Interactive Brokers Group IBKR 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 Rise
Adjusted 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 Strong
As 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 Dividend
Concurrent 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 IBKR
Interactive 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.
Interactive Brokers Group, Inc. Price, Consensus and EPS Surprise
Interactive Brokers Group, Inc. price-consensus-eps-surprise-chart | Interactive Brokers Group, Inc. Quote
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 Peers
Here are some of IBKR’s peers, which are yet to come out with quarterly numbers.
Robinhood Markets HOOD 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 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.
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Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).