NYSE-parent ICE beats profit estimates on robust trading volumes

By Utkarsh Shetti

Feb 5 (Reuters) - Intercontinental Exchange ICE.N beat fourth-quarter profit expectations on Thursday, as persistent market turbulence boosted trading volumes at the New York Stock Exchange-parent, sending its shares up more than 4% in early trading.

Geopolitical tensions and the Trump administration's trade policies have spurred uncertainty in markets, while the Federal Reserve's interest-rate path has driven further speculation.

Volatile markets typically boost volumes at exchanges, as traders hedge their positions more aggressively and investors reshuffle their portfolios.

ICE has posted consecutive quarters of growth in the energy segment, as protracted conflicts in Ukraine and the Middle East have fueled turbulence in oil markets.

In the fourth quarter, revenue from energy trading rose 15% to $548 million, lifting the exchanges segment, its biggest revenue generator, to a record $1.36 billion.

STRONG YEAR AHEAD

"Entering 2026, we believe the tailwinds behind our businesses are strong," CEO Jeff Sprecher said.

The exchange operator also raised its quarterly dividend by 8% to 52 cents per share in the first quarter of 2026, underpinning expectations for the year ahead.

ICE executives told analysts that momentum in derivatives trading, which surged to record volumes in 2025, is spilling over into this year.

Earlier this week, the company said January was the strongest trading month in its history, with more than 245 million contracts traded.

ICE is also foraying into products beyond its segments by seeking a nod for a digital platform that would enable 24/7 trading of tokenized securities and a prediction markets bet through an up to $2 billion stake in Polymarket.

The fixed income and data services segment, through which it sells subscription-based pricing data for certain debt assets, posted a 5% jump in revenue.

Adjusted profit of $1.71 per share beat expectations of $1.67, according to data compiled by LSEG.