stockrowLatest quarter
MarketAxess reported Q2 FY2026 revenue of $218.4 million, down from $219.5 million a year earlier, while diluted earnings per share rose to $1.93 from $1.91. For the later quarter ended September 30, consensus figures show revenue of $210.4 million, below the $221.2 million estimate, and adjusted EPS of $1.86, below the $1.95 estimate.
In its Q2 filing, MarketAxess said credit variable transaction fees fell by $8.6 million as a lower average fee per million outweighed an increase in trading volume. The company attributed the lower fee principally to the mix of products and trading protocols and shorter duration of U.S. high-grade bonds traded.
MarketAxess said its U.S. high-grade trading volume declined as its estimated market share fell, while emerging-markets and eurobond volumes increased. Information-services revenue increased by $3.0 million, primarily from net new contracts, according to the filing.
MarketAxess reported an operating margin of 41.1%, compared with 41.9% a year earlier. Free cash flow fell to $14.8 million from $91.0 million.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $218.4 million | $219.5 million | −0.48% |
| Diluted EPS | $1.93 | $1.91 | 1.05% |
| Gross margin | 100.0% | 100.0% | 0.0 percentage points |
| Operating margin | 41.1% | 41.9% | −0.7 percentage points |
| Free cash flow | $14.8 million | $91.0 million | −83.7% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $1.86 | $1.95 | Missed by 4.62% |
| Revenue | $210.4 million | $221.2 million | Missed by 4.88% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
On the Q1 2026 earnings call, CEO Chris Kincannon said new initiatives generated approximately 50% of incremental revenue during the quarter. He said trading volumes rose across emerging markets, with growth in both hard-currency and local-currency business. In the Q&A, he pointed to block trading, portfolio trading and dealer-initiated trading as contributors to activity in international markets.
Kincannon said emerging-markets local-currency revenue grew faster than hard-currency revenue, but that local markets carried a lower fee per million. He said the overall emerging-markets fee per million declined partly because of that business mix. CFO Eileen Feazell-Buehler said shifts in products and protocols also reduced total credit fee capture year over year, partly offset by longer duration in U.S. high-grade bonds.
Addressing U.S. credit share, Kincannon said duplicate trade reports and new issuance affected the company’s April estimate. He said MarketAxess generally has lower share in new issues during their first two weeks of trading, when client attention can draw activity away from secondary trading on its platform.
In the Q&A, Kincannon described a partnership with DirectBooks intended to give clients access to new-issue information and submit indications of interest. He also discussed a planned trading solution for bonds after a new issue begins trading.
On investment, Kincannon said MarketAxess was exploring AI-based market intelligence, portfolio optimization and trading-protocol suggestions using its data. Feazell-Buehler said higher compensation and technology costs contributed to Q1 expense growth as the company invested in technology modernization. Kincannon also discussed competition in emerging markets and eurobonds and said the company was expanding block and portfolio trading tools across those markets.
Guidance
MarketAxess expects its acquisition by ICE to close in the first quarter of 2027, subject to Department of Justice approval. The company previously outlined a first-half timeline.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Market size, New Issue Market | FY2026 | $2.00 trillion | — | New |