Intercontinental Exchange profit rises 18% as energy trading lifts revenue

Intercontinental Exchange, Inc. (ICE) said on Oct. 29 that adjusted diluted earnings per share rose 18% to $2.02 for the third quarter of 2026, from $1.71 a year earlier.

The result was above the $1.99 consensus estimate compiled by Finnhub. Net revenues of $2.765 billion were in line with the $2.77 billion estimate, and rose 15% from a year earlier.

Here's how the company did:

• Adjusted diluted EPS: $2.02 vs. $1.99 expected, according to Finnhub; $1.71 a year earlier
• Net revenues: $2.765 billion vs. $2.411 billion a year earlier

GAAP diluted earnings per share were $1.67, up 18% from $1.42 a year earlier. Operating income was $1.4 billion, up 20%, and adjusted operating income was $1.7 billion, up 19%.

Chair and Chief Executive Officer Jeff Sprecher said, "We're pleased to report the best third quarter in ICE's history, with revenues, operating income and earnings per share each growing by double digits."

Segment results

Exchange net revenues were $1.5 billion, with energy revenues of $603 million, up 25% from a year earlier.

Fixed income and data services revenues were $674 million, up 9%. Adjusted operating income for the segment was $309 million, with an adjusted operating margin of 46%.

Mortgage technology revenues were $549 million, up 4%. The segment's adjusted operating margin was 40%, while its GAAP operating margin was 2%.

Guidance and capital returns

The company updated its 2026 guidance. It expects exchange recurring revenue to grow 9% for the year, and fixed income and data services recurring revenue to grow 8%.

For the fourth quarter, the company expects GAAP operating expenses of $1.317 billion to $1.327 billion, and non-GAAP operating expenses of $1.082 billion to $1.092 billion.

ICE Chief Financial Officer Warren Gardiner said, "Our strong and growing cash flows enabled us to return a record $2.5 billion to stockholders year to date, including a record $1.6 billion of share repurchases."

Through Sept. 30, operating cash flow was $4.5 billion and adjusted free cash flow was $3.7 billion. The company paid $884 million in dividends over the same period.

MarketAxess deal timing

The Department of Justice and the Federal Trade Commission granted early termination of the Hart-Scott-Rodino waiting period on Oct. 21 for ICE's acquisition of MarketAxess Holdings Inc., the company said.

The merger remains subject to other customary closing conditions and regulatory approvals. ICE now expects it to close in the first quarter of 2027, ahead of the first-half 2027 timeline it announced in July.

As of Sept. 30, unrestricted cash was $936 million and outstanding debt was $23.3 billion. The company's fourth-quarter 2026 earnings call is scheduled for Feb. 4, 2027.