Intercontinental Exchange, Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 30 April 2026: press release. Guidance figures: 2 raised, 5 new. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue and operating income both rose: Net revenues were $2,977 million, up 20% from $2,473 million. GAAP operating income was $1,665 million, up 36%, and adjusted operating income was $1,942 million, up 29%. Source
• Equity investment adjustment excluded from adjusted EPS: GAAP diluted EPS was $2.48 against $1.38 a year earlier. The reconciliation deducts $389 million of fair value adjustments on equity investments in reaching adjusted net income. Source
• Adjusted diluted EPS rose 37%: Adjusted diluted EPS was $2.35 against $1.72 a year earlier. Adjusted net income attributable to ICE was $1,338 million against $995 million. Source
• Energy and financials led exchange growth: Energy revenue was $814 million, up 46%. Financials revenue was $256 million, up 65%. Both grew faster than the segment as a whole. Source
• Mortgage technology posted operating loss: Revenues were $539 million, up 6%. The segment operating loss was $13 million, a margin of (2)%. Adjusted operating income was $212 million, a 39% adjusted margin, before $185 million of acquisition-related amortization. Source
• Operating expenses rose 5% GAAP: GAAP operating expenses were $1,312 million against $1,252 million. Adjusted operating expenses, excluding amortization and transaction and integration costs, were $1,035 million against $964 million. Source
• Returns to shareholders totaled $848 million: ICE repurchased $551 million of common stock and paid $297 million in dividends. Total returns through March 31, 2026 were $848 million. Source

“We are pleased to report record first quarter results, driven by the strength of our diversified platform and the continued trust of our global customers.”

Jeff Sprecher, ICE Chair & Chief Executive Officer

Guidance

What changed from last quarter

• Guidance raised: Full-year 2026 GAAP operating expense range raised to $5.095 billion to $5.145 billion from $5.010 billion to $5.075 billion. Source
• Guidance raised: Full-year 2026 adjusted operating expense range raised to $4.145 billion to $4.195 billion from $4.075 billion to $4.140 billion. Source
• New guidance: Second-quarter 2026 ranges given for GAAP and adjusted operating expenses, non-operating expense and diluted share count. Source

Results and growth drivers

• Revenue and operating income both rose: Net revenues were $2,977 million, up 20% from $2,473 million. GAAP operating income was $1,665 million, up 36%, and adjusted operating income was $1,942 million, up 29%. Source
• Equity investment adjustment excluded from adjusted EPS: GAAP diluted EPS was $2.48 against $1.38 a year earlier. The reconciliation deducts $389 million of fair value adjustments on equity investments in reaching adjusted net income. Source
• Adjusted diluted EPS rose 37%: Adjusted diluted EPS was $2.35 against $1.72 a year earlier. Adjusted net income attributable to ICE was $1,338 million against $995 million. Source
• Net income and margins both higher: Net income attributable to ICE was $1,413 million against $797 million. Consolidated operating margin was 56% against 49%, and adjusted operating margin was 65% against 61%. Source

Exchanges segment

• Exchange revenue rose 30%: Exchange net revenues were $1,781 million, up 30% (27% at constant currency). Segment operating margin was 79%, and adjusted operating margin was 80%. Source
• Energy and financials led exchange growth: Energy revenue was $814 million, up 46%. Financials revenue was $256 million, up 65%. Both grew faster than the segment as a whole. Source
• Data and connectivity grew, OTC slipped: Data and connectivity services rose 13% to $277 million and listings rose 5% to $128 million. Cash equities and equity options rose 3% to $123 million, and OTC and other fell 1% to $102 million. Source

“In a quarter marked by significant macroeconomic and geopolitical uncertainty, our customers increasingly relied on our mission-critical markets, data, and technology to navigate complexity and manage risk.”

