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Interactive Brokers earnings and Charles Schwab earnings both beat estimates for the second quarter on Tuesday, as volatile markets drove higher trading volume. SCHW stock dropped near a buy point while IBKR stock wavered in after-hours trade.
Along with its Q2 report late Tuesday, Interactive BrokersIBKR announced that it will raise the quarterly dividend.
Interactive Brokers joined Charles SchwabSCHW in reporting robust and accelerating earnings growth. Its brokerage rival reported early Tuesday.
Interactive Brokers Earnings, IBKR Stock
For Q2, Interactive BrokersIBKR posted earnings per share of 69 cents, ahead of FactSet estimates for 64 cents. Revenue of $1.88 billion also outpaced views for $1.798 billion. Year over year, Interactive Brokers earnings jumped 35% and sales surged 27%. That represented the fourth straight quarter of earnings growth above 25% and showed a surprise acceleration from Q1's 28% gain.
Customer trading volume in stocks, futures and options rose 25%, 20% and 16%, respectively, during the second quarter, an earnings release said. Daily average revenue trades, or DARTs, increased 36% to 4.82 million.
IBKR stock initially gained more than 1% in extended trading, then turned 0.9% lower.
Shares of the IBD 50 stock popped 3% to 94.42 in the regular session on Tuesday, extending Monday's gains. IBKR stock is on track to have a flat base with a 97.84 buy point after this week, according to the MarketSurge chart.
Interactive Brokers shares have soared 47% this year so far.
Several analysts hiked price targets on IBKR stock in July. Last week, Piper Sandler analysts said that prediction markets "were the story" in Q2, with the soccer World Cup driving huge growth.
Interactive Brokers pioneered that market in 2024. It now faces fierce competition in the prediction market from RobinhoodHOOD and others.
Robinhood stock jumped 7.5% amid analyst upgrades, with earnings due on July 29.
Charles Schwab Earnings Accelerate
For Q2, Charles Schwab earnings jumped 42% to $1.62 a share, with revenue rising 21% to a record $7.07 billion. Analysts had expected Q2 EPS of $1.56 on sales of $6.896 billion, according to FactSet. Schwab's earnings and sales both accelerated from Q1.
Total client assets increased 22% during the second quarter while core net new assets jumped 49%. Net interest margin expanded by 12 basis points, quarter over quarter, to 3%. Sweep cash balances and margin loan balances both increased, with the latter up 30%. Daily average trading volume surged 57% to a record 11.9 million amid the Q2 launch of Bitcoin and Ethereum trading for retail clients.
The Q2 results marked the seventh consecutive quarter of earnings growth above 35% and revenue growth above 15%, both strong numbers for a well-established financial company.
However, total expenses were $3.4 billion, just above some estimates.
Schwab Stock Falls Near Buy Point
Shares slid 2.5% to 99.95 in Tuesday's stock market trading. Intraday, SCHW stock briefly topped a 103.97 handle buy point on a five-month consolidation before reversing lower.
Schwab's shares are flat so far in 2026 so far.
Artificial intelligence is a big overhang. On Monday, BMO Capital downgraded Charles Schwab shares to market perform while keeping the price target steady at $105.
The firm's analysts fear the "overhang from cash monetization fears" will not ease soon. Artificial intelligence (AI) tools could threaten Schwab's lucrative cash sweep program, by automatically funneling funds to higher yield alternatives.
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