strengthened its presence across key end markets.
Capacity expansions and investments in new facilities should enhance production capabilities, reinforce NUE’s low-cost position and support profitable growth. Improving automotive demand, infrastructure spending and rising domestic steel prices provide additional growth opportunities.
NUE’s strong balance sheet and cash generation support consistent shareholder returns through dividends and share repurchases. NUE’s diversified end markets, expansion initiatives and shareholder-friendly policies support its long-term prospects.
Nucor has an expected revenue and earnings growth rate of 24.9% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year has improved 2.2% over the past 30 days.
On its third quarter of 2026 earnings call, held on Oct. 15, 2026, Interactive Brokers (IBKR -3.88%) announced record pre-tax profit and an annual dividend increase to $0.60 per share. The automated brokerage platform generated a 78% pre-tax margin while customer accounts grew over 30% worldwide. That operating leverage lets the business convert rising trading activity directly into shareholder cash. Three key takeaways from management highlight how the business continues to compound.
1. Record Profit Margin Powers Higher Dividend PayoutsInteractive Brokers converted revenue growth into expanding earnings, keeping its pre-tax margin, the share of revenue remaining before taxes, above 70% for eight consecutive quarters. Management used that extra cash to raise its annual dividend from $0.35 to $0.60 per share.
Pretax profit was a record, and our 78% pre-tax margin marked the eighth consecutive quarter with margins above 70%.
-- Milan Galik, President and CEO2. Artificial Intelligence Tools Accelerate Platform Automation and TradingManagement expanded its artificial intelligence tools by rolling out autonomous trading features. The updates let clients connect software through the model context protocol, a technical standard for software tools, to run automated trading strategies.
Our AI connector remains one of the fastest-adopted features we have ever introduced.
-- Milan Galik, President and CEO3. Wealth Management Offerings Target Displaced Financial AdvisorsInteractive Brokers is expanding its service for registered investment advisors, professional financial managers who direct client funds, by introducing tax-aware trading strategies. It's positioning its automated margin and lending infrastructure to win independent advisors seeking a new custodian.
Tax-aware accounts that use margin, short selling, and securities lending are a good fit for us.
-- Milan Galik, President and CEOLooking AheadCustomer accounts and total assets continue to expand across global markets, and management isn't hiding its satisfaction with the underlying momentum. The company holds structural advantages through its single global platform, low-cost margin lending infrastructure, and automated clearing capabilities. Management is watching regulatory expansion in local markets alongside client adoption of automated trading tools.
In conclusion, this was another financially strong quarter, reflecting our continued ability to grow our customer base and deliver on our core value proposition to customers, while simultaneously scaling the business.
-- Paul Jonathan Brody, CFOBy scaling software automation across account onboarding and customer service, Interactive Brokers expands its cost advantage as trading volumes grow. The firm's continuous platform upgrades position it to capture market share from traditional wealth custodians.
Our business strategy continues to be effective automating as much of the brokerage business as possible, continuously improving while expanding through new product introductions what we offer while minimizing what we charge.
-- Paul Jonathan Brody, CFOThe Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends the following options: long January 2027 $43.75 calls on Interactive Brokers Group and short January 2027 $46.25 calls on Interactive Brokers Group. The Motley Fool has a disclosure policy.
Three out of four crypto holders want their bank to manage their digital assets, yet most Americans still juggle separate apps, logins, and tax forms to do it. A handful of brokerages just changed that equation, but the fees, withdrawal…
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A recent 2026 survey by Sentora of 10,000 U.S. crypto holders found that 75% want their banks to manage their Bitcoin (CRYPTO:BTC) and other digital currencies. The survey suggests that the large volume of crypto still stored on exchanges highlights a gap in banks’ custody options.
For many owners, managing Bitcoin has usually meant using a separate application, necessitating a different login and tax form than those used for retirement and brokerage accounts. In October, two major U.S. brokerages, Charles Schwab and Interactive Brokers, began to address this issue.
Schwab and Interactive Brokers Offer Crypto Custody, Besides Stocks
Firm
Current Offerings
Future Plans
Charles Schwab
Trading in Bitcoin and Ethereum for eligible clients
Phase in crypto deposits and withdrawals, plus add SOL, AVAX and LINK by year-end
Interactive Brokers
Crypto trading and ETH staking via Zerohash
Limited staking rollout
Deutsche Bank
No U.S. crypto offering
Plans to launch custody services in Germany first
Rick Wurster, CEO of Charles Schwab (NYSE:SCHW | SCHW Price Prediction), told analysts on October 15, “All clients can now access Schwab crypto. We are rolling out the ability for clients to transfer their crypto holdings to Schwab, and we are launching access to three new coins by the end of the year.”
These new digital currencies—Solana (CRYPTO:SOL), Avalanche (CRYPTO:AVAX) and Chainlink (CRYPTO:LINK)—will join Bitcoin and Ethereum (CRYPTO:ETH) on Schwab’s platform. This integration lets Schwab’s 48.6 million client accounts keep their crypto investments alongside their stock holdings.
Interactive Brokers (NASDAQ:IBKR) started allowing eligible clients to stake their Ether through Zerohash on October 13. Staking involves locking up coins to help secure the Ethereum network, earning rewards similar to interest on a bank deposit.
In contrast, Deutsche Bank (NYSE:DB) is launching crypto custody in Germany and currently offers no products to U.S. customers. As a result, U.S. investors primarily use brokerage accounts for crypto management rather than traditional banks.
Schwab Charges 0.75% a Trade and Caps Each Withdrawal at $5,000
Schwab charges a 0.75% fee for each crypto trade. So, for a $10,000 Bitcoin purchase, you’d pay $75 initially and about $150 total when you sell. For an investor who buys and holds for a long time, this fee might seem minimal compared to Bitcoin’s usual price fluctuations. However, for frequent traders, these fees can add up quickly.
Another consideration is the withdrawal limit: Schwab caps each crypto withdrawal at $5,000. This means that transferring $50,000 to a personal wallet would require ten separate transactions.
FDIC Insurance Doesn’t Cover Crypto, and SIPC Has Gaps
One critical concern for crypto holders is insurance. While FDIC insurance protects bank deposits, it doesn’t apply to cryptocurrencies. The SIPC provides some protection for missing assets if a brokerage firm fails, but it only covers securities and cash. Investors should carefully review their account agreements to understand how their crypto is stored. Staked assets at Interactive Brokers also fall outside SIPC protection.
In addition, staking offers potential rewards, but it also incurs costs. Interactive Brokers and Zerohash take up to 30% of the rewards earned. For example, if a client’s staked Ether yields $300 in a year, they would keep at least $210 after fees. Note that unstaking is subject to Ethereum’s waiting periods.
Near-Retirees Have Three Ways to Hold Crypto
For investors nearing retirement, there are a few ways to manage crypto:
Through Traditional Brokers: This option simplifies things, providing one login, one statement, and one tax form for year-end reporting and estate planning. However, investors may have limited coin choices and face per-trade fees and withdrawal limits, making it best for those looking to buy and hold.
Staking Ether: This can generate extra income, but it means losing SIPC protection and waiting periods if you need to access funds quickly. Staking is likely best suited for long-term Ether holders who can afford to put their investment away for a while.
Using a Crypto Exchange or Personal Wallet: This method allows for a broader selection of coins and full control. However, it puts the entire responsibility on the holder. Losing a recovery phrase might result in losing access to the coins. For many people approaching retirement, the risks of this option may outweigh the benefits of greater control.
Which U.S. Firms Already Offer Crypto Custody Beside Stocks?
Currently, Schwab and Interactive Brokers lead the way in offering crypto custody alongside traditional investments, while American investors still wait for banks to catch up.
For those near retirement who hold Bitcoin or Ethereum as a small portion of their portfolio, a brokerage they already know may offer the simplest solution—assuming they are comfortable with trading fees and understand the gaps in insurance coverage. Don’t assume familiar brands offer the same level of protection for crypto as they do for traditional assets.
Contact [email protected] for any questions or corrections.
I track dividend announcements across 1,200+ stocks. This week, I'm highlighting 12 dividend increases and 2 specials. LECO stands out with a 10.13% dividend increase, the highest Quality Score (8.54), and a 30-year streak, though it trades at fair value. IBKR posted a 71.43% dividend hike and leads in Dividend Safety (9.2), but offers a low 0.73% forward yield and weak financial strength.
Interactive Brokers just launched Ethereum staking for U.S. clients, letting holders earn rewards Bitcoin simply cannot offer. But with ETH already lagging Bitcoin in performance, the question is whether this new income stream actually changes anything.
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Interactive Brokers (NASDAQ:IBKR | IBKR Price Prediction) has begun offering eligible U.S. clients the ability to stake Ethereum (CRYPTO:ETH) as of October 13, 2026. This marks the broker’s first venture into staking. With Interactive Brokers’ Ethereum staking service, clients can lock up their ETH, which the network uses to verify and record transactions, and earn new ETH in return. Because Bitcoin (CRYPTO:BTC) offers no similar rewards, this feature revives a long-standing debate among investors holding both cryptocurrencies.
As it stands, Bitcoin has recently outperformed Ethereum. On October 15, ETH was priced at $2,451, up 2.1% over the previous 30 days, while Bitcoin was at $82,306, up 8.4%. So, does staking Ethereum through a major broker like Interactive Brokers give ETH an advantage that Bitcoin doesn’t have?
Interactive Brokers Runs ETH Staking Through Zerohash, a Firm It Partly Owns
Clients can easily choose how much ETH to stake through the broker’s Client Portal. Interactive Brokers collaborates with Zerohash, a crypto infrastructure firm in which it owns a stake, to manage this staking process. When clients select their amount, Zerohash assigns the staked ETH to validators—computers that propose and verify new blocks on the blockchain. Zerohash adds all earned rewards to the client’s staked balance until the client decides to withdraw their ETH. Zerohash also holds this ETH in a dedicated account under the client’s name.
However, it’s important to note that assets in a Zerohash account do not have the coverage of the Securities Investor Protection Corporation (SIPC), which protects brokerage customers in the event of broker failure. Additionally, clients may lose funds due to “slashing,” a penalty Ethereum imposes on validators who break rules or go offline, and may face delays in receiving rewards or withdrawing funds.
Interactive Brokers and Zerohash share a fee capped at 30% of the rewards earned. Notably, Interactive Brokers led Zerohash’s $104 million funding round in 2025, which valued the company at $1 billion. As CEO Milan Galik explained, staking lets clients earn rewards on the cryptocurrencies they own, similar to its Stock Yield Enhancement Program, which lends clients’ shares to short sellers.
Despite this promising launch, Interactive Brokers provided no details on the reward rate, minimum staking amount, or withdrawal timeline. In the third quarter, Interactive Brokers had 5.58 million client accounts and $964.7 billion in client equity. Staking income will be added to its fee income, which is relatively small compared with interest earnings.
Clients Could Expect Around 1.56% Annually After Fees
Since the broker has not announced a specific reward rate, we can use Lido, a staking service that publishes rates daily, as a benchmark. Lido averaged 2.23% per year after fees during the week leading up to October 15. After applying Interactive Brokers’ full 30% fee, clients could keep about 1.56% of their staked amount, which equates to about 0.16 ETH annually on a 10 ETH stake, valued at about $380 at a price of $2,451.
This fee cap is only applicable if staking yields positive returns. If the stake earns nothing, there are no fees. However, rates can fluctuate with network conditions and validator performance, and all rewards are paid in ETH. With ETH down 1.9% in the week leading up to October 15, any annual gains appear minimal compared with losses.
Interactive Brokers Is Late to Staking Behind Robinhood and eToro
Furthermore, Interactive Brokers enters the staking arena later than competitors like Robinhood (NASDAQ:HOOD), eToro (NASDAQ:ETOR), and Trade Republic, all of which already offer staking services. Reports suggest that Morgan Stanley (NYSE:MS) is also seeking a national trust bank charter to provide similar services. Additionally, anyone with a crypto wallet can stake through Lido as well. Therefore, Interactive Brokers offers convenience, since clients can manage everything with one login and no external wallet, though they may miss out on more favorable terms than Lido stakers.
