Cboe Global Markets (BATS:CBOE) Posts Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Cboe Global Markets (BATS:CBOE) posted its quarterly earnings results on Friday. The company reported $3.56 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.49 by $0.07, Briefing.com reports. Cboe Global Markets had a return on equity of 20.05% and a net margin of 5.77%.During the same quarter last year, the company posted $2.46 EPS. The business’s quarterly revenue was up 24.6% on a year-over-year basis.

Here are the key takeaways from Cboe Global Markets’ conference call:

• Record Q2 performance: Net revenue rose 25% year over year to $732 million, adjusted diluted EPS increased 45% to $3.56, and adjusted EBITDA margin expanded to 72.2% amid disciplined expense growth.
• Derivatives remained the primary growth engine: Derivatives revenue increased 30%, while index options ADV rose 32% to a record 6.2 million contracts, supported by strong SPX, zero-DTE, Mini-SPX, and retail activity.
• 2026 revenue outlook was raised: Management now expects organic net revenue growth in the mid-to-high teens, up from its prior low-double-digit to mid-teens forecast, with DataVantage growth raised to the low teens.
• Cboe is investing in future growth through Cboe Predicts, proposed company-specific KPI contracts, expanded clearing capabilities, and a planned move toward 23-by-5 equities trading; however, regulatory approvals remain uncertain and 2026 CapEx guidance increased to $98 million-$108 million.
• The expected third-quarter sale of Cboe Australia will reduce future revenue and $11 million of expenses, while Cboe plans to retain substantial balance-sheet flexibility and expects to repay a $650 million debt tranche due in early 2027 with cash on hand.

Cboe Global Markets Stock Performance

CBOE stock traded up $10.32 during trading on Friday, reaching $306.84. 1,061,419 shares of the company’s stock were exchanged, compared to its average volume of 1,137,202. Cboe Global Markets has a 1-year low of $227.15 and a 1-year high of $371.18. The firm has a market cap of $32.54 billion, a PE ratio of 157.48 and a beta of 0.61. The company’s fifty day moving average price is $280.97 and its 200-day moving average price is $290.37. The company has a quick ratio of 1.21, a current ratio of 1.21 and a debt-to-equity ratio of 0.60.

Cboe Global Markets Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Friday, May 29th were paid a dividend of $0.72 per share. The ex-dividend date of this dividend was Friday, May 29th. This represents a $2.88 annualized dividend and a yield of 0.9%. Cboe Global Markets’s payout ratio is presently 98.97%.

Cboe Global Markets News Summary

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

• Positive Sentiment: Q2 earnings beat expectations: Cboe reported adjusted earnings of $3.56 per share, above consensus estimates ranging from $3.45 to $3.49 and well ahead of $2.46 a year earlier. Quarterly revenue increased 24.6% year over year, supporting the positive reaction. CBOE Global Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Volatility boosted trading activity: Elevated volatility spurred an options-trading boom, increasing activity across Cboe’s derivatives markets and strengthening the company’s transaction-based revenue outlook. CBOE Exceeds Profit Expectations as Volatility Spurs Options Trading Boom
• Positive Sentiment: Management raised its growth narrative: Cboe anticipates 2026 organic net revenue growth in the mid- to high-teens, while continuing to expand event contracts and build out its clearing capabilities. These initiatives could diversify revenue and support longer-term growth. Cboe Anticipates 2026 Organic Net Revenue Growth
• Neutral Sentiment: Clearing strategy remains under evaluation: Investors are examining whether Cboe’s expanded credit facility signals a broader repositioning of its clearing operations. The investment could enhance capabilities but may also increase financing needs and execution risk. Is Cboe Using Its Expanded Credit Facility to Reposition Its Clearing Strategy?

Insider Buying and Selling at Cboe Global Markets

In related news, Director Janet P. Froetscher sold 1,223 shares of the company’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $358.09, for a total value of $437,944.07. Following the completion of the sale, the director owned 13,807 shares of the company’s stock, valued at $4,944,148.63. This represents a 8.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.51% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Cboe Global Markets

Several large investors have recently bought and sold shares of CBOE. State Street Corp lifted its stake in shares of Cboe Global Markets by 2.1% in the 3rd quarter. State Street Corp now owns 4,996,816 shares of the company’s stock worth $1,225,469,000 after acquiring an additional 101,349 shares during the period. Morgan Stanley increased its stake in shares of Cboe Global Markets by 6.1% during the fourth quarter. Morgan Stanley now owns 2,691,162 shares of the company’s stock valued at $675,482,000 after acquiring an additional 155,333 shares during the period. Invesco Ltd. raised its holdings in Cboe Global Markets by 5.8% during the fourth quarter. Invesco Ltd. now owns 1,931,272 shares of the company’s stock worth $484,749,000 after purchasing an additional 105,168 shares in the last quarter. Northern Trust Corp raised its holdings in Cboe Global Markets by 7.0% during the third quarter. Northern Trust Corp now owns 1,410,188 shares of the company’s stock worth $345,849,000 after purchasing an additional 91,726 shares in the last quarter. Finally, Amundi raised its holdings in Cboe Global Markets by 47.9% during the fourth quarter. Amundi now owns 981,720 shares of the company’s stock worth $246,412,000 after purchasing an additional 317,941 shares in the last quarter. Institutional investors and hedge funds own 81.73% of the company’s stock.

Analyst Ratings Changes

CBOE has been the topic of a number of research reports. Morgan Stanley reissued an “underweight” rating and set a $258.00 target price on shares of Cboe Global Markets in a report on Friday, July 10th. Keefe, Bruyette & Woods boosted their price objective on shares of Cboe Global Markets from $300.00 to $335.00 and gave the company a “market perform” rating in a research report on Monday, May 4th. JPMorgan Chase & Co. increased their price objective on shares of Cboe Global Markets from $277.00 to $288.00 and gave the stock an “underweight” rating in a research note on Tuesday. Loop Capital set a $288.00 target price on shares of Cboe Global Markets in a report on Tuesday. Finally, Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Cboe Global Markets in a research note on Monday, May 4th. Four analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $300.73.

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.