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CBOE Q3 Earnings Beat Estimates on Strong Options Volumes
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Key Takeaways
CBOE earned $3.63 per share, beating estimates by 5.8%, as net revenues rose 18% to $712.2 million.
Options revenues jumped 23%, while SPX 0DTE average daily volume reached a record 3.2 million contracts.
Cboe raised its 2026 organic revenue growth outlook to the high teens and lowered its expense forecast.
Cboe Global Markets, Inc. (CBOE - Free Report) reported third-quarter 2026 adjusted earnings of $3.63 per share, which increased 36% year over year and beat the Zacks Consensus Estimate of $3.43 by 5.8%.
Net revenues reached $712.2 million, which rose 18% year over year and surpassed the consensus mark of $700 million by 1.4%. Results benefited from strong derivatives activity, record Data Vantage revenues and improved operating efficiency. Index options average daily volume increased 24%, supported by record zero-days-to-expiration (0DTE) trading activity.
Cboe Global Markets, Inc. Price, Consensus and EPS Surprise
Derivatives Markets net revenues increased 22% year over year, driven by higher options trading volumes and improved revenue per contract. Cash and Spot Markets net revenues advanced 12%, supported by stronger European equities and foreign exchange trading activity.
Data Vantage net revenues rose 13% to a record $179.1 million from $158.9 million a year earlier. Access and capacity fees increased 16%, while proprietary market data revenues grew 7%. Higher demand for logical ports, dedicated cores and market data solutions supported growth.
Cboe Global's Options Business Leads Growth
Options net revenues increased 23% year over year to $469.5 million from $380.8 million. Net transaction and clearing fees climbed 24% to $419.6 million, reflecting higher trading activity and a favorable product mix.
Total options average daily volume increased 14% to 21.3 million contracts. Index options volume rose 24%, while multi-listed options volume increased 10%. Total options revenue per contract grew 9% to 30.7 cents. Index options revenue per contract increased 3% to 95.2 cents.
SPX options average daily volume advanced 26% to 4.9 million contracts. SPX 0DTE average daily volume reached a record 3.2 million contracts, up 34%. Options market share declined to 30.5% from 30.9% a year earlier.
CBOE Expands Profitability as Adjusted Costs Decline
Adjusted operating expenses declined 3% year over year to $204 million from $210.2 million. Compensation and benefits expenses decreased 6% to $119.1 million, while travel and promotional expenses fell 30% to $8.4 million. Lower salaries associated with strategic realignment initiatives contributed to the decline.
Adjusted operating income increased 29% to $508.2 million. The adjusted operating margin expanded 610 basis points to 71.4%. Adjusted operating EBITDA rose 28% to $521.8 million, while the corresponding margin improved 580 basis points to 73.3%.
The effective tax rate on adjusted earnings declined to 27.6% from 30.4% in the prior-year quarter. Reported operating expenses increased 6% to $249.4 million, primarily reflecting an additional $14 million reserve related to Consolidated Audit Trail funding.
Cboe Global's Other Markets Deliver Mixed Results
North American Equities net revenues increased 10% year over year to $113.5 million. Net transaction and clearing fees advanced 16%, supported by improved U.S. equities on-exchange net capture rates. U.S. equities exchange market share declined to 8.9%, while off-exchange market share increased to 21.3%.
Europe and Asia Pacific net revenues rose 6% to $73.3 million. European equities average daily notional value traded on Cboe increased 6% to €12.4 billion. Cboe Clear Europe net settlement volume advanced 19%.
Global FX net revenues climbed 23% to $27.7 million as average daily notional value increased 22% to $61.1 billion. Futures net revenues declined 5% to $28.2 million, reflecting an 8% decrease in net transaction and clearing fees.
CBOE Raises Its 2026 Revenue Outlook
CBOE now expects organic total net revenue growth in the high teens compared with its previous projection of mid-to-high teens. The company also raised its Data Vantage organic net revenue growth target to the mid-teens from the low teens.
Adjusted operating expenses are now projected between $830 million and $845 million, down from the previous range of $838 million to $853 million. Depreciation and amortization expenses are still expected between $54 million and $58 million, while capital expenditures are projected between $98 million and $108 million.
The company reaffirmed its expected effective tax rate on adjusted earnings of 27.5% to 29.5%.
Cboe Global Maintains Strong Capital Resources
Cboe Global ended the quarter with cash and cash equivalents of $2.66 billion and adjusted cash of $2.72 billion. Total debt stood at $1.44 billion as of Sept. 30, 2026.
The company paid $90.2 million in dividends, or 86 cents per share, during the quarter. It also repurchased approximately 211,000 shares for $56.1 million at an average price of $266.17.
