Interactive Brokers Group, Inc. (IBKR) Earnings

Interactive Brokers Group, Inc.

IBKR · Nasdaq

Symbol: IBKR
Type: Stock
Sector: Finance
Industry: Investment Bankers/Brokers/Service
Country: North America
Exchange: Nasdaq

Interactive Brokers Group, Inc. (NASDAQ: IBKR) is a member of the S&P 500. Its affiliates provide automated trade execution and custody of securities, commodities, foreign exchange, and prediction markets around the clock on over 175 markets in numerous countries and currencies from a single unified platform to clients worldwide. We serve individual investors, hedge funds, proprietary trading groups, financial advisors and introducing brokers. Our four decades of focus on technology and automation have enabled us to equip our clients with a uniquely sophisticated platform to manage their investment portfolios. We strive to provide our clients with advantageous execution prices and trading, risk and portfolio management tools, research facilities and investment products, all at low or no cost, positioning them to achieve superior returns on investments.

Key Issues

Bullish view

Zacks argues that IBKR's 8.6% monthly slide may offer a buying opportunity, with product expansion and growth forecasts supporting the outlook.

Bearish view

The decline may reflect unresolved concerns that are not addressed in the supplied evidence, and the stock's volatile trading pattern provides no confirmation that the weakness has ended.

Analyst Consensus

See all

Buy

9 analysts

$78

Current

—

Low

$105

Average

—

High

Average target implies +34.76% versus the current price.

Earnings History

BeatMissNo estimate

Dec 2026upcoming

Next quarter

Expected to report Jan 19, 2027 — estimated from last year’s reporting date.

Consensus is $0.72 EPS for Dec 2026 across 4 estimates, ranging $0.70 to $0.77.

IBKR Sep 2026

Reported Oct 15, 2026 · after the close

: 0.00%
: -3.88%

: $0.67
: $0.67
: —
: —

Highlights

EPS and expectations: Adjusted diluted EPS was $0.67, matching consensus, while GAAP diluted EPS was $0.69 versus $0.59 a year earlier and $0.69 in Q2 FY2026.
Revenue growth: GAAP net revenue rose 16% year over year to $1.914 billion; adjusted net revenue was $1.872 billion, up 16% from $1.610 billion.
Net interest income: GAAP net interest income increased 19% to $1.154 billion, as larger customer margin-loan and credit balances outweighed lower net interest margin, which fell to 1.99% from 2.16%.
Customer expansion: Accounts grew 35% year over year to 5.576 million and customer equity rose 27% to $965 billion; accounts and equity were up 8% and 4%, respectively, from Q2.
Trading mix: DARTs increased 18% year over year to 4.273 million but declined 11% sequentially. Futures volume rose 13% year over year, while customer stock-share volume fell 24% and options contracts slipped 1%.
Profitability and costs: Pretax income reached $1.496 billion, up from $1.312 billion a year earlier, while the pretax margin eased to 78% from 79%. Execution and clearing costs rose 46% to $134 million, mainly from $30 million of SEC transaction fees that are largely passed through.
Dividend and capital: The quarterly dividend was raised to $0.15 per share from $0.0875, or $0.60 annualized from $0.35; total equity was $23.3 billion and the company reported no long-term debt.
Product initiatives: The company began rolling out autonomous AI trading, initially inviting about 3,000 clients, and reported approximately $300 million of assets in its tax-aware RIA strategies.

Analysis

Interactive Brokers delivered another strong growth quarter, with adjusted diluted EPS of $0.67 exactly matching consensus and GAAP diluted EPS of $0.69. GAAP net revenues of $1.914 billion increased 16% from $1.655 billion a year ago, while adjusted net revenues grew 16% to $1.872 billion. Pretax income rose 14% to $1.496 billion and net income was $1.348 billion, compared with $1.186 billion in Q3 FY2025. Sequentially, diluted EPS was unchanged from Q2 FY2026’s $0.69 and net income was approximately flat versus $1.34 billion; trading activity moderated, with DARTs down 11% from the prior quarter.

The central driver was balance growth supporting net interest income: customer margin loans and credit balances expanded, lifting GAAP net interest income 19% to $1.154 billion even as net interest margin narrowed 17 basis points to 1.99%. Customer growth remained rapid, with accounts up 35% year over year to 5.576 million and customer equity up 27% to $965 billion, although trading was uneven across products and lower sequentially. The company maintained a 78% pretax margin and raised its quarterly dividend to $0.15 from $0.0875. Reported results also included currency-diversification and investment marks, which the company excludes from adjusted results.

