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ICE's Q4 Earnings and Revenues Top Estimates, Dividend Raised

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Key Takeaways

  • ICE reports Q4 adjusted EPS of $1.71, beating estimates as shares rose 1.9% in pre-market trading.
  • ICE posts record $2.5B net revenues and strength across Exchanges, Fixed Income, and Mortgage Technology.
  • ICE expands adjusted operating margin to 60% as operating income rises and expenses grow modestly.

Intercontinental Exchange (ICE - Free Report) reported fourth-quarter 2025 adjusted earnings per share of $1.71, which beat the Zacks Consensus Estimate by 2.4%. The bottom line increased 12.5% on a year-over-year basis.

Shares gained 1.9% in the pre-market trading session 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, down 17.3% year over year. The top line, however, beat the Zacks Consensus Estimate by 1.2%. 

Total operating expenses increased 1.7% year over year to $1.3 billion. This can be primarily attributed to higher compensation and benefits, technology and communication, rent and occupancy, and selling, general and administrative expenses.  

Adjusted operating expenses were $1 billion in the quarter, up 3.9% year over year. Adjusted operating income rose 1.1% year over year to $1.5 billion. Adjusted operating margin expanded 200 basis points year over year to 60%.

Segment Details

Exchanges net revenues were $1.4 billion, up 10% year over year. The Zacks Consensus Estimate was pegged at $1.3 billion. Adjusted operating income of $1 billion was up 10% year over year. The Zacks Consensus Estimate was pegged at $895 million. Adjusted operating margin contracted 100 basis points (bps) year over year to 74%. 

Fixed Income and Data Services revenues were $608 million, which increased 10% year over year.  The Zacks Consensus Estimate was pegged at $608.7 million.  Adjusted operating income rose 7% to $267 million. The Zacks Consensus Estimate was pegged at $269.9 million. Adjusted operating margin expanded 100 bps year over year to 44%. 

Mortgage Technology revenues increased 5% to $532 million. The Zacks Consensus Estimate is pegged at $544 million. Adjusted operating income was $211 million, which was up 19% year over year. The Zacks Consensus Estimate was pegged at $262.6 million.  Adjusted operating margin expanded 400 bps year over year to 39%.

Full-Year Highlights

Adjusted earnings of $6.95 per share improved 14% year over year. The bottom line beat the Zacks Consensus Estimate of $6.92. 

Revenues were $9.9 billion, up 7% year over year. Revenues matched the consensus estimate. 

Adjusted operating income was a record $6 billion, up 10% year over year.

Financial Update

As of Dec. 31, 2025, Intercontinental had cash and cash equivalents, including short-term restricted cash and cash equivalents of about $1.6 billion, down 20% from Dec. 31, 2024. Long-term debt was $18.6 billion, up 7% from 2024-end. 

Total equity was $29 billion as of Sept. 30, 2025, up 5% from 2024-end. 

Operating cash flow was $4.7 billion, up 1% year over year. Adjusted free cash flow was $4.2 billion, up 16% year over year.

First-Quarter 2026 Guidance

GAAP operating expenses are expected in the range of $1.245-$1.255 billion. Adjusted operating expenses are projected to be between $1.01 billion and $1.02 billion. Non-operating expense is anticipated to be between $180 million and $185 million. The share count is forecast to be in the range of 568-574 million.

2026 Guidance

Exchanges and Fixed Income & Data Services’ recurring revenue growth is now expected to be in mid-single digits.

Mortgage Technology recurring revenue growth is now expected to be in low-to-mid single digits.

GAAP operating expenses are expected in the range of $5.1-$5.075 billion. Adjusted operating expenses are projected to be between $4.075 billion and $4.14 billion. 

The effective tax rate is expected to be 24-26%.

Share Buyback and Dividend Update

ICE repurchased $1.3 billion of its common stock and paid $1.1 million in dividends in 2025.

The board approved first-quarter 2026 dividend of 52 cents per share, an increase of 8%. The dividend will be paid out on March 31, 2026, to stockholders of record as of March 17, 2026. ICE expects the annual total dividend for 2026 to be $2.08 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

Nasdaq, Inc. (NDAQ - Free Report) reported fourth-quarter 2025 adjusted earnings per share of 96 cents, beating the Zacks Consensus Estimate by 5.5%. The bottom line improved 26.3% year over year. Nasdaq’s net revenues of $1.4 billion increased 13% year over year. The top line beat the Zacks Consensus Estimate by 1.7%.

Annualized Recurring Revenue (ARR) increased 10% year over year. Annualized SaaS revenues rose 11% and represented 38% of ARR. Organic growth was 13%.

Nasdaq expects 2026 non-GAAP operating expenses to be in the range of $2.455 billion to $2.535 billion.

CME Group (CME - Free Report) reported fourth-quarter 2025 adjusted earnings per share of $2.77, which beat the Zacks Consensus Estimate by 0.7%. The bottom line improved 9.9% year over year. 

CME Group’s revenues of $1.6 billion increased 8.1% year over year. The top line beat the Zacks Consensus Estimate by 1.3%. Operating income increased 7.7% from the prior-year quarter to $1 billion. Average daily volume was a record 27.4 million contracts, up 7% year over year. 

Upcoming Release

Cboe Global Markets, Inc. (CBOE - Free Report) is set to release fourth-quarter 2025 earnings on Feb. 6. The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at $2.81, indicating an increase of 33.8% from the year-ago reported figure.

CBOE delivered an earnings surprise in each of the three reported quarters of 2025.

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