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Interactive Brokers
(NASDAQ:IBKR)
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Rating:72Outperform
Price Target:
$95.00
â–¼(-3.25% Downside)
Action:Reiterated
Date:10/17/26
The score is driven primarily by strong financial performance (high profitability and robust cash generation), reinforced by a positive earnings call with record profits and strong account growth. These strengths are tempered by mixed technicals (below key short/intermediate moving averages with negative MACD) and a relatively rich valuation (P/E 32.7 with a low dividend yield).
Positive Factors
Revenue Growth and Profitability
IBKR has built substantial revenue scale while preserving exceptionally high operating profitability. This combination indicates strong economics in its electronic brokerage model and provides resources to fund technology, geographic expansion, client acquisition, and new services over the coming quarters.
Negative Factors
Elevated and Volatile Leverage
The sharp swing in reported debt and the elevated TTM debt-to-equity ratio create balance-sheet uncertainty despite strong earnings and cash flow. Greater leverage can reduce financial flexibility, increase sensitivity to funding conditions, and complicate assessment of the company’s durable capital position.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Profitability
IBKR has built substantial revenue scale while preserving exceptionally high operating profitability. This combination indicates strong economics in its electronic brokerage model and provides resources to fund technology, geographic expansion, client acquisition, and new services over the coming quarters.
Read all positive factors
Interactive Brokers Key Performance Indicators (KPIs)
Any
Total Customer Accounts
Tracks the total number of customer accounts, indicating the company’s market reach and growth in user base, which can drive future revenue.
Tracks the total number of customer accounts, indicating the company’s market reach and growth in user base, which can drive future revenue.
Data provided by:
The Fly
The FlyInteractive Brokers (IBKR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.84B
Dividend Yield0.44%
Average Volume (3M)4.18M
Price to Earnings (P/E)29.2
Beta (1Y)1.73
Revenue Growth16.12%
EPS Growth25.72%
CountryUS
Employees3,182
SectorFinancial
Sector Strength70
IndustryInvestment - Banking & Investment Services
Share Statistics
EPS (TTM)2.53
Shares Outstanding453,077,760
10 Day Avg. Volume4,789,021
30 Day Avg. Volume4,184,483
Financial Highlights & Ratios
PEG Ratio1.05
Price to Book (P/B)5.34
Price to Sales (P/S)2.80
P/FCF Ratio1.82
Enterprise Value/Market Cap-0.69
Enterprise Value/Revenue-2.17
Enterprise Value/Gross Profit-2.32
Enterprise Value/Ebitda-2.45
Forecast
1Y Price Target
$106.10Price Target Upside8.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)2.7
Revenue Forecast (FY)$7.46B
Interactive Brokers Business Overview & Revenue Model
Company Description
Interactive Brokers Group, Inc. operates as a sophisticated electronic brokerage, serving clients across the United States and globally. This firm manages the trading, clearing, and settlement for a broad spectrum of financial instruments, includi...
How the Company Makes Money
IBKR primarily earns revenue from (1) net interest income, (2) commissions and order execution-related fees, and (3) other trading, clearing, and service fees.
1) Net interest income (interest on client balances and margin loans)
- Client cash ba...
Interactive Brokers Earnings Call Summary
Earnings Call Date:Oct 15, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 19, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. The company reported record pretax profit, a 78% pretax margin, double-digit growth in commissions, net interest income, DARTs, assets, and equity, along with over 30% account growth and substantial product, geographic, and AI expansion. The main challenges were broad-based moderation in trading activity, lower stock volumes and commission per order, slower-than-desired RIA onboarding, mixed early digital acquisition results, and execution-cost increases tied to SEC fees. Management characterized the trading slowdown as non-concerning and continued to emphasize significant growth opportunities.Positive Updates
Record Pretax Profit and Sustained High Margins
Pretax profit was a record, with a 78% pretax margin marking the eighth consecutive quarter with margins above 70%.
Negative Updates
Narrowing Market Breadth
Although the S&P 500 rose 2% during the quarter, large technology companies represented most of the gain. The 10 largest U.S. technology stocks represented nearly 40% of the index's total value.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Pretax Profit and Sustained High Margins
Pretax profit was a record, with a 78% pretax margin marking the eighth consecutive quarter with margins above 70%.
