Cboe Global Markets Reports Strong Third Quarter Earnings and Raises Revenue Growth Outlook
October 30, 2026 — Financial exchange operator Cboe Global Markets (NYSE: CBOE) reported substantial growth in third-quarter earnings and revenue on Friday, supported by increased options trading activity, expanding demand for market data, and continued improvements in operating efficiency.
The company generated $712.2 million in net revenue during the quarter ended September 30, representing an 18% increase from $605.5 million in the corresponding period last year. Diluted earnings per share climbed 43% to a record $4.08, compared with $2.85 a year earlier.
Adjusted earnings per share, which exclude certain nonrecurring items, increased 36% to $3.63 from $2.67. The results reflected strong activity across several business segments, particularly derivatives trading.
Options Trading Drives Revenue Growth
The company's options business was a major contributor to its quarterly performance. Net revenue from options trading increased 23% to $469.5 million, compared with $380.8 million during the same quarter in 2025.
Higher trading volumes played an important role in the increase. Average daily volume in index options rose 24%, while trading activity in options listed on multiple exchanges increased 10%.
The company also benefited from a more favorable mix of trading activity, with index options accounting for a larger proportion of total volume. Average revenue per options contract increased 9% from the previous year.
Demand for short-duration options contracts remained particularly strong. Trading in options that expire on the same day continued to attract market participants seeking opportunities to manage risk or respond quickly to changes in financial markets.
Although options revenue expanded considerably, the company's overall options exchange market share declined slightly to 30.5%, compared with 30.9% a year earlier.
Growth Extends Beyond Derivatives
Other business segments also contributed to the company's improved financial results.
North American equities generated $113.5 million in net revenue, representing a 10% increase from the prior-year quarter. Revenue from operations in Europe and the Asia-Pacific region advanced 6% to $73.3 million.
The global foreign exchange business delivered particularly strong growth, with net revenue rising 23% to $27.7 million.
Futures trading was the principal exception to the broader improvement. Revenue from that segment declined approximately 5% to $28.2 million.
Meanwhile, the company's market data and analytics operations continued expanding. Revenue from its data-related business increased 13%, reaching a quarterly record as demand for financial information and related services remained healthy.
These results demonstrate how the company's diversified operations can generate revenue from multiple sources, including trading transactions, exchange access, clearing services, and market information.
Operating Profitability Improves
Operating income reached $534.3 million during the quarter, an increase of 44% from $370.3 million in the previous year.
The reported figure included a $71.5 million gain associated with a business divestiture. Excluding adjustments and certain nonrecurring items, operating income increased 29% to $508.2 million.
Adjusted operating expenses declined approximately 3% to $204 million, reflecting lower compensation-related costs following organizational changes and reduced travel and promotional spending.
As a result, the adjusted operating margin improved to 71.4%, compared with 65.3% during the third quarter of 2025.
The improvement suggests that revenue growth is translating into stronger underlying profitability, an important consideration for investors evaluating the company's ability to expand earnings over time.
Long Term Agreements Strengthen Business Visibility
During the quarter, the company extended its exclusive licensing agreement covering major S&P index products through 2051.
The agreement provides long-term continuity for products tied to the S&P 500 Index and the VIX volatility benchmark, both of which are central to the company's derivatives business.
Such arrangements can provide an important competitive advantage by supporting established trading franchises and reducing uncertainty surrounding access to widely followed financial benchmarks.
The company also continued developing new financial products, including event-based contracts connected to corporate performance indicators.
Regulatory approvals received for certain contracts have positioned the business for a planned November launch, potentially creating another opportunity to expand its product offerings.
Management Raises Full Year Expectations
Following the stronger-than-expected operating performance, management increased its financial outlook for 2026.
The company now expects organic net revenue growth in the high teens, compared with its previous forecast of growth in the mid-to-high teens.
It also raised its organic revenue growth expectation for the market data business to the mid-teens, replacing an earlier forecast in the low teens.
At the same time, management reduced its projected adjusted operating expenses for the full year to between $830 million and $845 million. The previous guidance called for expenses between $838 million and $853 million.
The combination of stronger anticipated revenue growth and lower projected expenses could support additional profitability improvements during the remainder of the year.
What Investors Should Watch
For investors following CBOE, the latest quarterly results highlight the financial benefits of elevated derivatives trading activity and recurring demand for exchange-related services.
Continued growth in index options, particularly short-duration contracts, could provide further opportunities for revenue expansion. The company's market data operations also represent an important source of growth that is not entirely dependent on transaction volumes.
However, trading activity can fluctuate with market conditions. A sustained decline in volatility or changes in investor behavior could reduce transaction revenue, while competition among exchanges may pressure market share and pricing.
The company must also demonstrate that its newer products can attract sufficient participation to become meaningful contributors to future earnings.
Nevertheless, the third-quarter performance provides evidence of substantial operating momentum. With revenue expanding, adjusted expenses declining, and management raising its annual outlook, the company enters the final months of 2026 with a stronger earnings profile.
