Back to top

Image: Bigstock

Can Cboe Global Keep its Surprise Streak Alive in Q3 Earnings?

Read MoreHide Full Article

Key Takeaways

  • CBOE expects Q3 revenues to rise 16% to $702.5 million, while earnings are projected to fall 20.1% to $3.42.
  • Record SPX 0DTE volumes, robust options demand and higher trading activity are likely to aid Q3 results.
  • CBOE's Data Vantage growth and share buybacks may aid results, while rising costs could hurt profitability.

Cboe Global Markets, Inc. (CBOE - Free Report) is expected to witness an improvement in its top and bottom lines when it reports third-quarter 2026 results on Oct. 30, before market open. 

The Zacks Consensus Estimate for CBOE’s third-quarter revenues is pegged at $702.5 million, indicating a 16% increase from the year-ago reported figure.

The consensus estimate for earnings is pegged at $3.42 per share. The Zacks Consensus Estimate for CBOE’s third-quarter earnings has moved 2.7% north in the past 30 days. The estimate suggests a year-over-year decrease of 20.1%. 
chart

CBOE’s Solid Earnings Surprise History

CBOE’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 5.74%.

What the Zacks Model Unveils for Cboe Global

Our proven model predicts an earnings beat for CBOE this time around. The right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is the case here, as you can see below.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: CBOE has an Earnings ESP of +0.35%. This is because the Most Accurate Estimate of $3.43 is pegged higher than the Zacks Consensus Estimate of $3.42.

Cboe Global Markets, Inc. Price and EPS Surprise

Cboe Global Markets, Inc. Price and EPS Surprise

Cboe Global Markets, Inc. price-eps-surprise | Cboe Global Markets, Inc. Quote

Zacks Rank: CBOE currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Shape CBOE’s Q3 Results

Cboe Global Markets' third-quarter performance is likely to have benefited from sustained demand for proprietary index options, particularly SPX and zero-days-to-expiry (0DTE) contracts. Strong retail participation and growing adoption of shorter-dated options are likely to have supported transaction and clearing revenues. The Zacks Consensus Estimate for clearing and transaction fees stands at $1.4 billion, indicating an 11.2% increase from the same period last year.

SPX 0DTE average daily volume reached a quarterly record of 3.2 million contracts, while mini-SPX options and Global Trading Hours activity also achieved quarterly records. 

The company's Cash and Spot Markets business is likely to have benefited from higher foreign exchange trading activity and European clearing volumes. Growth in off-exchange U.S. equities trading and improved transaction capture rates could have provided additional support. However, relatively subdued on-exchange equities activity and competitive pricing pressures may have limited revenue growth. 

Cboe Data Vantage revenues are likely to have benefited from continued demand for market data, access services, indices and risk analytics solutions. New subscriptions, international demand and recurring revenues may have supported growth. Management's upward revision to its full-year organic Data Vantage revenue growth outlook indicates positive underlying business momentum.

Higher incentive compensation, technology investments and expenses associated with expanding clearing capabilities and new products might have pressured profitability. 

The divestiture of Cboe Australia, completed on July 31, might have reduced reported revenues, although associated cost savings are expected to provide some relief. 

Continued share repurchases are also expected to have supported third-quarter earnings per share.

Other Stocks to Consider

Here are three finance stocks you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat.

The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +5.25% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $6.91, indicating a year-over-year decrease of 38.1%.

ALL’s earnings beat estimates in each of the last four reported quarters.

Everest Group, Ltd. (EG - Free Report) has an Earnings ESP of +3.01% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at $9.32, indicating a year-over-year increase of 23.6%.

EG’s earnings beat estimates in two of the last four reported quarters, while missing in two.

Houlihan Lokey (HLI - Free Report) has an Earnings ESP of +2.89% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fiscal second-quarter 2026 earnings is pegged at $1.58, indicating a year-over-year decrease of 14.1%.

HLI’s earnings beat estimates in two of the last four reported quarters, while missing estimates in two.

Published in