Futu (NASDAQ:FUTU) Releases Earnings Results, Misses Expectations By $2.12 EPS

Futu (NASDAQ:FUTU) released its quarterly earnings results on Thursday. The company reported $0.77 EPS for the quarter, missing analysts’ consensus estimates of $2.89 by ($2.12), FiscalAI reports. The business had revenue of $694.17 million for the quarter, compared to analyst estimates of $761.35 million. Futu had a return on equity of 32.24% and a net margin of 49.63%.

Here are the key takeaways from Futu’s conference call:

• Futu added 225,000 net new funded accounts in Q1, bringing total funded accounts to 3.59 million, up 34% year over year. Management said Hong Kong, Malaysia, and Singapore remained important growth drivers, while overseas Moomoo accounts surpassed 2 million.
• Trading activity hit a record, with total volume reaching HKD 4.15 trillion, up 29% year over year. U.S. volume stayed strong at HKD 3 trillion, while Hong Kong volume rose 22% sequentially as investors bought into volatility.
• Revenue rose 25% year over year to HKD 5.9 billion, but net income fell sharply because the company booked an approximately RMB 1.85 billion administrative penalty reprieve as an adjusted subsequent event. Excluding that item, management said net income would have increased year over year.
• Management highlighted continued expansion into new products and markets, including U.S. prediction markets, where it expects to launch event-contract trading soon, and the PantherTrade crypto exchange in Hong Kong, which has begun full operations after VATP approval.
• Futu said wealth management assets reached HKD 178.4 billion, up 28% year over year, with more client allocation shifting toward equity funds and structured products. It also said it remains confident in long-term growth in mature markets like Hong Kong and Singapore, and reiterated that the recent regulatory update should not materially affect full-year guidance.

Futu Stock Down 4.8%

FUTU stock opened at $104.91 on Friday. The business has a 50 day moving average price of $142.11 and a two-hundred day moving average price of $155.73. The company has a market cap of $14.71 billion, a price-to-earnings ratio of 10.21, a P/E/G ratio of 0.82 and a beta of 0.52. Futu has a twelve month low of $80.50 and a twelve month high of $202.53.

Futu Dividend Announcement

The business also recently declared a special dividend, which was paid on Wednesday, April 29th. Shareholders of record on Thursday, April 16th were paid a $2.60 dividend. The ex-dividend date was Thursday, April 16th. Futu’s dividend payout ratio (DPR) is currently 24.81%.

Key Futu News

Here are the key news stories impacting Futu this week:

• Positive Sentiment: Futu reported Q1 2026 results with revenue up 25% year over year to US$746.9 million, and management highlighted record trading volume and client growth. The company also said it remains active on shareholder returns, with cumulative ADS repurchases reaching about US$418 million under its buyback program. Article Title
• Positive Sentiment: Investor commentary around the earnings release pointed to strong client growth, record trading activity, and a new prediction market business as signs of momentum in Futu’s platform. Article Title
• Neutral Sentiment: Futu also released its first-quarter 2026 unaudited financial results and held its earnings call, which should provide investors more detail on operating trends and outlook. Article Title
• Neutral Sentiment: The company announced that it has already repurchased a significant amount of stock, which may help support shares but is not an immediate catalyst on its own. Article Title
• Negative Sentiment: Multiple law firms announced securities-fraud investigations into Futu, citing allegations that the company may have provided misleading business information. These headlines can pressure the stock due to litigation overhang and investor uncertainty. Article Title
• Negative Sentiment: Another report said Futu was down after China regulators reportedly proposed a RMB 1.85 billion penalty, raising concern about regulatory risk and potential financial impact. Article Title

Analysts Set New Price Targets

FUTU has been the subject of a number of research reports. JPMorgan Chase & Co. reiterated a “neutral” rating and set a $87.00 price objective (down from $300.00) on shares of Futu in a report on Friday, May 22nd. Zacks Research downgraded Futu from a “strong-buy” rating to a “hold” rating in a report on Friday, May 8th. The Goldman Sachs Group downgraded Futu from a “buy” rating to a “neutral” rating and set a $102.13 price objective for the company. in a report on Monday. Jefferies Financial Group reiterated a “buy” rating and set a $170.50 price objective on shares of Futu in a report on Thursday. Finally, Barclays decreased their price objective on Futu from $236.00 to $200.00 and set an “overweight” rating for the company in a report on Monday, March 16th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $162.80.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. Orion Porfolio Solutions LLC raised its position in shares of Futu by 3.3% during the fourth quarter. Orion Porfolio Solutions LLC now owns 2,391 shares of the company’s stock worth $393,000 after acquiring an additional 77 shares during the last quarter. Royal Bank of Canada raised its position in shares of Futu by 3.1% during the fourth quarter. Royal Bank of Canada now owns 3,591 shares of the company’s stock worth $590,000 after acquiring an additional 108 shares during the last quarter. State of Wyoming raised its position in shares of Futu by 9.6% during the fourth quarter. State of Wyoming now owns 1,260 shares of the company’s stock worth $207,000 after acquiring an additional 110 shares during the last quarter. Cerity Partners LLC raised its position in shares of Futu by 4.6% during the second quarter. Cerity Partners LLC now owns 2,729 shares of the company’s stock worth $337,000 after acquiring an additional 120 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in shares of Futu by 53.5% during the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 419 shares of the company’s stock worth $73,000 after acquiring an additional 146 shares during the last quarter.

About Futu

Futu Holdings Ltd. is a technology-driven brokerage and wealth management company that provides online brokerage services, market data, and investment tools to retail and institutional clients. Headquartered in Hong Kong and listed on the NASDAQ under the ticker FUTU, the company operates digital trading platforms that combine order execution, real-time quotes, news, and research tools to serve active investors and wealth management customers.

The firm’s product suite includes brokerage access to equities, exchange-traded funds and derivatives across major markets, margin financing, initial public offering (IPO) subscription services, wealth management products and discretionary investment solutions.