IG Group shares plunge as trading platform cuts its revenue guidance
The FTSE 100 firm blamed weak market conditions in its derivatives business as the shares fell as much as 27 per cent.
Shares in IG Group fell as much as 27 per cent on Friday after the FTSE 100 trading platform cut its revenue forecast for 2026, blaming weak market conditions that hit retention in its over-the-counter derivatives business.
The shares sank to 936.78p at one point, their lowest level since April 2025, and the stock is now down 25 per cent this year.
IG now expects 2026 revenue growth in a mid-single-digit percentage range, down from its previous guidance of growth toward the upper end of a mid-to-high single-digit range. The cut reverses an upgrade in May, when the company had guided for growth of 10 to 15 per cent from a 2025 base of 1.12bn pounds.
Lower Q3 revenue reflected reduced OTC revenue retention in less supportive market conditions.Breon Corcoran, Chief Executive, IG Group
Third-quarter revenue is expected to be about 240m pounds, down 14 per cent on a year earlier, as revenue retention in the OTC business fell to about 70 per cent, below the roughly 80 per cent averaged since the second half of 2025. An RBC Capital Markets note said the lower retention followed a decision to hedge less of the OTC book.
OTC net trading revenue of about 155m pounds was down about 18 per cent, although OTC customer income rose about 8 per cent. Rivals were dragged lower too, with shares in Plus500 and CMC Markets falling sharply. The warning follows plans announced in September to cut a significant number of jobs as part of a reorganisation aimed at improving efficiency.
Breon Corcoran, the chief executive, said: "Lower Q3 revenue reflected reduced OTC revenue retention in less supportive market conditions, and I remain confident in meeting our medium-term guidance."
The company also flagged about 30m pounds of one-off costs this year from redomiciling to Jersey and restructuring, and said its earnings margin before interest, tax, depreciation and amortisation would be in the low-40s per cent range, down from 47.3 per cent in 2025.
Analysts had expected 2026 revenue of 1.26bn pounds, an increase of 12 per cent, according to the company-compiled consensus. IG said it remained confident of meeting its medium-term outlook beyond 2026.
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