Intercontinental Exchange (ICE Quick QuoteICE - Free Report) delivered adjusted earnings of $2.35 per share for the first quarter of 2026, beating the Zacks Consensus Estimate by 3.52%. The bottom line increased 37% year over year.

ICE generated revenues, less transaction-based expenses, of $2.98 billion, up 20.4% from the year-ago quarter and ahead of the consensus mark by 3.25%. Transaction revenues, net, surged 34% to $1.7 billion, reflecting strong activity across key markets.

Shares gained 1.5% in the pre-market trading session to reflect the outperformance.

ICE Exchange Revenues Rise on Energy and Financials Strength

The Exchanges segment produced net revenues of $1.78 billion, up 30% year over year. Energy was the standout performer, with net revenues rising 46% to $814 million, while Financials climbed 65% to $256 million.

Ags and Metals improved 26% to $81 million, and cash equities and equity options were up 3% to $123 million. Data and connectivity services also supported the mix, increasing 13% to $277 million. Listings improved 5% to $128 million. Segment operating income reached $1.4 billion, translating into a 79% operating margin.

Intercontinental Exchange’s Fixed Income and Data Grows

Fixed income and data services revenues increased 10% from the prior-year quarter to $657 million. Fixed Income Data and Analytics rose 8% to $322 million. Data and Network Technology advanced 12% to $192 million.

CDS Clearing revenues grew 19% to $112 million, underscoring continued demand for clearing services, while Fixed Income Execution was steady at $31 million. Segment operating income was $275 million, with the operating margin at 42%. On an adjusted basis, operating income improved to $311 million.

ICE Mortgage Technology Revenues Up, GAAP Loss Persists

Mortgage technology revenues grew 6% year over year to $539 million, driven by Origination Technology, which increased 10% to $192 million. Closing Solutions rose 20% to $57 million, while Servicing Software was essentially flat at $222 million.

The segment posted an operating loss of $13 million as operating expenses totaled $552 million. However, adjusted operating income was $212 million, reflecting a 39% adjusted operating margin and highlighting the gap between GAAP results and ICE’s non-GAAP presentation for this business.

Intercontinental Exchange Lifts Margins Despite Costs Rise

Consolidated operating income climbed 36% year over year to a record $1.665 billion while adjusted operating income increased 287% to $1.9 billion. The operating margin was 56%. Adjusted operating margin expanded to 65% (up 500 basis points). 

Total operating expenses increased 4.8% to $1.312 billion, reflecting higher compensation and benefits, technology and communication costs, and selling, general and administrative expenses. Adjusted operating expense increased 7.4% to $1 billion.

ICE Updates 2026 Expense Guidance

For full-year 2026, ICE expects GAAP operating expenses in the range of $5.095 billion to $5.145 billion. Adjusted operating expenses are projected between $4.145 billion and $4.195 billion.

For the second quarter of 2026, GAAP operating expenses are expected to be between $1.28 billion and $1.29 billion, while adjusted operating expenses are forecast in the range of $1.03 billion to $1.04 billion. ICE also sees second-quarter GAAP non-operating expense of $160 million to $165 million and adjusted non-operating expense of $180 million to $185 million, with outstanding share count expected between 565 million and 571 million weighted average shares.

Intercontinental Exchange Cash Flow, Capital Deployment

Operating cash flow was $1.326 billion in the first quarter, and adjusted free cash flow totaled $1.150 billion, up from $833 million a year ago. Capital expenditures were $64 million, and capitalized software development costs were $112 million.

The company returned $848 million to stockholders through March 31, 2026, including $551 million of share repurchases and $297 million in dividends. Intercontinental Exchange ended the quarter with $863 million of unrestricted cash and total debt of $20.4 billion, translating into debt-to-adjusted EBITDA of 2.9x.

Zacks Rank

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

Performance of Other Players

CME Group (CME Quick QuoteCME - Free Report) delivered first-quarter 2026 adjusted earnings per share of $3.36, up 20% from the year-ago quarter’s $2.80. The bottom line was just shy of the Zacks Consensus Estimate of $3.37, a miss of 0.3%.

Revenues rose 14% year over year to $1.9 billion but missed the consensus mark of $1.914 billion by 1.8%. The quarter’s standout driver was heavier client activity, with average daily volume (ADV) reaching 36.2 million contracts, up 22% from first-quarter 2025.

Nasdaq (NDAQ Quick QuoteNDAQ - Free Report) posted non-GAAP earnings of 96 cents per share for the first quarter of fiscal 2026, up 22% from 79 cents a year ago. The figure beat the Zacks Consensus Estimate by 3.23%.

Net revenues came in at $1.407 billion, up 13.7% year over year. Revenues topped the Zacks Consensus Estimate of $1.367 billion by 2.9%. The quarter was powered by double-digit growth across the company’s three divisions, alongside continued expansion in recurring revenues.

The Nasdaq stock market welcomed 176 new company listings in the first quarter of 2026, including 63 initial public offerings. The number of listed companies was 4,570 at the end of the quarter. Nasdaq updated its second-quarter non-GAAP operating expense outlook to a range of $2.485 billion to $2.545 billion.

Upcoming Release

Cboe Global Markets, Inc. (CBOE Quick QuoteCBOE - Free Report) is set to release first-quarter 2026 earnings on May 1. The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $3.19, indicating an increase of 27.6% from the year-ago reported figure.

CBOE delivered an earnings surprise in each of the last four reported quarters.