# CME Group Inc. (CME) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/CME/thesis · /stocks/CME/memo

## Financial Snapshot

---
ticker: CME
step: 04
generated: 2026-05-12
source: quick-research
---

### CME Group Inc. (CME) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2023 | FY2024 | FY2025 | YoY (FY25) |
|--------|--------|--------|--------|------------|
| Revenue | $5.58B | $6.13B | $6.51B | +6.3% |
| Clearing & Transaction Fees | $4.6B | $5.1B | $5.4B | +6% |
| Market Data Revenue | $0.74B | $0.78B | $0.83B | +6% |
| Adjusted Operating Margin | 63% | 64% | 65%+ | +100 bps |
| GAAP Operating Margin | ~60% | ~63% | ~63% | flat |
| Adjusted Net Income | $3.34B | $3.67B | $4.02B | +9.7% |
| Adjusted Diluted EPS | $9.24 | $10.13 | $11.06 | +9.2% |

#### Volume Metrics

| Metric | FY2024 | FY2025 | Trends |
|--------|--------|--------|--------|
| Annual ADV (millions of contracts) | 26.9 | record | Q2 2025 record at 30.2M (+16%) |
| Interest Rate ADV | record | record | all-time records 3 consecutive years |
| Equity Index ADV | strong | record | volatility-driven |
| Commodity ADV | strong | +15% sector growth | broad-based |

#### Cash Flow & Capital Allocation (FY2025)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | ~$4.5B |
| Capital Expenditures | ~$70M (asset-light) |
| Free Cash Flow | ~$4.4B |
| Total Capital Returned in 2025 (incl. variable div + buybacks) | ~$4.0B |
| 2025 Annual Variable Dividend (declared Feb 2026) | $6.15/share (~$2.2B) |
| Q1 2026 Regular Dividend | $1.30 (quarterly) |
| Annual Regular Dividend | $5.20 |
| Total Annual Dividend Yield (regular + variable) | ~4.2% |
| Q4 2025 Buyback | $256M |
| YTD 2026 Buyback | $276M+ (using OSTTRA proceeds) |
| Buyback Authorization | $3B opportunistic |

#### FY2026 Guidance

| Metric | 2026 Guide |
|--------|-----------|
| Adjusted Operating Expenses (ex-license fees) | ~$1.695B |
| Capital Expenditures | ~$85M |
| Tax Rate | 23.5–24.5% |
| Pricing/Fee Changes | +1.0–1.5% expected revenue impact |
| Major Initiative | CME-FICC client cross-margining launched April 30, 2026; CME Securities Clearing for Treasury cash |

#### Key Ratios (approximate)
- P/E: ~24x (FY26 adjusted EPS ~$11.50) | EV/EBITDA: ~18x | FCF Yield: ~4.6%
- Revenue Growth (FY25): +6.3% | FCF Margin: ~68%
- Adjusted Operating Margin: 65%+ (industry-best)
- Total Capital Return Yield: ~4.2% (regular $5.20 + variable $6.15 = ~$11.35 annual)
- ROIC: 60%+ (asset-light + clearing fund structure)

#### Growth Profile
FY25 was a record year:
- Revenue +6.3% to $6.51B
- Adjusted EPS +9.2% to $11.06
- Net Income +15.5% to $4.02B
- Q2 2025 ADV record 30.2M contracts (+16%)
- All six asset classes hitting volume records

The structural story is **financial-risk infrastructure monopoly**:
- Interest rate futures volumes structurally rising with debt cycles + Fed activity
- CME-FICC cross-margining (April 30, 2026 launch) saves customers ~$80B daily margin — defends Treasury futures dominance against any potential FICC competition
- CME Securities Clearing (Treasury cash) entry leverages clearing-network effects into adjacent market

FY26 setup: continued mid-single-digit revenue growth + operating leverage + variable dividend program supports ~5%+ total capital return yield + multiple expansion as recurring revenue mix grows.

#### Forward Estimates
FY2026 (Consensus):
- Revenue: ~$6.9–7.0B (+6%)
- Adjusted EPS: ~$11.50–12.00 (+4–8%)

Bull case: Volumes accelerate further on continued rate volatility + Treasury debt issuance + equity flows; multiple expands to 28x P/E. Bear case: 2026 rates cycle normalizes + interest rate hedging volume declines; multiple compresses to 20x P/E. Consensus targets ~$285–315 vs. trading ~$255–275 (~10–25% implied upside).

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/CME/fundamental

## Navigation

- Overview: /stocks/CME
- Financials (this page): /stocks/CME/financials
- Thesis: /stocks/CME/thesis
- Investment Memo: /stocks/CME/memo
- Coverage universe: /stocks