NYSE-parent ICE's profit beats estimates as volatility fuels record revenue

By Atharva Singh and Arasu Kannagi Basil

July 31 (Reuters) - Intercontinental Exchange ICE.N, the New York Stock Exchange parent, beat second-quarter profit estimates on Thursday, as elevated volatility boosted demand for its hedging products and drove record revenue.

Exchanges thrive during bouts of market volatility as investors frequently rebalance portfolios to seize opportunities and hedge against risks, driving up trading volumes.

Shifting trade policies and ongoing geopolitical tensions drove demand for risk management products in the second quarter as market participants looked to hedge exposures.

The volatility index .VIX, a barometer for market uncertainty and Wall Street's most-watched gauge of investor anxiety, hit record levels in April before easing as optimism over potential trade deals calmed markets.

The exchange operator's energy average daily volume surged 27% in the three months ended June 30, while financials ADV jumped 30%. ICE's total ADV surged 26% to a quarterly record.

ICE's energy revenue jumped 27% to $595 million in the quarter, while total revenue surged 10% to record $2.54 billion.

CEO Jeff Sprecher told analysts that trading volumes continued to be strong in July, underpinned by robust energy and rates trading.

Executives said the resolution of ongoing tariffs and trade discussions is going to create a long tailwind for the growth of natural gas globally, as many of the settlements have forward commitments to purchase U.S. energy as an element.

On an adjusted basis, ICE earned a record $1.81 per share in the quarter, topping expectations of $1.77, according to estimates compiled by LSEG.

ICE now expects full-year exchanges recurring revenue growth to be 4% to 5%, compared with its prior forecast of low-single digits growth.

Executives said ICE was always looking for acquisitions but declined to comment on M&A rumors.

Bloomberg News reported on Tuesday that ICE is in talks to buy energy data and analytics provider Enverus.

IPO COMEBACK

The U.S. IPO market saw a sharp pickup in activity during the second quarter after a brief lull in April as easing uncertainty opened the window for companies to move forward with their stock market listings.

IPOs on the NYSE raised roughly $9 billion in the first half of 2025 and an additional $4.5 billion so far in July, Sprecher said.

The NYSE welcomed high-profile companies such as stablecoin issuer Circle CRCL.N and Venture Global VG.N in the first half. Design software firm Figma is set to list on the NYSE on Thursday after a $1.2 billion IPO.

ICE's listings business posted a 1% rise in quarterly revenue. A rebound in IPOs helps exchanges, which charge fees for stock listings.