Euronext

Company Update: 
Euronext posted excellent results in Q2, delivering a 9% beat on pretax result consensus and a 12% beat against our estimates (PBT +21% yoy). The beat was delivered by a much stronger revenue growth than expected (4% beat, 6% vs AV) with growth accelerating from +15% yoy in Q1 to +17% yoy in Q2, driven by an acceleration across all divisions with the exception of Equity markets which still printed a very impressive 24% yoy growth, reflecting continued volatility in European equities, ATHEX consolidation impact and strong demand for ETFs. FICC was another notable improvement, reaching double-digit growth too, boosted by MTS and commos, which benefitted from the market environment and the first quarter of Euronext Nord Pool Power Futures consolidation. Primary market performance also improved following Q1 and Data solutions and corporate and investor solutions and technology services demand remained strong.

Opex rose by 10% yoy (1% miss) on the back of scope effects and investments in growth, in-line with the underlying opex guidance for FY-26. Combined with revenue growth, adjusted EBITDA rose by 21% yoy (6% beat, 9% beat vs AV), resulting in a 66.1% adjusted EBITDA margin (+2pp yoy).

We expect a strong positive reaction at the open on the very solid beat and the acceleration in revenue growth.

For us, this is a short-term buy, but the minute the equity markets start to weaken, you want to rush out of the name.


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