Earnings and margins

Revenue growth and high profitability defined the print. GAAP net revenues advanced 16% year over year to $1.914 billion, with adjusted net revenues of $1.872 billion after $42 million of adjustments, primarily for the currency-diversification strategy. GAAP income before tax was $1.496 billion, versus $1.312 billion a year earlier; adjusted pretax income was $1.454 billion, up from $1.267 billion. The reported and adjusted pretax margin was 78%, compared with 79% a year ago.

EPS: GAAP diluted EPS was $0.69 versus $0.59 a year ago and $0.69 in Q2 FY2026. Adjusted diluted EPS was $0.67 versus $0.57 a year ago, matching the $0.67 consensus.
Commissions: Revenue rose 12% to $602 million. DARTs were up 18% year over year, while regulatory fees passed through to customers also contributed.
Other fees: Other fees and services increased 33% to $88 million, including higher risk exposure fees, exchange-mandated order-flow payments and market-data fees.
Expenses: Non-interest expenses increased to $418 million from $343 million. Execution, clearing and distribution fees rose 46% to $134 million, including a $30 million increase in SEC Section 31 fees; the largely passed-through fees raise both revenue and costs without materially affecting profit.

Interest income engine

GAAP net interest income rose 19% to $1.154 billion, primarily on higher average customer margin loans and customer credit balances. For its net-interest-margin presentation, which includes some interest-like amounts classified elsewhere in GAAP reporting, the company reported $1.191 billion of net interest income. Average margin loans increased 47% year over year to $104.0 billion, while the annualized yield on them eased to 4.25% from 4.60%. NIM declined to 1.99% from 2.16%, reflecting rate and balance mix effects even as customer balances expanded. Management estimated that a 25-basis-point move in the Fed funds rate would change annual net interest income by about $83 million, based on September 30 balances.

Customers and trading

The platform continued to add customers and assets, while trading intensity moderated from Q2. Total accounts reached 5.576 million, up 35% year over year and 8% sequentially; customer equity was $965 billion, up 27% year over year and 4% from Q2. Customer DARTs averaged 4.273 million, 18% above a year ago but 11% below Q2. Cleared average DARTs per account, annualized, fell 14% year over year to 168, indicating that account growth outpaced trading activity.

Product mix: Customer futures volume rose 13% year over year, while options contracts fell 1% and stock shares declined 24%. Management attributed much of the stock-share decrease to lower-priced stocks and said customers favored larger, higher-quality names.
Order economics: Commission per cleared commissionable order was $2.59, down 4% year over year, reflecting smaller order sizes.
Overnight activity: Overnight trades exceeded 10 million in the quarter, up from 3.5 million in Q3 FY2025, as international customers increasingly used the platform during their local waking hours.

Capital and dividend

The board raised the quarterly cash dividend to $0.15 per share from $0.0875, taking the annualized rate to $0.60 from $0.35. Chairman Thomas Peterffy said the company aims for dividends equal to 0.5%–1% of market value and that it had fallen behind that guideline. Total equity was $23.3 billion at quarter-end, and management said the company had no long-term debt. The balance sheet also expanded, with total assets of $243.2 billion at September 30, versus $203.2 billion at December 31, 2025.

Products and expansion

Product launches and platform development were aimed at extending the brokerage’s global reach and serving active, institutional and advisory clients. The company added exchange access in Romania and the U.S., launched Brazilian B3 futures, expanded Japanese offerings including margin lending, and introduced short-duration prediction-market contracts. It also continued expanding its AI capabilities, including a limited rollout of autonomous trading; about 3,000 clients had initially been invited. In the RIA channel, tax-aware long-short strategies had approximately $300 million in assets at quarter-end, with three or four providers involved and further additions planned.

Other income and adjustments

Other income fell 18% year over year to $70 million, reflecting investment-related items and the currency-diversification strategy. The company’s reconciliation removed $40 million for the currency strategy and $3 million of investment marks from quarterly revenue and pretax income, bringing adjusted net revenue to $1.872 billion. The currency strategy included a $40 million gain recorded in other income and a $44 million loss in other comprehensive income, for a $4 million reduction in comprehensive earnings. These items reduced adjusted EPS by approximately $0.02 relative to GAAP EPS.