MarketAxess Holdings Inc. (MKTX) gains after earnings miss
MarketAxess Holdings Inc. (MKTX) gains even after missing EPS and revenue estimates, as this deep-dive unpacks the quarter’s mixed signals: stronger block and portfolio trading, 10% Information Services growth, weaker profit, and withdrawn guidance tied to the ICE transaction.
MarketAxess Holdings Inc. (MKTX) missed third-quarter earnings expectations, with adjusted EPS of $1.86 versus $1.95 expected and revenue of $210.4 million versus $220 million expected. Even so, the stock was flat after the report as investors focused on 21% block trading ADV growth, 37% portfolio trading ADV growth, and 10% Information Services revenue growth. The bigger concern is that MarketAxess withdrew its 2026 guidance and medium-term targets, reducing visibility into future earnings power.
MarketAxess Holdings Inc. (MKTX) gains after earnings miss
MarketAxess Holdings Inc. (MKTX) reported adjusted EPS of $1.86, below the $1.95 estimate, while revenue reached $0.21B against a $0.22B consensus. MKTX gains were flat at $164.665 at 3:30 p.m. ET on Oct. 23, 2026, with volume below its average. The quarter paired strong block and portfolio trading growth with weaker profit, withdrawn guidance, and a reporting pause tied to the ICE transaction.
Key Takeaways
MKTX missed on both headline measures: adjusted EPS was $1.86 versus $1.95 expected, and revenue was $0.21B versus $0.22B expected.
GAAP EPS fell to $1.53 from $1.84 a year earlier, while net income declined to $54.0M from $68.3M.
The strongest operating metrics came from newer trading channels. Block trading ADV rose 21%, and portfolio trading ADV increased 37%.
Information Services revenue grew 10% year over year, giving the quarter one clear bright spot outside the core trading commission business.
MarketAxess withdrew its 2026 annual guidance and medium-term targets. It also suspended earnings calls and monthly volume releases in connection with the ICE transaction.
The analyst consensus remains Hold, with 19 Hold ratings, 2 Buys, and 3 Sells. Morgan Stanley raised its price target from $129 to $167 on Oct. 9, while several summer actions included downgrades or target cuts.
MKTX Earnings: Revenue, EPS and Segment Performance
This MarketAxess Holdings Inc. earnings analysis starts with the income statement. Third-quarter revenue was $210.4M, up 1% year over year. That result matched the $0.21B quarterly figure shown for Sept. 30 and followed $0.22B in the June quarter and $0.23B in the March quarter.
Profit moved in the opposite direction. GAAP EPS was $1.53, down from $1.84 in the year-ago quarter, $1.93 in the June quarter, $2.21 in March, and $2.51 in December. Net income fell 21% year over year to $54.0M. Adjusted EPS of $1.86 softened the GAAP comparison but still missed the $1.95 estimate.
The segment picture was mixed. Information Services revenue grew 10%, while block trading ADV increased 21% and portfolio trading ADV rose 37%. Those figures point to useful progress in higher-value workflows, even as total revenue growth remained modest.
The annual mix shows why trading activity still matters so much to MKTX. In 2025, commission revenue totaled $734.623M, compared with $53.230M from Information Services, $44.491M from Post Trade Services, and $13.924M from Technology Services. As a result, strong growth in newer channels must become large enough to offset pressure in the core franchise.
The detailed transcript from the first quarter reported a 44% operating margin, up almost 200 basis points, alongside disciplined expense growth. The third-quarter figures provided here emphasize profit and revenue rather than a new operating-margin figure. That leaves EPS, net income, and trading metrics as the clearest measures of the current quarter.
The largest change in the financial outlook was qualitative but important: MarketAxess withdrew its 2026 guidance and medium-term targets. That decision removes the forward reference points analysts normally use to judge revenue growth, margins, and earnings power.
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MKTX shares traded at $164.665 at 3:30 p.m. ET on Oct. 23, unchanged on the session. Volume totaled 648,632 shares, below the 1,113,017 average. The muted price action stands out because the quarter included both an earnings miss and a sharp decline in GAAP profit.
The stock also sits in a complicated valuation and deal setting. A separate analyst-target compilation placed the average target at $151, with a high of $170 and a low of $128. The current Hold consensus reflects caution rather than a broad bearish call.
Recent analyst actions show how quickly the narrative changed. Morgan Stanley lifted its target from $129 to $167 on Oct. 9. Earlier, Keefe, Bruyette & Woods downgraded MKTX to Market Perform from Outperform while raising its target from $150 to $167. UBS moved to Neutral from Buy with a $167 target on July 31, while Piper Sandler cut its target to $128 from $175 on July 15.
