EarningsQ1 2026 Earnings Report
MX:MKTX Q1 2026 EPS Results
Actual EPS$40.51
Consensus EPS$38.76
Beat/MissBeat by +$1.75
One Year Ago EPS$33.67
MX:MKTX Q1 2026 Revenue Results
Actual Revenue$4.24B
Expected Revenue$4.18B
Beat/MissBeat by +$64.56M
YoY Revenue Growth+13.81%
Earnings Announcement Details
QuarterQ1 2026
Date05/07/2026
TimeBefore Open
Conference CallThursday, May 7, 2026
MX:MKTX Upcoming Earnings
Marketaxess Holdings's next earnings date is estimated for October 21, 2026, based on past reporting schedules.
Q1 2026 Earnings Call Audio
MX:MKTX Q1 2026 Earnings Call
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Q1 2026 Earnings Slide Deck
Q1 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a broadly positive operational and financial picture: record revenue, commission growth, EPS +20%, improved operating margin, strong free cash flow, and pronounced international/EM momentum. Management acknowledged near-term headwinds in April (lower volatility, heavy new issuance, TRACE duplicate reporting) and mix-driven fee pressure, but outlined concrete product initiatives (DirectBooks new-issue pilot, closing auction enhancements, AI-driven analytics) and technology investments to address market-share and execution gaps. Overall, highlights notably outweigh the lowlights.Company Guidance
Record Total Revenue and Revenue Growth
Record total revenue of ~$230–233 million in Q1 2026, up 12% year-over-year; revenue outside U.S. credit grew 20%, reflecting strong international product contributions and the RFQ Hub acquisition.
Strong Commission and Services Revenue
Record total commissions revenue of $203 million, up $22 million (12%); total credit commission revenue of $184 million, up 9%; services revenue a record $30 million, up 10% (information services +12% to $14M; technology services +19% to $4M; post-trade +5% to $12M).
EPS and Cash Generation
Diluted EPS of $2.20 GAAP and $2.25 non-GAAP (excluding notable items), representing a ~20% increase year-over-year; trailing 12‑month free cash flow of $316 million.
Operating Leverage and Cost Discipline
Non-GAAP operating expenses increased 8% while operating margin expanded to 44%, up almost 200 basis points year-over-year, demonstrating operating leverage.
Capital Return Activity
Completed $300 million ASR (with $60 million returned in Q1 via repurchases), paid $27 million in dividends, reduced share count by ~6% providing a $0.12 EPS benefit; $205 million remains on the Board's repurchase authorization as of April 30, 2026.
Emerging Markets and International Franchise Momentum
EM franchise delivered record volumes in Q1 (volumes +30% YoY), expanded to a record 1,547 active client firms and 3,410 international active client traders; EM generated $20 million incremental revenue over trailing 12 months, representing 68% of total credit incremental variable commission revenue; hard-currency revenue +15% and local markets revenue +56%.
Product and Protocol Adoption — Blocks, Portfolio Trading, Automation
Block trading activity (client-initiated) grew 35% to a record $7 billion ADV; global portfolio trading ADV increased 51% to a record $1.9 billion; portfolio trading market share in U.S. credit up 100 bps YoY; automation suite recorded $144 billion in automation volume and continued adoption of adaptive algos.
U.S. High Yield Liquidity Improvement
U.S. high-yield liquidity provision by long-only clients increased almost 80% YoY, improving execution experience for high-yield clients.
AI and Proprietary Data Advantage
Expanded AI-driven products (CP+, CP+ for blocks, depth of book, sense AI, AI Dealer Select) leveraging proprietary 2025 dataset (over $5 trillion in notional inquiry and $34 trillion in notional response) to drive analytics, protocol selection and execution improvements.
New Issue Initiative and Product Roadmap
Announced partnership with DirectBooks and pilot of new issue trading solution starting end of May; roadmap includes August straight-through processing of allocations and second-half 2026 click-to-trade on the break to address new-issue trading flow.
MX:MKTX Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed