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Can ICE's Exchange Business Sustain Its Growth Momentum?
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Key Takeaways
ICE's Exchange revenues rose 3% to $1.46 billion, despite a 13% decline in energy revenues.
Exchange recurring revenues grew 10%, supported by strong financials, equities, options and data growth.
ICE's diversified markets and record open interest could help sustain growth beyond short-term volatility.
Intercontinental Exchange, Inc. (ICE - Free Report) appears capable of sustaining solid exchange growth even as market volatility normalizes, although the pace may moderate from the unusually strong volume environment. The key is that ICE’s growth is becoming less dependent on short-term volatility and more diversified across asset classes, recurring data revenues and open interest.
In the second quarter of 2026, ICE’s Exchange segment revenues increased 3% year over year to $1.46 billion, despite energy revenues declining 13%. Growth was supported by financials (+21%), cash equities and equity options (+15%), OTC and other (+15%) and data/connectivity services (+12%). Importantly, exchange recurring revenues rose 10%, providing a more stable growth base than transaction-driven activity.
Volume trends also suggest that ICE can maintain momentum beyond a volatility spike. In the second quarter of 2026, financials average daily volume increased 22%, interest-rate ADV rose 24%, agriculture and metals ADV jumped 36%, while NYSE cash-equity ADV increased 12% and equity-options ADV surged 44%. Record open interest and rising participation indicate that customers are increasingly using ICE markets for ongoing risk management rather than only reacting to short-lived volatility.
ICE’s diversified product mix is another important cushion. ICE has exposure to energy, agriculture, interest rates, equity derivatives, cash equities and data services. Thus, normalization in one area does not necessarily translate into a broad decline in exchange revenues. In addition, ICE guided to high-single-digit growth in 2026 Exchange recurring revenues, highlighting management’s confidence in the durability of the business.
For ICE, the growing contribution from recurring exchange revenues and its broad asset-class footprint make the growth outlook more resilient than a pure trading-volume story.
What About Its Peers?
CME Group Inc. (CME - Free Report) appears well positioned to sustain strong trading growth even as market volatility eventually normalizes, although the pace of volume expansion could moderate from elevated levels. In the second quarter of 2026, CME benefited from robust activity across interest rates, equity indexes, energy, metals and agricultural products, with average daily volume supported by heightened demand for hedging and risk management. CME’s broad product diversification, record open interest, growing international participation and increasing adoption of derivatives should provide a structural cushion.
Cboe Global Markets, Inc. (CBOE - Free Report) appears capable of sustaining healthy trading growth even as market volatility normalizes, although the pace could moderate from elevated levels. In the second quarter of 2026, Cboe benefited from strong options activity, particularly in its flagship S&P 500 index options and growing 0DTE options franchise. Cboe’s diversified product portfolio across options, futures, equities, FX and global markets, along with expanding retail participation and demand for short-dated options, should provide some cushion.
ICE’s Price Performance
Shares of ICE have lost 3.7% in the past year, outperforming the industry.
Image Source: Zacks Investment Research
ICE’s Undervaluation
The stock is undervalued compared with its industry. It is currently trading at a price-to-earnings multiple of 17.76, lower than the industry average of 19.82.
Image Source: Zacks Investment Research
Estimate Movement for ICE
The Zacks Consensus Estimate for ICE’s third-quarter and fourth-quarter 2026 EPS has both moved up 1% and 0.5%, respectively, in the past 30 days. The same for full-year 2026 and 2027 EPS has moved up 0.5% and 0.6%, respectively, in the past 30 days.
Image Source: Zacks Investment Research
The consensus estimate for ICE’s 2026 and 2027 EPS and revenues indicates a year-over-year increase.
View the Zacks #1 Rank List
Image: Bigstock
Can ICE's Exchange Business Sustain Its Growth Momentum?
Key Takeaways
Intercontinental Exchange, Inc. (ICE - Free Report) appears capable of sustaining solid exchange growth even as market volatility normalizes, although the pace may moderate from the unusually strong volume environment. The key is that ICE’s growth is becoming less dependent on short-term volatility and more diversified across asset classes, recurring data revenues and open interest.
In the second quarter of 2026, ICE’s Exchange segment revenues increased 3% year over year to $1.46 billion, despite energy revenues declining 13%. Growth was supported by financials (+21%), cash equities and equity options (+15%), OTC and other (+15%) and data/connectivity services (+12%). Importantly, exchange recurring revenues rose 10%, providing a more stable growth base than transaction-driven activity.
Volume trends also suggest that ICE can maintain momentum beyond a volatility spike. In the second quarter of 2026, financials average daily volume increased 22%, interest-rate ADV rose 24%, agriculture and metals ADV jumped 36%, while NYSE cash-equity ADV increased 12% and equity-options ADV surged 44%. Record open interest and rising participation indicate that customers are increasingly using ICE markets for ongoing risk management rather than only reacting to short-lived volatility.
ICE’s diversified product mix is another important cushion. ICE has exposure to energy, agriculture, interest rates, equity derivatives, cash equities and data services. Thus, normalization in one area does not necessarily translate into a broad decline in exchange revenues. In addition, ICE guided to high-single-digit growth in 2026 Exchange recurring revenues, highlighting management’s confidence in the durability of the business.
For ICE, the growing contribution from recurring exchange revenues and its broad asset-class footprint make the growth outlook more resilient than a pure trading-volume story.
What About Its Peers?
CME Group Inc. (CME - Free Report) appears well positioned to sustain strong trading growth even as market volatility eventually normalizes, although the pace of volume expansion could moderate from elevated levels. In the second quarter of 2026, CME benefited from robust activity across interest rates, equity indexes, energy, metals and agricultural products, with average daily volume supported by heightened demand for hedging and risk management. CME’s broad product diversification, record open interest, growing international participation and increasing adoption of derivatives should provide a structural cushion.
Cboe Global Markets, Inc. (CBOE - Free Report) appears capable of sustaining healthy trading growth even as market volatility normalizes, although the pace could moderate from elevated levels. In the second quarter of 2026, Cboe benefited from strong options activity, particularly in its flagship S&P 500 index options and growing 0DTE options franchise. Cboe’s diversified product portfolio across options, futures, equities, FX and global markets, along with expanding retail participation and demand for short-dated options, should provide some cushion.
ICE’s Price Performance
Shares of ICE have lost 3.7% in the past year, outperforming the industry.
Image Source: Zacks Investment Research
ICE’s Undervaluation
The stock is undervalued compared with its industry. It is currently trading at a price-to-earnings multiple of 17.76, lower than the industry average of 19.82.
Image Source: Zacks Investment Research
Estimate Movement for ICE
The Zacks Consensus Estimate for ICE’s third-quarter and fourth-quarter 2026 EPS has both moved up 1% and 0.5%, respectively, in the past 30 days. The same for full-year 2026 and 2027 EPS has moved up 0.5% and 0.6%, respectively, in the past 30 days.
Image Source: Zacks Investment Research
The consensus estimate for ICE’s 2026 and 2027 EPS and revenues indicates a year-over-year increase.
ICE stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.