Interactive Brokers Posts Record Q3 Pretax Profit With 78% Margin and Raises Quarterly Dividend 71%

Interactive Brokers Group reported record pretax income of $1.50 billion on a GAAP basis and $1.45 billion as adjusted for the third quarter of 2026, driving a pretax margin of approximately 78%. GAAP net revenues rose to $1.91 billion from $1.66 billion a year earlier, while adjusted net revenues of $1.87 billion were near a record. Diluted earnings per share came in at $0.69 reported and $0.67 adjusted, compared with $0.59 and $0.57 respectively in the year-ago period. The company raised its quarterly dividend 71%, from $0.0875 to $0.15 per share.

Commissions climbed 12% year over year to $602 million, marking the third consecutive quarter at that level, though softer customer stock trading activity and declining commission rates drew attention from analysts. BMO Capital trimmed its price target on IBKR to $100 from $105, citing commission headwinds, while maintaining an Outperform rating. Deutsche Bank raised its target to $104 from $102. Zacks upgraded the stock to a Strong Buy, its top rating. Shares slipped roughly 0.8% in premarket trading after the results as investors weighed cooling trading volumes against the strong margin profile.

Interest rate sensitivity remains a watchpoint: a 25 basis point drop in U.S. rates would reduce annual net interest income by an estimated $83 million, though continued account and asset growth provides a partial offset. The company also launched Ethereum staking for eligible clients through its Client Portal, adding a crypto yield product to its platform. Chairman Thomas Peterffy appeared on CNBC to discuss concerns around autonomous AI trading, a theme the company flagged as a growing focus heading into 2027.