CME Group outperformed the S&P 500 over the past decade, driven by its dominant derivatives platform and resilient revenue growth. Revenue per share has grown steadily, and CME maintains industry-leading low leverage, supporting its financial stability and risk profile. Dividend growth is strong and consistent, with both regular and special payouts, though the high payout ratio warrants monitoring.
I reiterate my Strong Buy rating on CME Group Inc. with a fair value of $319, driven by robust demand for risk hedging and record revenues. CME's ADV hit 21.9 million contracts in July, fueled by tariff uncertainties and volatile commodity prices, supporting sustained volume growth. Strategic expansion into the retail trading market is attracting new traders and diversifying revenue streams, enhancing long-term growth prospects.
CME Group Inc. (NASDAQ:CME ) Q2 2025 Earnings Call July 23, 2025 8:30 AM ET Company Participants Adam Minick - Investor Contact Terrence Duffy - Chairman & CEO Lynne Fitzpatrick - President & CFO Julie Winkler - Senior MD & Chief Commercial Officer Tim McCourt - Senior MD & Global Head of Equities, FX and Alternative Products Derek Sammann - Senior MD & Global Head of Commodities Markets Suzanne Sprague - Senior MD, Group COO & Global Head of Clearing Michael Dennis - Senior Managing Director & Global Head of Fixed Income Conference Call Participants Kwun Sum Lau - Oppenheimer & Co. Inc., Research Division Brian Bedell - Deutsche Bank AG, Research Division Christopher Allen - Citigroup Inc., Research Division Elias Abboud - BofA Securities, Research Division Daniel Fannon - Jefferies LLC, Research Division Alex Kramm - UBS Investment Bank, Research Division Kenneth Worthington - JPMorgan Chase & Co, Research Division Patrick Moley - Piper Sandler & Co., Research Division Michael Cyprys - Morgan Stanley, Research Division Kyle Voigt - Keefe, Bruyette, & Woods, Inc., Research Division Benjamin Budish - Barclays Bank PLC, Research Division Alexander Blostein - Goldman Sachs Group, Inc., Research Division Simon Alistair Clinch - Redburn (Europe) Limited, Research Division William Katz - TD Cowen, Research Division William Qi - RBC Capital Markets, Research Division Operator Welcome to the CME Group Second Quarter 2025 Earnings Call. [Operator Instructions] I would now like to turn the call over to Adam Minick.
CME posts Q2 beats on earnings and revenue as record trading volume and rising fees lift results amid market volatility.
The headline numbers for CME (CME) give insight into how the company performed in the quarter ended June 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
CME Group (CME) came out with quarterly earnings of $2.96 per share, beating the Zacks Consensus Estimate of $2.91 per share. This compares to earnings of $2.56 per share a year ago.
CME's second-quarter performance is likely to have benefited from a diverse product portfolio, increased volatility and a strong market position.
Beyond analysts' top-and-bottom-line estimates for CME (CME), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended June 2025.
CME (CME) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
CME (CME) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
CME Group gets rated buy again, reaffirming my last rating. The firm is growing new products, markets, and users, as well as having achieved profit margins beating its sector and key peers, and cashflow growth. Two key business segments of operating exchanges, as well as providing market data to subscribers, have seen demand growth.
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