Futu Holdings FUTU is slated to report its first-quarter 2026 results on May 28.
For the first quarter of 2026, FUTU expects net asset inflows to post a double-digit sequential increase, setting a new company record and underscoring healthy investor demand across its markets.
Despite unfavorable mark-to-market impacts from recent market volatility, Futu Holdings expects total client assets to increase modestly by the end of the first quarter of 2026.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $774.16 million, implying year-over-year growth of 28.29%.
FUTU’s shares have declined 45.3% year to date, significantly underperforming the Zacks Financial - Miscellaneous Services industry, which has fallen 7.6%, and the broader Zacks Finance sector, which has gained 0.9%.
FUTU’s YTD Performance
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Let us see how things have shaped up for the upcoming announcement.
Factors to Note Ahead of FUTU’s Q1 Results
Futu Holdings’ global expansion strategy appears to be yielding significant results, as evidenced by robust account growth and rising client assets. The company ended 2025 with 3.37 million funded accounts and HK$1.23 trillion in client assets, representing year-over-year growth of 39.6% and 65.9%, respectively. The company continued to gain traction across Hong Kong, Malaysia, Japan and other international markets, prompting management to target 800,000 net new funded accounts in 2026. Coupled with expectations for record first-quarter net asset inflows and double-digit sequential growth. This sustained customer and asset growth is anticipated to have strengthened trading activity, asset-based revenues and customer monetization in the quarter under review.
Strong trading activity continued to be a key growth driver for Futu Holdings heading into the first quarter of 2026. The company generated record quarterly trading volume of HK$3.98 trillion in the fourth quarter, while U.S. equity turnover advanced 17.1% sequentially as investors increasingly targeted opportunities across the AI value chain. Higher trading activity also fueled growth in margin financing and securities lending balances, which reached HK$67.7 billion. Management further highlighted strong “bottom-fishing” activity from clients in early 2026 and expects trading volume to remain stable sequentially. This sustained engagement is anticipated to have supported brokerage commissions, interest income and overall profitability in the first quarter of 2026.
Futu Holdings continued to broaden its revenue base beyond traditional brokerage operations through the rapid expansion of wealth management, IPO services and technology-led initiatives. Wealth management client assets increased 62% year over year to HK$179.6 billion, supported by the introduction of new investment products tailored to local market demand. The company also reinforced its leadership in Hong Kong’s IPO ecosystem, serving 600 IPO and investor-relations clients while capturing nearly half of the total public offering subscription volume in 2025. At the same time, the company increased investments in AI and crypto capabilities to enhance customer engagement and operational efficiency. These initiatives are expected to have boosted fee-based revenues, client retention and competitive positioning during the quarter under review.
However, Futu Holdings’ ongoing investments in AI capabilities, crypto infrastructure and overseas expansion are increasing its cost base. Fourth-quarter R&D expenses climbed 26.8% year over year due to higher staffing levels supporting AI and crypto initiatives, while sales and marketing expenses also rose as the company pursued customer acquisition across international markets. While these investments are aimed at strengthening long-term competitiveness, the higher operating expense structure is expected to pressure margins and profitability in the to-be-reported quarter, especially if revenue growth slows amid softer market activity.
Stocks to Consider
Futu Holdings currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology Sector are Credo Technology Group CRDO, Dell Technologies DELL and Docusign DOCU.
Credo Technology Group sports a Zacks Rank #1 (Strong Buy) at present. CRDO shares have rallied 51.8% in the year-to-date period. It is set to report its fourth-quarter fiscal 2026 results on June 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Dell Technologies carries a Zacks Rank #2 (Buy) at present. DELL shares have surged 134.5% year to date. DELL is set to report its first-quarter fiscal 2027 results on May 28, 2026.
Docusign carries a Zacks Rank #2 at present. DOCU shares have fallen 27.6% year to date. DOCU is set to report its first-quarter fiscal 2027 results on June 4, 2026.
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This article originally published on Zacks Investment Research (zacks.com).