CME Group Revenue Climbs 14% to $1.88 Billion in Q1 2026
CME Group Inc., a derivatives marketplace operator, reported net income of $1.15 billion for the quarter ending March 31, 2026, up 21% from $956.2 million in the same period a year earlier.
CME Group Inc. (NASDAQ: CME), a derivatives marketplace operator, reported net income of $1.15 billion for the quarter ending March 31, 2026, up 21% from $956.2 million in the same period a year earlier. Revenue rose 14% to $1.88 billion from $1.64 billion in the first quarter of 2025. Read more earnings reports.
The company posted operating income of $1.31 billion, compared with $1.11 billion in the prior-year quarter. Operating margin expanded to 69.7% from 67.5%.
Clearing and transaction fees, the company's largest revenue source, grew 15% to $1.54 billion from $1.34 billion. Interest rates-related fees jumped 19% to $521.2 million, while metals fees surged 67% to $118.4 million. Energy fees climbed 22% to $263.7 million.
Market data and information services revenue increased 15% to $224.1 million from $194.5 million. Other revenue edged up 3% to $113.4 million.
Expenses and Margins
Total expenses rose 7% to $570.4 million from $534.3 million. Compensation and benefits grew 8% to $223.0 million, while technology costs climbed 17% to $76.6 million. Licensing and other fee agreements increased 11% to $106.8 million.
Professional fees and outside services declined 1% to $28.2 million. Amortization of purchased intangibles edged up 2% to $56.1 million.
Non-Operating Income
Non-operating income totaled $201.2 million, up 47% from $136.8 million in the year-ago quarter. Investment income jumped 56% to $1.39 billion from $892.7 million. Equity in net earnings of unconsolidated subsidiaries rose 16% to $102.4 million.
The company recorded other non-operating expenses of $1.25 billion, compared with $802.4 million in the prior year. Interest and borrowing costs increased to $43.6 million from $41.7 million.
Earnings Per Share and Dividends
Diluted earnings per share rose 21% to $3.18 from $2.62. The company paid dividends of $7.45 per common share during the quarter, totaling $2.70 billion. In the year-ago quarter, dividends were $1.25 per share, totaling $456.1 million.
The company repurchased 1.84 million Class A common shares for $538.7 million during the quarter. No share repurchases occurred in the first quarter of 2025.
Balance Sheet and Cash Flow
Total assets stood at $202.0 billion at March 31, 2026, up from $198.4 billion at December 31, 2025. Cash and cash equivalents declined to $2.39 billion from $4.42 billion at year-end. Performance bonds and guaranty fund contributions rose to $165.0 billion from $159.7 billion.
Cash flow from operating activities increased 13% to $1.26 billion from $1.12 billion in the prior-year quarter. The company spent $21.8 million on property purchases, compared with $14.2 million a year earlier.
Total shareholders' equity decreased to $26.6 billion from $28.7 billion at December 31, 2025, primarily due to dividend payments and share repurchases. Long-term debt remained relatively flat at $3.42 billion.
Revenue by Product
| Product Category | Q1 2026 ($ millions) | Q1 2025 ($ millions) | Change |
|---|---|---|---|
| Interest rates | 521.2 | 436.3 | +19% |
| Equity indexes | 315.6 | 304.2 | +4% |
| Energy | 263.7 | 216.4 | +22% |
| Agricultural commodities | 167.5 | 164.3 | +2% |
| Metals | 118.4 | 70.9 | +67% |
| Foreign exchange | 56.8 | 53.4 | +6% |
| BrokerTec fixed income | 40.2 | 35.9 | +12% |
| EBS foreign exchange | 36.4 | 35.1 | +4% |
| Interest rate swap | 22.8 | 20.8 | +10% |
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total revenues ($ millions) | 1,880.1 | 1,642.3 |
| Operating income ($ millions) | 1,309.7 | 1,108.0 |
| Net income ($ millions) | 1,154.3 | 956.2 |
| Diluted EPS ($) | 3.18 | 2.62 |
| Operating margin (%) | 69.7 | 67.5 |
| Effective tax rate (%) | 23.6 | 23.2 |
The company converted all 4,584 shares of Series G preferred stock to Class A common stock during the quarter. As of March 31, 2026, CME Group had 361.79 million Class A common shares outstanding, compared with 358.95 million at December 31, 2025.