StoneX Q3 Earnings Surge as R.J. O'Brien Synergies Move Toward $50M

StoneX Q3 Earnings Beat Expectations

Fiscal third-quarter 2026 earnings rose 85.2% year over year to $1.00 per share, topping the Zacks Consensus Estimate of 76 cents by 31.6%. Operating revenues increased 43.3% to $1.47 billion and exceeded the consensus mark of $1.32 billion.

Earnings Surprise History

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Net income more than doubled to $127.9 million from $63.4 million. Net operating revenues also advanced 47% to $719.7 million, reflecting gains across listed derivatives, over-the-counter derivatives, securities, physical contracts and interest and fees earned on client balances.

SNEX Gains From Commercial and Institutional Strength

Commercial operating revenues jumped 97% to $452.2 million. Segment income increased 119% to $181.4 million as listed derivatives, over-the-counter derivatives and physical contracts all recorded substantial year-over-year growth.

Institutional operating revenues rose 40% to $875.3 million, while segment income increased 49% to $129.9 million. Securities average daily volume climbed 33% to $12.26 billion, and the R.J. O’Brien acquisition contributed 27 million listed derivatives contracts during the quarter.

Trading activity across the broader market provides additional context. CME Group Inc. CME reported a record June average daily volume of 30.6 million contracts, up 19% year over year, while Interactive Brokers Group, Inc. IBKR said total client daily average revenue trades reached a record in its second quarter.

StoneX Synergies Approach the $50 Million Goal

R.J. O’Brien integration remains on track to be largely completed in fiscal 2026. Annualized synergies reached about $38 million by the end of the fiscal third quarter and are expected to move closer to $45-$46 million by fiscal year-end.

Management remains confident in achieving the $50 million annualized synergy target, with the remaining benefits expected in fiscal 2027. The acquired business is already influencing the operating base through higher listed derivatives activity, client balances and related interest income. As such, the Zacks Consensus Estimate for sales suggests year-over-year growth of 41.9% for fiscal 2026 and 2.9% for fiscal 2027.

Sales Estimates

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SNEX Retail Weakness and Costs Temper the Quarter

Self-Directed/Retail operating revenues declined 13% to $96.3 million and segment income fell 36% to $24.9 million. Foreign-exchange and contracts-for-difference operating revenues dropped 19% as average daily volume decreased 27%.

Costs also moved higher as the platform expanded. Total fixed compensation and other expenses rose 22% to $314.2 million, fixed compensation and benefits increased 21% and non-trading technology and support costs climbed 43%. These trends raise the importance of continued revenue growth and acquisition benefits.

StoneX Signals Support the Earnings Setup

The quarter strengthens the case that StoneX can benefit from broader client activity and integration gains, but the investment setup still depends on execution. Reaching the remaining R.J. O’Brien synergy target while offsetting retail softness and higher costs will be important to sustaining earnings momentum.

The Zacks Consensus Estimate calls for fiscal 2026 earnings of $4.35 per share, up from $2.62 in fiscal 2025. Fiscal 2027 earnings are projected at $4.45 per share, indicating that the current earnings step-up is expected to hold rather than fully reverse.

Earnings Estimates

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SNEX currently sports a Zacks Rank #1 (Strong Buy). Likewise, Interactive Brokers sports a Zacks Rank #1, while CME Group has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

StoneX also has a Momentum Score of A and VGM Score of A, along with a Value Score of B and Growth Score of B. The combination of a top Zacks Rank with A or B Style Scores points to favorable near-term characteristics, though it does not eliminate integration, cost or revenue-capture risks.

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This article originally published on Zacks Investment Research (zacks.com).

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