Stock exchange operator TMX's Q3 revenue beats estimates on strong derivatives trading

TMX

27/10/2025 22:26

Overview

TMX Group Q3 revenue rises 18% yr/yr, beating analyst expectations

Adjusted EPS for Q3 beats consensus, reflecting strong operational performance

TMX Group completes acquisition of Verity

Outlook

TMX Group focuses on accelerating growth and delivering shareholder value in 2025

Company highlights strategic focus on global growth and market ecosystem excellence

TMX Group sees positive impact from recent acquisitions on client offerings

Result Drivers

DERIVATIVES AND GLOBAL INSIGHTS - Strong revenue growth driven by a 27% increase in derivatives trading and a 35% increase in TMX VettaFi

FX IMPACT - Favorable foreign exchange impact due to stronger GBP and USD relative to CAD contributed to revenue increase

ACQUISITIONS - Revenue boosted by acquisitions of Newsfile, iNDEX Research, Bond Indices, and ETF Stream

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
C$418.60 mln
C$401 mln (4 Analysts)
Q3 Adjusted EPS
Beat
C$0.52
C$0.47 (7 Analysts)
Q3 EPS
C$0.43
Q3 Operating Expenses
C$226.80 mln
Q3 Income from Operations
C$191.80 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the financial & commodity market operators & service providers peer group is "buy"

Wall Street's median 12-month price target for TMX Group Ltd is C$61.00, about 18.3% above its October 27 closing price of C$49.83

The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 28 three months ago

Press Release: ID:nNFC3Sz373

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)