As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at investment banking & brokerage stocks, starting with LPL Financial (NASDAQ: LPLA).
Investment banks and brokerages facilitate capital raises, mergers and acquisitions, and securities trading. The sector benefits from corporate activity during economic expansion, increased retail trading participation, and advisory opportunities in emerging sectors. Headwinds include economic cycle vulnerability affecting deal flow, compressed trading commissions due to electronic platforms, and regulatory capital requirements constraining certain higher-risk activities.
The 16 investment banking & brokerage stocks we track reported a very strong Q4. As a group, revenues beat analysts’ consensus estimates by 5.9% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.1% since the latest earnings results.
LPL Financial (NASDAQ: LPLA)
As the nation's largest independent broker-dealer with no proprietary products of its own, LPL Financial (NASDAQ: LPLA) provides technology, compliance, and business support services to independent financial advisors and institutions who manage investments for retail clients.
LPL Financial reported revenues of $4.93 billion, up 40.4% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
"2025 was an outstanding year for LPL as we advanced our key strategic priorities," said Rich Steinmeier, CEO.
LPL Financial pulled off the fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 16.9% since reporting and currently trades at $301.55.
Best Q4: Moelis (NYSE: MC)
Founded in 2007 by veteran banker Ken Moelis during the lead-up to the financial crisis, Moelis & Company (NYSE: MC) is an independent investment bank that provides strategic and financial advisory services to corporations, financial sponsors, governments, and sovereign wealth funds.
Moelis reported revenues of $487.9 million, up 11.2% year on year, outperforming analysts’ expectations by 10%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 16.7% since reporting. It currently trades at $59.08.
Is now the time to buy Moelis? Access our full analysis of the earnings results here, it’s free.
Slowest Q4: BGC (NASDAQ: BGC)
Tracing its roots back to 1945 and named after founder Bernard Gerald Cantor, BGC Group (NASDAQ: BGC) operates a global brokerage and financial technology platform that facilitates trading across fixed income, foreign exchange, equities, energy, and commodities markets.
BGC reported revenues of $723.3 million, up 32% year on year, falling short of analysts’ expectations by 3.7%. It was a slower quarter as it posted a miss of analysts’ revenue estimates.
BGC delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 12.9% since the results and currently trades at $9.83.
Read our full analysis of BGC’s results here.
Evercore (NYSE: EVR)
Founded in 1995 as a boutique advisory firm focused on independence and client trust, Evercore (NYSE: EVR) is an independent investment banking firm that provides strategic advisory, capital markets, and wealth management services to corporations, financial sponsors, and high-net-worth individuals.
Evercore reported revenues of $1.30 billion, up 32.4% year on year. This result topped analysts’ expectations by 16%. It was an incredible quarter as it also logged a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.
The stock is down 7.1% since reporting and currently trades at $314.53.
Read our full, actionable report on Evercore here, it’s free.
Morgan Stanley (NYSE: MS)
Founded in 1924 during the post-WWI economic boom by former JP Morgan partners, Morgan Stanley (NYSE: MS) is a global financial services firm that provides investment banking, wealth management, and investment management services to corporations, governments, institutions, and individuals.
Morgan Stanley reported revenues of $17.89 billion, up 10.3% year on year. This print surpassed analysts’ expectations by 1.3%. Overall, it was a strong quarter as it also put up a beat of analysts’ EPS estimates and a narrow beat of analysts’ revenue estimates.
The stock is down 7.8% since reporting and currently trades at $166.60.
Read our full, actionable report on Morgan Stanley here, it’s free.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.
