Cboe Global Markets Reports Results for Third Quarter 2026

Cboe delivered record Q3 earnings, strong revenue growth, and raised 2026 guidance.

What the company is saying

Cboe Global Markets, Inc. is highlighting a record-setting third quarter, with diluted EPS reaching $4.08, up 43% year over year, and adjusted diluted EPS at $3.63, up 36%. The company frames its narrative around robust net revenue growth of 18% to $712.2 million, improved operating margins, and disciplined cost management, as adjusted operating expenses fell to $204.0 million. Management, led by CEO Craig Donohue and CFO Jill Griebenow, emphasizes strategic achievements such as extending the exclusive S&P license through 2051, advancing the Cboe Predicts product, and securing SEC approval for new event contracts. The announcement stresses increased 2026 organic net revenue growth targets and lowered expense guidance, attributing performance to higher index options volume, record 0DTE activity, and effective cost controls. The tone is confident and data-driven, with segment-level detail underscoring broad-based strength. The company also notes the completed sale of Cboe Australia and planned divestiture of Cboe Canada as part of its ongoing portfolio realignment.

What the data suggests

The disclosed numbers show Cboe's financial trajectory is sharply positive. Diluted EPS hit a record $4.08, up 43% from $2.85, and adjusted EPS rose 36% to $3.63. Net revenue increased 18% to $712.2 million, with the Options segment up 23% to $469.5 million and Derivatives net revenue up 22%, driven by a 24% increase in index options ADV and higher revenue per contract. North American Equities revenue rose 10% to $113.5 million, Europe and Asia Pacific rose 6% to $73.3 million, and Global FX jumped 23% to $27.7 million, while Futures declined 5% to $28.2 million. Operating income climbed 44% to $534.3 million, and net income allocated to common stockholders rose 43% to $426.7 million. The effective tax rate dropped to 22.8% from 30.1%, primarily due to a non-taxable gain from the Cboe Australia sale. Adjusted operating expenses fell to $204.0 million from $210.2 million, reflecting cost-cutting in salaries and travel. Cash and cash equivalents stood at $2,662.6 million, with total debt at $1,444.3 million. The company paid $90.2 million in dividends and repurchased $56.1 million in shares. Guidance for 2026 was raised to 'high teens' organic net revenue growth and lowered for adjusted operating expenses to $830–$845 million. The evidence supports the company's claims of operational and financial strength, with detailed segment and consolidated disclosures.

Analysis

The announcement's tone is positive but proportionate to the substantial realised financial progress disclosed. The majority of key claims are realised and supported by detailed numerical data: record diluted EPS ($4.08, up 43%), adjusted EPS ($3.63, up 36%), net revenue ($712.2M, up 18%), and improved operating income and net income. Forward-looking statements (updated 2026 growth targets and expense guidance) are incremental and clearly separated from realised results. There is no evidence of narrative inflation or overstatement; the language is factual and supported by comprehensive segment-level and consolidated financials. Capital outlays are routine for the business and are paired with immediate earnings impact, not long-dated uncertain returns. The gap between narrative and evidence is minimal, with all major claims substantiated by disclosed data.

Risk flags

• ●Execution risk remains around delivering on the newly raised 2026 organic net revenue growth targets, especially as these now exclude the impact of the divested Cboe Australia and pending Cboe Canada sale. Achieving 'high teens' growth will require continued volume and product innovation momentum.
• ●Regulatory and product launch risk is present for new initiatives such as the KPI event contracts and the Cboe Predicts offering. While SEC approval has been received, the commercial uptake and revenue impact remain unproven.
• ●Cost management risk persists, as the company has lowered its adjusted operating expense guidance. Sustaining lower expenses while supporting growth initiatives will require ongoing discipline, particularly after recent strategic realignments.
• ●Portfolio transition risk is elevated due to the ongoing divestiture of Cboe Canada and the recent sale of Cboe Australia. These changes could introduce operational complexity and potential revenue volatility as the company refocuses its geographic footprint.

Bottom line

Cboe's third quarter results show clear operational and financial momentum, with record EPS, strong revenue growth across most segments, and improved margins. The company is executing on its strategy by extending key licenses, launching new products, and realigning its portfolio through divestitures. The raised 2026 guidance for organic net revenue growth and lowered expense targets are credible, given the underlying performance and detailed disclosures. Risks remain around delivering on ambitious growth targets, integrating new products, and managing costs during portfolio transitions. Investors should focus on the company's ability to sustain volume growth in index options and successfully commercialize new offerings like event contracts. The most important takeaway is that Cboe is delivering immediate, quantifiable financial gains while positioning for continued near-term growth.

Announcement summary

(CBOE:CBOE) Cboe Global Markets, Inc. reported record diluted earnings per share (EPS) for the third quarter of 2026 at $4.08, representing a 43 percent increase over the prior year period. Adjusted diluted EPS for the quarter was $3.63, up 36 percent year over year. Net revenue for the third quarter was $712.2 million, an 18 percent increase compared to $605.5 million in the third quarter of 2025. The company increased its 2026 organic total net revenue growth target to 'high teens' from 'mid to high teens' and raised its Cboe Data Vantage organic net revenue growth target to 'mid teens' from 'low teens'. Cboe decreased its 2026 adjusted operating expense guidance to a range of $830 to $845 million, down from the previous range of $838 to $853 million. The company extended its exclusive S&P license through 2051, securing its SPX and VIX franchises. Cboe advanced its Cboe Predicts offering and clearing capabilities, and received SEC approvals to list and clear company-KPI event contracts, with a launch anticipated in November. Net revenue in the Derivatives business rose 22 percent, driven by a 24 percent increase in index options average daily volume (ADV) and record 0DTE activity. Cash and Spot Markets net revenue increased 12 percent, while Data Vantage delivered record quarterly net revenue, up 13 percent from a year ago. Total operating expenses for the quarter were $249.4 million, up from $235.2 million, primarily due to a $14.0 million incremental reserve related to notes receivable for the Consolidated Audit Trail. Adjusted operating expenses were $204.0 million, down from $210.2 million, mainly due to lower salaries, wages, and travel expenses. The effective tax rate for the quarter was 22.8 percent, down from 30.1 percent, primarily due to a non-taxable gain on the divestiture of Cboe Australia. The company completed the sale of Cboe Australia in the third quarter, and 2026 guidance excludes the impact of Cboe Australia. Cboe's Options segment net revenue was $469.5 million, up 23 percent, with total options ADV up 14 percent and revenue per contract up 9 percent. North American Equities net revenue was $113.5 million, up 10 percent, and Europe and Asia Pacific net revenue was $73.3 million, up 6 percent. Futures net revenue was $28.2 million, down 5 percent, and Global FX net revenue was $27.7 million, up 23 percent. At September 30, 2026, Cboe had cash and cash equivalents of $2,662.6 million, adjusted cash of $2,720.5 million, and total debt of $1,444.3 million. The company paid cash dividends of $90.2 million, or $0.86 per share, and repurchased approximately 211 thousand shares for $56.1 million during the quarter.

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