Bitcoin Offers No Native Yield, but It Still Outperforms ETH
Bitcoin operates on a proof-of-work model, meaning that miners expend energy to secure the network, and holders cannot earn rewards by locking up their coins. Any yield from Bitcoin comes from lending or similar products, adding a layer of counterparty risk if a borrower or platform fails.
Despite lacking native yield, Bitcoin has outperformed Ethereum. As of now, ETH is trading 50.4% below its August 2025 peak, while Bitcoin is only 34.7% below its October 2025 high. Since the end of 2025, ETH has fallen 18.2%, compared with Bitcoin’s 6.7% drop.
Ethereum has provided native staking for several years, so this yield gap has always existed, and it hasn’t stopped ETH from lagging behind Bitcoin. While Interactive Brokers’ launch offers a new platform for clients to earn the same rewards, it has set no specific target for staked ETH, and staking is available only for ETH.
Does Interactive Brokers Ethereum Staking Give ETH an Advantage Over Bitcoin? In summary, Interactive Brokers’ launch of Ethereum staking provides a new way for ETH holders to earn rewards at a major brokerage, but it isn’t enough to give ETH a clear advantage over Bitcoin right now. Although staking could reduce the amount of ETH available for trading, the broker hasn’t released any figures to support that claim. Furthermore, a meager 1.56% return pales in comparison to a 1.9% weekly decline. Ultimately, Interactive Brokers benefits the most, adding a new income stream through fees from this service.
Contact [email protected] for any questions or corrections.
Key Takeaways IBKR's Q3 adjusted EPS rose 17.5% to 67 cents, matching estimates, while revenues climbed 16.3% to $1.87B.Net interest income grew 19.3% to $1.15B. Commissions rose 12.1%, supported by an 18.2% increase in DARTs.IBKR's customer accounts surged 35.1% to 5.58M, while expenses rose 21.9% and pretax margin slipped to 78%. Interactive Brokers Group (IBKR - Free Report) third-quarter 2026 adjusted earnings per share were 67 cents, matching the Zacks Consensus Estimate. The bottom line rose 17.5% from the prior-year quarter.
Results primarily benefited from higher net interest income, growth in commission revenues, an increase in customer accounts and higher daily average revenue trades (DARTs). However, rising expenses partially offset the gains.
After considering non-recurring items, net income available to common stockholders (GAAP basis) was $314 million, up from $263 million in the prior-year quarter.
Interactive Brokers reported comprehensive income available to common shareholders of $302 million, or 67 cents per share, compared with $253 million, or 57 cents per share in the prior-year quarter.
IBKR’s Revenues Improve, Expenses RiseAdjusted net revenues were $1.87 billion, up 16.3% year over year. The top line beat the Zacks Consensus Estimate of $1.84 billion. Total GAAP net revenues were $1.91 billion, up 15.7%.
Net interest income grew 19.3% year over year to $1.15 billion, primarily driven by higher average customer margin loans and customer credit balances. Commission revenues rose 12.1% to $602 million, supported by an 18.2% increase in DARTs and higher regulatory fees passed through to customers.
Other fees and services increased 33.3% year over year to $88 million, led by higher risk exposure fees, payments for order flow from exchange-mandated programs and market data fees.
Total non-interest expenses rose 21.9% to $418 million. This was primarily due to higher execution, clearing and distribution fees, general and administrative expenses, employee compensation and benefits, occupancy, depreciation and amortization.
Income before income taxes rose 14.0% year over year to $1.5 billion. Adjusted pretax profit margin fell to 78% from 79% in the year-ago quarter.
During the reported quarter, total customer DARTs increased 18.2% year over year to 4.27 million. Customer accounts grew 35.1% to 5.58 million, while customer equity increased 27.3% to $964.7 billion.
Interactive Brokers’ Capital Position StrongAs of Sept. 30, 2026, total assets were $243.2 billion compared with $203.2 billion as of Dec. 31, 2025. Total equity increased to $23.3 billion from $20.5 billion over the same period.
Cash and cash equivalents totaled $5.9 billion as of Sept. 30, 2026, compared with $5 billion at year-end 2025. Cash and securities segregated for regulatory purposes amounted to $97.1 billion, up from $76.9 billion as of Dec. 31, 2025.
Interactive Brokers Hikes DividendConcurrent with the earnings release, the company’s board of directors announced a quarterly cash dividend of 15 cents per share, marking a 71.4% increase from the prior payout. The dividend will be paid out on Dec. 14, 2026, to shareholders of record as of Dec. 1, 2026.
Our View on IBKRInteractive Brokers’ focus on proprietary technology, automation, product expansion and its global customer base continues to support growth. Strong customer account additions, higher customer equity and rising margin loans provide opportunities to expand commission and interest income. The latest dividend increase also reflects the company’s capital distribution initiatives.
However, higher operating expenses and fluctuations associated with its currency diversification strategy remain key risks.
Currently, Interactive Brokers sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings Release Dates of IBKR’s PeersHere are some of IBKR’s peers, which are yet to come out with quarterly numbers.
Robinhood Markets (HOOD - Free Report) is slated to announce its third-quarter 2026 results on Oct. 27.
In the past week, the Zacks Consensus Estimate for Robinhood’s quarterly earnings has moved higher to 56 cents. The figure suggests an 8.2% decline from the prior-year quarter reported number.
Tradeweb Markets (TW - Free Report) is slated to announce third-quarter 2026 results on Oct. 29.
In the past seven days, the Zacks Consensus Estimate for TW’s quarterly earnings has been revised upward to $1.01 per share. The figure indicates a 16.1% rise from the prior-year reported number.
Investors might want to bet on Interactive Brokers Group, Inc. (IBKR - Free Report) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Interactive Brokers is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For Interactive Brokers, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Interactive BrokersThis company is expected to earn $2.70 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Interactive Brokers. Over the past three months, the Zacks Consensus Estimate for the company has increased 5.9%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Interactive Brokers to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Key Takeaways IBKR highlighted AI trading, global expansion and institutional growth opportunities.Interactive Brokers' customer accounts rose 35% to 5.58 million, while net interest income climbed 19%.IBKR expanded autonomous AI trading access and raised its quarterly dividend to 15 cents from 8.75 cents. Interactive Brokers Group, Inc. (IBKR - Free Report) emphasized artificial intelligence-driven trading, international expansion and institutional opportunities during its third-quarter 2026 earnings call. Management also addressed moderating trading activity and the impact of interest rates on profitability.
The brokerage reported continued customer growth and raised its quarterly dividend, reflecting confidence in its capital position. Executives outlined initiatives aimed at expanding trading capabilities and attracting higher-value accounts.
IBKR Sees Balance Growth Supporting Interest IncomeIBKR reported quarterly earnings of $0.67 per share, in line with the Zacks Consensus Estimate. Revenues of $1.87 billion surpassed the consensus mark of $1.84 billion.
Chief financial officer Paul Brody highlighted expanding customer balances as a major driver of interest income. Net interest income increased 19% year over year to $1.15 billion, supported by higher-margin borrowing and customer deposits.
Average customer margin loans reached $104 billion compared with $70.8 billion a year earlier. However, the net interest margin declined to 1.99% from 2.16%, reflecting changes in interest rates and asset yields.
Brody estimated that a 25-basis-point change in U.S. benchmark rates would affect annual net interest income by $83 million. Equivalent movements across relevant non-U.S. currencies would have an estimated $35 million impact.
Interactive Brokers Addresses Slower Trading ActivityCustomer accounts increased 35% year over year to 5.58 million, while customer equity rose 27% to $964.7 billion. However, daily average revenue trades declined 11% sequentially to 4.27 million.
During an exchange with Jefferies, president and chief executive officer Milan Galik attributed some moderation to delayed initial public offerings. He expressed confidence in trading demand, anticipating increased volatility around the midterm elections.
Responding to a Keefe, Bruyette & Woods analyst, Galik acknowledged that weaker trading activity per account was broad-based. Commission revenues, nevertheless, increased 12% year over year to $602 million.
IBKR Expands Autonomous AI Trading CapabilitiesGalik outlined the company's autonomous AI trading rollout, allowing eligible customers to authorize compatible AI agents to execute trades. The platform supports global equities and options across multiple trading sessions.
During questioning from Wells Fargo, Galik disclosed that approximately 3,000 customers had initially received invitations. Eligibility will expand, with management expecting increased trading activity as customers become more comfortable with AI-driven decisions.
The company also expanded its AI connector through Perplexity integration and broader Model Context Protocol compatibility. Additional functionality includes account-level profit-and-loss information, alerts and two-leg options strategies.
Interactive Brokers Targets RIA Market OpportunitiesGalik highlighted tax-aware long/short investment strategies as an institutional growth opportunity. Assets associated with the offering reached approximately $300 million, with additional strategy providers expected to join the platform.
Goldman Sachs questioned the offering's scalability. Galik emphasized Interactive Brokers' margin financing, securities lending capabilities and automation while acknowledging that adviser onboarding was progressing slower than management preferred.
Wolfe Research also raised competitive changes affecting smaller registered investment advisers. Galik identified an opportunity to attract displaced advisers, supported by improvements to onboarding and integrations with multi-custodial platforms.
IBKR Broadens Global and Prediction Market AccessManagement highlighted expansion into additional exchanges, including Bucharest and Texas, alongside futures trading on Brazil's B3 exchange. Japan also received margin lending and securities lending capabilities.
Galik acknowledged Japan's operational challenges during questioning from Jefferies. Management remains focused on migrating eligible accounts, digitizing customer verification and improving onboarding before pursuing broader competitive opportunities.
Prediction markets represent another expansion area. Galik confirmed connectivity with ForecastEx, Kalshi and CME, alongside ongoing Polymarket integration. The company is also preparing to support Cboe's single-stock binary options.
Interactive Brokers Raises Shareholder ReturnsThe company increased its quarterly dividend to 15 cents per share from 8.75 cents, establishing an annualized payout of 60 cents.
During questioning from Piper Sandler, founder and chairman Thomas Peterffy reiterated the company's guideline of maintaining an annual dividend yield between 0.5% and 1% of market capitalization.
Peterffy also indicated that management does not envision reducing the dividend under currently foreseeable circumstances, reinforcing its confidence in maintaining shareholder distributions.
IBKR Maintains Focus on Scalable ExpansionManagement emphasized automation, product development and global market access as central priorities. The company's 78% pretax margin demonstrated its ability to maintain profitability while expanding operations.
Executives also highlighted increased advertising investment and continued introducing-broker demand. These priorities reflect an emphasis on customer acquisition, institutional relationships and operational efficiency.
Zacks Rank and Style Scores for IBKRIBKR currently sports a Zacks Rank #1 (Strong Buy), indicating a favorable earnings estimate revision outlook. Its Momentum Score of A and VGM Score of B complement that ranking, while Value and Growth Scores of C indicate more moderate characteristics. You can see the complete list of today’s Zacks #1 Rank stocks here.
The combination of a top Zacks Rank and favorable Momentum and VGM Scores supports its relative positioning under the Zacks framework, which focuses on potential performance over the next one to three months. However, the Zacks Rank may change as analysts revise earnings estimates following the quarterly results.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Adjusted Net Revenues: Near-record adjusted net revenues for the quarter.Commissions: Rose 12% year-on-year to $602 million; third consecutive quarter above $60
Interactive Brokers Group, Inc. (IBKR - Free Report) came out with quarterly earnings of $0.67 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, it was expected that this company would post earnings of $0.64 per share when it actually produced earnings of $0.69, delivering a surprise of +7.81%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Interactive Brokers, which belongs to the Zacks Financial - Investment Bank industry, posted revenues of $1.87 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 1.86%. This compares to year-ago revenues of $1.61 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Interactive Brokers shares have added about 30.8% since the beginning of the year versus the S&P 500's gain of 12.8%.