In October, CBOE increased its share repurchase authorization by $550 million, bringing the total available authorization to approximately $1 billion as of Oct. 28, 2026.
Performance of Other Securities and Exchanges Stocks
CME Group Inc. (CME - Free Report) reported third-quarter 2026 adjusted earnings per share of $3.02, which beat the Zacks Consensus Estimate by 1.3%. The bottom line increased 12.7% year over year. CME Group’s revenues of $1.73 billion increased 13% year over year. The year-over-year increase was primarily due to higher clearing and transaction fees, market data and information services, and other factors. The top line beat the Zacks Consensus Estimate by 1.2%.
Total expenses rose 5.5% year over year to $595.9 million, attributable to higher technology, depreciation and amortization, licensing and other fee agreements, and other expenses. Operating income increased 17.3% from the prior-year quarter to $1.14 billion.
Nasdaq, Inc. (NDAQ - Free Report) reported third-quarter 2026 non-GAAP earnings of $1.04 per share, which increased 18% year over year. The figure beat the Zacks Consensus Estimate of $1.02 by 1.96%. Net revenues increased 13% to $1.48 billion and topped the consensus estimate of $1.46 billion by 1.4%. Growth was driven by strong Index and Financial Technology performance.
Solutions revenues advanced 17% year over year to $1.17 billion, representing 79% of net revenues, up from 76% in the prior-year quarter. Organic growth reached 18%, marking the sixth consecutive quarter of double-digit organic growth. Annualized SaaS revenues increased 12% to $1.27 billion, with organic growth of 16%.
Intercontinental Exchange Inc. (ICE - Free Report) reported third-quarter 2026 adjusted earnings of $2.02 per share, up 18.1% year over year and ahead of the Zacks Consensus Estimate of $1.97 by 2.54%. Net revenues of $2.77 billion climbed 14.7% and surpassed the consensus mark of $2.73 billion by 1.33%. Stronger energy and financial markets trading lifted exchange revenues, while fixed income data continued to grow.
Transaction-based net revenues increased 23.2% to $1.400 billion, and recurring revenues advanced 7.1% to $1.365 billion. Exchanges net revenues climbed to $1.542 billion from $1.265 billion a year ago. Energy generated $603 million versus $482 million, while financials contributed $190 million compared with $139 million. Agriculture and metals revenues rose to $83 million from $51 million.
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CBOE Q3 Earnings Beat Estimates on Strong Options Volumes
Key Takeaways
Cboe Global Markets, Inc. (CBOE - Free Report) reported third-quarter 2026 adjusted earnings of $3.63 per share, which increased 36% year over year and beat the Zacks Consensus Estimate of $3.43 by 5.8%.
Net revenues reached $712.2 million, which rose 18% year over year and surpassed the consensus mark of $700 million by 1.4%. Results benefited from strong derivatives activity, record Data Vantage revenues and improved operating efficiency. Index options average daily volume increased 24%, supported by record zero-days-to-expiration (0DTE) trading activity.
Cboe Global Markets, Inc. Price, Consensus and EPS Surprise
Cboe Global Markets, Inc. price-consensus-eps-surprise-chart | Cboe Global Markets, Inc. Quote
CBOE's Revenue Growth Remains Broad-Based
Derivatives Markets net revenues increased 22% year over year, driven by higher options trading volumes and improved revenue per contract. Cash and Spot Markets net revenues advanced 12%, supported by stronger European equities and foreign exchange trading activity.
Data Vantage net revenues rose 13% to a record $179.1 million from $158.9 million a year earlier. Access and capacity fees increased 16%, while proprietary market data revenues grew 7%. Higher demand for logical ports, dedicated cores and market data solutions supported growth.
Cboe Global's Options Business Leads Growth
Options net revenues increased 23% year over year to $469.5 million from $380.8 million. Net transaction and clearing fees climbed 24% to $419.6 million, reflecting higher trading activity and a favorable product mix.
Total options average daily volume increased 14% to 21.3 million contracts. Index options volume rose 24%, while multi-listed options volume increased 10%. Total options revenue per contract grew 9% to 30.7 cents. Index options revenue per contract increased 3% to 95.2 cents.
SPX options average daily volume advanced 26% to 4.9 million contracts. SPX 0DTE average daily volume reached a record 3.2 million contracts, up 34%. Options market share declined to 30.5% from 30.9% a year earlier.
CBOE Expands Profitability as Adjusted Costs Decline
Adjusted operating expenses declined 3% year over year to $204 million from $210.2 million. Compensation and benefits expenses decreased 6% to $119.1 million, while travel and promotional expenses fell 30% to $8.4 million. Lower salaries associated with strategic realignment initiatives contributed to the decline.
