Cboe shares rise 6.7% after Q3 profit tops estimates

Cboe Global Markets (CBOE) reported third-quarter 2026 results on Oct. 30 that topped profit estimates while revenue came in below forecasts. Adjusted diluted earnings were $3.63 per share, topping the $3.50 consensus estimate compiled by Finnhub.

Shares rose 6.7% in regular trading as of 3:59 p.m. ET, from a previous close of $314.25.

Net revenue, which the company defines as total revenues less cost of revenues, rose 18% to $712.2 million. That was below the $721.6 million estimate compiled by Finnhub.

Here's how the company did:

• Adjusted EPS: $3.63 per share vs. $3.50 expected, according to Finnhub
• Diluted EPS: $4.08 per share, up 43% from $2.85 a year earlier
• Net revenue: $712.2 million vs. $605.5 million a year earlier, and $721.6 million expected, according to Finnhub

Craig Donohue, Chief Executive Officer of Cboe Global Markets, said “Our strong momentum continued in the third quarter” as the company advanced its growth strategy. He cited the extension of its exclusive S&P license through 2051.

Segment results

Options net revenue rose 23% to $469.5 million, from $380.8 million a year earlier. Index options average daily volume rose 24%, which the company said was supported by record 0DTE activity.

Derivatives net revenue rose 22%. Cash and Spot Markets net revenue increased 12%. Data Vantage posted record quarterly net revenue, up 13% from a year earlier.

Futures net revenue fell 5% to $28.2 million. Global FX net revenue rose 23% to $27.7 million.

The company recorded a $71.5 million gain on divestiture, net, from the sale of Cboe Australia to TMX Group, which closed on July 31, 2026. Total operating expenses were $249.4 million, including a $14.0 million incremental reserve on notes receivable tied to funding of the Consolidated Audit Trail. Adjusted operating expenses were $204.0 million, down from $210.2 million a year earlier.

2026 guidance

The company now expects organic total net revenue growth in the high teens, up from its prior mid to high teens range. Data Vantage organic net revenue growth is now expected in the mid teens, up from low teens. Adjusted operating expenses are now expected to be $830 million to $845 million, down from $838 million to $853 million.

Griebenow, Executive Vice President and Chief Financial Officer, said “we are increasing our 2026 total organic net revenue growth target” after a strong year-to-date performance.

The company reaffirmed depreciation and amortization expense of $54 million to $58 million, an effective tax rate on adjusted earnings of 27.5% to 29.5%, and capital expenditures of $98 million to $108 million.

According to its SEC filings, revenue has risen in each of the last three quarters, from $1.14 billion in the third quarter of 2025 to $1.44 billion in the second quarter of 2026.

Capital returns

The company paid cash dividends of $90.2 million, or $0.86 per share, in the third quarter. It repurchased about 211 thousand shares for $56.1 million at an average price of $266.17 per share.

The Board of Directors increased the share repurchase authorization by $550 million, as announced on Oct. 22. The company had about $1.0 billion authorized and available for repurchase as of Oct. 28.

At Sept. 30, cash and cash equivalents were $2.66 billion and total debt was $1.44 billion.