What's Next for Interactive Brokers?While Interactive Brokers has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Interactive Brokers was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.71 on $1.94 billion in revenues for the coming quarter and $2.70 on $7.34 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Bank is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Tradeweb Markets (TW - Free Report) , another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on October 29.
This electronic marketplaces operator is expected to post quarterly earnings of $1.01 per share in its upcoming report, which represents a year-over-year change of +16.1%. The consensus EPS estimate for the quarter has been revised 0.6% lower over the last 30 days to the current level.
Tradeweb Markets' revenues are expected to be $573.9 million, up 12.8% from the year-ago quarter.
For the quarter ended September 2026, Interactive Brokers Group, Inc. (IBKR - Free Report) reported revenue of $1.87 billion, up 16.3% over the same period last year. EPS came in at $0.67, compared to $0.57 in the year-ago quarter.
The reported revenue represents a surprise of +1.86% over the Zacks Consensus Estimate of $1.84 billion. With the consensus EPS estimate being $0.67, the company has not delivered EPS surprise.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Interactive Brokers performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Interest Margin: 2% versus the two-analyst average estimate of 1.9%.Customer Statistics - Total Customer DARTs: 4.27 million compared to the 4.27 million average estimate based on two analysts.Average interest-earning assets: $237.25 billion versus the two-analyst average estimate of $239.86 billion.Total net interest income: $1.15 billion versus $1.12 billion estimated by two analysts on average.Commissions: $602 million versus the two-analyst average estimate of $588.9 million.Total non-interest income: $760 million versus the two-analyst average estimate of $707.14 million.Other income: $70 million versus $30 million estimated by two analysts on average.Other fees and services: $88 million versus $88.24 million estimated by two analysts on average.View all Key Company Metrics for Interactive Brokers here>>>
Shares of Interactive Brokers have returned -3% over the past month versus the Zacks S&P 500 composite's +1.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Want Private-Market Access to Kalshi and Polymarket? Try This ETFInteractive Brokers Group NASDAQ: IBKR reported record pre-tax income in the third quarter of 2026, supported by continued customer-account growth, higher margin balances and expanding net interest income. The company also raised its annual dividend to $0.60 from $0.35, citing confidence in its business model, growth outlook and capital position.
Director of Investor Relations Nancy Stuebe, presenting remarks from President and CEO Milan Galik, said the company recorded more than 30% account growth across institutional and individual clients and in all regions. Its pre-tax margin reached 78%, marking the eighth straight quarter above 70%.
Get IBKR alerts:
Up All Night: How Nasdaq’s 23-Hour Trading Could Wake Up Wall StreetThe company said investor interest remained concentrated in global technology stocks during the period, while overnight trading continued to grow. Overnight trading rose to more than 10 million trades in the third quarter, compared with 3.5 million in the year-earlier period.
Revenue Growth Driven by Commissions and Interest Income
CFO Paul Brody said commissions increased 12% from the prior-year quarter to $602 million, the third consecutive quarter in which commission revenue exceeded $600 million. Net interest income rose 19% to more than $1.1 billion, driven mainly by larger customer balances and growth in margin borrowing.
Not Just Banks: 3 Trading Stocks to Watch After the Fed Rate HikeOther fees and services climbed 33% to $88 million, primarily reflecting higher risk-exposure fees, increased market-data fees and stronger options-related payments from exchange-mandated order-flow programs, Brody said.
Total customer daily average revenue trades, or DARTs, increased 18% year over year to 4.3 million per day. Futures-contract activity was up 13%, while options volume declined slightly and stock-share volume fell 24%. Brody attributed the reduction in stock-share volume largely to less activity in lower-priced stocks, noting that clients gravitated toward larger, higher-quality names.
Commission per cleared commissionable order was $2.59, down 4% from a year earlier due to smaller order sizes across product categories.
Execution, clearing and distribution costs increased 46% year over year to $134 million. Brody said the increase primarily resulted from the return of SEC regulatory fees, which had been zero in the third quarter of the prior year and totaled $30 million during the latest quarter. Because those charges are largely passed through to customers, they increase both commission revenue and execution costs without affecting profitability, he said.
Interactive Brokers reported total assets of $243 billion, up 21% from the prior year. Firm equity rose 19% to $23.3 billion, while the company continued to report no long-term debt.
Dividend Increase and Capital Allocation
The company raised its annual dividend to $0.60, or $0.15 quarterly. Founder and Chairman Thomas Peterffy said the company generally seeks to pay dividends representing between 0.5% and 1% of its market value and had “fallen somewhat behind” that range.
Peterffy said he did not anticipate a scenario in which the company would reduce its dividend. Brody said the company’s financial performance and balance-sheet strength enabled it to return more capital to shareholders while retaining ample capital to support the current business and future opportunities.
Product Expansion Includes AI, Prediction Markets and Japan
Interactive Brokers introduced or expanded several products during the quarter. The company added access to the Bucharest Stock Exchange, the Texas Stock Exchange and a new options exchange intended to support liquidity for larger options orders. In Brazil, it launched B3 futures trading on financial indexes, cryptocurrencies and commodities.
The company also began a limited cryptocurrency-staking rollout and expanded offerings for Japanese clients, including margin lending, fully paid securities lending and its Gaika+ product for earning interest on eligible non-yen cash balances.
For prediction markets, Interactive Brokers added short-duration event contracts with hourly and 15-minute expirations in cryptocurrency, metals and energy. Peterffy said the company now offers access to ForecastEx, Kalshi and CME prediction-market platforms and is working to integrate Polymarket.
“The integrations are delivering the results that we were hoping for,” Peterffy said, adding that the additional venues have expanded overall volume and given customers a broader product range, deeper liquidity and better execution prices.
The company is also preparing to offer potential single-stock key performance indicator contracts from Cboe when available. Peterffy said those contracts would be displayed through the company’s existing prediction-market interface and also made available on standard options screens.
Interactive Brokers continued to build out its AI Connector, adding Perplexity as an official partner and expanding compatibility to AI tools using the Model Context Protocol. The company added account-level profit-and-loss information, alerts, watchlists and two-leg options strategies to the product.
It also started a limited rollout of autonomous AI trading, allowing eligible customers to authorize compatible AI agents to trade in dedicated account partitions. Peterffy said about 3,000 customers who had used the human-in-the-loop AI Connector had been invited initially, with broader eligibility planned over the following weeks.
Peterffy said the company expects AI adoption to increase trading activity over time as investors use AI to process more information, monitor more companies and implement strategies more efficiently.
RIA and Introducing Broker Opportunities
The company is targeting growth among registered investment advisors through tax-aware long-short strategies. Peterffy said assets in those strategies totaled about $300 million at the end of the quarter.
Interactive Brokers has three tax-aware strategy providers onboarded, including AQR, and expects to add more. Peterffy said the strategies are suited to larger accounts and align with the company’s existing capabilities in margin financing, short selling and securities lending.
The company is also working to simplify RIA onboarding and improve integrations with multi-custodial platforms. Peterffy said these efforts could help advisors that currently use competing custodians bring business to Interactive Brokers.
He also said the company sees an opportunity to attract smaller RIAs following a competitor’s planned minimum-asset threshold, describing Interactive Brokers as an “obvious choice” for advisors seeking another platform.
In the introducing-broker business, Peterffy said the pipeline remained broadly consistent with recent quarters, with numerous integrations in progress and some already live. During the quarter, South Korean brokerage Daol Investment & Securities launched a global securities trading platform powered by Interactive Brokers technology and trading infrastructure.
Looking ahead, management said it did not see concerns from the moderation in client activity compared with the second quarter. Peterffy cited delayed IPO activity and said the company expects volatility could rise approaching the midterm elections, which historically tends to increase customer trading activity.
About Interactive Brokers Group (NASDAQ:IBKR)Interactive Brokers Group, Inc is a global electronic brokerage company that provides trading, investment and custody services to individual investors, financial advisors, hedge funds, proprietary trading firms, family offices and other institutional clients. The company offers access to a broad range of markets and financial instruments, including stocks, options, futures, currencies, bonds, exchange-traded funds and mutual funds.
Interactive Brokers provides its services through digital platforms such as Trader Workstation, IBKR Mobile and Client Portal, along with application programming interfaces for clients seeking automated or integrated trading capabilities.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Interactive Brokers Group, Inc. (IBKR) Q3 2026 Earnings Call October 15, 2026 4:30 PM EDT
Company Participants
Nancy Stuebe - Director of Investor Relations
Paul Brody - CFO, Treasurer, Secretary & Director
Thomas Peterffy - Founder & Chairman
Milan Galik - President, CEO & Director
Conference Call Participants
Patrick Moley - Piper Sandler & Co., Research Division
James Yaro - Goldman Sachs Group, Inc., Research Division
Daniel Fannon - Jefferies LLC, Research Division
Benjamin Budish - Barclays Bank PLC, Research Division
Steven Chubak - Wolfe Research, LLC
Daniel F. Welden - Wells Fargo Securities, LLC, Research Division
Brennan Hawken - BMO Capital Markets Equity Research
Brian Bedell - Deutsche Bank AG, Research Division
Christopher Allen - Keefe, Bruyette, & Woods, Inc., Research Division
Presentation
Operator
Hello, and welcome to the Interactive Brokers Group Third Quarter 2026 Earnings Call. [Operator Instructions]
I would now like to turn the conference over to Nancy Stuebe, Director of Investor Relations. You may begin.
Nancy Stuebe
Director of Investor Relations
Thank you. Good afternoon, and thank you for joining us for our third quarter 2026 earnings call. Joining us today are Thomas Peterffy, our Founder and Chairman; Milan Galik, our President and CEO; and Paul Brody, our CFO. I will be presenting Milan's comments on the business, and all 3 will be available at our Q&A.
As a reminder, today's call may include forward-looking statements, which represent the company's belief regarding future events, which, by their nature, are not certain and are outside of the company's control. Our actual results and financial condition may differ, possibly materially, from what is indicated in these forward-looking statements. We ask that you refer to the disclaimers in our press release. You should also review a description of risk factors contained in our financial reports filed with the SEC.
GREENWICH, Conn.--(BUSINESS WIRE)---- $IBKR #Earnings--Interactive Brokers Group, Inc. (Nasdaq: IBKR), an automated global broker, announced results for the quarter ended September 30, 2026. Reported diluted earnings per share were $0.69 for the current quarter and $0.67 as adjusted. For the year-ago quarter, reported diluted earnings per share were $0.59 and $0.57 as adjusted. Reported net revenues were $1.91 billion for the current quarter and $1.87 billion as adjusted. For the year-ago quarter, reported net rev.
Taiwan Semiconductor Manufacturing (TSM -3.40%) just booked its sixth straight quarter of record profit. The world’s largest contract chipmaker builds the advanced processors most of the tech industry designs but doesn’t make. Third-quarter revenue topped management’s guidance while net income jumped 69% to a record NT$763.1 billion (about $23.9 billion). The broader sell-off in artificial intelligence (AI) stocks still sent the Team Hidden Gems recommendation down over 1% ahead of the open.
A margin beat during a ramp: As TSMC ramped up its new 2-nanometer process, gross margin dipped slightly. Operating margin of 58.7%, however, topped TSMC’s 58% guidance range. A manufacturer that keeps more than half of each sales dollar as operating profit holds incredible pricing power. AI customers have few other places to take their orders. High-performance computing, the chips behind AI and data centers, made up 68% of revenue.Cash is funding the U.S. build-out: TSMC plans to invest $265 billion in Arizona and is reportedly weighing Texas as well. Management still expects Q4 operating margin of 56.5% to 58.5%. TSMC has the cash (its free cash flow jumped almost 66% in Q3), is racing to meet global demand, and is confident it will earn big margins throughout.2. Rocket Lab Dives 10% as Neutron Slips to 2027Rocket Lab’s (RKLB -7.85%) big rocket isn’t taking off just yet. On Wednesday, it said Neutron’s first flight has slipped to 2027. Neutron is a reusable medium-lift rocket that lets Rocket Lab bid for larger commercial, civil-space, and national-security contracts than its small Electron can carry. The Team Hidden Gems recommendation fell 10% in pre-market trading.
