Euronext

Company Update:
Revenue came in 4% above consensus and 14% above our projections (+25% yoy), with broad-based growth across volume-driven (FICC, equities) and non-volume driven divisions.

Jaws effects were strongly positive by 11pp, with adjusted EBITDA margin improving by 3pp to 67%, still the best margin levels in the European exchange sector, and operating profit beating consensus by 5%, landing 21% above our estimates (+33% yoy). Net income came in 3% above consensus and was up by 30% yoy, helped by slightly lower net financing expenses in addition to revenue growth and high operating leverage.

Euronext upgraded its guidance for 2026, seeing underlying opex excluding D&A at €760m (vs €770m guided previously). The group also announced it will launch a €350m buyback representing around 2% of the group’s shares (vs €200m projected by AV for FY-26).

We see positive reaction on the beat and earnings growth acceleration as well as the buyback announcement.

Expert Opinion:
The performance in Q3 is indeed very strong. Yet there could be concerns that the US AI correction may turn into something more negative, even in Europe. We would therefore take profits quickly on the name as valuation is quite expensive. 


For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu