Intercontinental Exchange (ICE Quick QuoteICE - Free Report) reported first-quarter 2025 adjusted earnings per share of $1.72, which beat the Zacks Consensus Estimate by 1.2%. The bottom line increased 16.2% on a year-over-year basis. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Intercontinental delivered solid results in all three segments. The 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, operating income and earnings per share growth.

Performance in Detail

Intercontinental’s net revenues were a record $2.5 billion, up 11.7% year over year. The top line beat the Zacks Consensus Estimate by 0.5%. 

Total operating expenses increased 2% year over year to $1.3 billion. This can be primarily attributed to higher compensation and benefits, acquisition-related transaction and integration costs, and rent and occupancy. Our estimate was also $1.2 billion. 

Adjusted operating expenses were $964 million in the quarter, up 3.7% year over year. Our estimate was $971.6 million. 

Adjusted operating income rose 11% year over year to $1.5 billion. Our estimate was $1.4 billion. 

Adjusted operating margin expanded 200 basis points (bps) year over year to 61%. Our estimate was 46.9%.

Segment Details

Exchanges' net revenues were $1.4 billion, up 12% year over year. The Zacks Consensus Estimate was pegged at $1.3 billion. Adjusted operating income of $1 billion was up 12.8% year over year. Our estimate was $890.5 billion. The Zacks Consensus Estimate was pegged at $959 million. Adjusted operating margin expanded 100 bps year over year to 76%. Our estimate was 71.8%. 

Fixed Income and Data Services' revenues were $596 million, which increased 5% year over year. Our estimate was $618.9 million. The Zacks Consensus Estimate was pegged at $603 million.   Adjusted operating income rose 5.4% to $273 million. Our estimate was $259.9 million. The Zacks Consensus Estimate was pegged at $267 million. Adjusted operating margin remained flat year over year at 46%. Our estimate was 42%.

Mortgage Technology’s revenues increased 2% to $510 million. Our estimate was $463.8 million. The Zacks Consensus Estimate was pegged at $512 million. 
Adjusted operating income was $203 million, which was up 9.7 % year over year. The Zacks Consensus Estimate was pegged at $239 million.  Our estimate was $278.1 million. Adjusted operating margin expanded 300 bps year over year to 40%. Our estimate was 51.4%.

Financial Update

As of March 31, 2025, Intercontinental had cash and cash equivalents, including short-term restricted cash and cash equivalents of about $2 billion, up 1.6% from Dec. 31, 2024. Long-term debt of $17.3 billion inched up from 2024-end. 

Total equity was $28 billion as of March 31, 2025, up 1.2% from 2024-end. 

Operating cash flow was $966 million, down 4.3% year over year. 

Adjusted free cash flow was $833 million, up 5% year over year. 

Second-Quarter 2025 Guidance

GAAP operating expenses are expected in the range of $1.23-$1.24 billion. Adjusted operating expenses are projected to be between $980 million and $990 million. Non-operating expense is anticipated to be between $175 million and $185 million. The share count is forecast in the range of 573-579 million.

Share Buyback and Dividend Update

ICE repurchased $241 million of its common stock and paid $278 million in dividends in the first quarter.

The board of directors approved a dividend of 48 cents per share for the second quarter of 2025. The dividend will be paid out on June 30 to shareholders of record as of June 13. ICE expects the annual total dividend for 2025 to be $1.92 per share

Zacks Rank

ICE currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

CME Group (CME Quick QuoteCME - Free Report) reported first-quarter 2025 operating income of $2.80 per share, which beat the Zacks Consensus Estimate by 0.4%. The bottom line improved 12% year over year.  CME Group’s revenues of $1.6 billion increased 10.4% year over year. The top line, however, missed the Zacks Consensus Estimate by 0.5%.

Operating income increased 15.5% from the prior-year quarter to $1.1 billion. Our estimate was $1 billion. Given heightened economic uncertainty, ADV was a record 29.8 million contracts. Commodities grew 19%, financials increased 12%, and ADV outside the United States reached a new high of 8.8 million contracts, up 19% year over year. The total average rate per contract was 68.6 cents.

Nasdaq (NDAQ Quick QuoteNDAQ - Free Report) reported first-quarter 2025 adjusted earnings per share of 79 cents, beating the Zacks Consensus Estimate by 2%. The bottom line improved 25.4% year over year. Nasdaq’s net revenues of $1.2 billion increased 12.5% year over year. The top line beat the Zacks Consensus Estimate by 0.1%.

Annualized Recurring Revenue (ARR) increased 8% year over year to $2.8 billion. Organic growth was 9%. Annualized SaaS revenues increased 14% and represented 37% of ARR. The company’s operating margin of 55% expanded 200 basis points year over year.

Upcoming Release

Cboe Global Markets (CBOE Quick QuoteCBOE - Free Report) will report first-quarter 2025 results on May 2, before market open. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $2.29, suggesting an increase of 6.5% from the year-ago quarter’s reported figure.

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