The slip was telegraphed in August: In August, Rocket Lab said it aimed to get Neutron to the launch pad in the fourth quarter. Rocket Lab plans to charge about $55 million per Neutron flight, compared with around $8.5 million per Electron flight. Each delay pushes that revenue further out.Worth waiting for: Fool contributing analyst Lou Whiteman praised Rocket Lab’s transparency about its progress. He concluded, “Nothing is certain, but the long-range risk/reward hasn’t changed. If Neutron eventually flies, the quarter won't matter, but until it does, it is the biggest single risk facing the stock.” The stock has outperformed the S&P 500 by 20% since the August 2025 Stock Advisor recommendation from Team Hidden Gems.3. Phones Are Running Out of MemoryGlobal chip stocks are selling off as investors question whether the AI-driven rally has overextended. CoreWeave (CRWV -15.46%) fell 15% Wednesday after the yield on its 2032 bonds touched 15%. Its debt had reached about $52 billion in June, up from about $15 billion a year earlier. The selling spread across AI stocks. Nvidia (NVDA -3.16%), Broadcom (AVGO -3.10%) and Intel (INTC -4.56%) all closed more than 3% lower Wednesday and were down at least 1% before Thursday’s open.
Phone makers are paying the bill: IDC reported a 22% year-over-year drop in global smartphone shipments in Q3. China’s shipments fell for the sixth straight quarter, down 15.4% to 57.9 million units. Apple’s (AAPL +0.49%) global shipments fell 4.3%, but its market share rose four percentage points to 22.4%. AI data centers are eating up memory supply, driving up phone prices and causing consumers to delay purchases.Scarcity is the memory makers’ edge: The sell-off reflects two distinct pressures. There are AI credit and valuation concerns, plus a deteriorating smartphone end market. Memory pricing is a key indicator to watch now. Memory suppliers are winning today because prices are high, but those same high prices are hurting their customers. If that continues, today’s margin tailwind can become tomorrow’s volume headwind.4. Two Earnings to Watch TodayTwo of our recommendations report today.
Prologis (PLD -2.31%), the warehouse and logistics landlord, reports before the opening bell. The Team Rule Breakers and Team Hidden Gems recommendation has met or beaten earnings-per-share estimates in each of the past four quarters. Any update to full-year guidance matters most. Watch out for management’s views on the SEGRO takeover that is expected to close in the first half of 2027.Interactive Brokers (IBKR -3.83%), the online broker and a Stock Advisor recommendation by Team Hidden Gems, reports third-quarter results after the close today. Analysts expect earnings of 67 cents per share, roughly 17.5% growth from a year ago. Monthly metrics already showed September trading activity was up 6% year over year. That shifts the debate to net interest income and margin lending (loans customers take out to buy stocks). Both tie to interest rates and customer balances.5. Losing to Win: A VC Lens Will Find the Next NvidiaTeam Rule Breakers
In the second half of 2009, Chief Rule Breaker David Gardner made four recommendations in Stock Advisor. Judged individually, most look unremarkable today. Adobe (ADBE +1.86%), selected that August, lags the S&P 500 by roughly 320%. Dassault Systèmes (DASTY -0.63%), recommended the following month, trails the market by more than 500%. Hasbro (HAS -0.50%), picked that October, lags by roughly 420%.
Winners were in the minority… and that’s more than fine: Nvidia, recommended that December at a split-adjusted $0.38, trades today at $221.30. That’s an outperformance of more than 54,000 percentage points.The math proves the point: Average the other three names and the basket lags the S&P 500 by roughly 415%. Add Nvidia, and that average rockets past 13,000%.As David puts it, "We lose to win." We don't need most recommendations to work. We need one or two in every five to work enormously, the venture-capital mindset of expecting most of a portfolio to fail so a single winner pays for everything else. It's why The Motley Fool recommends holding at least 50 stocks across many industries: the wider the net, the better the odds of landing the next Nvidia. We'll keep recommending stocks other analysts call too early, too small, or too strange. That's exactly where the next 54,000%-outperformer is hiding.
6. Today’s Question!Does having a huge portfolio winner make you more patient or less forgiving with your laggards?
Discuss with friends and family, or become a member to hear what your fellow Fools are saying!
Tom Gardner has positions in Rocket Lab. The Motley Fool has positions in Adobe, Apple, Broadcom, Dassault Systèmes Se, Intel, Nvidia, Prologis, Rocket Lab, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. Pre-market price and change as of 5am Eastern, versus previous day’s futures settle price for indexes and previous pre-market price for Bitcoin.
On October 14, 2026, Interactive Brokers Group Inc IBKR shares fell 3.8% to $84.14, navigating a volatile market characterized by a 52-week range between $58.95 and $98.75. The stock's performance has seen a year-to-date increase of 31.2% and a 21.8% rise over the past year, but recent trends indicate a downward momentum.
GF Value™ verdict: The current price of $84.14 is 88.7% above the GF Value™ estimate of $44.59, indicating the stock is significantly overvalued.GF Score™: IBKR has a strong GF Score™ of 81/100, reflecting its potential in profitability and growth.Most notable signal: Insider activity indicates a net selling of $35.7 million over the past 12 months, with no insider purchases.Is IBKR Overvalued or Undervalued?According to the GF Value™, which is GuruFocus' proprietary estimate of a stock's intrinsic value based on historical trading multiples, past business growth, and future performance projections, Interactive Brokers is currently positioned at a substantial premium. With a GF Value™ of $44.59, the current trading price of $84.14 suggests that the stock is overvalued by approximately 88.7%. This significant overvaluation raises concerns about the margin of safety for potential investors, indicating that the stock price is not adequately supported by the underlying business fundamentals.
Given the GF Valuation label of "Significantly Overvalued," investors may need to exercise caution. The risk associated with buying shares at this inflated price could lead to potential losses if the market adjusts to more accurately reflect the company's intrinsic value. Without a compelling reason for the current high valuation, such as significant future growth prospects, the investment may not provide adequate returns based on current valuations.
How Does IBKR's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)33.5x23.0xForward P/E26.0xN/AInteractive Brokers' current P/E ratio of 33.5x is 46% above its 5-year median P/E of 23.0x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict of being significantly overvalued, reinforcing the notion that the current market price does not reflect the company’s historical earnings performance.
What Does IBKR's GF Score™ Tell Us?The GF Score™ is a comprehensive measure that evaluates a company's financial strength, profitability, growth potential, valuation, and momentum. IBKR's GF Score™ of 81/100 signals a strong position, particularly highlighted by its exceptional growth rank of 10/10 and profitability rank of 9/10. However, the valuation rank is notably weak at 1/10, which corresponds with the findings of overvaluation based on the GF Value™ analysis.
MetricRatingGF Score™81Financial Strength4/10Profitability9/10Growth10/10Valuation1/10Momentum10/10The combination of these scores indicates a strong company in terms of growth and profitability, yet it faces significant valuation challenges. The standout growth rank suggests that IBKR has robust future prospects, but the extremely low valuation rank warns that the current stock price does not reflect this potential adequately.
What Are Gurus and Insiders Doing with IBKR?Currently, 13 gurus hold Interactive Brokers stock, with 7 of them increasing their positions while 6 have trimmed their holdings in recent quarters. This mixed sentiment from institutional investors indicates varying levels of confidence in the stock's future performance.
Regarding insider activity, over the past 12 months, insiders sold a total of $35.8 million worth of shares, with no purchases. This net selling pattern could be interpreted as a lack of confidence from those closest to the company, which might further suggest that the current stock price is not justified by the company's performance or outlook.
What This Means for InvestorsIn conclusion, Interactive Brokers Group Inc IBKR appears to be significantly overvalued based on the GF Value™ analysis, with a current price that exceeds intrinsic value by a considerable margin. The strong growth and profitability metrics are overshadowed by a concerning valuation rank and insider selling trends. Investors may need to carefully assess their risk tolerance and consider these factors before making investment decisions.
For further insights on IBKR, you can visit the Interactive Brokers Group Inc IBKR stock page and explore the GF Value™ page for more detailed analysis.
Frequently Asked QuestionsWhat is IBKR's GF Score™?
IBKR has a GF Score™ of 81/100, indicating a strong overall evaluation based on various financial metrics.
Is IBKR overvalued or undervalued?
IBKR is currently overvalued, with a GF Value™ estimate of $44.59 compared to its trading price of $84.14.
What is IBKR's P/E ratio?
IBKR's P/E ratio is 33.5x, which is significantly above its 5-year median P/E of 23.0x, indicating that the stock is trading at a premium compared to its historical valuation.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Interactive Brokers Group, Inc. (IBKR - Free Report) .
Interactive Brokers currently has an average brokerage recommendation (ABR) of 1.53, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 15 brokerage firms. An ABR of 1.53 approximates between Strong Buy and Buy.
Of the 15 recommendations that derive the current ABR, 11 are Strong Buy, representing 73.3% of all recommendations.
Brokerage Recommendation Trends for IBKR
Check price target & stock forecast for Interactive Brokers here>>>
While the ABR calls for buying Interactive Brokers, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is IBKR Worth Investing In?Looking at the earnings estimate revisions for Interactive Brokers, the Zacks Consensus Estimate for the current year has increased 0.5% over the past month to $2.7.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Interactive Brokers. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Interactive Brokers may serve as a useful guide for investors.
Key Takeaways IBKR launched Ethereum staking for eligible clients, expanding its crypto services.Competitive crypto trading fees and broader offerings could attract clients and boost revenue.AI and global expansion support growth, but rising costs and regulatory complexity pose challenges.
Interactive Brokers Group, Inc. (IBKR - Free Report) is expanding its digital-asset capabilities by launching cryptocurrency staking, further strengthening its multi-asset trading platform. The initiative builds on the company’s investments in automation, artificial intelligence (AI) and global market access, potentially supporting client acquisition, deeper platform engagement and revenue growth. The company is expanding its AI capabilities through integrations with Claude, ChatGPT and Grok, alongside tools such as Ask IBKR, to enhance market research, portfolio analysis and trading.
Interactive Brokers has launched cryptocurrency staking for eligible clients through Zerohash. Eligible Interactive Brokers LLC clients can initially stake Ethereum through the Staking Dashboard in the Client Portal and monitor their staking activity. When earned, rewards will be credited as additional staked cryptocurrency and can compound as long as the position remains staked.
The launch builds on IBKR’s broader digital-asset initiatives, including cryptocurrency trading, stablecoin funding and transfers to external wallets. The company has also expanded its cryptocurrency offerings through additional tokens and partnerships with digital-asset infrastructure providers.
These initiatives will likely attract investors seeking access to traditional and digital assets through a single platform. Interactive Brokers charges cryptocurrency trading commissions ranging from 0.12% to 0.18% of trade value, subject to a $1.75 minimum per order, with no added spreads, markups or custody fees. Competitive pricing and an expanding range of services are expected to strengthen client engagement and support transaction-related revenues. However, staking’s financial contribution will depend on client adoption and the volume of eligible assets.
Meanwhile, IBKR continues to broaden global market access through Romanian and Korean equities, Brazilian futures and new funding options for Latin American clients through SafetyPay. The addition of cryptocurrency staking further diversifies its offerings and gives eligible clients another way to participate in digital-asset markets. Yet, rising non-interest expenses, regulatory complexity and sensitivity to interest rates remain challenges. While IBKR’s expanding product suite presents growth opportunities, its ability to manage costs and convert higher client engagement into sustained earnings growth will remain critical.
IBKR’s Price Performance & Zacks RankOver the past year, shares of Interactive Brokers have rallied 26.1% compared with the industry’s 10.5% growth.
One-Year Performance
Image Source: Zacks Investment Research
Currently, Interactive Brokers carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Similar Strategy of Other Financial FirmsWells Fargo (WFC - Free Report) is introducing tokenized deposits for corporate clients to enable real-time on-chain payments and settlements. The initiative could improve treasury management through programmable payments and support 24/7 transactions. Likewise, The Bank of New York Mellon (BNY - Free Report) has partnered with Galaxy Digital (GLXY - Free Report) to integrate staking into its Digital Asset Custody platform, subject to regulatory approval. Galaxy Digital will also serve as a design partner to enhance BNY’s blockchain infrastructure, strengthening its institutional digital-asset capabilities.
