Intercontinental Exchange Q2 Earnings & Revenues Top Estimates

Intercontinental Exchange ICE reported second-quarter 2025 adjusted earnings per share of $1.81, which beat the Zacks Consensus Estimate by 2.3%. The bottom line increased 19.1% on a year-over-year basis.

Shares gained 0.1% to reflect the outperformance.

Intercontinental delivered solid results in all three segments. The company’s performance reflected the strength of a balanced and diversified business as well as the results of the strategic investments it has made. The quarter witnessed record revenues and operating income.

Performance in Detail

Intercontinental’s net revenues were a record $2.5 billion, up 9.8% year over year. The top line beat the Zacks Consensus Estimate by 0.7%. 

Intercontinental Exchange Inc. Price, Consensus and EPS Surprise

Intercontinental Exchange Inc. price-consensus-eps-surprise-chart | Intercontinental Exchange Inc. Quote

Total operating expenses decreased 0.4% year over year to $1.3 billion. This can be primarily attributed to lower rent and occupancy and selling, general and administrative expenses. Our estimate was also $1.3 billion. 

Adjusted operating expenses were $983 million in the quarter, up 3.8% year over year. Our estimate was $1 billion. Adjusted operating income rose 13.9% year over year to $1.6 billion. Our estimate was $1.4 billion. Adjusted operating margin expanded 200 basis points (bps) year over year to 61%.

Segment Details

Exchanges' net revenues were $1.3 billion, up 16% year over year. The Zacks Consensus Estimate was pegged at $1.4 billion. Adjusted operating income of $1.1 billion was up 15.3% year over year. Our estimate was $945 million. The Zacks Consensus Estimate was pegged at $996 million. Adjusted operating margin expanded 100 bps year over year to 76%. Our estimate was 72%. 

Fixed Income and Data Services revenues were $597 million, which increased 6% year over year. Our estimate was $600 million. The Zacks Consensus Estimate was pegged at $595 million.   

Adjusted operating income rose 2.8% to $261 million. Our estimate was $220.1 million. The Zacks Consensus Estimate was pegged at $241 million. Adjusted operating margin contracted 100 bps year over year to 44%. Our estimate was 36.7%.

Mortgage Technology revenues increased 5% to $531 million. Our estimate was $587.8 million. The Zacks Consensus Estimate was pegged at $535 million. Adjusted operating income was $221 million, which was up 22.1% year over year. The Zacks Consensus Estimate was pegged at $271 million.  Our estimate was $310 million. 

Adjusted operating margin expanded 600 bps year over year to 42%. Our estimate was 52.8%.

Financial Update

As of June 30, 2025, Intercontinental had cash and cash equivalents, including short-term restricted cash and cash equivalents of about $2.3 billion, up 13.5% from Dec. 31, 2024. Long-term debt of $17.3 billion inched up from 2024-end. 

Total equity was $28.5 billion as of June 30, 2025, up 2.9% from 2024-end. 

Operating cash flow was $2.5 billion, up 12.1% year over year. Adjusted free cash flow was $2 billion, up 14.2% year over year.

Third-Quarter 2025 Guidance

GAAP operating expenses are expected in the range of $1.245-$1.255 billion. Adjusted operating expenses are projected to be between $995 million and $1 billion. Non-operating expense is anticipated to be between $175 million and $180 million. The share count is forecast to be in the range of 572-578 million.

Full-Year Guidance

Exchanges' recurring revenue growth is now expected to be 4% to 5%.

Share Buyback and Dividend Update

ICE repurchased $496 million of its common stock and paid $555 million in dividends in the first half.

The board of directors approved a dividend of 48 cents per share for the third quarter of 2025. The dividend will be paid out on Sept. 30 to shareholders of record as of Sept. 16. 

ICE expects the annual total dividend for 2025 to be $1.92 per share

Zacks Rank

ICE currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

CME Group CME reported second-quarter 2025 operating income of $2.96 per share, which beat the Zacks Consensus Estimate by 1.7%. The bottom line improved 15.6% year over year. CME Group’s revenues of $1.7 billion increased 10.4% year over year. The year-over-year increase was primarily due to higher clearing and transaction fees (up 11% year over year) and market data and information services (up 13.2% year over year). The top line beat the Zacks Consensus Estimate by 0.5%.

Operating income increased 12.9% from the prior-year quarter to $1.1 billion. Our estimate was $1.1 billion. Given heightened economic uncertainty, average daily volume (“ADV”) was a record 30.2 million contracts, up 16% year over year. ADV increased across all product lines. The total average rate per contract was 69 cents.

Nasdaq NDAQ reported second-quarter 2025 adjusted earnings per share of 85 cents, which beat the Zacks Consensus Estimate by 6.3%. The bottom line improved 24% year over year. Nasdaq’s net revenues of $1.3 billion increased 13% year over year. Organic net revenue growth was 12%. The top line beat the Zacks Consensus Estimate by 2.4%.

Annualized Recurring Revenue (ARR) increased 10% year over year to $2.9 billion. Organic growth was 9%. Annualized SaaS revenues increased 13% and represented 37% of ARR. The company’s operating margin of 55% expanded 200 basis points year over year. The Nasdaq stock market welcomed 194 new company listings, including 79 initial public offerings. The number of listed companies was 4,238 at the end of the quarter.

Upcoming Release

Cboe Global Markets CBOE will report second-quarter 2025 results on Aug. 1 before market open. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $2.43, suggesting an increase of 13% from the year-ago quarter’s reported figure.

CBOE’s earnings beat estimates in three of the last four quarters and missed in one.

 

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