Cboe Global Markets (BATS:CBOE) Announces Earnings Results, Beats Estimates By $0.07 EPS

Cboe Global Markets (BATS:CBOE) announced its quarterly earnings data on Friday. The company reported $3.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.49 by $0.07, Briefing.com reports. Cboe Global Markets had a net margin of 5.77% and a return on equity of 20.05%. The business’s quarterly revenue was up 24.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.46 earnings per share.

Here are the key takeaways from Cboe Global Markets’ conference call:

• Record Q2 performance: Net revenue rose 25% year over year to $732 million, adjusted diluted EPS increased 45% to $3.56, and adjusted EBITDA margin expanded to 72.2% amid disciplined expense growth.
• Derivatives remained the primary growth engine: Derivatives revenue increased 30%, while index options ADV rose 32% to a record 6.2 million contracts, supported by strong SPX, zero-DTE, Mini-SPX, and retail activity.
• 2026 revenue outlook was raised: Management now expects organic net revenue growth in the mid-to-high teens, up from its prior low-double-digit to mid-teens forecast, with DataVantage growth raised to the low teens.
• Cboe is investing in future growth through Cboe Predicts, proposed company-specific KPI contracts, expanded clearing capabilities, and a planned move toward 23-by-5 equities trading; however, regulatory approvals remain uncertain and 2026 CapEx guidance increased to $98 million-$108 million.
• The expected third-quarter sale of Cboe Australia will reduce future revenue and $11 million of expenses, while Cboe plans to retain substantial balance-sheet flexibility and expects to repay a $650 million debt tranche due in early 2027 with cash on hand.

Cboe Global Markets Trading Up 4.6%

Shares of Cboe Global Markets stock traded up $13.71 during mid-day trading on Friday, hitting $310.23. The stock had a trading volume of 1,686,877 shares, compared to its average volume of 1,141,890. The firm has a 50-day moving average of $280.97 and a two-hundred day moving average of $290.37. The firm has a market cap of $32.90 billion, a P/E ratio of 159.91 and a beta of 0.61. The company has a quick ratio of 1.21, a current ratio of 1.21 and a debt-to-equity ratio of 0.60. Cboe Global Markets has a 12-month low of $227.15 and a 12-month high of $371.18.

Cboe Global Markets Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Friday, May 29th were paid a $0.72 dividend. The ex-dividend date of this dividend was Friday, May 29th. This represents a $2.88 annualized dividend and a dividend yield of 0.9%. Cboe Global Markets’s dividend payout ratio is 98.97%.

Analysts Set New Price Targets

Several brokerages have recently weighed in on CBOE. JPMorgan Chase & Co. boosted their target price on Cboe Global Markets from $277.00 to $288.00 and gave the stock an “underweight” rating in a report on Tuesday. Keefe, Bruyette & Woods increased their price target on Cboe Global Markets from $300.00 to $335.00 and gave the company a “market perform” rating in a report on Monday, May 4th. Morgan Stanley reiterated an “underweight” rating and set a $258.00 price objective on shares of Cboe Global Markets in a research report on Friday, July 10th. Piper Sandler lowered their price objective on Cboe Global Markets from $355.00 to $320.00 and set an “overweight” rating on the stock in a research note on Wednesday, July 15th. Finally, Loop Capital set a $288.00 target price on Cboe Global Markets in a report on Tuesday. Four investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $300.73.

Cboe Global Markets News Roundup

Here are the key news stories impacting Cboe Global Markets this week:

• Positive Sentiment: Quarterly earnings beat estimates: Cboe reported adjusted earnings of $3.56 per share, above consensus estimates ranging from $3.45 to $3.49 and up from $2.46 a year earlier. Revenue increased 24.6% year over year. CBOE Global beats Q2 earnings and revenue estimates
• Positive Sentiment: Options trading led growth: Record options revenue and an options-trading boom fueled by elevated volatility supported the earnings beat, with growth described as broad-based across the business. CBOE exceeds profit expectations as volatility spurs options trading boom
• Positive Sentiment: 2026 outlook raised: Management now expects organic net revenue growth in the mid- to high-teens for 2026. Stronger margins, continued options momentum, expansion of event contracts and investment in clearing provide additional growth catalysts. Cboe anticipates mid- to high-teens 2026 organic growth
• Neutral Sentiment: Clearing strategy remains an investor focus: Cboe’s expanded credit facility and clearing build-out could support long-term growth, but investors may continue assessing the associated capital requirements and execution risks. Cboe’s expanded credit facility and clearing strategy
• Negative Sentiment: Valuation and volatility sensitivity warrant caution: The stock’s elevated valuation leaves less room for disappointment, while a decline in market volatility or options activity could reduce trading-driven revenue growth.

Insider Activity at Cboe Global Markets

In other news, Director Janet P. Froetscher sold 1,223 shares of Cboe Global Markets stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $358.09, for a total transaction of $437,944.07. Following the sale, the director owned 13,807 shares of the company’s stock, valued at approximately $4,944,148.63. The trade was a 8.14% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.51% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Brighton Jones LLC grew its holdings in shares of Cboe Global Markets by 10.1% during the 4th quarter. Brighton Jones LLC now owns 1,092 shares of the company’s stock worth $213,000 after purchasing an additional 100 shares during the period. &PARTNERS raised its holdings in Cboe Global Markets by 25.8% in the 4th quarter. &PARTNERS now owns 3,663 shares of the company’s stock valued at $920,000 after buying an additional 751 shares during the period. Banco Bilbao Vizcaya Argentaria S.A. raised its holdings in Cboe Global Markets by 5.1% in the 4th quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 3,219 shares of the company’s stock valued at $808,000 after buying an additional 156 shares during the period. Dark Forest Capital Management LP acquired a new position in Cboe Global Markets in the third quarter valued at about $659,000. Finally, Coldstream Capital Management Inc. lifted its position in Cboe Global Markets by 16.8% in the third quarter. Coldstream Capital Management Inc. now owns 1,911 shares of the company’s stock valued at $469,000 after buying an additional 275 shares during the last quarter. 81.73% of the stock is currently owned by hedge funds and other institutional investors.

About Cboe Global Markets

Cboe Global Markets, Inc, through its subsidiaries, operates as an options exchange worldwide. It operates through six segments: Options, North American Equities, Europe and Asia Pacific, Futures, Global FX, and Digital. The Options segment trades in listed market indices. The North American Equities segment trades in listed U.S. and Canadian equities. This segment also offers exchange-traded products (ETP) transaction and listing services. The Europe and Asia Pacific segment provides pan-European listed equities and derivatives transaction services, ETPs, exchange-traded commodities, and international depository receipts, as well as ETP listings and clearing services.