Cboe Q3 2026 Earnings: Options Growth Lifts Net Revenue 18%

Cboe Global Markets (CBOE) reported third-quarter 2026 net revenue of $712.2 million, up 18% from $605.5 million, while diluted EPS rose 43% to $4.08 from $2.85. Options was the main growth engine, and adjusted operating expenses declined even as a divestiture gain amplified the increase in GAAP profit.

Core Earnings Data

Net revenue increased across all revenue categories. Adjusted operating expenses fell 3%, primarily because of lower salaries and wages following Cboe’s strategic realignment and reduced travel and promotional spending.

GAAP earnings benefited from a $71.5 million gain on the sale of Cboe Australia. However, adjusted results also improved: adjusted diluted EPS rose 36%, adjusted operating margin expanded by 6.1 percentage points, and adjusted EBITDA increased 27%.

Business and Segment Performance

Options generated most of the quarter’s incremental net revenue. Its $88.7 million year-over-year increase represented roughly 83% of Cboe’s $106.7 million consolidated net revenue growth, while Futures was the only segment to decline.

Options growth reflected a 14% increase in total average daily volume and a 9% rise in revenue per contract. Index options average daily volume increased 24%, supported by record activity in zero-days-to-expiration products, while a greater mix of index options also lifted overall revenue per contract. Total Options market share nevertheless edged down to 30.5% from 30.9%.

North American Equities benefited from improved net capture rates on Cboe’s U.S. exchanges. On-exchange U.S. market share declined to 8.9% from 9.8%, but off-exchange market share increased to 21.3% from 17.9%.

Europe and Asia Pacific net revenue rose 7% in constant currency as stronger industry volumes lifted European equities activity and Cboe Clear Europe’s net settlement volume increased 19%. Global FX growth was supported by a 22% increase in average daily notional value to $61.1 billion. Futures moved in the opposite direction, with average daily volume down 7%.

Data Vantage, which Cboe reports as a revenue category rather than a business segment, produced record quarterly net revenue of $179.1 million, up 13%.

The Australia Sale Boosted GAAP Earnings, While Core Margins Also Expanded

Cboe recognized a $71.5 million gain from selling Cboe Australia. Because the gain was non-taxable, it also contributed to the decline in Cboe’s GAAP effective tax rate to 22.8% from 30.1%. This explains part of the difference between the 43% growth in GAAP EPS and the 36% increase in adjusted EPS.

The underlying margin improvement did not depend solely on the divestiture. Net revenue grew 18% while adjusted operating expenses declined 3%, lifting adjusted operating margin to 71.4%. GAAP operating expenses increased because Cboe recorded a $14.0 million incremental reserve related to notes receivable associated with funding the Consolidated Audit Trail.

Balance Sheet and Capital Allocation

Cboe ended the quarter with $2.66 billion in cash and cash equivalents, $2.72 billion in adjusted cash, and $1.44 billion in total debt. It paid $90.2 million in dividends and used $56.1 million to repurchase approximately 211,000 shares at an average price of $266.17 during the quarter.

The board subsequently increased the repurchase authorization by $550 million. As of October 28, 2026, approximately $1.0 billion remained authorized and available for repurchases.

2026 Guidance

Cboe raised both of its organic net revenue growth targets and lowered its adjusted operating expense range. The changes reflect year-to-date revenue performance and lower expected costs.

Adjusted operating expense guidance excludes an expected $59 million of acquired intangible asset amortization. Following the sale of Cboe Australia, the organic growth calculations exclude that business’s 2025 and 2026 contribution. The guidance continues to include the anticipated business-as-usual contribution from Cboe Canada pending further action on its planned divestiture.

Management Commentary

CEO Craig Donohue highlighted the extension of Cboe’s exclusive S&P license through 2051, providing long-term continuity for its SPX and VIX franchises. Management also advanced Cboe Predicts and its clearing operations and received SEC approvals needed to list and clear company-KPI event contracts, with a November launch anticipated.

Recent Insider Transactions

Two recent director transactions with fully disclosed terms were direct sales by Janet P. Froetscher. These transactions are presented as reported and do not, by themselves, establish a view of the company’s prospects.

Risks for Investors to Watch

• Trading volume and product mix: Options growth relied on higher index options volume and a favorable mix shift, while Global FX benefited from higher notional value. Futures volume declined, illustrating how changes in activity can affect segment revenue differently.
• Market share pressure: Options, on-exchange U.S. equities, and European equities all reported lower market share year over year, even though revenue increased through higher volumes, capture rates, or product mix.
• Expense variability: The $14.0 million Consolidated Audit Trail-related reserve increased GAAP expenses, while strategic realignment costs also remained part of the GAAP-to-adjusted reconciliation.
• Divestitures and comparability: The sale of Cboe Australia boosted GAAP profit and affected the tax rate, while the planned Cboe Canada divestiture could require further guidance updates. These changes make reported and organic comparisons more complex.

Conclusion

Cboe’s third-quarter growth was led by Options, with higher index options activity and improved revenue per contract driving most of the increase in net revenue. Lower adjusted expenses expanded core margins, while the Australia divestiture provided an additional boost to GAAP earnings. The main items to monitor are whether Options and Data Vantage can support the higher organic growth targets, how declining market share develops, and whether Cboe can maintain its lower expense outlook.