Interactive Brokers
IBKR
$90.28
-0.76%
Interactive Brokers Group is a global automated electronic broker and market maker, providing low-cost access to stocks, options, futures, currencies, and bonds across 170+ markets for retail and institutional clients. It distinguishes itself as a technology-first, high-volume brokerage with a sophisticated client base, including hedge funds and introducing brokers, and holds a leading position in direct market access and margin lending. The current investor narrative centers on robust account growth (34% YoY) and surging trading volumes (DARTs up 53% YoY), driven by regulatory tailwinds like the elimination of the PDT rule, while the market debates whether its premium valuation is justified by sustained growth and margin expansion.…
IBKR
Interactive Brokers
$90.28
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Investment Opinion: Should I buy IBKR Today?
Based on the analysis, IBKR is rated a Buy, supported by strong growth metrics, high profitability, and a bullish analyst consensus. The average analyst target of $105.74 implies 14.2% upside, and the stock's operational momentum, with 34% account growth and 53% DART growth, justifies a premium valuation. However, the current PE of 28.8x is above the industry average of 22x, and the stock is near its 52-week high, so investors should be prepared for potential volatility.
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IBKR 12-Month Price Forecast
The AI assessment is bullish on IBKR, driven by its exceptional operational momentum and profitability. The company is benefiting from secular tailwinds in retail trading and regulatory changes, which are fueling rapid account and volume growth. While the valuation is premium, the growth trajectory and high returns on equity justify the multiple. However, the medium confidence reflects the risk of interest rate sensitivity and potential market volatility. If IBKR can sustain its growth rates and maintain margins, the stock is likely to outperform, but a significant rate cut or market downturn could challenge the thesis. I would upgrade to high confidence if revenue growth exceeds 20% and account growth remains above 30%, and downgrade to neutral if growth decelerates below 10%.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Interactive Brokers's 12-month outlook, with a consensus price target around $105.74 and implied upside of +17.1% versus the current price.
Average Target
$105.74
0 analysts
Implied Upside
+17.1%
vs. current price
Analyst Count
—
covering this stock
Price Range
$70 - $121
Analyst target range
Analyst consensus is bullish, with 13 analysts covering IBKR and a mean recommendation of 1.93 (Buy). The average target price is $105.74, implying 14.2% upside from the current price of $92.62. The distribution shows 8 Buy ratings, 4 Overweight/Outperform, and 1 Hold, with no Sell ratings, reflecting strong conviction in the stock's prospects. The target range spans from $70 (low) to $121 (high), indicating a wide dispersion of views. The high target of $121 assumes continued strong account growth and margin expansion, while the low target of $70 implies a potential de-rating if growth decelerates or market volatility declines. Recent ratings actions have been positive, with B of A, Barclays, and Goldman Sachs reiterating Buy/Overweight ratings in April and July 2026, suggesting analysts see further upside.
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Bulls vs Bears: IBKR Investment Factors
IBKR presents a compelling growth story with accelerating account growth, surging trading volumes, and exceptional profitability, but the stock trades at a premium valuation that leaves little room for disappointment. The bull case is supported by strong operational momentum and analyst conviction, while the bear case hinges on valuation risk and dependence on interest rates. Currently, the evidence slightly favors the bulls given the robust growth trajectory and industry tailwinds, but the key tension is whether IBKR can sustain its growth and margin expansion to justify its 28.8x PE. If growth decelerates or rates fall faster than expected, the stock could face significant de-rating, making this the most critical factor to monitor.
Bullish
- Explosive Account and Trading Growth: Customer accounts grew 34% YoY and DARTs surged 53% YoY as of June 2026, fueled by the elimination of the PDT rule and rising retail participation. This rapid client acquisition directly drives commission income and future revenue, evidenced by Q1 2026 revenue growth of 16.9% YoY.
- Superior Profitability and Margins: IBKR boasts a net margin of 9.6% and an operating margin of 86%, far exceeding industry averages. This operational efficiency, combined with a 96% gross margin in Q1 2026, demonstrates a highly scalable business model that converts revenue growth into outsized earnings.
- Strong Analyst Conviction and Upside: With 13 analysts, the consensus is a Buy (mean 1.93) and the average target price is $105.74, implying 14.2% upside from the current $92.62. Notably, there are zero Sell ratings, and recent actions from BofA, Barclays, and Goldman Sachs have reiterated positive stances.