Jeff Sprecher, ICE Chair & Chief Executive Officer

Fixed income and data services

• Segment revenue rose 10%: Fixed income and data services revenues were $657 million, up 10% (9% at constant currency). The segment operating margin was 42%, and the adjusted operating margin was 47%. Source
• Segment operating income reported: Segment operating income was $275 million, and adjusted operating income was $311 million, in the first quarter. Source
• Clearing and data lines grew: CDS clearing rose 19% to $112 million. Fixed income data and analytics rose 8% to $322 million, and data and network technology rose 12% to $192 million. Fixed income execution was flat at $31 million. Source

Mortgage technology segment

• Mortgage technology posted operating loss: Revenues were $539 million, up 6%. The segment operating loss was $13 million, a margin of (2)%. Adjusted operating income was $212 million, a 39% adjusted margin, before $185 million of acquisition-related amortization. Source
• Closing and origination lines grew: Closing solutions rose 20% to $57 million, and origination technology rose 10% to $192 million. Servicing software rose 1% to $222 million, and data and analytics rose 1% to $68 million. Source
• Segment operating expenses higher: Mortgage technology GAAP operating expenses were $552 million, and adjusted operating expenses were $327 million, in the first quarter. Source

“ICE's first quarter results reflect the durability and quality of our business model, delivering record revenues and record operating income.”

Warren Gardiner, ICE Chief Financial Officer

Revenue mix by segment

• Consolidated transaction revenue grew faster: Consolidated recurring revenues were $1,320 million, up 7%. Transaction revenues, net were $1,657 million, up 34%. Source
• Exchange transaction revenue dominated growth: Exchange transaction revenues, net were $1,376 million, up 38%. Exchange recurring revenues were $405 million, up 10%. Source
• Fixed income recurring revenue grew 9%: Fixed income and data services recurring revenues were $514 million, up 9%. Transaction revenues were $143 million, up 14%. Source
• Mortgage transaction revenue rose 22%: Mortgage technology transaction revenues were $138 million, up 22%. Recurring revenues were $401 million, up 1%. Source

Operating costs

• Operating expenses rose 5% GAAP: GAAP operating expenses were $1,312 million against $1,252 million. Adjusted operating expenses, excluding amortization and transaction and integration costs, were $1,035 million against $964 million. Source
• Compensation and technology costs rose: Compensation and benefits were $505 million against $481 million. Technology and communication was $238 million against $213 million. Acquisition-related transaction and integration costs were $41 million against $32 million. Source
• No Section 31 fees this quarter: Transaction-based expenses included no Section 31 fees in the first quarter, against $262 million a year earlier. Cash liquidity payments, routing and clearing were $689 million against $494 million. Source
• Acquisition amortization declined: Amortization of acquisition-related intangibles was $237 million against $253 million a year earlier. Source

Cash flow, capital and returns

• Operating and free cash flow: Operating cash flow was $1,326 million against $966 million. Free cash flow was $1,150 million against $777 million in the prior-year quarter. Source
• Returns to shareholders totaled $848 million: ICE repurchased $551 million of common stock and paid $297 million in dividends. Total returns through March 31, 2026 were $848 million. Source
• Cash and debt at quarter end: Unrestricted cash was $863 million and outstanding debt was $20.4 billion at March 31, 2026. At December 31, 2025 these were $837 million and $19.6 billion. Source
• Margin deposits drove balance sheet growth: Total assets were $179,177 million, against $136,887 million at December 31, 2025. Cash and cash equivalent margin deposits and guaranty funds were $117,610 million, against $76,789 million. Source
• Diluted share count declined: Diluted weighted average common shares outstanding were 570 million, against 577 million a year earlier. Source

Strategy and investment

• Investing in growth while keeping leverage: The company returned $848 million to stockholders while also investing in strategic growth initiatives and maintaining leverage within its target range, according to the CFO. Source
• Disciplined investment remains the stated focus: The CFO said the company remains focused on disciplined investment, operational rigor, and creating value for stockholders. Source
• Positioned to serve customers: The CEO said ICE is well positioned to serve customers, drive innovation and create value for stockholders as it looks to the balance of the year. Source

Risks management discussed

• External: Management cited significant macroeconomic and geopolitical uncertainty during the quarter. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.