While most of the market chatter centers around artificial intelligence (AI) stocks these days, one under-the-radar player has been wooing investors, and it’s not even a tech company. Interactive Brokers (IBKR), an online brokerage firm, has delivered strong stock performance in recent years, powered by solid fundamentals, steady customer growth, and robust trading activity.
And its next big milestone arrives at the opening of trading on Aug. 28, when IBKR officially joins the S&P 500 Index ($SPX), replacing Walgreens Boots Alliance (WBA), which is being taken private by Sycamore Partners. This inclusion is a meaningful catalyst for IBKR thanks to the “index effect.” When a stock enters the S&P 500, passive funds like ETFs and mutual funds that mirror the index scoop up shares, creating a surge in demand that often lifts the stock price.
Beyond that immediate impact, being part of the benchmark index boosts a company’s visibility and credibility with institutional investors, potentially attracting more capital and higher valuations down the road. So, with these tailwinds in play, it’s worth taking a fresh look at IBKR stock right now.
About IBKR Stock
Founded in 1977 and based in Connecticut, Interactive Brokers operates as a global brokerage through its affiliates. The company provides automated trade execution and custody services across securities, commodities, foreign exchange, and futures, giving clients access to more than 160 markets worldwide. Its technology-driven approach has shaped a platform used by individual investors, hedge funds, trading firms, financial advisors, and introducing brokers alike.
Valued at about $107.6 billion by market capitalization, shares of this brokerage firm appear to have attracted considerable attention from investors. Over the past year, shares have skyrocketed 94%, leaving the SPX’s 15.1% gain in the dust. The rally hasn’t stopped in 2025 either. IBKR is already up 40% year-to-date (YTD), handily outperforming the benchmark index’s 9.9% return. In fact, the stock reached a fresh high of $68.07 on Aug. 12 and is currently down only 9% from this level.
Interactive Brokers’ Q2 Earnings Snapshot
On July 17, Interactive Brokers delivered a blowout fiscal 2025 second-quarter earnings report that easily topped Wall Street’s expectations, sending its stock soaring 7.8% the very next trading day. Total net revenue hit $1.5 billion, up 20.3% year-over-year (YoY) and comfortably ahead of the $1.4 billion Wall Street was looking for. Earnings were equally impressive, with adjusted EPS of $0.51, climbing 16% from last year and beating forecasts by nearly 10.9% margin.
Digging further, the strength appeared broad-based. Commission revenue climbed a notable 27% to $516 million as customers ramped up trading activity. Trading volumes surged 31% in stocks, 24% in options, and 18% in futures. Total net interest income (NII) also advanced 9% annually to $860 million, supported by higher credit balances and securities lending activity.
Customer activity was another standout in the quarter, reflecting the strength of Interactive Brokers’ growth trajectory. Customer accounts rose 32% from the year-ago quarter to 3.87 million, pointing to a steady influx of new users. Trading activity also accelerated sharply, with daily average revenue trades (DARTs) climbing 49% annually to 3.55 million during the quarter.
Adding to the momentum, the company’s balance sheet continued to grow even stronger. By June 30, 2025, Interactive Brokers was sitting on $86.7 billion in cash and equivalents, marking a strong leap from $68.1 billion at the end of 2024. The company also declared a quarterly dividend of $0.08 per share, payable Sept. 12, giving investors an added reward on top of its solid growth trajectory.
Looking ahead, analysts see Interactive Brokers’ earnings momentum carrying forward, with forecasts calling for an 11.4% YOY jump in fiscal 2025 to $1.96 per share, followed by another 6.1% climb to $2.08 per share in fiscal 2026.
What Do Analysts Expect for Interactive Brokers Stock?
Following Interactive Brokers’ strong Q2 earnings, optimism around the stock has been building on Wall Street. Citi, for example, lifted its price target to $65 from $60 while maintaining a “Neutral” rating, citing the company’s expanding opportunities in cryptocurrency. The firm highlighted new capabilities, such as staking and asset transfers, along with continued international growth, as key drivers of its long-term potential, despite rising competition abroad.
Bank of America struck an even more bullish tone, raising its price target to $71 from $69 and reiterating a “Buy” rating. The firm pointed to robust demand across Interactive Brokers’ product lineup and asset classes, while also noting that crypto expansion has become a major focus for the brokerage moving forward.
With Interactive Brokers set to join the prestigious S&P 500 Index, Wall Street sentiment has turned highly bullish. The stock currently carries a consensus “Strong Buy” rating overall, reflecting broad confidence in its growth trajectory. Out of nine analysts covering IBKR, seven have issued a resounding “Strong Buy,” while the remaining two recommend a “Hold.”
IBKR’s average analyst price target of $66.71 indicates an 8% potential upside from the current price levels. The Street-high price target of $73 suggests an even greater leap of 18% from here.
