Last update 5/27/25
Intercontinental Exchange (ICE) is a global financial infrastructure firm best known as the parent company of the New York Stock Exchange. It operates exchanges, clearinghouses, and data services that form the backbone of capital markets across asset classes. With revenue exceeding $9 billion over the trailing twelve months and operating margins above 50%, ICE combines scale with efficiency in a way few competitors can match.
Recent Events
Over the past year, ICE has quietly outperformed, rising more than 30% while much of the market has moved in fits and starts. That kind of move isn’t luck—it reflects strength across the board. In the most recent quarter, ICE posted an 8% increase in revenue year-over-year, with net income also trending upward.
Margins remain healthy—actually, more than healthy. Operating margin is over 50%, and net margin is close to 30%. These aren’t numbers you see every day, especially from a company this large. It’s a signal of a well-oiled machine running with discipline and efficiency.
On the balance sheet side, there’s a sizable amount of debt, around $20.6 billion. But ICE isn’t struggling under that weight. The company generated $4.57 billion in operating cash flow over the past year and posted $2.78 billion in levered free cash flow. That gives it the flexibility to keep raising dividends, invest in its business, and manage debt without stress.
Key Dividend Metrics
📅 Dividend Yield: 1.09%
💵 Annual Dividend Rate: $1.92
🔁 5-Year Average Yield: 1.23%
📈 Dividend Growth: Increasing annually for more than a decade
📊 Payout Ratio: 37.89%
🔒 Safety: Backed by strong cash flow and recurring revenue
📆 Next Ex-Dividend Date: June 13, 2025
💸 Dividend Pay Date: June 30, 2025
Dividend Overview
Let’s be honest—ICE isn’t offering a headline-grabbing yield. At just over 1%, it’s not a stock you buy solely for the income. But when you look under the hood, that small yield starts to look more appealing. ICE has been consistently raising its dividend each year, and the growth rate has been solid, averaging over 10% annually.
That’s where the real story is. It’s a business that isn’t just paying you now—it’s steadily increasing those payments over time. For investors thinking long term, that’s exactly the kind of profile that builds wealth. Even more, the dividend is funded by reliable, high-margin operations, which means it’s not in danger of being cut the moment the market gets choppy.
And ICE doesn’t need to stretch to maintain its dividend. The payout ratio sits comfortably below 40%, giving the company room to keep that dividend rising without compromising other priorities.
Dividend Growth and Safety
What’s most appealing about ICE’s dividend isn’t just the size or the yield—it’s the reliability behind it. With billions in free cash flow and minimal capital needs, ICE has no trouble covering its dividend. The current payout takes up only a modest slice of the cash the business generates.
Even with that $20+ billion in debt, ICE has things under control. EBITDA over the past year was about $5.8 billion, giving it a manageable leverage profile. This isn’t a company struggling to balance growth and shareholder returns—it’s one that’s figured out how to do both.
And it’s not just about the numbers. There’s a culture of returning capital to shareholders here. ICE has been raising its dividend every year since it began paying one, and that consistency isn’t something to take for granted. When a company treats its dividend like a priority, not an afterthought, that tells you a lot about how it sees its shareholders.
ICE’s operations also give it a built-in buffer. It isn’t tied to one volatile market or product line. With exposure to trading, data services, and clearing, its revenue base is diversified and relatively stable. That makes the dividend even safer, even if the broader economy hits a few bumps.
While ICE might not have the highest yield in a dividend portfolio, it offers something just as valuable: dependability. It’s a name that delivers, year after year, with a dividend that continues to grow quietly in the background. And that, for many investors, is more than enough.
Cash Flow Statement
Intercontinental Exchange has demonstrated solid and consistent performance on the cash flow front. Over the trailing twelve months (TTM), ICE generated $4.57 billion in operating cash flow, marking a slight dip from the previous year but still well ahead of prior periods like 2022 and 2021. This speaks to the ongoing strength of its core operations. Free cash flow followed a similar pattern, totaling $3.77 billion over the TTM—enough to comfortably support dividends, service debt, and leave room for strategic reinvestment.
On the investing side, ICE recorded a cash outflow of $3.33 billion over the TTM, largely reflecting ongoing investments into acquisitions and infrastructure. Financing activity showed a dramatic swing, coming in at a positive $7.88 billion, which contrasts sharply with the large outflows seen in 2023 and 2022. This change likely ties to recent financing or refinancing moves to support acquisitions or capital returns. Despite these fluctuations, ICE’s cash position remains healthy, with nearly $85.6 billion on hand at period-end, slightly above last year’s level.
Analyst Ratings
Intercontinental Exchange (ICE) has recently drawn fresh attention from Wall Street analysts, and most of it leans positive. 🧭 Morgan Stanley kept its “Equal-Weight” rating but nudged its price target higher from $181 to $192 earlier this month. That revision came on the heels of ICE’s solid earnings delivery and stable forward guidance, which analysts believe reflects a business operating with quiet strength and reliable fundamentals.
📈 Barclays took things a step further, reiterating its “Overweight” stance and bumping the target from $189 to $198. Their move was driven by strength in ICE’s Exchanges segment during the first quarter, which posted better-than-expected revenue and operating margin performance. The view there is that ICE continues to find ways to grow in areas that offer high-quality recurring revenue, especially within trading and clearing.
💬 The current consensus among analysts lands at a “Moderate Buy,” with an average 12-month price target of $188.46. The most bullish target clocks in at $239, while the most conservative sits around $158. Despite the variation, the general tone remains one of cautious optimism. Most analysts seem to agree that ICE’s blend of reliable cash flow, operational scale, and commitment to shareholder value makes it a durable choice in the financial services space.
