ICE beats earnings estimates, extends record revenue streak to 20 years
Exchange operator reports $1.71 EPS on $2.5B Q4 revenue, shares return $2.4B to shareholders
Intercontinental Exchange reported stronger-than-expected fourth quarter earnings, delivering an adjusted profit of $1.71 per share that topped analyst estimates of $1.61, as the exchange operator extended its record revenue streak to a remarkable 20 consecutive years.
The Atlanta-based company, which owns the New York Stock Exchange and operates global trading and clearing platforms, generated quarterly revenue of $2.50 billion, exceeding Wall Street expectations of $2.41 billion. Full-year revenue reached $9.9 billion, representing 7% growth compared to the prior year, according to company financial results.
Adjusted earnings per share for the full year climbed 14% to $6.95, while the company maintained an adjusted operating margin of 60%, underscoring the profitability of its business model. The results demonstrate ICE's ability to generate consistent returns across market cycles, supported by its diversified portfolio of exchanges, clearing services, and data analytics businesses.
"Our performance in 2025 reflects the strength of our diversified business model and our focus on operational excellence," Jeffrey Sprecher, ICE's chairman and chief executive officer, said in a statement. "We achieved our 20th consecutive year of record revenues while investing in strategic growth initiatives and delivering significant returns to shareholders."
The company returned $2.4 billion to shareholders during the year, including $1.3 billion in share repurchases and $1.1 billion in dividends. ICE's stock, which trades on the NYSE, has gained approximately 1.1% to $164.85 in early trading following the announcement, bringing its market capitalization to $93.3 billion.
Looking ahead, ICE provided guidance for 2026, forecasting mid-single digit recurring revenue growth. The company noted that its recurring revenue streams, which include fixed-income and equity data services as well as mortgage technology solutions, provide stability and visibility for future earnings.
Analysts have maintained a generally positive outlook on ICE shares, with a consensus target price of $191.86 according to market data, suggesting potential upside from current levels. The stock currently trades at a forward price-to-earnings ratio of 21.9 times earnings, reflecting investor confidence in the company's ability to continue delivering consistent growth.
ICE's strong quarterly performance comes amid broader strength in the financial exchange sector, as trading volumes have recovered from pandemic-era volatility and stabilized at elevated levels. The company's fixed-income trading venues have benefited from heightened market activity, while its mortgage technology platform, Ellie Mae, continues to gain market share despite headwinds in the housing market.
The 20-year streak of record revenues places ICE among a select group of financial services companies that have maintained uninterrupted growth across two decades, including periods of significant market disruption. The company was founded in 2000 and has grown through both organic expansion and strategic acquisitions, including its 2013 purchase of NYSE Euronext.
Institutional investors hold approximately 94% of ICE's outstanding shares, reflecting the company's status as a core holding for portfolio managers seeking exposure to financial market infrastructure. The stock has traded between $142.74 and $188.26 over the past 52 weeks.