Although these initiatives may have limited near-term financial impact, they could help WFC, BNY and GLXY strengthen client relationships, expand digital-asset services and create additional fee-generating opportunities. Continued investment in blockchain-based financial solutions could support long-term growth as institutional demand for digital assets increases.
Key Takeaways IBKR's Q3 earnings are projected to rise 15.8% y/y, with revenues expected to grow 13.5%.Higher DARTs and client account growth are likely to drive IBKR's commission revenues.IBKR's NII is expected to rise 15.7% y/y, aided by higher interest-earning assets. Interactive Brokers Group, Inc. (IBKR - Free Report) is set to report third-quarter 2026 results on Oct. 15, after market close. Its quarterly earnings and revenues are expected to have improved year over year.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results were primarily aided by an increase in revenues, growth in customer accounts and a rise in daily average revenue trades (DARTs). However, higher expenses acted as the undermining factor.
IBKR has a decent earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, the average surprise being 10.9%.
IBKR’s Earnings & Sales Projections for Q3The Zacks Consensus Estimate for Interactive Brokers’ third-quarter earnings has been unchanged at 66 cents per share over the past seven days. The estimate indicates a 15.8% rise from the year-ago quarter’s reported number.
The consensus estimate for sales is pegged at $1.83 billion, suggesting a year-over-year increase of 13.5%.
Interactive Brokers’ Other Key Q3 EstimatesClient trading activity was healthy in the third quarter of 2026, supported by active investor participation amid evolving interest rate expectations, geopolitical uncertainties and market volatility. Continued interest in artificial intelligence-related stocks and portfolio rebalancing across asset classes provided a favorable backdrop for trading activity.
IBKR’s monthly brokerage metrics reflected sustained momentum, with DARTs increasing year over year throughout the quarter. The company also witnessed robust growth in client accounts and customer equity, highlighting continued customer acquisition and asset gathering. Thus, healthy trading activity across stocks, options and futures, along with an expanding client base, is expected to have supported IBKR’s commission revenues. The Zacks Consensus Estimate for third-quarter commission revenues stands at $589 million, implying 9.7% year-over-year growth.
The company’s net interest income (NII) is also expected to have benefited from higher interest-earning asset balances. Customer margin loans expanded during the quarter, reflecting sustained borrowing demand, while customer credit balances remained elevated amid continued asset inflows. Growth in margin lending and client cash balances is likely to have supported interest income, although changes in benchmark interest rates and interest paid on customer balances may have partly offset the benefits. The consensus estimate for NII is $1.12 billion, indicating a 15.7% increase from the prior-year quarter’s actual.
Revenues from other fees and services are also expected to have increased, supported by an expanding customer base and higher trading-related activity. Increased exchange-mandated payments for order flow, risk exposure fees and market data fees are likely to have contributed to growth in this revenue stream. The consensus estimate for this line item is $88 million, suggesting a 33.3% year-over-year increase.
On the expense front, operating costs are expected to have increased due to higher execution, clearing and distribution expenses associated with trading activity, alongside continued investments in technology infrastructure, platform development and regulatory compliance. Higher employee compensation and customer servicing requirements amid an expanding client base may also have contributed to expense growth.
What Our Model Unveils for IBKRAccording to our quantitative model, the chances of Interactive Brokers beating earnings estimates this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: Interactive Brokers has an Earnings ESP of +1.52%.
Zacks Rank: The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Finance Stocks Worth a LookHere are a couple of other finance stocks that you may want to consider, as these too have the right combination of elements to post an earnings beat in their upcoming releases:
Zions Bancorporation (ZION - Free Report) is scheduled to announce third-quarter 2026 results on Oct. 19. The company has a Zacks Rank #3 and an Earnings ESP of +1.18% at present.
Quarterly earnings estimates for Zions have been revised lower to $1.64 per share over the past week.
The Earnings ESP for Prosperity Bancshares (PB - Free Report) is +0.22%, and it carries a Zacks Rank #3 at present. The company is slated to report third-quarter 2026 results on Oct. 28.
Over the past seven days, the Zacks Consensus Estimate for PB’s quarterly earnings has been revised lower to $1.63 per share.
Key Takeaways V and MA benefit from rising payment volumes, cross-border demand and expanding value-added services.PYPL's BNPL TPV grew 26% year over year in Q2 2026, while Venmo and Braintree support diversification.IBKR and HOOD are expanding product offerings to drive client engagement and diversify revenue.
Financial technology (fintech) represents a transformative investment space in a hybrid sector merging finance and technology. Fintech's innovative nature positions it as a fascinating choice in the evolving financial landscape.
With the expansion of mobile and broadband networks, fintech is poised for significant growth. The rise of artificial intelligence (AI) technologies and machine learning (ML) further revolutionizes banking, payments and investments, offering efficient and secure financial solutions.
At this stage, we recommend investing in five financial technology bigwigs to tap the digital finance revolution. These are: Visa Inc. (V - Free Report) , Mastercard Inc. (MA - Free Report) , PayPal Holdings Inc. (PYPL - Free Report) , Interactive Brokers Group Inc. (IBKR - Free Report) and Robinhood Markets Inc. (HOOD - Free Report) .
Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
Visa Inc.Visa’s scale and brand strength keep it at the center of global digital payments, with growth still driven by higher payment volumes, cross-border activity and rising transaction counts. V has been benefiting from broad momentum across consumer payments, commercial and money movement solutions and value-added services.
V continues to drive product and platform innovation through solutions like Visa Token Service, Visa Checkout and In-App Provisioning, reinforcing its leadership in secure digital payments. Investments in agentic commerce and stablecoin settlement, along with targeted acquisitions and disciplined capital returns, should continue to enhance the value of V’s network over time.
Visa has an expected revenue and earnings growth rate of 10.5% and 13.3%, respectively, for the current year (ending September 2027). The Zacks Consensus Estimate for the current year has improved 0.1% over the past 60 days.
Mastercard Inc.Mastercard benefits from the secular shift toward electronic payments, supported by a scalable, asset-light model that can convert rising transaction volumes into attractive incremental economics. Resilient consumer spending and cross-border demand provide MA revenue visibility, while growing value-added services broaden the earnings base beyond core payment processing.
Strategic partnerships, acquisitions and expansion into emerging payment flows further extend MA’s addressable market. Strong cash generation also supports MA’s continued reinvestment, acquisitions and shareholder returns.
Mastercard has an expected revenue and earnings growth rate of 13.6% and 17%, respectively, for the current year. The Zacks Consensus Estimate for the current year has improved 0.2% over the past 60 days.
PayPal Holdings Inc.PayPal’s two-sided network, Venmo monetization, Braintree growth and expanding consumer financial services support a more diversified earnings base. Branded checkout has stabilized, while Buy Now Pay Later (BNPL), debit and Pay with Venmo are broadening customer engagement beyond core online payments. Cost simplification, technology modernization and continued capital returns provide longer-term support.
PYPL’s BNPL offering remains an important tool for extending consumer choice and deepening the company’s role beyond standard checkout. In the second quarter of 2026, BNPL TPV grew 26% year over year, accelerating three percentage points from the first quarter, while BNPL MAA increased more than 20%.
PayPal has an expected revenue and earnings growth rate of 4.5% and 1.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year has improved 0.2% over the past 60 days.
Interactive Brokers Group Inc.Interactive Brokers Group continues to benefit from a widening product set that keeps clients engaged across cycles. IBKR’s automated platform, broad product set and new launches will likely support top-line growth across market cycles.
IBKR’s global reach, a conservative balance sheet and focus on direct market access support competitive pricing and help attract active traders and long-term investors. IBKR continues to broaden its product suite and enhance platform capabilities, helping expand its addressable client base, deepen engagement and diversify fee-generating opportunities.
Interactive Brokers Group has an expected revenue and earnings growth rate of 18.8% and 23.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year has improved 0.4% over the past seven days.
Robinhood Markets Inc.Robinhood Markets is broadening beyond retail brokerage into a wider financial ecosystem and driving deeper engagement and more diversified monetization efforts. Prediction markets continue to scale rapidly, while AI tools, weekend equity trading, crypto perpetual futures and expanded active-trader capabilities widen HOOD’s transaction opportunity.
IPO underwriting adds another avenue to strengthen HOOD’s customer access and issuer relationships. HOOD’s expanding product set, broader revenue base and growing role in customers' financial lives are widening wallet share.
Robinhood Markets has an expected revenue and earnings growth rate of 18.6% and 4.4%, respectively, for the current year. The Zacks Consensus Estimate for the current year has improved 0.5% over the past seven days.
Optimism was in the air ahead of Interactive Brokers' upcoming third-quarter earnings report, scheduled to be unveiled after market close on Thursday. The global electronic brokerage has grown rapidly in recent years, more than doubling its annual revenue from 2022 to 2025.
The company's growth has matured to more modest levels since then; still, it seems to have found a solid position in the experienced/active investor and institutional segments of the market. This distinguishes it from Charles Schwab (SCHW -1.15%), which tilts toward the individual market player, and Robinhood Markets (HOOD +1.19%), the flashy next-generation company that actively courts young, adventurous investors. And the commissions Interactive earns from its seasoned client niche could be more considerable than many believe, positioning the stock for a good post-earnings pop.
Image source: The Motley Fool.
Two powerful revenue streamsSimilar to Charles Schwab, Interactive has a large pool of client funds sitting in the company's accounts, waiting to be allocated to investments. Like any proactive business that wants to make money, Interactive doesn't just let these funds sit idle; it invests them in relatively conservative assets and earns interest.
That, minus what the company pays to encourage clients to keep their cash in place, is called net interest income (NII). In 2022, NII surpassed the 50% threshold, accounting for more than half of Interactive's total revenue. The company has never looked back, with second-quarter NII of $1.06 billion representing 56% of the full top line.
So the performance of that line item will matter in how investors react to the results of quarter No. 3.
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That's not the only metric they'll be watching, of course. Interactive's runner-up revenue generator is commissions from securities trading. This might be surprising to retail investors accustomed to zero-fee trading facilitators. Again, though, the company primarily serves veteran and active traders, as well as institutions, through its IBKR Pro service (rather than the IBKR Lite offering that mainly targets individual U.S. investors). With Pro's beefed-up features such as its price-optimizing IBSmartRouting algorithm, clients are willing to pay commissions for advanced-level order execution.
Commissions are just as much a motor of growth as NII; in fact, in the second quarter they were even more so. Thanks to a surge in trading activity, daily average revenue trades (DARTs, an important metric in the brokerage sector) rose to a near-record 4.8 million, up 36%.
With a fairly straightforward revenue structure for a modern brokerage and expenses kept admirably under control, Interactive's profitability tends to rise at a comparable rate. For said quarter, it rose by 21% to almost $1.2 billion.
No bummer this summerThe third quarter covers the typically sleepy summer trading season, so financial sector observers might expect relative sluggishness in commission growth for Interactive and its peers (although NII should continue to motor along nicely).
This seems to be reflected in the consensus analyst growth estimates for Interactive in the period -- the adjusted earnings per share (EPS) figure is expected to "only" rise by 18% to $0.67, on total revenue predicted to be 15% higher at $1.86 billion.
I think those pundits might be underestimating the capital markets. From what we've seen so far with the third-quarter results of some U.S. banks deeply engaged in trading -- Goldman Sachs (GS -0.23%) and JPMorgan Chase (JPM -0.86%) leap immediately to mind -- this activity was torrid at times this summer. No, commissions aren't the revenue foundation that NII is. Still, a notable surge in the company's take could very well result in convincing top- and bottom-line beats and push Interactive stock skyward.
