CME Group Inc (CME)
NASDAQ:CME
Want to see CME full AI Analyst Report?
Top Page
CME Group
(NASDAQ:CME)
Select Model
Select Model
Rating:78Outperform
Price Target:
$325.00
▲(12.98% Upside)
Action:Reiterated
Date:04/28/26
CME scores well primarily due to strong financial performance (exceptional margins, strong cash generation, conservative leverage) and a supportive earnings outlook with record operating momentum and a robust product pipeline. The score is held back by weak near-term technicals (below key moving averages and negative MACD), while valuation is acceptable with a solid dividend yield.
Positive Factors
Exceptional profitability
CME's very high and stable margins reflect structural operating leverage from exchange and clearing economics. Durable margin advantage supports reinvestment, dividends and buybacks, and cushions earnings through volume cycles, underpinning long-term free cash flow generation.
Negative Factors
Rate‑per‑contract compression
Persistent downward pressure on average fee per contract means revenue growth increasingly depends on higher volumes rather than pricing. If mix shifts toward lower‑priced products or tiering persists, top‑line growth could underperform and require stronger cost discipline to protect margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Exceptional profitability
CME's very high and stable margins reflect structural operating leverage from exchange and clearing economics. Durable margin advantage supports reinvestment, dividends and buybacks, and cushions earnings through volume cycles, underpinning long-term free cash flow generation.
Read all positive factors
CME Group Key Performance Indicators (KPIs)
Any
Total Contract Volume
Measures the total number of contracts traded, indicating market activity levels and the company's ability to attract traders.
Measures the total number of contracts traded, indicating market activity levels and the company's ability to attract traders.
Data provided by:
The Fly
The FlyCME Group (CME) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$105.53B
Dividend Yield3.92%
Average Volume (3M)2.37M
Price to Earnings (P/E)23.0
Beta (1Y)0.03
Revenue Growth7.54%
EPS Growth18.50%
CountryUS
Employees3,760
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)11.80
Shares Outstanding362,356,200
10 Day Avg. Volume2,476,261
30 Day Avg. Volume2,368,362
Financial Highlights & Ratios
PEG Ratio1.58
Price to Book (P/B)3.42
Price to Sales (P/S)15.06
P/FCF Ratio23.42
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue15.77
Enterprise Value/Gross Profit18.26
Enterprise Value/Ebitda18.73
Forecast
1Y Price Target
$304.20Price Target Upside5.75% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)12.24
Revenue Forecast (FY)$7.02B
CME Group Business Overview & Revenue Model
Company Description
CME Group Inc., together with its subsidiaries, operates contract markets for the trading of futures and options on futures contracts worldwide. It offers futures and options products based on interest rates, equity indexes, foreign exchange, agri...
How the Company Makes Money
CME Group primarily makes money by charging fees tied to trading and post-trade services across its derivatives ecosystem. The largest revenue stream is clearing and transaction fees: CME earns per-contract fees when customers trade futures and op...
CME Group Earnings Call Summary
Earnings Call Date:Apr 22, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call presented a strongly positive operational and financial performance with numerous record metrics (highest ADV, record revenue, margins, adjusted net income and EPS), broad-based global adoption across asset classes, and tangible strategic progress (cross-margin approval, cloud testing, product innovations, prediction markets and tokenization pilots). Headwinds were identified — chiefly rate per contract compression due to mix and tiering, higher operating expenses related to technology and facilities, regulatory uncertainty around tokenization/stablecoin and competition from non-U.S. perpetual platforms — but management characterized these as manageable and emphasized continued investment and disciplined capital allocation. Overall, the highlights substantially outweigh the lowlights.Positive Updates
Record Quarterly Volume
Average daily volume (ADV) of 36.2 million contracts in Q1 — the highest quarterly ADV in CME Group history — up 22% year-over-year and ~6 million contracts/day higher than any prior quarter.
Negative Updates
Compression of Rate per Contract (RPC)
Weighted average RPC declined, particularly in energy, driven by volume tiering at record volumes, a mix shift toward lower‑priced crude versus natural gas, a surge in micro contracts (micro energy ADV of ~315K/day vs ~80K/day last year at ~$0.52/contract) and increased member trading — creating downward pressure on realized RPC.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Quarterly Volume
Average daily volume (ADV) of 36.2 million contracts in Q1 — the highest quarterly ADV in CME Group history — up 22% year-over-year and ~6 million contracts/day higher than any prior quarter.
