| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 52 | 28.4x | 17.8x | Around median | |
Growth | 77 | 38.8% | 7.1% | Top tier | |
Quality | 91 | — | — | Top tier | |
Safety | 36 | — | — | Bottom tier | |
Capital Return | 26 | 0.34% | 2.12% | Bottom tier | |
Momentum | 67 | 8.9% | 2.9% | Top tier | |
Sentiment | 61 | 11 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
LPL Financial Holdings Inc. operates as a wealth management platform serving financial advisors and institutions, benefiting from the scale of assets on its platform and the services and technology provided to this network. In Q2 FY2026, the operating revenue sources detailed by management included $486 million from commissions and advisory fees after advisor payouts, $457 million from client cash, $209 million from services and fees, and $83 million from transactions. The platform covers approximately 32 thousand advisors, more than one thousand institutions, and 8 million end investors, while the institutions served by the company support $590 billion in client assets.
Revenue in Q2 FY2026 reached approximately $5.2 billion, net income was $379.3 million, and reported earnings per share were $4.74; this equates to a net income margin of approximately 7.3%. Management also stated that adjusted earnings per share reached a record $5.84 and that the adjusted pre-tax profit margin was approximately 39.3%. Net income increased 39% year over year, compared with revenue of $17.0 billion and net income of $863.0 million in FY2025.
Client assets reached a record $2.6 trillion in Q2 FY2026, up 10% from the previous quarter and 34% year over year, driven by organic growth and a recovery in equity markets. Advisory assets totaled $1.5 trillion, representing more than 60% of total client assets, while the company attracted $23 billion in organic net new assets, equivalent to annualized growth of 4%. Adjusted gross profit was $1.62 billion, a sequential increase of $26 million, while the provided EDGAR data did not include a figure for reported gross profit.
The analyst consensus rates LPLA shares a “Buy,” with an average target of $408 and a range between $387 and $454; the average is approximately 2% above the 52-week high of $400.16, while the highest target exceeds that high by approximately 13%. This optimism is offset by a relatively wide target range, Commonwealth integration risks, and sensitivity to cash economics, while the price-to-earnings ratio is unavailable in the provided data, so a reliable comparison based on earnings multiples cannot be made despite the 39% growth in Q2 FY2026 net income.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Revenue was $5.2 billion, net income was $379.3 million, and reported earnings per share were $4.74 in Q2 FY2026. Net income increased 39% year over year, while adjusted earnings per share reached a record $5.84. Results benefited from client assets reaching $2.6 trillion, $23 billion in organic net new assets, and a sequential $13 million decline in core general and administrative expenses to $519 million.
LPL Financial plans to onboard Commonwealth advisors onto its platform in Q4 FY2026. Management estimates annual EBITDA after the integration is completed at approximately $435 million. However, Commonwealth asset retention was in the mid-80% range as of July 30, 2026, compared with a target of 90%, so realizing the expected benefits depends on the quality of the transition and retention.
The company introduced Latitude as a unified technology experience connecting data, security, advisor tools, and artificial intelligence, following investments of nearly $2 billion over several years. Cyan operates as an AI agent within this ecosystem to identify growth opportunities for advisor practices, summarize financial plans, and recommend next actions. It also aims to automate routine work, such as processing a client address change across the Latitude ecosystem, which could reduce calls and manual steps for both the advisor and the company.
Automated analysis for informational purposes only — not investment advice.
Organic net new assets totaled $23 billion in Q2 FY2026, equivalent to annualized growth of 4%. Recruited assets reached $25 billion, including $23 billion in traditional markets and $2 billion through expanded affiliation models, alongside a record recruiting pipeline. In July 2026, organic growth was approximately 3% after the impact of seasonal advisory fees, while management expressed confidence in achieving mid-to-high-single-digit growth over time.
Client cash generated revenue of $457 million in Q2 FY2026, down $3 million from the previous quarter. The quarter ended with cash balances of $56.9 billion, down $2.2 billion, and an ICA yield of 36 basis points. Management expects the ICA yield to increase by 10 basis points in Q3 FY2026 as a result of the shift to pricing tiers based on cash balances, with the estimated full-year impact of approximately 20 basis points emerging gradually between the third and fourth quarters.
The company repurchased $309 million of shares in Q2 FY2026, after the initial plan was $125 million. In July 2026, the board approved a new $2.5 billion share repurchase authorization, with $300 million allocated to Q3 FY2026. The company also declared a cash dividend of $0.30 per share, while ending the quarter with corporate cash of $430 million and a leverage ratio of 1.9 times.
