10-Q · April 30, 2026
Intercontinental Exchange (ICE) reported strong financial results for Q1 2026, with revenues of $3.666 billion, surpassing consensus estimates of $2.933 billion. Gross margin came in at 100%, while diluted EPS rose…
Earnings analysis · 10-Q
ICE earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
ICE delivered a strong 3Q26, with $2.765 billion of revenue and $2.02 of adjusted EPS exceeding consensus estimates of $2.742 billion and $1.97, respectively. Exchange revenue rose 22% to $1.542 billion, while operating…
Read full summary
ICE delivered a strong 3Q26, with $2.765 billion of revenue and $2.02 of adjusted EPS exceeding consensus estimates of $2.742 billion and $1.97, respectively. Exchange revenue rose 22% to $1.542 billion, while operating margin expanded to 51% and nine-month free cash flow reached $3.822 billion. The principal offsets are the sequential revenue decline against an unusually high 2Q26 base and increased financing and merger-execution exposure ahead of the expected 1Q27 MarketAxess closing; the 10-Q identified no significant new formal risk factors.
Reported figures
- Earnings per share
- $2.02
- Operating margin
- 51.0%
- Segment
- Exchanges: $1.542 billion of revenue, up 22% year over year.
What stood out
-
Revenue exceeded consensus
3Q26 net revenue was $2.765 billion, approximately 0.8% above the $2.742 billion consensus estimate and 14.7% above 3Q25 revenue of $2.410 billion. Revenue was 23.4% below 2Q26 revenue of $3.610 billion, reflecting the unusually high prior-quarter comparison.
-
Strong EPS growth and beat
Adjusted EPS was $2.02, above the $1.97 consensus estimate, up 19.5% from $1.69 in 2Q26 and up 42.3% from $1.42 in 3Q25.
-
Operating margin expanded
Operating margin was 51%, up from 38.5% in 2Q26 and 48.7% in 3Q25, representing increases of 1,250 basis points sequentially and 230 basis points year over year.
-
Exchange activity drove growth
Exchange revenue increased 22% year over year to $1.542 billion, indicating that elevated market activity was the principal disclosed revenue growth driver.
-
Robust cash generation and buybacks
Free cash flow totaled $3.822 billion through the first nine months of 2026, supporting continued capital returns. ICE repurchased $400 million of stock in 3Q26, and $3.605 billion remained authorized at September 30, 2026.
-
Acquisition timeline moved forward
Management expects the MarketAxess transaction to close in 1Q27, earlier than the previously indicated first-half 2027 timeframe. The filing also includes a new term loan credit agreement dated August 20, 2026.
What to watch
-
No new formal risk factors
The filing states that there were no significant new risk factors during the nine months ended September 30, 2026 relative to the 2025 Form 10-K; therefore, no material risk-factor change was identified in this 10-Q.
-
Additional financing and leverage
ICE entered into senior-note documentation with fixed rates of 4.700% due 2029, 4.900% due 2031, 5.150% due 2033, and 5.400% due 2036, while also entering a term loan credit agreement on August 20, 2026. Additional financing could increase interest expense and leverage ahead of the MarketAxess acquisition.
-
MarketAxess merger execution
The MarketAxess merger agreement was dated July 29, 2026 and the expected closing is 1Q27. The transaction creates execution, integration, and financing risk if closing or integration takes longer than anticipated.
Management's outlook
The filing provides quantitative 4Q26 operating-expense expectations of $1.317-$1.327 billion on a GAAP basis and $1.082-$1.092 billion on a non-GAAP basis, plus 2026 recurring-revenue growth expectations of 9% for Exchanges and 8% for Fixed Income and Data Services. No comparable prior outlook was provided to determine whether guidance was raised, maintained, or lowered. The MarketAxess acquisition is expected to close in 1Q27.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.