Deutsche Börse (ETR:DB1) has significantly upgraded its full-year 2026 financial outlook, driven by robust broad-based growth across its portfolio and a stabilizing treasury result in the second quarter. The exchange operator reported strong performance in the first half, with Chief Executive Officer Stephan Leithner noting that the period “exceeded our expectations on the treasury side” and confirmed the company’s “strong core growth trajectory.”
Revised Outlook Driven by Treasury Performance
The revised guidance reflects an improved outlook for treasury results, which Chief Financial Officer Jens Schulte now expects to exceed EUR 0.7 billion, up from previous projections. This enhancement is attributed to a changed global interest-rate outlook and higher cash balances. As a direct consequence, Deutsche Börse anticipates total net revenue to surpass EUR 6.4 billion and all-in EBITDA to exceed EUR 3.8 billion for the full year 2026. Schulte confirmed that the company is “tracking at the midpoint” of its core full-year targets, having delivered approximately half of its annual objectives in the first half. The treasury result itself stabilized at EUR 205 million in the second quarter, declining by only 1% at the group level, signaling an inflection point previously indicated by the company. Notably, the security services segment saw its treasury result grow 3% year over year, marking its first increase since the fourth quarter of 2023, bolstered by higher cash balances and stabilizing interest rates.
Core Business Segments Drive Growth
Excluding treasury results, Deutsche Börse reported a 9% net revenue growth and a 13% EBITDA growth in the second quarter. For the first half, net revenue excluding treasury results rose 11%, while EBITDA on the same basis increased 16%. Management highlighted security services, financial derivatives, and fund services as the strongest contributors in the first half, each delivering mid-teens net revenue growth, primarily due to structural drivers.
Security Services Expand Significantly
In security services, net revenue excluding treasury results climbed 16% in the second quarter, with EBITDA on the same basis increasing 27%. Schulte reported that assets under custody reached EUR 17 trillion, an 8% increase, largely propelled by international debt issuance. Settlement activity also saw a 14% rise, supported by elevated retail flows, while collateral management outstandings crossed the EUR 1 trillion mark for the first time, up 31% year over year. Management emphasized the sustainability of custody margin development, attributing it to scaling benefits, and noted that stronger collateral management growth could enhance the average revenue margin within the custody line item.
Derivatives and OTC Clearing Lead Financial Markets
The trading and clearing segment saw net revenue excluding treasury results rise 7% and EBITDA increase 11%. Financial derivatives were a standout, with net revenue up 15%. Fixed income derivatives net revenue grew 27%, and OTC clearing net revenue surged 49%. This strong performance in OTC clearing was driven by higher volumes, active account requirements translating into activity, and improvements in revenue quality. Schulte noted that the onboarded OTC clearing client base has expanded to over 2,500, with active clients roughly doubling to about 500 over the past 18 months. He added that with 80% of onboarded clients not yet active, there remains “significant room to grow.” Repo net revenue also increased 41%, with outstandings reaching a record EUR 1.4 trillion. Cash equities trading net revenue rose 9%, supported by demand for European equities and ETFs, alongside continued retail participation. FX and digital assets grew 8% through client wins, despite normalized FX market conditions.
Fund Services Benefit from Structural Shifts
Fund services net revenue excluding treasury results rose 14%, and EBITDA excluding treasury results increased 20%. Fund processing revenue climbed 19%, supported by record assets under custody of EUR 5 trillion, up 25% year over year, and settlement activity up 23%. Schulte attributed this growth to the ongoing trend of outsourcing in fund administration and the shift toward capital markets-based retirement savings in Europe.
Mixed Trends in Other Business Areas
Commodities activity normalized in the second quarter following an exceptional first-quarter performance. Schulte described Q2 as an “exceptional normalization,” citing easing geopolitical concerns, reduced risk exposure by some participants, and the lingering impact of higher collateral requirements as headwinds. Despite this, management affirmed that long-term drivers such as electrification, data center demand, and the energy transition remain intact.
Investment management solutions showed mixed trends. Software solutions net revenue grew 7% to EUR 180 million, facing a demanding comparison base from Q2 2025. Annual recurring revenue (ARR) in software solutions rose 14% in constant currency to EUR 717 million, with growth in 2026 being broader based across a wider range of deals. While SaaS net revenue rose 4%, on-premise net revenue increased 21% due to an unusually strong renewal cycle. Management reiterated a strategic focus on growing SaaS, with CEO Leithner suggesting AI capabilities could accelerate this shift, particularly through the cloud-based SimCorp One platform. ESG-related businesses continued to face headwinds from subdued demand, especially in market intelligence and corporate solutions, with Schulte noting difficult political and legal environments in some U.S. states. Index revenue, however, grew 7%, supported by record ETF assets under management.
Strategic Focus and Capital Returns
CEO Leithner underscored Deutsche Börse’s constructive long-term view for European capital markets, citing initiatives like German pension reforms and the European Savings and Investment Union. The company also highlighted significant progress in digital assets and tokenization, including the unveiling of Clearstream’s next-generation digital securities infrastructure, designed to support the full lifecycle of digital securities in a regulated environment. A tokenized commercial paper issuance by the European Investment Bank through Deutsche Börse’s digital infrastructure was cited as a tangible example.
Deutsche Börse completed its EUR 500 million share buyback program during the quarter. Leithner confirmed that buybacks are now an “established part” of the company’s capital return framework, complementing its progressive dividend policy. Operating costs rose 4% in the first half, including approximately EUR 20 million of exceptional costs related to the Allfunds acquisition, though underlying cost growth remained in line with guidance. The company reported a 12% increase in net profit attributable to shareholders, reaching EUR 1.2 billion, with cash earnings per share also rising 12% to EUR 6.73. This robust financial performance and strategic positioning underscore Deutsche Börse’s confidence in its continued growth trajectory and ability to adapt to evolving market conditions.
