Key Stats for Interactive Brokers Stock
- 52-Week Range: $38.1 to $79.2
- Current Price: $71.2
- Street Mean Target: $78.3
- Street High Target: $89
- TIKR Model Target (Dec. 2030): $85.8
What Happened?
Interactive Brokers Group (IBKR), the highly automated electronic brokerage that serves retail, institutional, and professional investors across 200+ countries and territories, is sitting roughly 10% below analyst consensus targets even as its business printed record results in 2025, with Interactive Brokers stock trading at $71.21 against a street mean of $78.30.
The Q4 2025 earnings beat was the operational catalyst: IBKR posted adjusted EPS of $0.65 against a consensus estimate of $0.59, while revenue of $1.64 billion topped the $1.61 billion estimate, with the pretax margin hitting a record 79% for the quarter.
Commission revenue surged 22% to $582 million in Q4, driven by a 27% jump in customer stock trading volumes, while net interest income rose 20% to $966 million on the back of $90.2 billion in margin loans, up 40% year over year.
Milan Galik, President and CEO, stated on the Q4 2025 earnings call that “in 2025, we added more than 1 million net new accounts, an annual record for the firm,” adding that “client equity rose 37% to $780 billion, an increase of more than $200 billion year-over-year.”
IBKR’s competitive position strengthens with each passing quarter through three converging forces: its ForecastEx prediction markets platform, which traded 286 million pairs in Q4 alone (up from 15 million in Q3), the buildout of a national trust bank charter expected to be operational by year-end, and a 30%+ account growth rate that Chairman Thomas Peterffy has publicly committed to sustaining.
Wall Street’s Take on IBKR Stock
The Q4 beat closes 2025 on a note that reframes the forward earnings trajectory: a business that consistently posts 79% pretax margins with 30%+ account growth is not a mature brokerage story, it is a compounding machine that the market appears to be discounting on rate sensitivity fears alone.
IBKR’s normalized EPS reached $2.19 in 2025, up 24.6% year over year, and consensus estimates project $2.46 for 2026 (up 12.3%) and $2.79 for 2027 (up 13.4%), each estimate anchored by the firm’s expanding account base of 4.4 million clients and structurally growing margin loan balances now exceeding $90 billion.
Eight of ten analysts covering Interactive Brokers stock carry buy or outperform ratings, with a mean price target of $78.30 implying roughly 10% upside from current levels, as the street waits specifically for Q1 2026 results on April 21 to confirm whether the record account growth rate of 32% has carried into the new year.
The target spread runs from $56 on the low end to $89 on the high end, a range that precisely maps the debate: bears price in meaningful net interest income compression from further Fed rate cuts (each 25-basis-point cut reduces annual NII by an estimated $77 million), while bulls price in account growth and commission volume absorbing that headwind.
Trading at roughly 29x forward normalized EPS against a five-year average P/E near 20x, Interactive Brokers stock might appear optically expensive, but that comparison mixes eras: the pre-2024 multiple reflected a business with sub-20% account growth and sub-$2 EPS, while the current multiple prices a platform with a 28.6% five-year EPS CAGR, a 77% pretax margin, and a still-nascent ForecastEx exchange with 10,000+ listed instruments, leaving Interactive Brokers stock appearing fairly valued given the quality and durability of the growth.
Chairman Thomas Peterffy stated at the Bank of America Financial Services Conference on February 10 that “there is no problem with keeping” account growth at current levels, a public commitment that removes one of the primary bear case assumptions.
The core risk is rate sensitivity: Peterffy himself estimated at the BofA conference that a 50-basis-point rate cut this year would reduce net income by approximately $200 million annually, a material headwind if the Fed moves faster than currently priced.
The single number to watch on April 21 is Q1 2026 DARTs (daily average revenue trades) and whether the March figure of 4.329 million (up 25% year over year) has held or accelerated into a volatile tape that should, structurally, benefit IBKR.
Interactive Brokers Stock Financials
Interactive Brokers posted total revenues of $6.21 billion in 2025, up 19.4% year over year, a figure that marks the first time the firm has crossed $6 billion in annual net revenues and extends a four-year compounding run that began at $2.75 billion in 2021.
The operating leverage embedded in IBKR’s model is the story: total operating expenses fell to $1.43 billion in 2025 from $1.49 billion in 2024, even as revenues grew nearly $1 billion, pushing operating income to $4.78 billion (up 28.7%) and the operating margin to 76.9%, the highest in the company’s public history.
That margin expansion traces directly to the Q4 2025 drivers: a 21% decline in execution, clearing and distribution fees (driven by an SEC fee rate held at zero for the year and greater liquidity rebates from higher options and stock volumes), combined with compensation growing at only 6% headcount pace against a 20% revenue base.
What Does the Valuation Model Say?
The TIKR model assigns IBKR a mid-case price target of $85.81 by December 31, 2030, built on a 9.1% revenue CAGR assumption and a net income margin of 18.8%, both inputs grounded in 2025 actuals where IBKR already generated a 15.8% net income margin on $6.2 billion in revenue while growing accounts at 32%.
IBKR appears fairly valued at current levels, with a 4% annualized IRR to the mid-case target reflecting a premium multiple the market grants to a platform with structural advantages competitors cannot replicate without dismantling their own revenue models.
The central tension in this investment case is not whether IBKR grows, it is whether the rate environment allows NII to compound alongside account and commission growth, or whether rate cuts erode the interest income engine before the new revenue lines (ForecastEx, crypto, custody banking) reach material scale.
Low Case ($57.93 target, (4.3%) IRR):
- Revenue CAGR decelerates to 8.2%, below the 10-year historical rate of 17.9%
- Net income margin holds at 15.0%, near 2025 actuals but without further operating leverage
- Two or more 25-basis-point Fed rate cuts reduce annual NII by $154+ million, compressing the EPS growth rate toward single digits
- ForecastEx and trust bank charter contribute no material revenue before 2027
High Case ($105.58 target, 8.7% IRR):
- Revenue CAGR reaches 10.0%, consistent with the record account growth rate of 32% generating sustained commission and NII growth
- Net income margin expands to 19.8%, above 2025 actuals, on execution cost declines and ForecastEx contribution
- Q1 2026 DARTs confirm the 25% year-over-year March trend holds through a volatile macro tape, validating the commission revenue model
- Trust bank charter approved by year-end, unlocking custody of 40 Act fund assets and strengthening the institutional pipeline
Should You Invest in Interactive Brokers Group, Inc.?
The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.
Pull up IBKR stock and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
You can build a free watchlist to track Interactive Brokers Group, Inc. alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.
Access Professional Tools to Analyze IBKR stock on TIKR for Free →
