CME Group Inc. (CME) Earnings

CME Group Inc.

CME · Nasdaq

Symbol: CME
Type: Stock
Sector: Finance
Industry: Security & Commodity Brokers, Dealers, Exchanges & Services
Exchange: Nasdaq

As the world's leading derivatives marketplace, CME Group ( www.cmegroup.com ) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data - empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates , equity indexes , foreign exchange , cryptocurrencies , energy , agricultural products and metals . The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing.

Key Issues

Bullish view

CME leads Coinbase on valuation, price gains, and near-term growth, while rising market activity can support its transaction-driven model and the company delivered strong fiscal 2025 growth.

Bearish view

Simply Wall St. cites potential multiple compression as a concern, and the available target revisions include substantial cuts from Barclays and Goldman Sachs, suggesting growth may not justify the current valuation.

Analyst Consensus

See all

Hold

16 analysts

1 Bearish1 Neutral1 Bullish

$281

Current

$245

Low

$289

Average

$270

High

Average target implies +2.90% versus the current price.

Earnings History

BeatMissNo estimate

Sep 2026upcoming

Next quarter

Reports Oct 21, 2026, before the open.

Consensus is $2.96 EPS for Sep 2026 across 7 estimates, ranging $2.83 to $3.15.

CME Jun 2026

Reported Jul 22, 2026

: 2.75%
: +2.04%

: $2.91
: $2.99
: —
: $1.71B

Reported results

: $1.71B; from $1.69B
: $1.11B; from $1.13B
: 64.89%; from 66.74%
: $1.04B; from $1.03B
: $2.88; from $2.81

Highlights

Earnings beat: Adjusted diluted EPS was $2.99, ahead of the $2.91 consensus by 2.75%; GAAP diluted EPS was $2.88 versus $2.81 a year ago and $3.18 in Q1.
Revenue: Q2 revenue was $1.71 billion, up 1% year over year from $1.69 billion but down from $1.88 billion in Q1.
Trading activity: Average daily volume was 29.8 million contracts, the third-highest quarterly level, including 9.1 million non-U.S. contracts; volume was down 1% year over year but below Q1's record 36.2 million.
Market data: Market data revenue reached a record $238.1 million, up 20% year over year and 2% sequentially.
Transaction fees: Clearing and transaction fees declined 3% year over year to $1.35 billion as volume was broadly flat and average revenue per contract fell 2% to $0.678.
Profitability: Adjusted operating income was $1.19 billion, down 1% year over year, while adjusted operating margin was approximately 69.4%; GAAP operating margin fell to 64.9% from 66.7%.
Cash returns: CME paid $468 million in dividends and repurchased $695 million of stock during Q2; $1.5 billion remained under its repurchase authorization at June 30.
Liquidity: The company ended the quarter with $2.3 billion of cash, including $200 million deposited with FICC, against $3.4 billion of debt.

Analysis

CME's second quarter was a modest top-line and adjusted earnings beat, but with activity normalizing after a record first quarter. Adjusted diluted EPS of $2.99 exceeded the $2.91 consensus by 2.75% and rose 1% from $2.96 a year ago, while revenue increased 1% to $1.71 billion. GAAP diluted EPS was $2.88, up from $2.81 year over year but down from $3.18 in Q1; revenue and operating income fell 9% and 16%, respectively, on a sequential basis. Management characterized the first half as its strongest ever, with six-month revenue of $3.59 billion, adjusted EPS of $6.35 and average daily volume of 33.0 million contracts.

The print was defined by a sharp mix shift toward recurring market data and resilient trading volumes despite lower volatility than in Q1. Market data revenue rose 20% to a record $238 million, while clearing and transaction fees declined 3% as the average rate per contract fell to $0.678, reflecting more micro-contract and member volume. Expenses increased 6% year over year, led by technology and licensing costs, including spending tied to the Google Cloud transition. Capital returns remained substantial, with $1.16 billion returned through Q2 dividends and buybacks in the quarter alone.

Financial results

CME delivered a small year-over-year revenue gain and an adjusted EPS beat, although the sequential comparison was weaker after Q1's exceptional volatility-driven volumes. Adjusted operating income was $1.19 billion versus $1.20 billion a year ago, and adjusted net income was $1.08 billion versus $1.07 billion. GAAP net income increased 2% to $1.04 billion, helped in part by a lower effective tax rate of 21.5% versus 22.9% a year ago.

Revenue mix: Clearing and transaction fees were $1.35 billion, down 3% year over year; market data was $238.1 million, up 20%; and other revenue was $115.6 million, up 9%.
Six-month performance: Revenue increased 8% to $3.59 billion, adjusted operating income rose 8% to $2.55 billion and adjusted EPS increased 10% to $6.35.

Trading volumes and mix

Trading remained historically strong, but the quarter reflected normalization from the first quarter's record activity as geopolitical and macroeconomic uncertainty eased. Q2 average daily volume was 29.843 million contracts versus 30.217 million a year ago and 36.231 million in Q1. Non-U.S. ADV was 9.1 million contracts, and electronic trading represented 94% of total volume.

Product leaders: Equity index ADV increased 13% year over year to 8.634 million contracts, while agricultural commodities rose 6% to 2.080 million. Interest-rate ADV fell 6% to 14.532 million, and energy declined 13% to 2.667 million.
Digital assets: Bitcoin futures and options ADV increased 35% year over year to 116,000 contracts, while Ether declined 12% to 89,000.
Rate pressure: Average revenue per contract fell 2% to $0.678, as higher micro-contract and member volume more than offset favorable fee changes implemented April 1.

Market data growth

Market data was the clearest structural growth contributor in the quarter. Revenue reached a record $238.1 million, supported by higher usage, new customer segments and price increases. Six-month market data revenue was $462.2 million, up 18% from $392.6 million in the prior-year period, making the business an increasingly important counterbalance to volume and rate volatility in transaction fees.

Costs and margins

Operating expenses rose 6% year over year to $599.1 million, while revenue grew 1%, reducing GAAP operating margin to 64.9% from 66.7%. Technology expense increased 18% to $83.3 million, primarily reflecting third-party support for the Google Cloud transformation, and licensing and other fee agreements rose 13% to $109.1 million. Compensation and benefits increased 5% to $233.5 million. Adjusted operating expenses were $521.2 million, producing adjusted operating income of $1.19 billion.

Capital returns and liquidity

CME continued to return substantial capital while maintaining a conservative funding profile. The company paid $468 million of quarterly dividends, or $1.30 per share, and repurchased $695 million of stock at an average price of $273.14 per share. Six-month repurchases totaled $1.24 billion, leaving $1.5 billion under the existing $3.0 billion authorization. Cash and cash equivalents were $2.14 billion at June 30, excluding restricted collateral, while long-term debt was $3.42 billion. Operating cash flow for the first half was $2.21 billion.

Leadership transition

The filing disclosed a June 16 transition agreement under which Terry Duffy will become executive chairman and Lynne Fitzpatrick will assume the chief executive role. The quarter's results therefore also mark the beginning of a planned leadership transition, while the company continues its product expansion and technology transformation agenda.