Charles Schwab is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. Eric Volkman has positions in Charles Schwab. The Motley Fool has positions in and recommends Goldman Sachs Group and Interactive Brokers Group. The Motley Fool recommends Charles Schwab and Robinhood Markets and recommends the following options: long January 2027 $43.75 calls on Interactive Brokers Group, short January 2027 $46.25 calls on Interactive Brokers Group, and short September 2026 $95 calls on Charles Schwab. The Motley Fool has a disclosure policy.
[url="]Interactive Brokers[/url] (Nasdaq: IBKR), an automated global broker, today announced the launch of cryptocurrency staking for eligible clients, enabling
Interactive Brokers Group (IBKR) launched cryptocurrency staking for eligible clients, starting with Ethereum. Clients can stake and unstake through a dashboard
GREENWICH, Conn.--(BUSINESS WIRE)-- #IBKR--Interactive Brokers (Nasdaq: IBKR) today announced the launch of cryptocurrency staking for eligible clients.
In its upcoming report, Interactive Brokers Group, Inc. (IBKR - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $0.66 per share, reflecting an increase of 15.8% compared to the same period last year. Revenues are forecasted to be $1.83 billion, representing a year-over-year increase of 13.4%.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 2.9% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
In light of this perspective, let's dive into the average estimates of certain Interactive Brokers metrics that are commonly tracked and forecasted by Wall Street analysts.
According to the collective judgment of analysts, 'Average interest-earning assets' should come in at $239.86 billion. The estimate compares to the year-ago value of $183.75 billion.
Analysts expect 'Customer Statistics - Total Customer DARTs' to come in at 4.27 million. Compared to the current estimate, the company reported 3.62 million in the same quarter of the previous year.
It is projected by analysts that the 'Other fees and services' will reach $88.24 million. The estimate compares to the year-ago value of $66.00 million.
The consensus estimate for 'Total non-interest income' stands at $707.14 million. Compared to the current estimate, the company reported $688.00 million in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Commissions' will likely reach $588.90 million. Compared to the current estimate, the company reported $537.00 million in the same quarter of the previous year.
Analysts predict that the 'Other income' will reach $30.00 million. Compared to the present estimate, the company reported $85.00 million in the same quarter last year.
The consensus among analysts is that 'Total net interest income' will reach $1.12 billion. Compared to the current estimate, the company reported $967.00 million in the same quarter of the previous year.
View all Key Company Metrics for Interactive Brokers here>>>
Shares of Interactive Brokers have experienced a change of -3.8% in the past month compared to the +2.4% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), IBKR is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Interactive Brokers (IBKR -1.45%) and Robinhood Markets (HOOD -2.28%) are both online brokers. But the money sitting in their accounts looks nothing alike.
Interactive Brokers finished September with around $965 billion of client equity across about 5.6 million accounts. That comes out to around $173,000 an account. Robinhood, meanwhile, finished August (its latest monthly report) with $384 billion of platform assets and 28.6 million funded customers, or around $13,400 each.
Put another way, Robinhood has about five times as many customers, but Interactive Brokers holds about 2.5 times as much money. The average Interactive Brokers account holds around 13 times as much as the average Robinhood customer.
I think the gap boils down to who each broker was built for -- and that shapes how each makes money.
Image source: The Motley Fool.
Who uses Interactive Brokers?In its annual report, Interactive Brokers says it is "especially attractive to sophisticated and active investors." Its customers live in over 200 countries and territories. And along with individuals, it serves hedge funds, financial advisors, proprietary trading firms, and introducing brokers (other brokerages that use Interactive Brokers' platform for their own customers).
The average U.S. stock trade by its IBKR Pro clients was around $23,700 in September, more than the average Robinhood customer holds altogether.
Interestingly, the average Interactive Brokers account has been shrinking a bit. A year earlier, its 4.13 million accounts held $757.5 billion, or around $184,000 each. That number fell to about $179,000 at the end of June and to about $173,000 at the end of September, as the account count grew 35% year over year while client equity rose 27%. It seems newer accounts tend to start smaller than older ones.
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Robinhood's newer investors"Many of our customers are just beginning their financial journeys," Robinhood wrote in its annual report.
And Robinhood counts people, not accounts. It had 29.9 million investment accounts at the end of June, versus 28.4 million funded customers, so its per-account number would be even lower.
But Robinhood's average is climbing. Its funded customers held around $11,400 each in August 2025, about $13,000 at the end of June, and about $13,400 in August -- an 18% gain in a year. Platform assets rose 26% over that time, and net deposits (money customers put in, minus what they pulled out) of $74.1 billion over the last 12 months accounted for about 24 points of that growth. Most of the gain, then, came from fresh money, not just rising markets.
Robinhood's also chasing bigger balances directly. Its retirement accounts held a record $34.5 billion at the end of June, up 82% year over year. And its platform assets now include money that independent advisors manage on TradePMR, the advisor platform Robinhood bought in February 2025, which had hit $50 billion by the company's second-quarter report. Financial advisors, of course, are among the groups Interactive Brokers already serves.
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Bigger balances bring more interest incomeClient cash and the loans clients take out against their investments both earn interest for a broker. And Interactive Brokers has lots of both: $182.4 billion of client credit balances (cash clients keep in their accounts) and $108.5 billion of margin loans at the end of June.
Showing how much this matters, Interactive Brokers' net interest income grew 23% year over year to $1.06 billion in the second quarter, around 56% of its $1.9 billion of net revenue.
Robinhood's revenue tilts the other way. Its transaction-based revenue (mainly from options, prediction markets, stock, and crypto trading) jumped 44% to $776 million in the second quarter, around 59% of its $1.31 billion of total net revenue. Net interest revenue climbed just 9% to $389 million.
And its second-quarter net income rose 48% to $573 million, but $129 million of that was from one-time gains.
Robinhood said it made $187 per funded customer on an annualized basis in the second quarter. Measured the same way, Interactive Brokers took in around $1,500 per account, or about eight times as much.
That's why Robinhood's drive to attract assets arguably matters more than any one trading product. Trading revenue can swing with how active customers feel. Interest on a growing pool of client money might be steadier, but it still depends on interest rates.
Investors already pay up for both stocks. Interactive Brokers trades at around 27 times next year's expected earnings.
Robinhood, priced more like a growth stock, trades at over 30 times next year's expected earnings.
At that valuation, investors seem to assume Robinhood's average balance keeps rising. But at around $13,400, its average customer still holds a fraction of the $173,000 in the average Interactive Brokers account. Closing much of the gap will likely take years.
Interactive Brokers Group, Inc. (IBKR - Free Report) closed the most recent trading day at $86.47, moving -1.45% from the previous trading session. This move lagged the S&P 500's daily loss of 0.47%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq decreased by 1.25%.
Heading into today, shares of the company had lost 2.81% over the past month, outpacing the Finance sector's loss of 5.13% and lagging the S&P 500's gain of 1.15%.
Investors will be eagerly watching for the performance of Interactive Brokers Group, Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on October 15, 2026. In that report, analysts expect Interactive Brokers Group, Inc. to post earnings of $0.66 per share. This would mark year-over-year growth of 15.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.83 billion, up 13.45% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.7 per share and a revenue of $7.31 billion, indicating changes of +23.29% and +18.8%, respectively, from the former year.
Any recent changes to analyst estimates for Interactive Brokers Group, Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.47% higher. Interactive Brokers Group, Inc. presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Interactive Brokers Group, Inc. is presently being traded at a Forward P/E ratio of 32.56. Its industry sports an average Forward P/E of 13.08, so one might conclude that Interactive Brokers Group, Inc. is trading at a premium comparatively.
Meanwhile, IBKR's PEG ratio is currently 1.56. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial - Investment Bank industry currently had an average PEG ratio of 0.86 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 43, finds itself in the top 18% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
The market expects Interactive Brokers Group, Inc. (IBKR - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 15. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.66 per share in its upcoming report, which represents a year-over-year change of +15.8%.
Revenues are expected to be $1.83 billion, up 13.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.94% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Interactive Brokers?For Interactive Brokers, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.52%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Interactive Brokers will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Interactive Brokers would post earnings of $0.64 per share when it actually produced earnings of $0.69, delivering a surprise of +7.81%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Interactive Brokers appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAmong the stocks in the Zacks Financial - Investment Bank industry, JPMorgan Chase & Co. (JPM - Free Report) , is soon expected to post earnings of $5.94 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +17.2%. This quarter's revenue is expected to be $52.21 billion, up 12.5% from the year-ago quarter.
The consensus EPS estimate for JPMorgan Chase & Co. has been revised 0.3% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +1.19%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that JPMorgan Chase & Co. will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
A House panel just accused a major retail brokerage of posing a structural threat to American investors, and the fallout is rippling far beyond one stock.
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A House panel’s national security finding is changing how the market values Webull (NASDAQ:BULL | BULL Price Prediction) stock. The damage is landing hardest on the one online broker in this group with China-linked roots. Webull stock is down 29% to $5.15 in morning trading after the panel called the company’s China ties a national security risk.
Rival retail platforms are lower by far smaller margins. Also, Robinhood Markets (NASDAQ:HOOD) stock is down 3% to $108.93 as the selloff spills into the peer group. Interactive Brokers (NASDAQ:IBKR) stock is slipping 2% to $88.77, a softer retreat in line with the rest of the group.
Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.4% to $775.80. That leaves the broad market close to steady while China-linked fintech takes the greatest pressure in equities. For financial-sector context, the Financial Select Sector SPDR ETF (NYSEARCA:XLF) is down 0.52% to $53.72; note that this fund reportedly doesn’t hold a position in Webull shares.
House Panel Report Targets Webull’s China Ties The House Select Committee on China released a report. It found Webull tied in structural ways to the government of China, and the committee stated that its concerns grew after Webull began carrying customer cash directly in October 2025. Named in the report were Webull’s ownership architecture, technical workforce, technology infrastructure, cross-border data routing, corporate financing and compliance frameworks. Lawmakers on the panel called Webull’s customer-cash arrangement “a structural exposure of American capital.”
Committee chair John Moolenaar stated that Webull’s China-based operations put American investors and their data at risk. Webull didn’t immediately respond to a request for comment, and the company’s own filings already list “Risks from government inquiries and investigations relating to connections to China” among its disclosed risk factors.
Webull is also building a 350 million yuan ($51.6 million) research and development center in Changsha, China, adding to the China-based footprint the committee noted.
Robinhood and Interactive Brokers Slip by Far Less Webull competes with Robinhood and Interactive Brokers for the same retail order flow, which explains why all three stocks are lower, and that spread between the moves reflects a difference in jurisdiction, since Robinhood and Interactive Brokers both lack the China-linked ownership and engineering structure the committee describes.
Interactive Brokers runs a global automated electronic brokerage from Greenwich, Connecticut, and Robinhood operates from Menlo Park, California. The 3% decline in Robinhood stock and the 2% dip in Interactive Brokers shares suggest the market reads the report as a Webull-specific problem with modest impact. With SPY off just 0.4%, the broad market offers little explanation for a 29% decline in Webull stock.
Webull’s Bear Case Meets a Findings-Only Report Webull’s bear case rests on a regulatory risk that no quarterly result can answer. A finding about corporate structure sits outside what an earnings beat can repair, and Webull stock was already trading far below its 52-week high of $13.25 before the report landed.
Supporting the bull case, the committee issued findings, which carry no automatic order, fine or ban against Webull. Webull has expanded into Thailand through Pi Securities. Before the report, the elimination of the Pattern Day Trader rule on June 4 had helped drive record trading volumes at Webull, and the company has also expanded into Japan, Singapore and Hong Kong. Those operating gains give Webull a business case that stands apart from the questions lawmakers raised about its structure.
What to Watch Next Any regulatory action on what the committee found is the next major test for Webull, since no penalty follows automatically from the report. A key signal for shareholders is whether a federal agency opens a formal review of Webull’s ownership, data routing or customer-cash arrangements.
Webull’s formal response to the committee could also move Webull stock once the company addresses the findings publicly. Those concerned about their exposure may choose to reduce their share positions given Webull’s unresolved regulatory uncertainty and the 29% drop in Webull stock.
