Cboe Q3 Diluted EPS Rises 43% to Record $4.08 as Guidance Lifts

Cboe Global Markets (C67.DE ) reported record diluted earnings per share of $4.08 for the third quarter of 2026 on October 30, 2026, a 43 percent increase from $2.85 in the same period of 2025, as net revenue rose 18 percent to $712.2 million and the company raised its full-year organic net revenue growth target, according to its third-quarter 2026 earnings release.

Net revenue, defined as total revenues less cost of revenues, increased from $605.5 million in the prior-year quarter, a result the company attributed to increases across all net revenue categories. Total revenues were $1,358.8 million versus $1,141.7 million a year earlier. Adjusted diluted earnings per share rose 36 percent to $3.63 from $2.67. Operating income increased 44 percent to $534.3 million from $370.3 million, producing an operating margin of 75.0 percent versus 61.2 percent, while adjusted operating income rose 29 percent to $508.2 million from $395.3 million. Net income allocated to common stockholders was $426.7 million, up 43 percent from $299.3 million.

The quarter included a $71.5 million net gain on divestiture from the sale of Cboe Australia to TMX Group Limited, a business Cboe sold on July 31, 2026. The company’s effective tax rate was 22.8 percent compared with 30.1 percent in the third quarter of 2025, a decrease Cboe attributed primarily to the non-taxable gain on the divestiture. The effective tax rate on adjusted earnings was 27.6 percent, down 2.8 percentage points from 30.4 percent, a change the company said was primarily due to changes in filing positions with state and local taxing authorities.

Total operating expenses were $249.4 million versus $235.2 million a year earlier, an increase of $14.2 million that Cboe said was primarily due to a $14.0 million incremental reserve related to its notes receivable in connection with the funding of the Consolidated Audit Trail. Adjusted operating expenses of $204.0 million declined $6.2 million from $210.2 million, primarily on lower salaries and wages tied to the company’s previously announced strategic realignment and lower travel and promotional expenses. Non-GAAP adjustments for the quarter included $16.7 million of strategic realignment costs and $14.1 million of amortization of acquired intangible assets.

Segment Results

Cboe reported net revenue by business segment for the third quarter of 2026 and the prior-year period as follows:

Options net revenue of $469.5 million increased $88.7 million, or 23 percent, from the third quarter of 2025. Net transaction and clearing fees rose $82.5 million, or 24 percent, reflecting a 24 percent increase in index options average daily volume and a 10 percent increase in multi-listed options ADV. Total options ADV increased 14 percent and total options revenue per contract rose 9 percent, which the company attributed to a product mix shift toward index options paired with a 3 percent increase in index options RPC. Access and capacity fees were 25 percent higher and market data fees were 14 percent higher than a year earlier. Cboe’s options exchanges held 30.5 percent total market share, down from 30.9 percent in the third quarter of 2025.

North American Equities net revenue of $113.5 million increased $10.0 million, or 10 percent, with net transaction and clearing fees up $4.9 million, or 16 percent, on improved net capture rates for Cboe’s on-exchange U.S. equities exchanges. U.S. equities exchange market share was 8.9 percent, down from 9.8 percent, while off-exchange market share rose to 21.3 percent from 17.9 percent.

Europe and Asia Pacific net revenue of $73.3 million increased $4.2 million, or 6 percent. On a constant currency basis, net revenue was $74.1 million, up 7 percent. European equities average daily notional value traded was €12.4 billion, up 6 percent, and Cboe Clear Europe net settlement volume reached 4,231.4 thousand shares, up 19 percent. Cboe European Equities market share was 23.0 percent, down from 25.4 percent.

Futures net revenue of $28.2 million decreased $1.4 million, or 5 percent, as net transaction and clearing fees fell $1.9 million on a 7 percent decline in ADV. Global FX net revenue of $27.7 million increased $5.2 million, or 23 percent; ADNV traded on the Cboe FX platform was $61.1 billion, up 22 percent, and the net capture rate was $2.91 per one million dollars traded versus $2.89 a year earlier.

2026 Guidance and Capital Management

Cboe raised its 2026 organic total net revenue growth target to a “high teens” range from “mid to high teens” and raised its organic net revenue growth target for Data Vantage, formerly known as Data and Access Solutions, to “mid teens” from “low teens.” The company lowered its 2026 adjusted operating expense guidance to a range of $830 million to $845 million from $838 million to $853 million, excluding expected amortization of acquired intangible assets of $59 million. It reaffirmed 2026 depreciation and amortization of $54 million to $58 million, an effective tax rate on adjusted earnings of 27.5 to 29.5 percent, and capital expenditures of $98 million to $108 million. The company said the organic net revenue growth targets exclude the 2025 and 2026 impact of Cboe Australia following the completed sale, and that the guidance includes the anticipated business-as-usual contribution from Cboe Canada, for which Cboe announced divestiture plans in October 2025.

At September 30, 2026, Cboe held cash and cash equivalents of $2,662.6 million and adjusted cash of $2,720.5 million, with total debt of $1,444.3 million. During the quarter the company paid cash dividends of $90.2 million, or $0.86 per share, and repurchased approximately 211 thousand shares for $56.1 million at an average price of $266.17 per share. Cboe had approximately $480.7 million remaining under its share repurchase authorizations at September 30, 2026; its board of directors increased the authorization by $550 million as announced October 22, 2026, leaving approximately $1.0 billion authorized and available for repurchase as of October 28, 2026.

Chief Executive Officer Craig Donohue said the company “extended our exclusive S&P license through 2051, providing certainty and continuity for our SPX and VIX franchises.” He said Cboe advanced its Cboe Predicts offering and clearing capabilities during the quarter and recently received the SEC approvals needed to list and clear its company-KPI event contracts ahead of an anticipated November launch.

Executive Vice President and Chief Financial Officer Jill Griebenow said derivatives net revenue rose 22 percent on a 24 percent increase in index options ADV supported by record 0DTE activity, while cash and spot markets net revenue increased 12 percent and Data Vantage delivered record quarterly net revenue, up 13 percent from a year ago. In the company’s revenue-category breakdown, derivatives markets net revenue was $401.7 million versus $329.3 million, cash and spot markets net revenue was $131.4 million versus $117.3 million, and Data Vantage net revenue was $179.1 million versus $158.9 million.

Cboe said its executives would host a conference call to review the results on October 30, 2026, at 8:30 a.m. Eastern Time.