LPLA Nasdaq Russell 1000 Earnings call
LPL Financial (LPLA) · Q2 2026 results and valuation
Share price: $301.62 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 30 Jul 2026 and 30 Apr 2026
Net income up 6.4% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+6.4%
Net income vs Q1 2026
Outlook given
Net income 379.3M vs 356.4M
Revenue +5.0%
2 · How management spoke
Typical
More upbeat than 64% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Figure
The company attracted organic net new assets of $23 billion, which represents a 4% annualized growth rate.
Valuation
Is LPL Financial undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 10.0% growth a year (3-year revenue growth), the model's fair value is $247.05 a share — the stock trades 22% above it. Today's price assumes 12.2% growth a year.
Current price
$301.62
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+12.2% for 10 yrs
Fair value / share
$247.05
Buy below
$185.29
Price vs fair value
Overvalued 22%
Price vs buy-below price
Overvalued 63%
Read between the lines
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Key theme
Organic growth improved alongside record recruiting pipelines and meaningful progress preparing to onboard Commonwealth Financial Network.
Source quote
“We delivered improved organic growth during the quarter, while driving recruiting pipelines to record levels. After a strong start to the year, we continued our momentum in Q2. We made meaningful progress in preparing to onboard Commonwealth Financial Network.”
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Key theme
Second-half growth expected to normalize by engaging directly with advisers in the marketplace.
Source quote
“And so when you think about that second half of the year, we should be able to return to more normalized... ...go back into the marketplace and engage directly with advisers. We continue to be the disproportionate winner in our traditional markets.”
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Guidance
Payout rate reached 87.4%, up 22 basis points from Q1 due to typical seasonal production build.
Source quote
“Our payout rate was 87.4%, up 22 basis points from Q1 largely due to the typical seasonal build in the production Looking ahead, we expect our payout rate...”
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Guidance
Q3 service and fee revenue expected to rise roughly $5 million driven by the annual focus comp.
Source quote
“Looking ahead to Q3, we expect service and fee revenue to increase by approximately $5 million driven by revenues from our annual focus comp.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“And reflect the ability that has demonstrated that improved efficiency as well as accelerated growth.”
“As they probe into it, natural language processing, to identify ways that they can grow, actions they can take, And, actually, 1 of the things that is really impressive is...”
“As we look forward, we remain excited about the opportunities we have to continue to drive growth deliver operating leverage, and create long term shareholder value.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 5.19B | 4.94B | +5.0% | 3.84B | +35.2% |
| Operating income | 515.5M | 484.6M | +6.4% | 368.8M | +39.8% |
| Net income | 379.3M | 356.4M | +6.4% | 273.2M | +38.8% |
| EPS | 4.74 | 4.43 | +7.0% | 3.40 | +39.4% |
| P/E today 26.6 | 22.6 | 27.1 | −4.5 | 25.7 | −3.1 |
Topics
Most discussed now
- LPL Financial reflected that it has invested nearly $2 billion over the last few years in building the core foundational capabilities...
- It is a crisper way to reflect integrated nature of its technology ecosystem that LPL Financial thinks is a really good...
- As LPL Financial positions in its conversations and actually with folks who have onboarded with it it has a really compelling...
Faded since Q1 2026
- Fading As LPL Financial moves into 2026, it continues to advance its key priorities, which include driving solid organic growth, driving…
- Fading That's where it's really exciting because not only does it drive the cost story that you're asking about, it also...
- Fading LPL Financial takes those kind of 3 areas that it is talking about for AI, for adviser capability, for its own internal...
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Articles or bylaws amended; Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Regulation FD disclosure; Other events · SEC 8-K
- Results of operations · SEC 8-K