CME Group Q4 Earnings and Revenues Top Estimates, ADV Rises Y/Y

Core Insights - CME Group reported fourth-quarter 2025 adjusted earnings per share of $2.77, exceeding the Zacks Consensus Estimate by 0.7% and reflecting a year-over-year improvement of 9.9% [1] - The quarterly results were driven by increased revenues from higher clearing and transaction fees, as well as market data and information services, alongside higher trading volumes [1] Performance in Detail - CME Group's revenues reached $1.6 billion, marking an 8.1% increase year over year, primarily due to a 7.8% rise in clearing and transaction fees and a 14.5% increase in market data and information services [2] - Total expenses rose by 8.8% year over year to $629.1 million, driven by higher compensation, technology costs, and professional fees [2] Operating Metrics - Operating income increased by 7.7% from the prior-year quarter to $1 billion [3] - Average daily volume (ADV) hit a record of 27.4 million contracts, up 7% year over year, with notable increases in Equities and Metals, while Agricultural ADV rose by 2% [3] - Interest Rate and Forex ADV saw declines of 2% and 12%, respectively, with the total average rate per contract at 70.7 cents [3] Full-Year Highlights - For the full year, adjusted earnings were $11.16 per share, a 15.4% increase year over year, although it missed the consensus estimate by 2 cents [4] - Revenues reached a record $6.5 billion, up 6% year over year, aligning with the consensus estimate [4] - Operating income for the year was $4.2 billion, reflecting a 7.7% year-over-year increase [4] Financial Update - As of December 31, 2025, CME Group had $4.5 billion in cash and marketable securities, a 51.1% increase from the end of 2024 [5] - Long-term debt rose to $3.4 billion, up 27.7% from the end of 2024 [5] - Shareholders' equity was valued at $28.7 billion, an 8.5% increase from the end of 2024 [5] Capital Deployment - CME Group distributed $3.9 billion in dividends during 2025, bringing the total payout to $30 billion since the introduction of the variable dividend policy in early 2012 [6]