Adjusted operating income increased 29% to $508.2 million. The adjusted operating margin expanded 610 basis points to 71.4%. Adjusted operating EBITDA rose 28% to $521.8 million, while the corresponding margin improved 580 basis points to 73.3%.
The effective tax rate on adjusted earnings declined to 27.6% from 30.4% in the prior-year quarter. Reported operating expenses increased 6% to $249.4 million, primarily reflecting an additional $14 million reserve related to Consolidated Audit Trail funding.
Cboe Global's Other Markets Deliver Mixed Results
North American Equities net revenues increased 10% year over year to $113.5 million. Net transaction and clearing fees advanced 16%, supported by improved U.S. equities on-exchange net capture rates. U.S. equities exchange market share declined to 8.9%, while off-exchange market share increased to 21.3%.
Europe and Asia Pacific net revenues rose 6% to $73.3 million. European equities average daily notional value traded on Cboe increased 6% to €12.4 billion. Cboe Clear Europe net settlement volume advanced 19%.
Global FX net revenues climbed 23% to $27.7 million as average daily notional value increased 22% to $61.1 billion. Futures net revenues declined 5% to $28.2 million, reflecting an 8% decrease in net transaction and clearing fees.
CBOE Raises Its 2026 Revenue Outlook
CBOE now expects organic total net revenue growth in the high teens compared with its previous projection of mid-to-high teens. The company also raised its Data Vantage organic net revenue growth target to the mid-teens from the low teens.
Adjusted operating expenses are now projected between $830 million and $845 million, down from the previous range of $838 million to $853 million. Depreciation and amortization expenses are still expected between $54 million and $58 million, while capital expenditures are projected between $98 million and $108 million.
The company reaffirmed its expected effective tax rate on adjusted earnings of 27.5% to 29.5%.
Cboe Global Maintains Strong Capital Resources
Cboe Global ended the quarter with cash and cash equivalents of $2.66 billion and adjusted cash of $2.72 billion. Total debt stood at $1.44 billion as of Sept. 30, 2026.
The company paid $90.2 million in dividends, or 86 cents per share, during the quarter. It also repurchased approximately 211,000 shares for $56.1 million at an average price of $266.17.
In October, CBOE increased its share repurchase authorization by $550 million, bringing the total available authorization to approximately $1 billion as of Oct. 28, 2026.
Zacks Rank
CBOE currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Securities and Exchanges Stocks
CME Group Inc. (CME - Free Report) reported third-quarter 2026 adjusted earnings per share of $3.02, which beat the Zacks Consensus Estimate by 1.3%. The bottom line increased 12.7% year over year. CME Group’s revenues of $1.73 billion increased 13% year over year. The year-over-year increase was primarily due to higher clearing and transaction fees, market data and information services, and other factors. The top line beat the Zacks Consensus Estimate by 1.2%.
Total expenses rose 5.5% year over year to $595.9 million, attributable to higher technology, depreciation and amortization, licensing and other fee agreements, and other expenses. Operating income increased 17.3% from the prior-year quarter to $1.14 billion.
Nasdaq, Inc. (NDAQ - Free Report) reported third-quarter 2026 non-GAAP earnings of $1.04 per share, which increased 18% year over year. The figure beat the Zacks Consensus Estimate of $1.02 by 1.96%. Net revenues increased 13% to $1.48 billion and topped the consensus estimate of $1.46 billion by 1.4%. Growth was driven by strong Index and Financial Technology performance.
Solutions revenues advanced 17% year over year to $1.17 billion, representing 79% of net revenues, up from 76% in the prior-year quarter. Organic growth reached 18%, marking the sixth consecutive quarter of double-digit organic growth. Annualized SaaS revenues increased 12% to $1.27 billion, with organic growth of 16%.
Intercontinental Exchange Inc. (ICE - Free Report) reported third-quarter 2026 adjusted earnings of $2.02 per share, up 18.1% year over year and ahead of the Zacks Consensus Estimate of $1.97 by 2.54%. Net revenues of $2.77 billion climbed 14.7% and surpassed the consensus mark of $2.73 billion by 1.33%. Stronger energy and financial markets trading lifted exchange revenues, while fixed income data continued to grow.
Transaction-based net revenues increased 23.2% to $1.400 billion, and recurring revenues advanced 7.1% to $1.365 billion. Exchanges net revenues climbed to $1.542 billion from $1.265 billion a year ago. Energy generated $603 million versus $482 million, while financials contributed $190 million compared with $139 million. Agriculture and metals revenues rose to $83 million from $51 million.