Read all positive updates
Company Guidance
Management said it will continue paying dividends between 0.5% and 1% of the market value, with the dividend increased to $0.60 a year; additional tax-aware strategy providers are coming by year end and more early next year, while the company expects to expand autonomous AI trading eligibility over the next few weeks after approximately 3 thousand clients were invited; it expects volatility to somewhat increase as it approaches the midterm elections and expects higher trading volumes related to AI adoption over time. Cboe may try to go live by the end of this month with single-stock KPI contracts, and the company has 9 months between now and maybe a little more before a competitor’s $100 million RIA threshold is supposed to happen sometime in the middle of next year. The company estimates that a 25-basis point increase or decrease in the benchmark Fed funds rate would result in $83 million higher or lower respectively, in annual net interest income, from a starting Fed funds effective rate of 3.88%, while a 25-basis point increase or decrease in all the relevant non USD benchmark rates would increase or decrease annual net interest income, respectively, by $35 million.Interactive Brokers Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
62
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.11B | 10.23B | 9.32B | 7.79B | 4.19B | 2.94B |
| Gross Profit | 10.37B | 9.19B | 8.29B | 6.87B | 3.41B | 2.31B |
| EBITDA | 9.83B | 9.08B | 7.98B | 6.60B | 3.10B | 2.08B |
| Net Income | 1.13B | 984.00M | 755.00M | 600.00M | 380.00M | 308.00M |
Balance Sheet | ||||||
| Total Assets | 247.31B | 203.24B | 150.14B | 128.25B | 115.14B | 109.11B |
| Cash, Cash Equivalents and Short-Term Investments | 7.71B | 4.96B | 3.63B | 3.75B | 3.44B | 2.40B |
| Total Debt | 13.00M | 19.00M | 16.26B | 11.36B | 8.96B | 11.80B |
| Total Liabilities | 225.06B | 182.77B | 133.54B | 114.18B | 103.53B | 98.89B |
| Stockholders Equity | 5.90B | 5.36B | 4.28B | 3.58B | 2.85B | 2.40B |
Cash Flow | ||||||
| Free Cash Flow | 15.83B | 15.74B | 8.68B | 4.50B | 3.90B | 5.82B |
| Operating Cash Flow | 15.91B | 15.81B | 8.72B | 4.54B | 3.97B | 5.90B |
| Investing Cash Flow | -181.00M | -171.00M | -44.00M | -52.00M | -67.00M | -188.00M |
| Financing Cash Flow | -1.02B | -969.00M | -833.00M | -624.00M | -470.00M | -523.00M |
Interactive Brokers Technical Analysis
Negative
98.19
Price Trends
88.39
Negative
89.97
Negative
82.87
Negative
Market Momentum
-2.30
Positive
34.38
Neutral
35.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IBKR, the sentiment is Negative. The current price of 98.19 is above the 20-day moving average (MA) of 84.36, above the 50-day MA of 88.39, and above the 200-day MA of 82.87, indicating a bearish trend. The MACD of -2.30 indicates Positive momentum. The RSI at 34.38 is Neutral, neither overbought nor oversold. The STOCH value of 35.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IBKR.
Interactive Brokers Risk Analysis
Interactive Brokers disclosed 38 risk factors in its most recent earnings report. Interactive Brokers reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Interactive Brokers Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
86 Outperform | $28.68B | 28.70 | 13.78% | 0.44% | 14.43% | 44.98% | |
81 Outperform | $35.04B | 23.81 | 26.84% | 0.90% | 11.68% | 50.39% | |
73 Outperform | $29.92B | 19.71 | 19.92% | 1.17% | 4.75% | -22.03% | |
72 Outperform | $34.84B | 29.24 | 20.41% | 0.44% | 16.12% | 25.72% | |
72 Outperform | $30.24B | 12.96 | 25.03% | 1.37% | 10.25% | 15.27% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $22.09B | 16.22 | 24.65% | 0.42% | 31.04% | 59.91% |
* Financial Sector Average
IBKR
Interactive Brokers
76.90
4.13
5.67%
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TW
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Interactive Brokers Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Interactive Brokers Updates Shelf Registration Share Allocation
Neutral
Jul 31, 2026
On July 31, 2026, Interactive Brokers Group, Inc. filed a Prospectus Supplement under Rule 424(b)(5) to withdraw 2,499,567 shares of its common stock from its existing shelf registration statement on Form S-3 with the SEC. The company also filed a...
Business Operations and StrategyRegulatory Filings and Compliance
Interactive Brokers Registers Additional Common Shares for Flexibility
Neutral
Jul 31, 2026
On July 31, 2026, Interactive Brokers Group, Inc. filed a Prospectus Supplement under Rule 424(b)(5) to register up to 920,000 shares of its common stock under an existing shelf Registration Statement on Form S-3 with the SEC. The filing, supporte...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.