Cboe net revenue rises 18% to $712.2 million in third quarter
Key Facts
Cboe Global Markets said its net revenue was $712.2 million in the third quarter of 2026, up 18% from the same period in 2025, when it recorded $605.5 million. Diluted earnings per share rose to $4.08, up 43% year over year, while adjusted earnings per share were $3.63, up 36%. Results were supported by derivatives activity, alongside growth in cash and spot markets and the data business. The company also adjusted its full-year targets, raising its target for total organic net revenue growth and lowering its expected adjusted operating expense range. Before the results, analysts had expected earnings of $3.42 per share and revenue of $707.3 million, according to Investing.com.
The derivatives segment was the biggest driver among the segments mentioned in the company's statement, with net revenue up 22% from the third quarter of 2025. Cboe attributed the increase to a 24% rise in average daily trading volume in index options, supported by record activity in contracts expiring on the trading day they are traded. The performance put options volumes at the heart of the company's growth during the quarter, with continued reliance on trading index products. Before the results were announced, an Investing.com report cited trading of about 5 million S&P 500 options contracts per day in 2026. The report said 0DTE contracts approached 63% of the index's total options volume in February. The sustainability of these volumes was among the issues investors monitored ahead of the results.
Growth extended to other activities: net revenue from cash and spot markets rose 12% year over year, while the Data Vantage segment posted record quarterly revenue, up 13%. Cboe raised its 2026 organic net revenue growth target for Data Vantage to the “mid-teens” range from the “low teens” previously. At the company level, its total organic net revenue growth target is now in the “high teens” range, compared with previous guidance of between the “mid-teens and high teens.” These targets measure organic revenue growth and do not specify an expected total revenue amount. The revisions therefore reflect separate increases to the segment outlook and the overall organic growth target.
By contrast, the company lowered its 2026 adjusted operating expense guidance range to $830–845 million from $838–853 million. This came despite operating expenses rising to $249.4 million in the third quarter from $235.2 million a year earlier. Cboe said the increase was mainly due to an additional $14 million reserve related to Consolidated Audit Trail funding obligations. The company also recorded a net divestiture gain of $71.5 million during the quarter. The effective tax rate was 22.8%, compared with 30.1% in the third quarter of 2025; the company attributed the decline mainly to the tax-free gain from the sale of Cboe Australia.
The results were preceded by a change to the share repurchase authorization: on October 22, 2026, the company increased it by $550 million. It said about $1 billion was available and authorized for repurchases as of October 28. As for the stock's trading in the days before the announcement, EL7 data show it closed at $340.42 on October 23, then $335.25 on October 26 and $324.68 on October 27. It closed at $320.42 on October 28, then $314.25 on October 29. These pre-announcement closes do not establish the stock's direction after the results were released and do not support attributing a rise to the report.
Looking ahead, Cboe extended its S&P Dow Jones index licensing agreement through 2051. An Investing.com report quoted Morgan Stanley as describing the extension as removing a “major overhang” on the stock. Cboe and Robinhood also received U.S. Securities and Exchange Commission approval in mid-October to launch new prediction contracts linked to key performance indicators. This marks Cboe's entry into an emerging derivatives category, the report said, without specifying these contracts' contribution to revenue. Management was scheduled to hold its earnings call on October 30, 2026, at 8:30 a.m. Eastern Time.