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Intercontinental Exchange (ICE.N) reported first-quarter profit on Thursday that exceeded analysts' expectations as heightened market volatility boosted trading volumes for the New York Stock Exchange parent.
Escalating Middle East tensions, concerns over private credit and fears of potential AI-led disruption rattled markets in the reported quarter, while prolonged oil market uncertainty drove investors to trade more actively and use derivatives to hedge risks.
Such market swings typically increase exchange operators' revenue by lifting trading volumes and increasing transaction fees across asset classes.
ICE's total average daily volume surged to 45% year over year in the quarter, while ADV for energy rose to 32%.
Revenue from ICE's exchange business, its largest segment, rose 30% to $1.78 billion in the first quarter, while that from energy-related trading increased 46% to $814 million.
"In a quarter marked by significant macroeconomic and geopolitical uncertainty, our customers increasingly relied on our mission-critical markets, data, and technology to navigate complexity and manage risk," CEO Jeff Sprecher said in a statement.
Earlier this month, derivatives exchange CME Group (CME.O) reported a rise in first-quarter profit, while Nasdaq (NDAQ.O) also beat profit estimates, both benefiting from higher trading volumes during the quarter.
Intercontinental's adjusted earnings were $1.34 billion, or $2.35 per share, for the quarter ended March 31, beating analysts' average estimate of $2.26 per share, according to data compiled by LSEG.
Shares of the company rose 0.6% in premarket trading.
Fixed income and data services revenue climbed 10%, while mortgage technology revenue increased 6%.
ICE's data services and mortgage technology units have provided steady revenue streams alongside its core trading business, making the company less vulnerable to market fluctuation.
The exchange operator has been expanding beyond traditional trading venues into retail-focused and digital asset businesses to diversify revenue streams.
Last month, Intercontinental Exchange announced a $600 million investment in prediction markets platform Polymarket.
