TORONTO — TMX Group posted a 19% jump in adjusted diluted earnings per share for the second quarter of 2026, powered by double-digit revenue growth across every business segment and a pair of blockbuster deals that will reshape the exchange operator’s global footprint.
The results land just weeks after TMX unveiled two transformational transactions: a US$490 million agreement to acquire index provider RAFI Indices and a blockbuster US$2.3 billion combination that merges MEMX with BOX to form MEMX Group. Both moves signal an aggressive acceleration of the company’s expansion beyond its Canadian roots, particularly into U.S. listed options and fundamental equity indexing.
Revenue for the quarter ending June 30 climbed 16 percent to $487.5 million compared with the same period in 2025. Even stripping out fresh acquisitions of ETF Stream, Verity, and nuclear sector indices, organic revenue expanded 12 percent. The Global Insights division led the charge with an 18 percent revenue increase, fueled by a 40 percent surge at TMX VettaFi and a 22 percent gain at TMX Datalinx. Derivatives Trading and Clearing rose 15 percent, while Capital Formation grew 13 percent on higher TSX Trust activity and listing fees.
Income from operations reached $227.1 million, an 18 percent improvement year over year. Adjusted net income attributable to equity holders hit $173.0 million, up 18 percent from the prior year’s $146.4 million. On a per-share basis, adjusted diluted earnings climbed to $0.62 from $0.52.
Operating expenses expanded 13 percent to $260.4 million, driven by higher IT spending, headcount additions, merit increases, and a write-down of an intangible asset during the quarter. Those pressures were partially offset by a $3.4 million decline in long-term employee performance incentive plan costs, reflecting lower share prices.
CEO John McKenzie described the period as another strong quarter built on momentum spanning both traditional operations and newer growth initiatives. He pointed to concrete steps taken throughout 2026 — investments in Australian and domestic markets, the continued overhaul of the Global Insights portfolio, and the MEMX Group formation — as proof of the company’s commitment to evolving its global strategy.
CFO David Arnold characterized the quarter as one where TMX’s business model operated at full throttle, noting the 18 percent rise in operating income and broad-based organic growth. He emphasized that significant milestone initiatives executed in the first half of the year position the company to keep delivering shareholder value through the remainder of 2026.
The RAFI Indices acquisition alone will more than triple TMX VettaFi’s Assets Under Indexing and dramatically broaden its equity coverage into fundamental strategies. That transaction is expected to close by the end of the third quarter. The MEMX Group deal, meanwhile, will give TMX roughly 59 percent ownership of a combined entity with enhanced scale in the U.S. listed options market. Regulatory approvals and customary closing conditions still stand between both deals and final completion, with the MEMX transaction targeted for the second half of 2027.
For the full first half of 2026, revenue totaled $975.7 million, a 16 percent increase, while adjusted diluted earnings per share rose 27 percent to $1.28. The half-year results also included a $91.1 million cash settlement from a resolved legal dispute, adding another layer of financial strength as the company pushes deeper into its global growth agenda.