Share positions in Robinhood and Interactive Brokers should reflect the narrower, sympathy-driven declines in both stocks. Robinhood and Interactive Brokers face sector sentiment from this report, while Webull confronts a question about its corporate structure that lawmakers have now put on the record.
Contact [email protected] for any questions or corrections.
Interactive Brokers Group, Inc. (NASDAQ:IBKR) will release earnings for its third quarter after the closing bell on Thursday, Oct. 15.
Analysts expect the Greenwich, Connecticut-based company to report quarterly earnings of 68 cents per share, up from 57 cents per share in the year-ago period. The consensus estimate for IBKR’s quarterly revenue is $1.87 billion. It reported $1.61 billion last year, according to Benzinga Pro.
On Oct. 1, Interactive Brokers reported 4.111 million daily average revenue trades in September, up 6% year over year.
Shares of Interactive Brokers rose 1.7% to close at $90.58 on Tuesday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
B of A Securities analyst Craig Siegenthaler maintained the stock with a Buy rating and raised the price target from $114 to $116 on Oct. 5, 2026. This analyst has an accuracy rate of 72%. Goldman Sachs analyst James Yaro maintained a Buy rating and slashed the price target from $114 to $113 on Sept. 2, 2026. This analyst has an accuracy rate of 61%. UBS analyst Michael Brown downgraded the stock from Buy to Neutral and raised the price target from $50 to $102 on Sept. 1, 2026. This analyst has an accuracy rate of 56%. Raymond James analyst Patrick O’Shaughnessy initiated coverage on the stock with a Market Perform rating on Aug. 27, 2026. This analyst has an accuracy rate of 73%. BMO Capital analyst Brennan Hawken maintained the stock with an Outperform rating and raised the price target from $105 to $110 on July 22, 2026. This analyst has an accuracy rate of 72%. Considering buying IBKR stock? Here’s what analysts think:
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Key Takeaways Interactive Brokers' client accounts rose 35% year over year to 5.6 million in September 2026.IBKR's margin loans climbed 36% year over year to $105.2 billion, supporting interest income.IBKR's automated platform and competitive execution costs provide a foundation for scalable growth. Interactive Brokers Group, Inc. (IBKR - Free Report) reported solid brokerage metrics for September 2026, with client accounts, equity and margin balances posting strong year-over-year growth. Although Daily Average Revenue Trades (DARTs) declined sequentially, trading activity remained above the prior-year level, highlighting continued client engagement.
IBKR’s Client and Margin Growth Strengthen Revenue OutlookInteractive Brokers ended September with 5.6 million client accounts, up 35% year over year. Client accounts also increased 2% from August. Ending client equity increased 27% year over year to $964.7 billion. Client credit balances rose 20% year over year to $186.2 billion, including $6.4 billion in insured bank deposit sweeps.
Ending client margin loan balances grew 36% year over year to $105.2 billion. The increase in margin loans was the strongest growth among the major balance-sheet-related brokerage metrics, providing a favorable backdrop for interest income, while rising client assets and accounts create a larger base for future trading activity.
September DARTs rose 6% year over year to 4.1 million despite a 4% decline from August 2026. The company recorded 159 annualized average cleared DARTs per client account, while the average commission per cleared commissionable order was $2.57.
IBKR’s execution statistics also highlight its competitive positioning. The average U.S. Reg.-NMS stock trade was approximately $23,713 in September, while the total cost of executing and clearing such trades for IBKR PRO clients was about 1.2 basis points of trade value, compared with 2.5 basis points for the rolling 12 months. Competitive execution costs will likely help support client retention and trading activity.
IBKR’s Automated Platform Supports Scalable GrowthInteractive Brokers’ highly automated operating model enables it to expand across products and geographies without a proportionate increase in operating costs. Its platform provides access to stocks, options, futures, currencies, bonds, funds and digital assets across more than 170 market centers in 40 countries and 29 currencies.
Continued investments in cryptocurrencies, prediction markets, artificial intelligence and international market access are expanding IBKR’s product reach and could further increase client engagement. The scalability of its technology-led model is reflected in compensation expense, which represented just 9.8% of net revenues in the first half of 2026. As client accounts, assets and margin balances expand, IBKR should be able to leverage its existing technology infrastructure to support revenue growth and operating efficiency.
Similarly, Interactive Brokers’ peers, Robinhood Markets (HOOD - Free Report) and The Charles Schwab Corporation (SCHW - Free Report) , are leveraging technology and scalable platforms to drive client and asset growth.
Robinhood is expanding across equities, options, cryptocurrencies, retirement accounts, and prediction markets, while investments in Robinhood Gold, crypto, and prediction markets are expected to boost activity and revenue opportunities. HOOD’s technology infrastructure will likely support growth while maintaining efficiency.
Meanwhile, Schwab spans brokerage, banking, wealth management and advisory services, generating revenues from trading, net interest income and asset management. Digital, wealth, and advisor investments are expected to support client acquisition and asset gathering at SCHW, while scale should improve efficiency.
Our Take on Interactive BrokersInteractive Brokers’ September metrics data remain encouraging, led by strong growth in client accounts, equity and margin balances. The company’s automated platform and competitive execution costs provide a strong foundation for scalable growth. However, earnings remain sensitive to interest rates, while ongoing investments in technology and expansion could keep expenses elevated. Overall, the latest operating trends support a favorable long-term outlook for IBKR, although its premium valuation and interest-rate sensitivity remain key considerations.
Over the past year, shares of Interactive Brokers have rallied 28.4% compared with the industry’s 8.8% growth.
One-Year Price Performance
Image Source: Zacks Investment Research
IBKR currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here..
CX Institutional trimmed its position in shares of Interactive Brokers Group, Inc. (NASDAQ:IBKR – Free Report) by 89.4% during the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 5,944 shares of the financial services provider’s stock after selling 50,098 shares during the period. CX Institutional’s holdings in Interactive Brokers Group were worth $508,000 as of its most recent SEC filing.
A number of other hedge funds also recently bought and sold shares of the company. Bank of New York Mellon Corp purchased a new stake in shares of Interactive Brokers Group in the 2nd quarter valued at $210,639,000. Bessemer Group Inc. grew its stake in shares of Interactive Brokers Group by 156.0% during the first quarter. Bessemer Group Inc. now owns 3,922,736 shares of the financial services provider’s stock valued at $263,097,000 after buying an additional 2,390,247 shares during the last quarter. Assenagon Asset Management S.A. increased its stake in Interactive Brokers Group by 2,707.9% in the 1st quarter. Assenagon Asset Management S.A. now owns 1,192,749 shares of the financial services provider’s stock worth $79,998,000 after purchasing an additional 1,150,271 shares during the period. Amundi increased its stake in Interactive Brokers Group by 62.4% in the 1st quarter. Amundi now owns 2,433,236 shares of the financial services provider’s stock worth $163,197,000 after purchasing an additional 934,843 shares during the period. Finally, Goldman Sachs Group Inc. lifted its position in Interactive Brokers Group by 54.3% in the fourth quarter. Goldman Sachs Group Inc. now owns 2,518,858 shares of the financial services provider’s stock valued at $161,988,000 after purchasing an additional 886,372 shares during the last quarter. Institutional investors own 23.80% of the company’s stock.
Analysts Set New Price Targets A number of analysts have recently weighed in on IBKR shares. The Goldman Sachs Group reissued a “buy” rating and set a $111.00 price objective on shares of Interactive Brokers Group in a research note on Thursday. Keefe, Bruyette & Woods reaffirmed a “market perform” rating on shares of Interactive Brokers Group in a research note on Wednesday, September 2nd. Raymond James Financial assumed coverage on shares of Interactive Brokers Group in a report on Wednesday, August 26th. They set a “market perform” rating for the company. UBS Group cut Interactive Brokers Group from a “buy” rating to a “neutral” rating and increased their price objective for the stock from $50.00 to $102.00 in a report on Tuesday, September 1st. Finally, China Renaissance started coverage on Interactive Brokers Group in a research report on Tuesday, July 7th. They issued a “hold” rating on the stock. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $99.00.
Check Out Our Latest Stock Report on Interactive Brokers Group Interactive Brokers Group Stock Performance IBKR opened at $88.30 on Monday. The company has a market cap of $150.23 billion, a price-to-earnings ratio of 35.32, a price-to-earnings-growth ratio of 1.63 and a beta of 1.37. The stock has a fifty day simple moving average of $90.66 and a two-hundred day simple moving average of $85.86. Interactive Brokers Group, Inc. has a 12-month low of $58.95 and a 12-month high of $98.75.
Interactive Brokers Group (NASDAQ:IBKR – Get Free Report) last announced its earnings results on Tuesday, July 21st. The financial services provider reported $0.69 EPS for the quarter, beating analysts’ consensus estimates of $0.64 by $0.05. The firm had revenue of $1.88 billion for the quarter, compared to analysts’ expectations of $1.80 billion. Interactive Brokers Group had a net margin of 9.94% and a return on equity of 5.37%. The company’s quarterly revenue was up 28.1% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.51 EPS. On average, analysts predict that Interactive Brokers Group, Inc. will post 2.69 EPS for the current year.
Interactive Brokers Group Announces Dividend The business also recently disclosed a quarterly dividend, which was paid on Monday, September 14th. Investors of record on Tuesday, September 1st were given a dividend of $0.0875 per share. This represents a $0.35 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend was Tuesday, September 1st. Interactive Brokers Group’s dividend payout ratio (DPR) is 14.00%.
(Free Report)
Interactive Brokers Group, Inc is a global electronic brokerage company that provides trading, investment and custody services to individual investors, financial advisors, hedge funds, proprietary trading firms, family offices and other institutional clients. The company offers access to a broad range of markets and financial instruments, including stocks, options, futures, currencies, bonds, exchange-traded funds and mutual funds.
Interactive Brokers provides its services through digital platforms such as Trader Workstation, IBKR Mobile and Client Portal, along with application programming interfaces for clients seeking automated or integrated trading capabilities.
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Interactive Brokers Group, Inc. (IBKR - Free Report) closed at $88.32 in the latest trading session, marking a +2.93% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.73% for the day. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 1.19%.
Shares of the company witnessed a loss of 7.68% over the previous month, trailing the performance of the Finance sector with its loss of 4.15%, and the S&P 500's gain of 0.55%.
The upcoming earnings release of Interactive Brokers Group, Inc. will be of great interest to investors. The company's earnings report is expected on October 15, 2026. The company is forecasted to report an EPS of $0.67, showcasing a 17.54% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.85 billion, indicating a 14.92% increase compared to the same quarter of the previous year.
IBKR's full-year Zacks Consensus Estimates are calling for earnings of $2.68 per share and revenue of $7.31 billion. These results would represent year-over-year changes of +22.37% and +18.77%, respectively.
It is also important to note the recent changes to analyst estimates for Interactive Brokers Group, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Interactive Brokers Group, Inc. boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Interactive Brokers Group, Inc. is currently being traded at a Forward P/E ratio of 31.99. For comparison, its industry has an average Forward P/E of 12.93, which means Interactive Brokers Group, Inc. is trading at a premium to the group.
It's also important to note that IBKR currently trades at a PEG ratio of 1.59. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Financial - Investment Bank industry was having an average PEG ratio of 0.92.
The Financial - Investment Bank industry is part of the Finance sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Online brokerage stocks are surging well past the broader market today, but Webull is sitting on a steep one-month loss that one session's gains cannot erase. Whether its recent AI and licensing moves can change that story is the real…
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Online trading platforms are rallying together, and Webull (NASDAQ:BULL | BULL Price Prediction) stock is moving furthest of the names leading the advance. Webull stock trades at $7.41, up 5% on the session.
Also climbing alongside Webull, shares of Interactive Brokers (NASDAQ:IBKR) are up 3% to $88.42. Robinhood Markets (NASDAQ:HOOD) stock is rising 2% to $113.33, the smallest gain of the trio while still pointing in the same direction.
The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.7% to $769.01. That modest broad-market gain leaves shares of Webull, Interactive Brokers and Robinhood far beating the benchmark, which points to buying aimed at the brokerage group itself. Checking in on the financial sector, the Financial Select Sector SPDR ETF (NYSEARCA:XLF) is practically unchanged at $53.48.
