Cboe Global Markets (BATS:CBOE) Posts Earnings Results, Beats Expectations By $0.20 EPS

Cboe Global Markets (BATS:CBOE) issued its quarterly earnings results on Friday. The company reported $3.63 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.43 by $0.20, Zacks reports. Cboe Global Markets had a return on equity of 20.05% and a net margin of 5.77%. The business had revenue of $712.20 million for the quarter, compared to analyst estimates of $705.22 million. During the same quarter in the prior year, the firm posted $2.67 earnings per share. The firm’s revenue for the quarter was up 17.6% compared to the same quarter last year.

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

• Strong third-quarter performance: Net revenue rose 18% year over year to $712 million, adjusted diluted EPS increased 36% to $3.63, and adjusted EBITDA margin expanded to 73.3%. Growth was broad-based, with double-digit revenue gains across major categories.
• Derivatives momentum remained robust: Index options volume increased 24%, led by record SPX 0DTE activity, stronger retail participation, international trading growth and rising Mini-SPX volumes. Management sees further upside from extended hours, international distribution and institutional demand.
• Long-term strategic foundation strengthened: Cboe extended its exclusive S&P Dow Jones Indices licensing agreement through 2051, with management expecting the 2027 royalty reset to have a de minimis impact on revenue growth. The company also expanded clearing capabilities and plans to launch company KPI event contracts in November.
• 2026 outlook was raised: Organic total net revenue growth is now expected to be in the high-teens range, up from prior mid-to-high-teens guidance, while DataVantage organic growth was raised to the mid-teens. Adjusted operating expense guidance was reduced to $830 million-$845 million.
• Capital returns and balance-sheet flexibility remain substantial: Cboe returned $146 million to shareholders during the quarter and added $550 million to its share-repurchase authorization, bringing total available capacity to approximately $1 billion. Adjusted cash stood at $2.7 billion, with leverage at 0.7 times.

Cboe Global Markets Price Performance

BATS:CBOE opened at $335.53 on Friday. The firm has a fifty day simple moving average of $294.61 and a 200 day simple moving average of $291.85. Cboe Global Markets has a 1-year low of $227.15 and a 1-year high of $371.18. The stock has a market capitalization of $35.59 billion, a PE ratio of 172.95 and a beta of 0.61. The company has a current ratio of 1.21, a quick ratio of 1.21 and a debt-to-equity ratio of 0.60.

Cboe Global Markets Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Monday, November 30th will be issued a $0.86 dividend. This represents a $3.44 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Monday, November 30th. Cboe Global Markets’s dividend payout ratio is presently 98.97%.

Analysts Set New Price Targets

CBOE has been the subject of several analyst reports. Morgan Stanley restated an “overweight” rating and set a $450.00 target price on shares of Cboe Global Markets in a research report on Friday, October 23rd. TD Cowen boosted their price objective on shares of Cboe Global Markets from $334.00 to $342.00 and gave the company a “buy” rating in a report on Monday, October 12th. Piper Sandler lowered their target price on shares of Cboe Global Markets from $355.00 to $320.00 and set an “overweight” rating for the company in a research note on Wednesday, July 15th. The Goldman Sachs Group upgraded shares of Cboe Global Markets from a “hold” rating to a “strong-buy” rating in a report on Monday, October 12th. Finally, Zacks Research lowered shares of Cboe Global Markets from a “strong-buy” rating to a “hold” rating in a report on Wednesday, July 8th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $333.27.

Cboe Global Markets declared that its board has authorized a stock repurchase plan on Thursday, October 22nd that permits the company to repurchase $550 million in shares. This repurchase authorization permits the company to purchase up to 1.6% of its shares through open market purchases. Share repurchase plans are often a sign that the company’s leadership believes its shares are undervalued.

Trending Headlines about Cboe Global Markets

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

• Positive Sentiment: Q3 earnings and revenue beat expectations. Cboe reported adjusted earnings of $3.63 per share, above the $3.43 consensus estimate and up from $2.67 a year earlier. Revenue increased 17.6% year over year. CBOE Global Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Options and derivatives activity was a major growth driver. Record options volume, including strong demand for zero-days-to-expiration contracts, helped drive a reported 23% increase in options revenue. Growth in Data Vantage revenue also supported the quarter. Cboe Q3 Record 0DTE Volume
• Positive Sentiment: Management raised its 2026 revenue-growth outlook. The improved guidance suggests continued momentum in derivatives trading and market-data businesses, giving investors greater confidence in near-term fundamentals. Cboe Lifts Outlook as Third-Quarter Profit and Revenue Rise
• Positive Sentiment: JPMorgan increased its price target for CBOE. The analyst action provided an additional bullish signal following the earnings release. Cboe Price Target Increase from JPMorgan
• Neutral Sentiment: The earnings call reinforced the results-driven move. Investors are now likely to focus on whether elevated options activity and Data Vantage growth can remain durable, particularly as broader market conditions remain volatile. Cboe Q3 2026 Earnings Call Transcript

Insiders Place Their Bets

In other Cboe Global Markets news, Director Janet Froetscher sold 937 shares of the company’s stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $278.95, for a total value of $261,376.15. Following the sale, the director owned 12,870 shares in the company, valued at $3,590,086.50. This represents a 6.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.51% of the stock is currently owned by company insiders.

Cboe Global Markets Company Profile

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.