Read all positive updates
Company Guidance
The company guided to continued strong growth and product rollouts for 2026, reiterating full‑year adjusted expense guidance of $1.695 billion and confidence in sustaining the momentum behind Q1 record results (Q1 ADV 36.2M contracts, +22% YoY; international ADV 11.4M, +30%; commodity volume +38%, financials +18%; open interest +11% YoY and U.S. Treasury OI at an all‑time 36.3M). Near‑term operational milestones include FICC cross‑margining for end‑user clients launching April 30 (expected client savings up to ~80% similar to the House program, which has produced max savings of ~$1.5B and average daily savings just over $1B), 24/7 crypto trading going live May 29, the Dallas testing environment opening this summer, tokenized cash testing and go‑live targets with Google and partner banks by year‑end, pursuit of a stablecoin license, and migration of two agricultural products to the cloud by year‑end. Financially, management expects continued revenue and margin strength off the Q1 base ($1.9B revenue, +14% YoY; clearing & transaction fees +15%; market data $224M, +15%; adjusted operating income $1.4B and a 72.8% margin; adjusted net income $1.2B and EPS $3.36, +20% YoY) while remaining opportunistic on share repurchases and M&A (Q1 returned $3.2B to shareholders, including $2.7B dividends and $536M repurchases; OSTTRA proceeds of $1.55B with ~$758M remaining).CME Group Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
85
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.76B | 6.52B | 6.13B | 5.58B | 5.02B | 4.69B |
| Gross Profit | 5.84B | 5.61B | 5.28B | 4.75B | 4.27B | 3.85B |
| EBITDA | 5.69B | 5.72B | 5.04B | 4.67B | 4.02B | 3.93B |
| Net Income | 4.24B | 4.04B | 3.53B | 3.23B | 2.69B | 2.64B |
Balance Sheet | ||||||
| Total Assets | 201.99B | 198.55B | 137.45B | 129.71B | 174.18B | 196.78B |
| Cash, Cash Equivalents and Short-Term Investments | 2.52B | 4.55B | 3.01B | 3.02B | 2.82B | 2.95B |
| Total Debt | 3.42B | 3.76B | 3.43B | 3.43B | 3.44B | 3.45B |
| Total Liabilities | 175.38B | 169.82B | 110.96B | 102.97B | 147.30B | 169.38B |
| Stockholders Equity | 26.62B | 28.73B | 26.49B | 26.74B | 26.88B | 27.40B |
Cash Flow | ||||||
| Free Cash Flow | 4.33B | 4.19B | 3.60B | 3.38B | 2.97B | 2.28B |
| Operating Cash Flow | 4.42B | 4.28B | 3.69B | 3.45B | 3.06B | 2.40B |
| Investing Cash Flow | 1.49B | 1.50B | -82.60M | 20.90M | -489.80M | 58.40M |
| Financing Cash Flow | 39.41B | 56.51B | 5.08B | -48.34B | -25.38B | 69.91B |
CME Group Technical Analysis
Negative
287.65
Price Trends
295.65
Negative
291.75
Negative
277.24
Positive
Market Momentum
0.32
Negative
48.49
Neutral
33.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CME, the sentiment is Negative. The current price of 287.65 is below the 20-day moving average (MA) of 290.24, below the 50-day MA of 295.65, and above the 200-day MA of 277.24, indicating a neutral trend. The MACD of 0.32 indicates Negative momentum. The RSI at 48.49 is Neutral, neither overbought nor oversold. The STOCH value of 33.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CME.
CME Group Risk Analysis
CME Group disclosed 28 risk factors in its most recent earnings report. CME Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CME Group Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $25.07B | 30.48 | 13.64% | 0.45% | 18.26% | 66.10% | |
78 Outperform | $105.53B | 22.98 | 15.25% | 3.92% | 7.54% | 18.50% | |
78 Outperform | $37.40B | 19.07 | 24.63% | 1.06% | 10.61% | 53.46% | |
77 Outperform | $86.51B | 15.78 | 13.57% | 1.19% | 14.25% | 42.14% | |
75 Outperform | $51.47B | 23.18 | 15.91% | 1.07% | 5.79% | 50.79% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $48.74B | -29.33 | 5.68% | ― | -4.24% | -43.98% |
* Financial Sector Average
CME
CME Group
291.23
17.63
6.44%
CBOE
Cboe Global Markets
357.35
128.33
56.03%
ICE
Intercontinental Exchange
152.97
-21.10
-12.12%
NDAQ
Nasdaq
91.01
10.21
12.64%
TW
Tradeweb Markets
106.20
-38.83
-26.77%
COIN
Coinbase Global
184.99
-81.41
-30.56%
CME Group Corporate Events
Business Operations and StrategyPrivate Placements and Financing
CME Group Amends Multi-Currency Secured Credit Facility
Positive
Apr 27, 2026
Effective April 22, 2026, Chicago Mercantile Exchange Inc. amended its existing 364-day multi-currency revolving secured credit facility with a syndicate of banks led by Bank of America and Citibank, maintaining a $7 billion capacity that can be i...
Business Operations and StrategyRegulatory Filings and Compliance
CME Group Announces Updated Client Pricing and Disclosure
Neutral
Feb 2, 2026
On February 2, 2026, CME Group Inc. notified its clients of pricing changes via Special Executive Report 9676 and made the notice available on its website, signaling an adjustment to the cost structure associated with its services. The company als...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.