LPL Financial shares fall 5.1% after hours despite Q3 profit beat

LPL Financial Holdings Inc. (LPLA) topped profit estimates for the third quarter of 2026 but missed on revenue, the company said in a results release filed with an 8-K on Oct. 27.

Shares fell 5.1% in after-hours trading as of 5:14 p.m. ET, from a regular-session close of $317.70.

Adjusted earnings per share were $5.97, up 15% from a year earlier and above the $5.85 consensus estimate compiled by Finnhub. Revenue was $5.34 billion, up 17% from a year earlier, and missed the $5.48 billion estimate.

Net income was $357 million, or $4.52 per diluted share, compared with a net loss of $30 million, or 37 cents per share, in the third quarter of 2025.

Here's how the company did:

• Adjusted EPS: $5.97, up from $5.20 a year earlier; $5.85 expected, according to Finnhub
• Revenue: $5.34 billion vs. $4.55 billion a year earlier; $5.48 billion expected, according to Finnhub

Gross profit rose 12% to $1,662 million, and core G&A rose 11% to $532 million. Adjusted pre-tax income rose 13% to $641 million.

Total client assets rose 11% to $2.6 trillion. Advisory assets rose 16% to $1.6 trillion, or 60.9% of the total.

Total organic net new assets were $29 billion, or 5% annualized growth. Recruited assets were $24 billion, down 26% from a year earlier.

According to its SEC filings, revenue has risen in each of the last three quarters, from $4.55 billion in the third quarter of 2025 to $5.19 billion in the second quarter of 2026.

Commonwealth conversion

The company said it remains on track to complete the Commonwealth Financial Network conversion in the fourth quarter of 2026.

Asset retention is now expected to be approximately 83%, and estimated run-rate EBITDA, or earnings before interest, taxes, depreciation and amortization, is now expected to be $415 million.

CEO Rich Steinmeier said: "After an outstanding first half of the year, we delivered another quarter of strong business performance and excellent financial results, while making meaningful progress on key strategic initiatives."

2026 Core G&A outlook

Given its performance to date, the company narrowed its 2026 Core G&A outlook to $2,140 million to $2,160 million, including expenses related to Commonwealth.

In its previous results release on July 30, the company gave a range of $2,140 million to $2,165 million.

Capital returns

The company repurchased $301 million of shares and paid $24 million in dividends during the quarter. It deployed approximately $20 million of capital to close three deals in the third quarter.

Corporate cash was $563 million, and the leverage ratio was 1.93 times.

The board declared a dividend of 30 cents per share, payable on Nov. 30, 2026, to stockholders of record as of Nov. 12, 2026.

President and CFO Matt Audette said: "These efforts position us to sustain that momentum through year-end and into 2027."