Earning Report Summary
Strong Start to the Year
Intercontinental Exchange kicked off 2025 with a solid earnings report that showed the business is firing on all cylinders. Revenue came in at $2.5 billion for the first quarter, which was a healthy 8% bump from the same period last year. On the bottom line, adjusted earnings per share climbed to $1.72, up from $1.48 a year ago. That kind of growth doesn’t happen by accident—it points to a business that’s managing costs well and finding ways to grow across multiple areas.
What really stood out this quarter was the performance in the Exchanges segment. That part of the business brought in $1.4 billion, up 12% from the year before. A good chunk of that was thanks to higher trading activity, especially in energy and interest rate products. Meanwhile, the Fixed Income and Data Services side brought in $596 million, and Mortgage Technology added another $510 million to the top line. Those areas didn’t grow quite as fast but still showed forward momentum.
ICE also kept a tight grip on its expenses. Total operating costs landed at around $1.3 billion, but when adjusted, they came down to $964 million. That helped drive an adjusted operating margin of 61%, which speaks volumes about how efficiently the company is running. You don’t see those kinds of margins without discipline and a laser focus on execution.
Net income for the quarter came in at $797 million, and on an adjusted basis, it reached $995 million. The company also made it clear that returning value to shareholders is still a priority. Between dividends and buybacks, ICE returned $519 million to investors during the quarter. That consistency adds another layer of appeal for long-term holders who value predictable capital returns.
Looking Ahead
Leadership sounded upbeat about where the company is heading. They noted that ICE remains well positioned for growth, with a clear focus on investing in its technology and data services businesses. There’s a belief at the top that these areas will continue to drive long-term value, especially as markets lean more heavily on data and automation.
All in all, it was a confident showing from a company that knows how to execute and stay ahead of the curve. The tone from the top was clear—there’s more room to grow, and ICE plans to keep moving forward with both innovation and shareholder value in mind.
Management Team
Intercontinental Exchange (ICE) is guided by a leadership team with deep industry knowledge and a long-standing commitment to innovation and growth. Jeffrey Sprecher, the founder and CEO, remains the cornerstone of the company’s vision. Under his leadership, ICE has evolved from a small energy trading platform into one of the most influential players in global financial infrastructure.
President Benjamin Jackson plays a critical role in overseeing ICE’s global operations and strategic direction. He has worked closely with Sprecher in maintaining operational efficiency across the company’s growing footprint. Warren Gardiner, the Chief Financial Officer, brings a strong background in financial planning and capital strategy, ensuring ICE’s resources are allocated for both short-term results and long-term value creation.
Chief Operating Officer Stuart Williams manages day-to-day activities and operational performance, while Mayur Kapani, Chief Technology Officer, leads technology innovation, with a focus on expanding ICE’s data services and platform capabilities. Lynn Martin, who serves as President of NYSE Group, brings leadership to the company’s flagship exchange and supports its role in public markets. Together, this team balances experience with forward-thinking strategy, keeping ICE adaptable and growth-oriented.
Valuation and Stock Performance
ICE has delivered steady stock performance, rewarding shareholders with both price appreciation and growing dividends. As of late May 2025, the stock is trading around $176, up significantly from where it stood a year ago. That growth reflects investor confidence, driven by strong earnings, resilient cash flow, and consistent returns to shareholders.
The stock’s valuation sits on solid footing. Its forward price-to-earnings ratio is around 26.45, reflecting market optimism about the company’s future profitability. With a PEG ratio near 2.91, ICE isn’t considered cheap, but the valuation appears justified given the company’s track record of stable earnings growth and strategic reinvestments. The average analyst price target currently sits near $188, suggesting moderate room for additional upside.
Performance over the past year has been supported by revenue gains across core segments, particularly in exchanges and data services. A strong operating margin and rising free cash flow further solidify the company’s financial health. ICE has also consistently returned capital to shareholders through dividends and share buybacks, reinforcing its image as a shareholder-friendly business.
Risks and Considerations
Despite its strengths, ICE operates in a complex and highly regulated space that brings unique challenges. Regulatory risk is ever-present, with the company required to comply with laws across multiple countries and financial systems. Shifts in policy or enforcement could introduce cost pressures or restrict certain activities.
Cybersecurity also looms large. In a recent example, ICE faced scrutiny over a cyber incident and the timing of its disclosure, resulting in a regulatory penalty. While operations were unaffected, the situation highlighted the importance of robust data protection and proactive communication. These types of risks are inherent in any technology-driven financial platform, and ICE will need to remain vigilant.
Another area of concern is market volatility. Although ICE benefits from increased trading activity during turbulent periods, unpredictable swings can also disrupt volumes or create operational stress. The rise of financial technology competitors and changing preferences in how markets are accessed also present longer-term strategic challenges.
Final Thoughts
Intercontinental Exchange continues to perform with the steadiness and strategic focus that dividend investors often seek. Its leadership has proven capable of navigating growth and disruption, and the financial results show a company that knows how to operate profitably while evolving with the times.
The stock’s valuation suggests it’s well regarded by the market, and recent price strength supports that view. With steady free cash flow, consistent dividend growth, and strong execution, ICE stands out as a reliable name in a volatile sector. While risks around regulation and cybersecurity should be monitored, they don’t overshadow the firm’s long-term appeal. Investors looking for a balance of income and quality in the financial space are likely to keep ICE on their radar.