Is Futu Holdings’ (FUTU) Strong Q3 Earnings Performance Altering Its Investment Case?

• Futu Holdings Limited recently reported earnings for the third quarter and nine months ended September 30, 2025, with revenue reaching HK$6.40 billion and net income at HK$3.23 billion for the quarter, both considerably higher than the prior year period.
• This surge in both revenue and profit, coupled with substantial increases in earnings per share, highlights the company’s strong business momentum over the past year.
• We'll explore how this outstanding earnings growth may shape Futu Holdings' investment narrative going forward.

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Futu Holdings Investment Narrative Recap

For investors considering Futu Holdings, the core belief centers on the company’s ability to capitalize on global digital brokerage expansion and deliver sustainable client growth beyond its home base. The latest quarterly earnings, which saw revenue and profitability both roughly double year-over-year, reinforce the near-term catalyst of strong international account growth, while the most immediate risk remains the threat of new regulatory hurdles impacting expansion, especially with evolving requirements across core markets. The impact of these earnings results amplifies current growth trends but does not materially alter this risk profile.

Among Futu’s recent updates, the launch of ETF-based robo-advisory services in partnership with BlackRock stands out as most relevant, reflecting the company’s commitment to diversifying its product suite and deepening user engagement. This new service could bolster the platform’s appeal and help offset potential revenue headwinds in brokerage commissions, an important consideration given the sector’s ongoing pressure on fee structures.

However, despite these positive developments, investors should keep in mind the potential impact of heightened regulatory scrutiny in key jurisdictions...

Read the full narrative on Futu Holdings (it's free!)

Futu Holdings' outlook anticipates HK$26.3 billion in revenue and HK$12.9 billion in earnings by 2028. This scenario assumes annual revenue growth of 17.8% and an increase in earnings of HK$5.0 billion from the current HK$7.9 billion.

Uncover how Futu Holdings' forecasts yield a $225.69 fair value, a 32% upside to its current price.

Exploring Other Perspectives

Ten private investors in the Simply Wall St Community estimate fair value for Futu Holdings across a wide span, from HK$142 to HK$388 per share. While many are drawn to Futu’s global expansion and rising client base, ongoing regulatory uncertainty casts a shadow that could influence the company’s trajectory, consider exploring these alternate viewpoints before making any decisions.

Explore 10 other fair value estimates on Futu Holdings - why the stock might be worth over 2x more than the current price!

Build Your Own Futu Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Futu Holdings research is our analysis highlighting 5 key rewards that could impact your investment decision.
• Our free Futu Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Futu Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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