Interactive Brokers beats Q2 forecasts on trading growth and higher interest income (NASDAQ:IBKR)

Strong customer activity lifts earnings and revenue

Interactive Brokers (NASDAQ:IBKR) reported second-quarter results that exceeded Wall Street expectations on Tuesday, as increased trading activity, expanding margin lending and stronger net interest income boosted earnings.

The online brokerage posted earnings per share of $0.69, surpassing analysts’ consensus estimate of $0.62. Revenue reached $1.88 billion, ahead of the expected $1.76 billion.

The results reflect continued strength in both retail and institutional trading activity during a period of elevated market volatility, supporting transaction volumes and demand for margin financing across the platform.

Despite the earnings beat, shares were marginally lower in premarket trading on Wednesday.

Commission and interest income post strong gains

Commission revenue increased 30% year over year to $673 million as customer trading volumes expanded across multiple asset classes. Options trading rose 17%, stock trading increased 14%, and futures trading advanced 2%.

Net interest income climbed 23% to $1.06 billion, driven by higher average customer margin loans and larger customer credit balances. Revenue from service fees also rose sharply, increasing 40% to $87 million.

Analysts raise earnings expectations

Following the results, Wolfe Research increased its outlook for the company, making mid-single-digit percentage upgrades to its 2027 and 2028 earnings-per-share forecasts.

“Commentary suggests growth is broad-based, supporting elevated KPIs over the near-term,” analyst Steven Chubak said. “Valuation is undemanding at 30x WR 2027E vs. EPS growth/peer comps.”

Jefferies also responded positively, describing the report as a “clean quarter” and noting that the earnings release prompted increases of between 9% and 10% to its second-half 2026 and full-year 2027 estimates.

Customer base and assets continue to expand

Interactive Brokers continued to report robust customer growth during the quarter. Total client accounts increased 34% year over year to 5.19 million, while customer equity rose 40% to $930.3 billion.

Daily Average Revenue Trades (DARTs) climbed 36% to 4.82 million. Customer margin loans surged 67% to $108.5 billion, while customer credit balances increased 27% to $182.4 billion.

The company’s board also approved a quarterly cash dividend of $0.0875 per share, payable on September 14 to shareholders of record as of September 1.

Interactive Brokers stock price