The immediate analyst debate centers on quality, not just quantity, of growth. Block and portfolio trading gains support the long-term product strategy. However, the EPS miss, withdrawn targets, and modest 1% revenue growth make it harder to value MKTX as a straightforward growth story.
Management Commentary: Strategy Meets a New Reporting Setup
The Q3 reporting setup differed from a normal MKTX earnings call. MarketAxess suspended earnings calls and monthly volume releases in connection with the ICE transaction. The Oct. 21 early termination of the antitrust waiting period marked progress on that transaction, while stockholder approval, additional regulatory approvals, and other closing conditions remain.
The most detailed strategic remarks in the transcript came from CEO Christopher Concannon during the first quarter. His comments focused on execution, technology, proprietary data, and expansion beyond U.S. credit.
“2026 is all about the execution of our long-term strategy, and that is exactly what we did in the quarter.” Christopher Concannon, CEO, Q1 2026 Earnings Call.
“Despite these shocks, the market has remained very healthy, with historic levels of new issuance in the first quarter continuing into April.” Christopher Concannon, CEO, Q1 2026 Earnings Call.
That strategic case still has support in the Q3 trading metrics. Block and portfolio activity grew at double-digit rates, and Information Services revenue rose 10%. Yet the current quarter also shows the cost of waiting for those initiatives to scale: revenue grew only 1%, and adjusted EPS missed the estimate.
“We are continuing to invest while maintaining focus on cost discipline and operating efficiency.” Ilene Fiszel Biele, CFO, Q1 2026 Earnings Call.
“The benefit of our enhanced capital return program with the completed $300 million ASR flowed through in the quarter and was the key driver of the $0.12 benefit to EPS on a 6% reduction in share count.” Ilene Fiszel Biele, CFO, Q1 2026 Earnings Call.
Biele's comments explain the prior focus on expense control and capital returns. For Q3, however, the withdrawn guidance matters more than the earlier framework. Without annual targets, analysts must place greater weight on reported revenue, EPS, and trading activity.
Analyst Q&A Highlights
MarketAxess suspended earnings calls as part of the ICE transaction process, so the third-quarter report did not include a live analyst question-and-answer session. There are no analyst exchanges to quote from this reporting cycle. Three disclosures carry the weight that a Q&A normally would.
First, the withdrawal of 2026 guidance removes management's numerical framework for judging the standalone business. That makes the $1.86 adjusted EPS result and $210.4M revenue figure more important, not less.
Second, the operating data gives management a defense against a purely negative reading. Block ADV rose 21%, portfolio ADV rose 37%, and Information Services revenue grew 10%.
Third, the ICE transaction now shapes how analysts interpret every quarterly number. The Oct. 21 antitrust milestone supports deal progress, but the transaction still includes stockholder, regulatory, and closing conditions.
Bottom Line
MKTX earnings showed a clean adjusted EPS and revenue miss, weaker GAAP profit, and strong growth in block and portfolio trading. The investment case now rests on whether those newer channels can scale while the ICE transaction and withdrawn guidance limit the value of traditional earnings comparisons.
For now, the flat share price and Hold consensus reflect a market balancing strategic progress against reduced earnings visibility. The next valuation debate centers on the quality of the franchise and transaction outcome rather than a simple quarterly beat.
+Did MarketAxess (MKTX) beat earnings in the latest quarter?
No. MarketAxess reported adjusted EPS of $1.86, below the $1.95 consensus estimate, and revenue of $210.4 million versus the $220 million expected. GAAP EPS also fell to $1.53 from $1.84 a year earlier.
+Why did MKTX stock rise or stay flat after missing earnings?
MKTX shares were flat at $164.665 at 3:30 p.m. ET on Oct. 23, 2026, despite the miss. Investors appeared to focus on stronger operating trends in block trading, portfolio trading, and Information Services rather than the weaker headline profit numbers.
+What were the strongest parts of MarketAxess's Q3 results?
The strongest operating metrics came from newer trading channels, with block trading ADV up 21% and portfolio trading ADV up 37%. Information Services revenue also grew 10% year over year, providing a bright spot outside the core commission business.
+What did MarketAxess say about guidance after earnings?
MarketAxess withdrew its 2026 annual guidance and medium-term targets. The company also suspended earnings calls and monthly volume releases in connection with the ICE transaction, which reduces near-term visibility for investors.
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