CMC Markets (LSE:CMCX) shares have comfortably beaten the broader FTSE 250 over the past year. The UK’s second-tier share index is up 10% on a 12-month horizon. That’s impressive, but far below the 51% rise that CMC’s enjoyed.
CMC provides online trading services, and has swept higher on a string of brilliant trading statements. Another strong update today (4 June) has led to a 17% share price gain on the day.
CMC’s guidance today suggests there could be more to come, too. So what’s it said?
Strong numbers
Pre-tax profits for the last fiscal year (to March 2026) actually came in lighter than broker forecasts by roughly 5%. But at £101.3m, a year-on-year increase of 20% was still a solid result.
Net operating income rose 15% to £392.6m, the highest level on record excluding financial 2019. Back then, income soared as Covid-19 bolstered trading activity and volatility on financial markets.
CMC’s Trading division continues to drive business. Net revenues here leapt 16% to £289.5m, the unit benefitting from increased participation from retail traders, and contributions from institutional and business-to-business (B2B) partnerships.
But just as during the pandemic, CMC also benefitted greatly from market volatility. Founder and chief executive Lord Cruddas noted volatile conditions in the second half due to
Tariffs, wars, de-dollarisation narratives, a parabolic move in gold and silver, persistent energy supply and demand tensions, and AI-driven speculative behaviour, especially across commodities.
So what next?
CMC is expecting to maintain its strong momentum this year, tipping net operating income growth of “at least” 17%. On the downside, operating costs are expected to rise by roughly 7%.
According to Lord Cruddas,
CMC has reached a very exciting inflection point, and we now stand ready to enter the next phase of growth, driven by the scale of the platform and infrastructure we have built over recent years.
Over the next year, the FTSE 250 company plans to:
- Launch a technology-sharing partnership with Westpac and ASB Bank.
- Consolidate its services into a so-called Super App.
- Build infrastructure for the trading of tokenised assets.
- Expand further into Europe’s derivatives markets.
What do analysts say?
Following today’s update, RBC Capital analysts noted that the firm
Has collected well amid favourable market conditions in FY26 and the strategic initiatives [CMC] is undertaking should deliver further growth in FY27 and beyond. We don’t think the share price gives full credit to its attractive financial profile.
CMC’s forward price-to-earnings (P/E) ratio has risen to 13 times after today’s result. Yet that’s still pretty undemanding in my view, given the firm’s strong execution and bright growth prospects.
So are CMC shares a buy? Perhaps, though it’s also important to consider the significant risks here before diving in. Competition is fierce, and its rivals are also investing heavily in their own technologies and product expansion. There’s also the ever-present danger of regulatory restrictions on the trading of certain asset classes like derivatives.
That said, I’m considering buying this FTSE 250 stock myself for when I have cash to invest.
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Royston Wild does not hold any positions in the companies mentioned.
