Intercontinental Exchange posted higher profit and beat Wall Street expectations

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The NYSE parent's adjusted earnings rose 18% to $2.02 a share, and it expects the MarketAxess deal to close in the first quarter of 2027

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Intercontinental Exchange, the parent company of the New York Stock Exchange, reported third-quarter net income of $940 million on Thursday, versus $816 million in the year-ago period. Diluted earnings per share were $1.67, compared with $1.42, the company said.

Adjusted diluted earnings per share rose 18% to $2.02 from $1.71. Analysts in a FactSet poll were projecting $1.97, according to The Wall Street Journal.

Net revenues, which are total revenues less transaction-based expenses, rose 15% to $2.765 billion from $2.411 billion. Analysts' models called for $2.74 billion, according to The Wall Street Journal.

Operating income rose 20% to $1.4 billion, and adjusted operating income rose 19% to $1.7 billion. The operating margin was 51%, and the adjusted operating margin was 61%.

Exchanges net revenues rose 22% to $1.542 billion, with energy revenues up 25% to $603 million. Fixed income and data services revenues rose 9% to $674 million, and mortgage technology revenues rose 4% to $549 million. Net transaction revenues increased 23% to $1.4 billion, and recurring revenues rose 7% to $1.365 billion.

ICE Chair and Chief Executive Jeff Sprecher said the quarter was the best third quarter in the company's history. Customers "want to trade, hedge and access data whenever markets are moving, and we're building our networks to meet them there," Sprecher said in a statement, according to The Wall Street Journal.

Chief Financial Officer Warren Gardiner said in a statement that the company delivered record revenues, adjusted operating income and adjusted earnings per share through the first nine months of the year. ICE returned $2.5 billion to stockholders through Sept. 30, including $1.6 billion in repurchases of its common stock, the company said.

ICE agreed in July to acquire MarketAxess Holdings for $167 a share in cash, an equity value of about $6 billion. The company said it would finance the deal with newly issued debt.

ICE said in a regulatory filing that the Justice Department and the Federal Trade Commission granted early termination of the Hart-Scott-Rodino waiting period on Oct. 21. ICE expects the merger to close in the first quarter of 2027, ahead of the first-half 2027 timeline it announced in July. The merger remains subject to other customary closing conditions and required regulatory approvals. Outstanding debt was $23.3 billion as of Sept. 30.

For the fourth quarter, ICE expects GAAP operating expenses of $1.317 billion to $1.327 billion. The company also forecast 2026 growth of 9% in exchange recurring revenue and 8% in fixed income and data services recurring revenue.

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