I think this S&P 500 stock could crush the FTSE 100 performance next year

Over the past year, the FTSE 100 is up 17%. This is impressive and well above the long-term average. However, there are individual stocks across the pond that have generated higher returns, with some having momentum that I believe could continue into 2026.

Here’s one S&P 500 stock that’s a good example of what I mean!

Reasons for outperformance

I’m talking about Interactive Brokers (NASDAQ:IBKR). The global investing platform provides retail and professional clients with the ability to buy and sell stocks, bonds, commodities and other assets. Over the past year, the share price is up 34%, double that of the FTSE 100.

The business has performed very well recently, driven by several factors. First, interest rates in the US and the UK have stayed higher in 2025 than most of us expected. This has meant the net interest margin for Interactive Brokers has remained higher for longer. Net interest income is the business’s largest revenue driver, as clients often hold large idle balances in their accounts.

Another benefit came from the higher volatility in financial markets this year. It’s true that this has been one of the craziest years in the stock market I can remember. As a result, it has earned higher commissions and fees from trading activity.

Finally, unlike some other investment platforms, the US firm generates money from market data fees, platform fees, revenue from clearing and other services for institutional customers. Recently, these products have increased in demand.

The road ahead

For investors who didn’t buy the US stock a year ago, I don’t think the party’s over. Looking ahead to 2026, Interactive Brokers has several reasons the stock could keep rallying.

The company has substantial international growth potential, particularly in Asia, Europe, and Latin America, where market penetration remains low. Amid concerns about the stability of US regional banks, the business is also pushing to grow its institutional client base.

Given the company’s current size, it can genuinely compete at this level to provide global access and lower financing costs than some banks. If it can further tap into this market, it could yield significant financial benefits.

Additionally, Interactive Brokers has a highly automated cost structure. The online platform does much of the heavy lifting, meaning it can scale without large labour cost increases. As revenue grows, overall profit can increase faster.

Some flag as a risk the potential for lower interest rates. This is valid and is a concern going forward. However, even if interest rates decline, interest income may remain above pre-2022 levels (before interest rates started to rise after the pandemic) due to large client cash balances.

Overall, I think this US stock has a lot of potential to keep the momentum going. Even for UK investors, I think it’s a stock worth considering.

The post I think this S&P 500 stock could crush the FTSE 100 performance next year appeared first on The Motley Fool UK.

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Jon Smith has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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