A Group-Wide Advance in Brokerage Stocks No company announcement from Webull is tied to the current session, and Webull stock is rising in step with Interactive Brokers and Robinhood shares, tying the rise in Webull stock to sentiment across online brokerages as a whole.
Interactive Brokers and Robinhood both build their businesses around their customers trading stocks, options and other assets on their own apps. Traders often treat these platforms as a single group, so strength in one name can carry over to Webull stock and the others. SPY’s smaller gain shows the buying is concentrated in brokerage names.
MOUM Launch Highlights Webull’s Licensing Model Webull’s two most recent announcements point to a different business model from the one Interactive Brokers and Robinhood run. On October 1, Webull announced it’s backing MOUM. The new investment platform from Meritz Securities gives Korean retail investors access to Webull’s Vega AI tools, investor community and U.S. equity markets. Meritz Securities is the first Korean brokerage to offer those Webull tools, and the launch builds on a partnership the two firms announced in late 2025.
Anthony Denier, Webull’s Group President and U.S. Chief Executive, stated that on September 29 the company expanded a cloud service connecting outside artificial intelligence assistants to Webull’s market data, account information and trading tools. Those assistants include Claude, Perplexity and Grok. Eligible Webull users in the U.S. can research and prepare an order inside one of them, and every order must still be confirmed through Webull before it reaches the market.
Past-Month Decline Tempers the Rebound Webull stock is down 17.5% over the past month. That drop leaves Webull stock well below where it sat a month ago, and one rebound doesn’t undo it. Through a merger in 2025, Webull became publicly listed, giving the stock a short trading record and making the past month the best recent gauge of sentiment.
A slide of that depth frames how much Webull’s licensing push still has to prove. MOUM and the artificial intelligence assistant service give Webull new ways to reach customers, but both launches are too recent to appear in the company’s reported results. Until those results arrive, Webull stock may keep trading on the mood surrounding Interactive Brokers stock, Robinhood stock and the rest of the brokerage group.
What the Move Means for Investors The gain in Webull stock lines up with the broader advance in brokerage stocks, which makes the move hard to credit to the company’s own strategy. The question now is whether Webull stock holds its gain if shares of Interactive Brokers and Robinhood lose momentum.
Anyone considering their exposure should adjust their holdings carefully given the 17.5% slide in Webull stock over the past month. Keeping their starting stake modest leaves room to add if Webull’s partnership and artificial intelligence launches begin to show up in the company’s reported numbers.
Contact [email protected] for any questions or corrections.
GREENWICH, Conn.--(BUSINESS WIRE)---- $IBKR #IBKR--Interactive Brokers Group, Inc. (Nasdaq: IBKR) an automated global electronic broker, today reported its Electronic Brokerage monthly performance metrics for September. Brokerage highlights for the month included: 4.111 million Daily Average Revenue Trades (DARTs)1, 6% higher than prior year and 4% lower than prior month. Ending client equity of $964.7 billion, 27% higher than prior year and about even with prior month. Ending client margin loan balances of $1.
Interactive Brokers Group, Inc. (IBKR - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this company have returned -4.2% over the past month versus the Zacks S&P 500 composite's -0.4% change. The Zacks Financial - Investment Bank industry, to which Interactive Brokers belongs, has lost 7.8% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Interactive Brokers is expected to post earnings of $0.67 per share for the current quarter, representing a year-over-year change of +17.5%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
For the current fiscal year, the consensus earnings estimate of $2.68 points to a change of +22.4% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $3.17 indicates a change of +18.1% from what Interactive Brokers is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Interactive Brokers.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Interactive Brokers, the consensus sales estimate for the current quarter of $1.85 billion indicates a year-over-year change of +14.9%. For the current and next fiscal years, $7.31 billion and $8.43 billion estimates indicate +18.8% and +15.3% changes, respectively.
Last Reported Results and Surprise HistoryInteractive Brokers reported revenues of $1.88 billion in the last reported quarter, representing a year-over-year change of +27.2%. EPS of $0.69 for the same period compares with $0.51 a year ago.
Compared to the Zacks Consensus Estimate of $1.79 billion, the reported revenues represent a surprise of +5.14%. The EPS surprise was +7.81%.
Over the last four quarters, Interactive Brokers surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Interactive Brokers is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Interactive Brokers. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Interactive Brokers Group, Inc. (IBKR - Free Report) closed the most recent trading day at $87.08, moving -2.42% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.77% for the day. On the other hand, the Dow registered a loss of 0.67%, and the technology-centric Nasdaq decreased by 0.92%.
Heading into today, shares of the company had lost 6.89% over the past month, lagging the Finance sector's loss of 3.48% and the S&P 500's gain of 0.96%.
Analysts and investors alike will be keeping a close eye on the performance of Interactive Brokers Group, Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on October 15, 2026. The company is forecasted to report an EPS of $0.67, showcasing a 17.54% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.85 billion, indicating a 14.92% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $2.68 per share and a revenue of $7.31 billion, demonstrating changes of +22.37% and +18.77%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Interactive Brokers Group, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Interactive Brokers Group, Inc. currently has a Zacks Rank of #3 (Hold).
Investors should also note Interactive Brokers Group, Inc.'s current valuation metrics, including its Forward P/E ratio of 33.27. This indicates a premium in contrast to its industry's Forward P/E of 13.26.
Meanwhile, IBKR's PEG ratio is currently 1.65. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Financial - Investment Bank industry currently had an average PEG ratio of 0.94 as of yesterday's close.
The Financial - Investment Bank industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 96, placing it within the top 40% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Interactive Brokers Group, Inc. (IBKR - Free Report) .
Interactive Brokers currently has an average brokerage recommendation (ABR) of 1.67, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 12 brokerage firms. An ABR of 1.67 approximates between Strong Buy and Buy.
Of the 12 recommendations that derive the current ABR, eight are Strong Buy, representing 66.7% of all recommendations.
Brokerage Recommendation Trends for IBKR
Check price target & stock forecast for Interactive Brokers here>>>
The ABR suggests buying Interactive Brokers, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is IBKR Worth Investing In?Looking at the earnings estimate revisions for Interactive Brokers, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $2.68.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Interactive Brokers. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Interactive Brokers.
Shares of Interactive Brokers (IBKR -0.65%) trade near $89 as of this writing, roughly 10% under their 52-week high of $98.75. And they're not cheap. The stock costs roughly 29 times next year's expected earnings, a growth stock price on a brokerage.
Where the stock stands in five years depends on two things: how much the firm earns by then, and what investors will pay for every dollar of those earnings. The second is beyond everyone's control.
The useful question is what the business would have to do to send the stock materially higher -- say, a double by late 2031. That's roughly 15% a year, compounded.
Image source: Getty Images.
What would a double require?If the stock's price-to-earnings multiple in 2031 is the same one it has now, shares double when earnings per share double.
The tech firm is clearing this bar with lots of room. In the first half of 2026, net interest income grew 20% year over year, commission revenue grew around 25%, and earnings per share climbed 30%.
But don't expect profit margins to provide any of the growth. Interactive Brokers already turns roughly 77% of its net revenues into pre-tax profit, a level with little room left to climb.
So in the next five years, earnings should rise roughly as fast as revenue. And revenue follows the money clients hold with the broker and how much they trade.
The balances have outrun the ratesNet interest income is what the company earns from clients' idle cash and from the margin loans it makes against their portfolios. It was $2.8 billion in 2023, $3.1 billion in 2024, and $3.6 billion in 2025 -- 57% of last year's net revenues and its biggest revenue line. What strikes me is that the growth hasn't needed any help from rates. The Federal Reserve cut rates three times in the second half of 2025, but growth picked up, from 13% last year to 20% in the first half of 2026. The balances rose faster than the rates fell.
For the interest line to double by 2031 with rates unchanged, the balances behind it would need to roughly double. Customers' credit balances were $185.6 billion at the end of August, with margin loans at $101.5 billion -- up 27% and 41%, respectively, year over year. Doubling would put them near $370 billion and $200 billion.
Rates can still move the line, of course. The Federal Reserve hiked its benchmark rate a quarter point on Sept. 16. Interactive Brokers estimates a move that size in U.S. dollar rates would change its annual net interest income by around $81 million either way (around 2% of the line's current pace). And the 10-year Treasury yield's recent rise past 5% matters less here than it might seem, as substantially all the company's investment portfolio matures within three months.
Margin loans are the least reliable part. They hit $108.5 billion at the end of the second quarter before falling to $101.5 billion by the end of August, and a tough market could shrink them far quicker than that.
Accounts would need to doubleBalances track customers, after all, and customers keep coming. Interactive Brokers finished August with 5.46 million client accounts, 35% more than a year before, holding $962.8 billion in equity -- an average of around $176,000 per account.
If the money per account stays flat, doubling the balances means doubling the accounts, to roughly 11 million. That takes 15% yearly growth, and the base is compounding at 35% now.
Put another way, account growth could drop by more than half, and the customer count would still double by 2031. An ugly bear market could stall the pace for a year or two, of course. But the requirement leaves room for just that.
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Will the premium hold?That leaves the stock's price-to-earnings multiple, the part the company can't control. Charles Schwab costs roughly 13 times next year's expected earnings, so Interactive Brokers trades at more than double its rival's valuation.
But if earnings double over five years while the price-to-earnings multiple shrinks from 29 to 20, the stock returns roughly 38% in total (about 7% a year). If it holds, the same earnings double the stock.
Where does all that leave the stock in five years? Higher, I think, and perhaps far higher. The bigger unknown is the price-to-earnings multiple investors will pay in 2031, and I won't claim to know it. My expectations rest on the business instead. It's the half that keeps showing up in the monthly numbers.
Interactive Brokers (IBKR -0.43%) is a well-known discount broker, competing with new entrants like Robinhood (HOOD -1.61%) and old-school industry bellwether Charles Schwab (SCHW -0.42%). Interactive Brokers ended the second quarter of 2026 with 5.19 million customer accounts, up 34% year over year, representing $930 billion in equity, up 40%. The problem is that nothing on Wall Street grows to the sky.
A big return in a very specific period of time If you had purchased $10,000 of Interactive Brokers stock a decade ago, it would currently be worth just over $100,000. That's an impressive return in a decade, but it is worth highlighting that the biggest gains came in the last couple of years. In fact, it seems like the stock hit an inflection point in 2024. The timing here is worth noting.
Image source: Getty Images.
Over the last couple of years, risk-taking among investors appears to have ratcheted higher. That includes investment trends like artificial intelligence and more questionable investments like cryptocurrencies. It also includes prediction markets, which are time-limited binary-outcome "investments" that many would describe as gambling, with sports predictions as a key part of the story. Like its peers, Interactive Brokers has begun offering crypto trading and prediction markets to its customers.
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To be fair, Interactive Brokers doesn't have much of a choice. If it doesn't offer the products and services customers demand, customers will gravitate toward brokers that do. It has to do this to remain competitive. And in the near term, the company is seeing great success, as noted above in the customer account metrics. But there's another customer metric that highlights just how extreme risk-taking is among the financial company's customers right now: margin loans increased 67% year over year in the second quarter. That's a pretty big increase, but it tracks with the broader market, where margin debt is near record levels.
What happens to Interactive Brokers' business in a bear market? Right now, Interactive Brokers' business is being buoyed by aggressive investors leaning into risk during a bull market. Bull markets don't last forever; every bull in history has been followed by a bear. When a bear eventually comes along, investors will avoid risk, with some newer investors even deciding to exit the markets altogether. When that happens, Interactive Brokers' business will struggle, and Wall Street is likely to dump the stock. In other words, the last decade was great, but don't expect the good news to last forever.
Charles Schwab is an advertising partner of Motley Fool Money. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends Charles Schwab and recommends the following options: long January 2027 $43.75 calls on Interactive Brokers Group, short January 2027 $46.25 calls on Interactive Brokers Group, and short September 2026 $95 calls on Charles Schwab. The Motley Fool has a disclosure policy.
