Intercontinental Exchange Q3 Earnings Top, Revenues Lag Estimates

Core Insights - Intercontinental Exchange (ICE) reported third-quarter 2025 adjusted earnings per share of $1.71, exceeding the Zacks Consensus Estimate by 5.6% and reflecting a year-over-year increase of 10.3% [1][9] - The company achieved record net revenues of $2.4 billion, marking a 2.6% increase year over year, although it slightly missed the Zacks Consensus Estimate by 0.1% [3][9] - ICE's performance across all three business segments demonstrated the strength of its diversified business model and strategic investments [2] Financial Performance - Total operating expenses decreased by 0.7% year over year to $1.2 billion, attributed to lower rent, occupancy, and administrative expenses [3] - Adjusted operating income rose by 1.9% year over year to $1.4 billion, with an adjusted operating margin remaining flat at 59% [4] - Cash and cash equivalents stood at approximately $2 billion, a 1% increase from the end of 2024, while total equity rose by 7.2% to $26.7 billion [8] Segment Performance - Exchanges segment net revenues reached $1.3 billion, up 1% year over year, with adjusted operating income increasing by 2.2% to $924 million [5] - Fixed Income and Data Services revenues grew by 5% to $618 million, with adjusted operating income rising by 7.2% to $282 million [6] - Mortgage Technology revenues increased by 4% to $528 million, with adjusted operating income up 23.6% year over year and a margin expansion of 700 basis points to 42% [7] Guidance and Future Outlook - For the third quarter of 2025, GAAP operating expenses are expected to range between $1.225 billion and $1.265 billion, while adjusted operating expenses are projected to be between $1.005 billion and $1.015 billion [10] - Full-year guidance indicates a recurring revenue growth expectation of 5% to 6% for the Exchanges segment, with GAAP operating expenses projected between $4.99 billion and $5 billion [11] Shareholder Returns - ICE repurchased $894 million of its common stock and paid $831 million in dividends during the first nine months of 2025 [12] - A dividend of 48 cents per share for the third quarter of 2025 has been approved, to be paid on December 31 to shareholders of record as of December 16 [12]