LPL Financial Reports $357 Million in Profit and Raises Adjusted EPS 15%
Key Facts
LPL Financial reported net income of $357 million and diluted earnings per share of $4.52 in the third quarter of 2026, in results released after the market close on October 27, according to the company’s statement via GlobeNewswire. Adjusted measures grew faster, with adjusted earnings per share rising 15% year over year to $5.97. Adjusted gross profit increased 12% to $1,662 million during the period. The company said, "Adjusted earnings per share rose 15% year over year to $5.97; gross profit increased 12% year over year to $1,662 million." The results reflect expanding activity alongside growth in the asset base, as some expenses also increased.
Total client assets rose 11% year over year to $2.6 trillion, while advisory assets increased to 60.9% of total client assets, compared with 58.2% a year earlier. This shift in the asset mix points to a larger share of advisory assets within the client base during the period. Net organic new assets totaled $29 billion in the quarter, equivalent to an annualized growth rate of 5%. The company said, "Total net organic new assets were $29 billion, representing an annualized growth rate of 5%." These organic flows stand alongside lower recruited assets compared with the previous year.
Recruited assets totaled $24 billion during the quarter, down 26% year over year, according to the statement. For the twelve months ended in the third quarter, recruited assets reached $81 billion. The company said, "Recruited assets were $24 billion, down 26% from last year; recruited assets over the twelve months were $81 billion." The quarterly figure and trailing total cover different time periods, while net organic flows continued during the quarter. On liquidity, client cash balances were $57 billion, equivalent to 2.2% of total client assets.
Client cash balances were stable compared with the previous quarter and increased by $1 billion year over year, the company said. They amounted to 2.2% of total client assets in the third quarter. On expenses, adjusted Core G&A rose 11% year over year to $532 million. Adjusted pretax income, meanwhile, increased 13% to $641 million. The company said, "Core G&A expenses rose 11% year over year to $532 million; adjusted pretax income increased 13% to $641 million."
Regarding Commonwealth Financial Network, LPL said it remained on track to complete its conversion in the fourth quarter of 2026. The company revised its outlook for Commonwealth asset retention to about 83%, while estimating annualized operating earnings before interest, taxes, depreciation and amortization at $415 million. Its statement said, "The conversion remains on track for the fourth quarter of 2026; asset retention is now expected to be about 83%, and estimated annualized operating earnings are expected to reach $415 million." The company also narrowed its 2026 Core G&A expense outlook to $2,140–$2,160 million, including Commonwealth-related expenses. The company said it was "narrowing its 2026 Core G&A outlook to $2,140–$2,160 million, including Commonwealth-related expenses."
LPL declared a cash dividend of $0.30 per share, payable on November 30, 2026, to shareholders of record on November 12, 2026. The company’s shares closed at $317.23 on October 26, 2026, according to EL7 data. The closing price was from the day before results were released after the market close on October 27, and does not represent a price reaction to them. The dividend payment and record dates provide shareholders with a clear timeline as the Commonwealth conversion continues in the fourth quarter. Commonwealth expenses are expected to remain within the 2026 Core G&A outlook range announced by the company.