Cboe Lifts 2026 Revenue Growth Target To 'High Teens' And Cuts Expense Guidance
The exchange operator reported third-quarter net revenue of $712.2 million, up 18%, and record diluted EPS of $4.08.
Cboe Global Markets, which runs options, equities, futures and foreign-exchange markets, raised its 2026 organic revenue growth target to "high teens" from "mid to high teens" and trimmed its expense guidance, the company said Friday as it reported third-quarter net revenue of $712.2 million, up 18%.
Record EPS, with a divestiture gain inside
Diluted earnings per share rose 43% to a record $4.08. Adjusted earnings per share rose 36% to $3.63.
The reported figure includes a $71.5 million net gain on the sale of Cboe Australia, completed in the quarter. The company said its effective tax rate fell to 22.8% from 30.1% a year earlier, mainly because that gain is not taxable.
Adjusted operating expenses fell to $204.0 million from $210.2 million, which the company tied to lower salaries from its strategic realignment and lower travel and promotional spending. Reported operating expenses rose to $249.4 million, mainly on a $14.0 million reserve against notes receivable tied to funding of the Consolidated Audit Trail.
Options volume drives the revenue gain
Options net revenue climbed 23% to $469.5 million. Total options average daily volume rose 14% and revenue per contract rose 9%, while market share slipped to 30.5% from 30.9%.
CFO Jill Griebenow said net revenue in the Derivatives business rose 22%, driven by a 24% increase in index options average daily volume supported by record trading in same-day-expiring (0DTE) options. Cash and Spot Markets revenue rose 12%, and Data Vantage, the data and access business, posted record quarterly net revenue, up 13%.
Global FX revenue rose 23% to $27.7 million and North American Equities rose 10% to $113.5 million. Futures fell 5% to $28.2 million.
Guidance moves and a bigger buyback
Cboe lifted its Data Vantage organic revenue growth target to "mid teens" from "low teens" and lowered adjusted operating expenses guidance to $830 million to $845 million from $838 million to $853 million. Griebenow cited strong year-to-date performance.
The board added $550 million to the buyback authorization on October 22. As of October 28 the company had about $1.0 billion authorized and available. In the quarter it spent $56.1 million repurchasing about 211 thousand shares at an average $266.17.
CEO Craig Donohue said Cboe extended its exclusive S&P license through 2051, covering its SPX and VIX franchises. He said it recently received the SEC approvals needed to list and clear company-KPI event contracts under Cboe Predicts, in anticipation of a November launch.
Executives discussed the results on a conference call at 8:30 a.m. ET Friday, with the event contracts slated for November.
