LPL Financial Holdings Inc. (LPLA) AI Stock Analysis

LPL Financial Holdings Inc. offers a platform of brokerage and investment advisory services primarily in the United States, supporting independent financial advisors and financial institutions. Its brokerage services cover variable and fixed annuities, mutual funds, equities, retirement plans, fixed income securities, insurance, and alternative investments such as non-traded real estate investment trusts. Through its advisory platforms, advisors access exchange-traded funds, equities, bonds, option strategies, and multi-manager variable annuities under commission-based and fee-based models. In addition, LPL Financial delivers trust services, custodial services, investment management oversight, and insurance brokerage.

LPL Financial expanded revenue from $7.72B in FY2021 to $16.99B in FY2025, reflecting a 5-year revenue CAGR of 23.7%. Revenue growth reached 37.2% in FY2025, up from 23.2% in FY2024. Over this span, gross margin moved from 22.2% in FY2021 to 25.6% in FY2025, while operating margin fell from 16.2% in FY2023 to 13.4% in FY2025. Net income was $863.0M in FY2025, down from $1.06B in FY2024, yielding a net margin of 5.1%. Diluted EPS increased to $20.09 in FY2025. In the latest quarter ending June 30, 2026, quarterly revenue grew 36.4% year-over-year and quarterly earnings rose 39.4%, bringing trailing twelve months revenue to $19.20B.

As of June 30, 2026, LPL Financial held $2.70B in cash and short-term investments alongside total debt of $7.46B, resulting in net debt of $4.76B. Shareholders' equity stood at $5.76B, giving a debt-to-equity ratio of 1.30, while the current ratio was 2.46. In FY2025, operating cash flow turned negative at -$423.0M and free cash flow dropped to -$993.4M. Capital expenditures totaled $570.4M for the year. Cash allocation in FY2025 also included $133.5M for share buybacks and $94.4M paid in dividends.

LPL Financial holds a market cap of $25.27B and an enterprise value of $30.05B. The stock trades at a trailing P/E of 25.5x, higher than the 12.1x median of its US-listed Financial Services peers. However, its forward P/E of 10.9x is in line with the peer median of 10.8x, and its PEG ratio sits at 0.39. Its price-to-sales multiple is 1.3x versus the peer median of 3.2x, while EV/EBITDA stands at 12.1x compared to the peer median of 11.7x. Over the past year, the stock fell 3.4%, trailing the S&P 500 return of 16.8%.

LPL Financial pays a quarterly dividend with an annualized forward payout of $1.20 per share, delivering a dividend yield of 0.37%. The payout ratio is 5.5%, and dividends have been paid for 15 consecutive years. Over the past 5 years, the dividend grew at an annualized rate of 3.7%. The last ex-dividend date was August 14, 2026.

Among covering Wall Street analysts, 9 rate LPLA as Strong Buy, 5 as Buy, and 4 as Hold, with 0 Sell or Strong Sell ratings. The mean price target is $422.38, representing a 31.6% premium over the last close of $320.96. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $20.97B and EPS of $23.66. The company has beaten EPS expectations in each of the last 4 quarters, with the next earnings release scheduled for October 27, 2026.

This page is an AI-written research summary of LPL Financial Holdings Inc. (LPLA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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