stockrowSnapshot
CME Group generated revenue of $6.5 billion, operating income of $4.2 billion and net income of $4.1 billion in FY2025. Diluted EPS was $11.16 in FY2025, and gross profit was $6.5 billion in FY2025.
In Q2 FY2026, revenue was $1.7 billion, gross profit was $1.7 billion, operating income was $1.1 billion and net income was $1.0 billion. Diluted EPS was $2.88 in Q2 FY2026, while free cash flow was $923.5 million in Q2 FY2026. Market capitalisation was $110.5 billion as of October 23, 2026.
Growth
Revenue reached $6.5 billion in FY2025, with growth of 6.37% in FY2025 against FY2024. Revenue compound annual growth was 9.11% in FY2022–FY2025 and 5.95% in FY2020–FY2025. Diluted EPS was $11.16 in FY2025, rising 15.4% in FY2025 against FY2024; its compound annual growth was 14.7% in FY2022–FY2025 and 13.7% in FY2020–FY2025.
Free cash flow was $4.2 billion in FY2025 and grew 16.6% in FY2025 against FY2024. Free cash flow compound annual growth was 12.2% in FY2022–FY2025 and 10.7% in FY2020–FY2025. Revenue was $1.7 billion in Q2 FY2026, down 9.25% against Q1 FY2026 and up 0.84% against Q2 FY2025. Diluted EPS was $2.88 in Q2 FY2026, down 9.43% against Q1 FY2026 and up 2.49% against Q2 FY2025.
Profitability
Gross margin was 100.0% in FY2025, unchanged by 0.0 percentage points in FY2024–FY2025 and FY2020–FY2025. Operating margin was 64.9% in FY2025, increasing by 0.7 percentage points in FY2024–FY2025 and by 10.9 percentage points in FY2020–FY2025. Pre-tax margin was 81.7% in FY2025, up 7.7 percentage points in FY2024–FY2025 and 26.0 percentage points in FY2020–FY2025.
Net margin was 62.5% in FY2025, increasing by 4.9 percentage points in FY2024–FY2025 and 19.3 percentage points in FY2020–FY2025. Return on equity was 14.6% in FY2025, compared with 9.74% in FY2021. Return on invested capital was 9.57% in FY2025, compared with 6.09% in FY2021. Return on assets was 2.39% in FY2025, below 2.61% in FY2024.
Balance sheet
Total debt was $3.4 billion in FY2025, while cash and short-term investments were $4.5 billion in FY2025. Net debt was −$1.1 billion in FY2025, compared with $3.4 billion of total debt in FY2025. Shareholders’ equity was $28.7 billion in FY2025, and book value per share was $79.88 in FY2025.
Working capital was $5.1 billion in FY2025, following $719.6 million in FY2024. Net debt was $1.1 billion in Q2 FY2026, compared with $907.8 million in Q1 FY2026; the reported change was $240.8 million in Q2 FY2026 against Q1 FY2026. The current ratio was 1.0× in Q2 FY2026, and debt to equity was 0.1× in Q2 FY2026.
Cash flow & capital return
Operating cash flow was $4.3 billion in FY2025, increasing 15.9% in FY2025 against FY2024. Capital expenditure was $83.5 million in FY2025, while free cash flow was $4.2 billion in FY2025. Free cash flow represented 103.0% of net income in FY2025.
Dividends paid were $3.9 billion in FY2025, and capital returned to shareholders was $4.2 billion in FY2025. Net share repurchases were $266.1 million in FY2025, compared with −$965.0 million in FY2021. Weighted average shares were 359.6 million shares in FY2025, and the share count changed by 0.53% in FY2020–FY2025. In Q2 FY2026, free cash flow was $923.5 million, down 25.4% against Q1 FY2026 and down 11.2% against Q2 FY2025.
Valuation
The P/E was 25.8× as of October 23, 2026, higher than the five-year median P/E of 24.0× as of October 23, 2026, over the five fiscal years to FY2025, and higher than the ten-year median P/E of 24.8× as of October 23, 2026, over the ten fiscal years to FY2025. The P/E was higher than the industry median P/E of 24.3× as of October 23, 2026.
The P/S was 16.3× as of October 23, 2026, higher than the five-year median P/S of 13.6× as of October 23, 2026, over the five fiscal years to FY2025, the ten-year median P/S of 13.5× as of October 23, 2026, over the ten fiscal years to FY2025, and the industry median P/S of 6.9× as of October 23, 2026. The P/B was 4.2× as of October 23, 2026, higher than the five-year median P/B of 3.0× and ten-year median P/B of 2.6×, while matching the industry median P/B of 4.2×, all as of October 23, 2026.
What changed since last quarter
Revenue was $1.7 billion in Q2 FY2026, declining 9.25% against Q1 FY2026 but increasing 0.84% against Q2 FY2025. Diluted EPS was $2.88 in Q2 FY2026, down 9.43% against Q1 FY2026 and up 2.49% against Q2 FY2025. Operating margin was 64.9% in Q2 FY2026, declining by 4.8 percentage points against Q1 FY2026 and by 1.9 percentage points against Q2 FY2025. Free cash flow was $923.5 million in Q2 FY2026, down against both comparison periods.
Management’s discussion addresses Q3 FY2026 and the first nine months of FY2026 rather than the changes in Q2 FY2026. For Q3 FY2026 and the first nine months of FY2026, management attributes higher volumes to market volatility across several markets, while noting that lower average rates per contract reflected a greater mix of micro contracts and higher member trading. Management also cites increased technology support services, compensation, rent and marketing costs for higher operating expenses in Q3 FY2026 and the first nine months of FY2026.
Open questions
- What factors drove the increase in net debt from Q1 FY2026 to Q2 FY2026?
- What explains the decline in free cash flow in Q2 FY2026 relative to both comparison periods?
- How much of the revenue change in Q2 FY2026 came from contract volume versus rate per contract?
- What were the specific drivers of the lower operating margin in Q2 FY2026?
Sources
- Form 10-Q filed October 23, 2026 — management’s discussion and analysis