IG shares tumble 26% after cutting full-year revenue outlook

IG experienced a steep share price drop of 26% to 950p after announcing a revision to its annual revenue forecast. The company's third-quarter revenue declined 14% compared with the same period last year, largely because the proportion of trading activity retained from OTC customers fell to 70% from 80%. Consequently, IG now projects full-year revenue growth to be in a mid-single-digit percent range rather than the previously expected double-digit increase.

Earnings before tax are projected to fall to the low-40s percent range, down from the prior year’s 47%. Chief executive Breon Corcoran attributed the slowdown to less supportive market conditions, while noting that first-trade activity and active customer numbers continued to rise. The firm’s recent acquisition, Underdog, posted net revenue of $105 million, more than double the prior period, supporting its medium-term outlook beyond 2026.