Cboe Global Markets (BATS:CBOE) Posts 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 EPS for the quarter, beating analysts’ consensus estimates 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%. During the same period in the previous year, the firm earned $2.67 earnings per share. Cboe Global Markets’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 Trading Up 5.9%

Shares of BATS CBOE traded up $18.52 during mid-day trading on Friday, reaching $332.77. 1,821,958 shares of the company’s stock were exchanged, compared to its average volume of 1,134,755. The company’s 50-day moving average is $293.78 and its 200-day moving average is $291.49. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.21 and a current ratio of 1.21. The firm has a market capitalization of $35.29 billion, a price-to-earnings ratio of 170.84 and a beta of 0.61. Cboe Global Markets has a 52-week low of $227.15 and a 52-week high of $371.18.

Cboe Global Markets Announces Dividend

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

More Cboe Global Markets News

Here are the key news stories impacting Cboe Global Markets this week:

• Positive Sentiment: Cboe reported third-quarter adjusted earnings of $3.63 per share, exceeding the $3.43 analyst consensus and rising from $2.67 a year earlier. Revenue increased 17.6% year over year. CBOE Global Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: Record options activity was the primary growth driver. A surge in options volume, including strong zero-days-to-expiration trading, helped produce a reported 23% increase in options revenue. Cboe Global Markets Q3 2026: Record 0DTE Volume Drives a 23% Options Revenue Surge
• Positive Sentiment: Management raised its 2026 revenue-growth outlook, signaling confidence that derivatives activity and Data Vantage revenue growth can continue supporting results. The improved guidance was a key catalyst for the stock’s advance. Cboe Lifts Outlook as 3Q Profit, Revenue Rise
• Neutral Sentiment: The earnings beat was broad enough to reinforce Cboe’s growth narrative, but investors will likely monitor whether unusually strong trading volumes remain elevated and whether the higher outlook is sustainable.
• Negative Sentiment: JPMorgan raised its price target to $332 but retained an “underweight” rating. The target remained below the prevailing share price, suggesting the bank views the stock as fully valued or vulnerable to a pullback. Cboe Global Markets Stock Gets Price Target Increase from JPMorgan

Insider Buying and Selling

In other Cboe Global Markets news, Director Janet Froetscher sold 937 shares of Cboe Global Markets stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $278.95, for a total transaction of $261,376.15. Following the completion of the sale, the director directly owned 12,870 shares in the company, valued at $3,590,086.50. This trade represents a 6.79% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.51% of the stock is owned by insiders.

Cboe Global Markets declared that its Board of Directors has approved a stock buyback plan on Thursday, October 22nd that allows the company to buy back $550 million in outstanding shares. This repurchase authorization allows the company to buy up to 1.6% of its stock through open market purchases. Share repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on CBOE. JPMorgan Chase & Co. raised their price target on shares of Cboe Global Markets from $288.00 to $332.00 and gave the stock an “underweight” rating in a research note on Wednesday. Barclays cut their price objective on shares of Cboe Global Markets from $354.00 to $343.00 and set an “overweight” rating for the company in a report on Wednesday, October 7th. TD Cowen raised their target price on shares of Cboe Global Markets from $334.00 to $342.00 and gave the stock a “buy” rating in a research note on Monday, October 12th. Wells Fargo & Company boosted their target price on Cboe Global Markets from $301.00 to $309.00 and gave the stock an “equal weight” rating in a report on Wednesday, October 14th. Finally, Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Cboe Global Markets in a research report on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Cboe Global Markets currently has a consensus rating of “Hold” and a consensus target price 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.