- Robust Momentum and Relative Strength: IBKR is up 44.1% over the past year and 38.9% over six months, dramatically outperforming the S&P 500's 18.7% gain. The stock trades at 93.8% of its 52-week range, reflecting sustained bullish momentum and strong investor demand.
Bearish
- Premium Valuation Near Historical Highs: The trailing PE of 28.8x is near the top of its historical range (13.8x to 29.2x) and represents a 31% premium to the industry average of 22x. This leaves little room for error; any growth disappointment could trigger multiple compression.
- Q1 Revenue Missed Expectations: Despite strong growth, Q1 2026 revenue of $2.701 billion fell short of consensus, causing the stock to slip after the report. This indicates that even robust operational metrics may not satisfy elevated market expectations, increasing vulnerability to negative reactions.
- Dependence on Interest Income and Rates: Net interest income is a major revenue driver, with interest income of $1.947 billion in Q1 2026. A decline in interest rates would directly pressure this income stream, potentially slowing revenue growth and impacting the premium valuation.
- Potential Overextension After Sharp Rally: The stock has rallied 38.9% in six months and now sits near its 52-week high of $98.75. With a beta of 1.349, IBKR is more volatile than the market, and a pullback could be sharp if momentum reverses or macro conditions sour.
IBKR Technical Analysis
IBKR is in a strong uptrend, with the stock up 44.1% over the past year and 38.9% over the past six months, significantly outperforming the S&P 500's 18.7% gain. The current price of $92.62 sits at 93.8% of its 52-week range (low $58.95, high $98.75), indicating the stock is trading near its highs, reflecting robust momentum but also potential overextension. The 52-week low was set in March 2026, and the stock has since rallied sharply, suggesting a sustained bullish phase rather than a mere recovery.
Beta
1.35
1.35x market volatility
Max Drawdown
-18.8%
Largest decline past year
52-Week Range
$59-$99
Price range past year
Annual Return
+45.1%
Cumulative gain past year
| Period | IBKR Return | S&P 500 |
|---|---|---|
| 1m | -0.4% | -1.4% |
| 3m | +1.6% | +3.3% |
| 6m | +36.4% | +15.1% |
| 1y | +45.1% | +17.2% |
| ytd | +34.3% | +11.8% |
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IBKR Fundamental Analysis
IBKR's revenue growth is accelerating, with Q1 2026 revenue of $2.701 billion up 16.9% YoY, compared to 7.0% growth in Q1 2025 and 13.6% in Q4 2025. The revenue trajectory shows a clear upward trend, driven by strong commission income (up 53% YoY in DARTs) and higher net interest income, though Q1 revenue slightly missed consensus estimates. The company's diversified revenue streams, including commissions ($613M), net interest income, and other fees, are benefiting from increased trading activity and higher interest rates, positioning IBKR for continued growth.
Quarterly Revenue
$2.7B
2026-03
Revenue YoY Growth
+16.9%
YoY Comparison
Gross Margin
96.1%
Latest Quarter
Free Cash Flow
$16.8B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is IBKR Overvalued?
Given IBKR's positive net income, the PE ratio is the primary valuation metric. The trailing PE is 28.8x, while the forward PE is 29.1x, indicating the market expects stable earnings growth, with the slight premium to forward earnings suggesting modest growth expectations. Compared to the industry average PE of 22x (from valuation data), IBKR trades at a 31% premium, reflecting its superior growth and profitability, as evidenced by a 9.6% net margin and 86% operating margin, which are well above industry norms. Historically, IBKR's PE has ranged from 13.8x in Q4 2023 to 29.2x in Q3 2025, and the current 28.8x is near the upper end of its historical band, suggesting the market is pricing in optimistic growth expectations, but the company's consistent earnings growth and high ROE of 18.3% may justify the premium.
PE
28.8x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 14x~35x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
11.7x
Enterprise Value Multiple
Investment Risk Disclosure
Financial and operational risks center on IBKR's reliance on net interest income, which is sensitive to interest rate movements. In Q1 2026, interest income was $1.947 billion, a substantial portion of total revenue, and a decline in rates could compress margins and reduce earnings. Additionally, the company's revenue growth, while strong at 16.9% YoY, missed consensus in Q1, indicating that even minor shortfalls can trigger negative market reactions. With a payout ratio of only 13.6%, the dividend is safe, but the low yield of 0.47% offers little income support during downturns. The company's high operating margin of 86% suggests efficiency, but also means there is limited room for cost-cutting if revenue declines.
