MarketAxess earnings for the third quarter of 2026 showed revenue rising 1% to $210.4 million, below analyst expectations of $219.39 million. The electronic bond-trading platform reported stronger trading volumes, but lower fees in its credit business limited revenue growth. Merger-related expenses also weighed on reported profit for the quarter ended September 30.
Key Takeaways
- Revenue missed expectations by $8.99 million despite a 13% increase in total trading average daily volume.
- Diluted earnings fell to $1.53 per share; excluding notable items, earnings rose to $1.86.
- MarketAxess expanded its X-Pro platform while its proposed $167-per-share cash acquisition by ICE remained pending.
Table of Contents
- MarketAxess earnings show a gap between volume and revenue
- Merger costs separate reported and adjusted profit
- X-Pro upgrades accompany stronger block and portfolio trading
- Pending ICE acquisition changes the outlook framework
- Conclusion
MarketAxess earnings show a gap between volume and revenue
MarketAxess’s third-quarter 2026 results announcement, released on October 23, showed commission revenue unchanged from a year earlier at $179.9 million. Services revenue increased 6% to $30.5 million, providing most of the company’s overall revenue growth.
The credit business illustrates why higher activity did not translate into comparable revenue gains. Credit average daily volume increased 7%, but the average variable transaction fee per million fell 9% to $127. MarketAxess attributed the fee decline largely to the mix of trading protocols and products, as well as shorter-duration bonds traded in U.S. high-grade credit.
Credit commission revenue consequently declined 2% to $161.2 million. Rates commissions grew 34% to $8.9 million, supported by higher U.S. Treasury volumes and improved fees, but remained a much smaller contributor.
Information services offered another area of growth: revenue increased 10% to $15.2 million, principally because of net new contract revenue.
| Item | Details |
|---|---|
| Quarterly dividend | $0.78 per share |
| Dividend record date | November 11, 2026 |
| Dividend payment date | November 25, 2026 |
| Cash and investments at September 30 | $539.6 million, compared with $678.9 million at December 31, 2025 |
| Credit-facility borrowings at September 30 | $92.0 million, down from $220.0 million at December 31, 2025 |
Merger costs separate reported and adjusted profit
Reported net income declined to $54.0 million from $68.3 million a year earlier, while diluted earnings per share fell to $1.53 from $1.84. Total expenses rose 10% to $136.0 million.
The quarter included $13.1 million in pre-tax expenses associated with the pending merger with Intercontinental Exchange. Excluding notable items, expenses were essentially unchanged at $122.9 million and diluted earnings were $1.86 per share.
The distinction also appeared in profitability. The reported operating margin narrowed to 35.4% from 41.0%, while the margin excluding notable items increased to 41.6% from 41.0%. The adjusted figures are non-GAAP measures and do not replace the reported results.
X-Pro upgrades accompany stronger block and portfolio trading
CEO Chris Concannon said MarketAxess launched an enhanced X-Pro request-for-quote experience for U.S. credit clients. The interface combines price and spread trading, targeted and direct block workflows, and AI-powered dealer selection.
The company also introduced a new-issue workflow that lets clients access primary and secondary markets side by side. Portfolio-trading enhancements included CP+ pricing and pre-trade analytics.
Block-trading average daily volume increased 21% to $5.4 billion, while portfolio-trading average daily volume rose 37% to $1.9 billion. Those increases demonstrate growth in the company’s strategic trading channels, although the results do not isolate the revenue contribution of the newly introduced features.
Pending ICE acquisition changes the outlook framework
Under the merger agreement signed on July 29, 2026, MarketAxess shareholders would generally receive $167 in cash for each share. The Department of Justice and Federal Trade Commission granted early termination of the applicable U.S. antitrust waiting period on October 21.
The transaction was not complete. MarketAxess stockholder approval, required regulatory approvals and other closing conditions remained outstanding.
In light of the proposed acquisition, MarketAxess withdrew its previously announced 2026 annual guidance and medium-term financial targets. It also suspended earnings conference calls, guidance issuance and monthly volume press releases. Separately, the board declared a quarterly dividend, with payment details below.
Conclusion
With guidance withdrawn, the next transaction milestones are stockholder approval and the remaining regulatory and closing requirements for the ICE acquisition. The next scheduled shareholder payment is the November 25 dividend.
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