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Interactive Brokers (IBKR) Up 7.3% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Interactive Brokers Group, Inc. (IBKR - Free Report) . Shares have added about 7.3% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Interactive Brokers due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Interactive Brokers Lags on Q1 Earnings Estimates as Expenses Rise
Interactive Brokers’ first-quarter 2026 adjusted earnings per share of 60 cents missed the Zacks Consensus Estimate of 62 cents. However, the bottom line reflected a rise of 27.7% from the prior-year quarter.
Results were primarily hurt by a rise in expenses. However, an increase in revenues, growth in customer accounts and a rise in DARTs acted as tailwinds.
After considering non-recurring items, net income available to common shareholders (GAAP basis) was $267 million or 59 cents per share, up from $213 million or 48 cents per share in the prior-year quarter.
Interactive Brokers reported comprehensive income available to common shareholders of $246 million or 65 cents per share compared with $241 million or 55 cents per share in the prior-year quarter.
Revenues Improve, Expenses Rise
Adjusted net revenues were $1.68 billion, up 20.3% year over year. Total GAAP net revenues were $1.67 billion, up 17% year over year. The Zacks Consensus Estimate for the top line was $1.71 billion.
Total non-interest expenses increased 2.4% year over year to $381 million. The rise was due to an increase in almost all cost components, except for execution, clearing and distribution fees.
Income before income taxes was $1.29 billion, up 22.1% year over year.
The adjusted pre-tax profit margin was 77%, up from 73% a year ago.
In the reported quarter, total customer DARTs jumped 24% year over year to 4.37 million.
Customer accounts grew 31% from the year-ago quarter to 4,754,000.
Capital Position Strong
As of March 31, 2026, cash and cash equivalents (including cash and securities set aside for regulatory purposes) totaled $100.4 billion compared with $81.8 billion as of Dec. 31, 2025.
As of March 31, 2026, total assets were $218.7 billion compared with $203.2 billion as of Dec. 31, 2025. Total equity was $21.3 billion, up from $20.5 billion as of Dec. 31, 2025.
Outlook
Management anticipates that the effect of a 25-basis point (bp) decrease in the benchmark Fed Funds rate will result in an $82 million reduction in annual net interest income (NII). Additionally, the company expects the effect of a 25-bp fall in all relevant non-USD benchmark rates to result in a $35 million reduction in annual NII.
How Have Estimates Been Moving Since Then?
Investors have witnessed a upward trend in estimates review over the past two months.
VGM Scores
At this time, Interactive Brokers has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Interactive Brokers has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Interactive Brokers is part of the Zacks Financial - Investment Bank industry. Over the past month, Morgan Stanley (MS - Free Report) , a stock from the same industry, has gained 3.5%. The company reported its results for the quarter ended March 2026 more than a month ago.
Morgan Stanley reported revenues of $20.58 billion in the last reported quarter, representing a year-over-year change of +16%. EPS of $3.43 for the same period compares with $2.60 a year ago.
For the current quarter, Morgan Stanley is expected to post earnings of $2.71 per share, indicating a change of +27.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.6% over the last 30 days.
Morgan Stanley has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Interactive Brokers (IBKR) Up 7.3% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Interactive Brokers Group, Inc. (IBKR - Free Report) . Shares have added about 7.3% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Interactive Brokers due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Interactive Brokers Lags on Q1 Earnings Estimates as Expenses Rise
Interactive Brokers’ first-quarter 2026 adjusted earnings per share of 60 cents missed the Zacks Consensus Estimate of 62 cents. However, the bottom line reflected a rise of 27.7% from the prior-year quarter.
Results were primarily hurt by a rise in expenses. However, an increase in revenues, growth in customer accounts and a rise in DARTs acted as tailwinds.
After considering non-recurring items, net income available to common shareholders (GAAP basis) was $267 million or 59 cents per share, up from $213 million or 48 cents per share in the prior-year quarter.
Interactive Brokers reported comprehensive income available to common shareholders of $246 million or 65 cents per share compared with $241 million or 55 cents per share in the prior-year quarter.
Revenues Improve, Expenses Rise
Adjusted net revenues were $1.68 billion, up 20.3% year over year. Total GAAP net revenues were $1.67 billion, up 17% year over year. The Zacks Consensus Estimate for the top line was $1.71 billion.
Total non-interest expenses increased 2.4% year over year to $381 million. The rise was due to an increase in almost all cost components, except for execution, clearing and distribution fees.
Income before income taxes was $1.29 billion, up 22.1% year over year.
The adjusted pre-tax profit margin was 77%, up from 73% a year ago.
In the reported quarter, total customer DARTs jumped 24% year over year to 4.37 million.
Customer accounts grew 31% from the year-ago quarter to 4,754,000.
Capital Position Strong
As of March 31, 2026, cash and cash equivalents (including cash and securities set aside for regulatory purposes) totaled $100.4 billion compared with $81.8 billion as of Dec. 31, 2025.
As of March 31, 2026, total assets were $218.7 billion compared with $203.2 billion as of Dec. 31, 2025. Total equity was $21.3 billion, up from $20.5 billion as of Dec. 31, 2025.
Outlook
Management anticipates that the effect of a 25-basis point (bp) decrease in the benchmark Fed Funds rate will result in an $82 million reduction in annual net interest income (NII). Additionally, the company expects the effect of a 25-bp fall in all relevant non-USD benchmark rates to result in a $35 million reduction in annual NII.
How Have Estimates Been Moving Since Then?
Investors have witnessed a upward trend in estimates review over the past two months.
VGM Scores
At this time, Interactive Brokers has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Interactive Brokers has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Interactive Brokers is part of the Zacks Financial - Investment Bank industry. Over the past month, Morgan Stanley (MS - Free Report) , a stock from the same industry, has gained 3.5%. The company reported its results for the quarter ended March 2026 more than a month ago.
Morgan Stanley reported revenues of $20.58 billion in the last reported quarter, representing a year-over-year change of +16%. EPS of $3.43 for the same period compares with $2.60 a year ago.
For the current quarter, Morgan Stanley is expected to post earnings of $2.71 per share, indicating a change of +27.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.6% over the last 30 days.
Morgan Stanley has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.