CME · 10-Q · 2026Q2 · Full report
Operating Margin Drivers
CME GROUP INC. · 2026-07-24 · Importance 54 · Surprise 40 · In source text
Six-month operating margin increased to 67.4% from 67.1% year over year despite total expenses rising 7% to $1,169.5 million. Second-quarter operating margin declined to 64.9% from 66.7% as expenses increased $36.4 million to $599.1 million while revenue increased only $14.2 million. Compensation and benefits increased 7% to $456.5 million for the first six months, technology expense increased 17% to $159.9 million, and licensing and other fee agreements increased 12% to $215.9 million. Expense growth was primarily attributable to higher license fees, third-party technology services supporting the Google Cloud transformation project, salary increases, international headcount growth, and higher performance-award stock compensation.
Key facts
- Total expenses for the quarter ended June 30, 2026: $599.1 million. source
- Total operating expenses increased by $36.4 million in the second quarter of 2026 compared with same period in 2025, and by $72.5 million in the first six months of 2026 compared with same period in 2025. source
- Legal fees decreased by $6.2 million in the quarter ended June 30, 2026 and by $7.4 million in the six months ended June 30, 2026, primarily due to class action litigation expenses incurred in Q2 2025. source
- Average rate per contract decreased in Q2 and first six months of 2026 versus 2025, largely due to increase in micro contract volume and higher member trading as percentage of total volume; some decreases partially offset by April 1, 2026 clearing and transaction fee increases. source
- License fee expense increased by $12.9 million in the quarter ended June 30, 2026 and by $23.1 million in the six months ended June 30, 2026 as contributors to the change in operating expenses. source
- Salaries, benefits and employer taxes increased in the first six months of 2026 due to salary increases effective in Q1 2026 and increased headcount primarily in international locations. source
- Stock-based compensation expenses increased in the first six months of 2026 due to higher expense related to performance awards versus same period in 2025. source
- Operating margin for the quarter ended June 30, 2026: 64.9%. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | — | Total expenses for the quarter ended June 30, 2026: $599.1 million. |