Tradeweb Q3 revenue slightly beats on robust wholesale activity

Overview

• Electronic trading platform's Q3 revenue rose 15%, slightly beating analyst expectations

• Adjusted EPS for Q3 matched analyst expectations

• Company agreed to acquire Trumid for $1.97 bln, expanding credit market presence

Outlook

• Tradeweb updates 2026 adjusted expense guidance to $1,155-1,175 mln, trending toward middle of range

• Company maintains 2026 guidance for acquisition and Refinitiv-related depreciation and amortization at $160 mln

• Tradeweb keeps 2026 cash capital expenditures and capitalized software development guidance at ~$107-117 mln

Result Drivers

• RATES TRADING ACTIVITY - Co said Q3 rates revenue rose 18% and rates ADV climbed 34%, driven by robust institutional and wholesale activity, central bank policy changes and geopolitical uncertainty

• CREDIT MARKET PROTOCOLS - Co said Q3 credit revenue rose 10%, with U.S. credit ADV up 24%, driven by client adoption of trading protocols including Portfolio Trading, RFQ and AllTrade, and increased hedge fund and systematic account activity in credit derivatives

• TECHNOLOGY INVESTMENT - Co said higher operating expenses were driven by increased investment in AI and data strategy, infrastructure, and higher data and clearance fees due to greater trading volumes

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 7 "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 Tradeweb Markets Inc is $126.50, about 5.6% above its October 28 closing price of $119.82

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 23 three months ago

Reuters Recommended Reads

• Oct 27 - Private credit roundup: Weakest US loans flash warning signs for private credit

• Oct 27 - S&P Global tops Q3 revenue estimates, raises FY growth outlook

• Oct 27 - Hold or sell? High Treasury yields spur US banks to rethink bond portfolios

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