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

Cboe Global Markets (BATS:CBOE) posted its quarterly earnings data on Friday. The company reported $3.63 earnings per share (EPS) for the quarter, topping 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 firm had revenue of $712.20 million for the quarter, compared to the consensus estimate of $705.22 million. During the same quarter in the prior year, the business earned $2.67 EPS. The business’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

Shares of Cboe Global Markets stock opened at $335.53 on Friday. The company has a quick ratio of 1.21, a current ratio of 1.21 and a debt-to-equity ratio of 0.60. The stock has a market capitalization of $35.59 billion, a price-to-earnings ratio of 172.95 and a beta of 0.61. Cboe Global Markets has a twelve month low of $227.15 and a twelve month high of $371.18. The company has a 50-day simple moving average of $294.61 and a two-hundred day simple moving average of $291.85.

Cboe Global Markets Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Monday, November 30th will be given a dividend of $0.86 per share. This represents a $3.44 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Monday, November 30th. Cboe Global Markets’s dividend payout ratio (DPR) is currently 98.97%.

Cboe Global Markets announced that its Board of Directors has authorized a stock repurchase program on Thursday, October 22nd that allows the company to repurchase $550 million in outstanding shares. This repurchase authorization allows the company to purchase up to 1.6% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its shares are undervalued.

Insider Activity

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

Key Cboe Global Markets News

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

Analyst Ratings Changes

CBOE has been the subject of several recent research reports. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating on shares of Cboe Global Markets in a research report on Monday, August 3rd. JPMorgan Chase & Co. upped their price target on Cboe Global Markets from $288.00 to $332.00 and gave the stock an “underweight” rating in a research report on Wednesday. Loop Capital set a $332.00 price objective on Cboe Global Markets in a report on Wednesday. The Goldman Sachs Group upgraded Cboe Global Markets from a “hold” rating to a “strong-buy” rating in a report on Monday, October 12th. Finally, Morgan Stanley reissued an “overweight” rating and issued a $450.00 price objective on shares of Cboe Global Markets in a research report on Friday, October 23rd. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Cboe Global Markets has a consensus rating of “Hold” and a consensus price target of $333.27.

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.