Cboe Q2 2026 earnings: Options growth lifts net revenue 25%

Cboe Global Markets (CBOE) reported Q2 2026 net revenue of $731.6 million, up 25% from $587.3 million, while diluted EPS rose 50% to $3.35 from $2.23. Record Options net revenue and gains across every segment drove operating leverage, lifting GAAP operating margin to 65.1% and adjusted operating margin to 70.4%. The results cover the three months ended June 30, 2026, and were released on July 31, 2026.

Core financial results

Cboe’s primary top-line measure is net revenue, defined as total revenue less cost of revenue. All net revenue categories increased year over year, while operating expenses grew much more slowly than net revenue.

GAAP operating expenses rose mainly because of severance associated with the company’s strategic realignment and higher accrued bonuses. Adjusted expenses increased because of bonuses and higher travel and promotional spending, partly offset by lower professional fees.

Adjusted results exclude items including acquired-intangible amortization, strategic realignment costs, an executive compensation adjustment, investment-related adjustments and associated tax effects.

Business and segment performance

Options generated most of the quarter’s incremental revenue, while Futures was the only segment with low-single-digit growth. Options accounted for approximately 76% of the $144.3 million consolidated net revenue increase and represented about 65% of Q2 net revenue.

Options benefited from record index options activity, while North American Equities gained from stronger industry volumes and better net capture rates on U.S. exchanges. Europe and Asia Pacific grew 18% on a constant-currency basis, compared with reported growth of 20%. Futures transaction and clearing fees were flat, with market data fees producing the segment’s modest revenue increase.

Separately, Data Vantage net revenue rose approximately 15% to $177.8 million from $155.1 million. This business includes access and capacity fees and most of Cboe’s market data revenue.

Higher volumes and capture rates outweighed market-share declines

Options average daily volume increased 26%, including 32% growth in index options and 24% growth in multi-listed options. Total options revenue per contract increased 6% because index options made up a larger share of volume and index options revenue per contract increased 3%. These factors more than offset a slight decline in Cboe’s total Options market share to 30.0% from 30.2%.

A similar pattern appeared elsewhere. U.S. on-exchange equities market share fell to 9.4% from 10.5%, but stronger industry trading and improved net capture drove a 37% increase in the segment’s net transaction and clearing fees. Off-exchange U.S. equities share increased to 18.8% from 14.9%.

European Equities market share also declined, to 24.4% from 25.1%, while average daily notional value traded on Cboe’s European venues increased 13%. Cboe Clear Europe’s net settlement volume rose 21%. In Global FX, average daily notional value increased 8% and net capture per $1 million traded rose 6%, supporting 17% net revenue growth.

Profitability and balance sheet

Revenue growth substantially outpaced expenses, producing the 7.4-percentage-point expansion in GAAP operating margin. Adjusted operating expenses increased only 2% to $216.7 million, and adjusted operating margin expanded 6.7 percentage points to 70.4%.

Net income grew faster than operating income partly because Cboe recorded $18.7 million of total non-operating income, compared with $4.5 million of non-operating expense a year earlier. Net investment earnings improved to $12.8 million from a $1.1 million loss, while interest income rose to $18.2 million. The effective tax rate also declined to 28.6% from 29.7%, primarily because of reduced interest following the resolution of uncertain state and local tax positions.

At June 30, 2026, Cboe had $2.28 billion of cash and cash equivalents, $2.35 billion of adjusted cash and $1.44 billion of total debt. During the quarter, it paid $75.7 million in dividends and spent $32.6 million to repurchase approximately 127,000 shares at an average price of $256.61. Remaining repurchase authorization was approximately $536.8 million.

2026 guidance

Cboe raised its organic growth targets following its first-half performance while retaining its stated adjusted operating expense range. It also lowered depreciation and amortization guidance but raised planned capital expenditures.

The capital expenditure range increased by approximately $25 million at both ends. Cboe described the adjusted operating expense range as reaffirmed, while also stating that the guidance reflects an $11 million reduction associated with the expected third-quarter completion of the Cboe Australia sale; it did not provide a separate pre-adjustment range.

Organic growth guidance excludes the 2025 and 2026 effects of Cboe Australia. The broader guidance continues to include the expected business-as-usual contribution from Cboe Canada until further divestiture actions are announced.

Management’s perspective

CEO Craig Donohue identified event contracts, Cboe Clear U.S. and around-the-clock market access as current investment priorities. CFO Jill Griebenow attributed the quarter’s performance primarily to record index options activity and said the stronger first-half results supported the higher organic revenue growth targets.

Recent insider transactions

The supplied insider data show 72,060 shares purchased and 6,918 shares sold over the last six months, for net purchases of 65,142 shares. Only one detailed transaction in the supplied records included a clear transaction direction and value.

The aggregate activity and individual sale are presented as reported and do not, by themselves, establish insiders’ views about Cboe’s outlook.

Risks investors should monitor

• Dependence on trading volume and product mix: Options produced about 65% of quarterly net revenue, and the quarter benefited from higher index options volume and a favorable product mix. A reversal in these conditions could affect transaction revenue and revenue per contract.
• Lower market share in several venues: Options, on-exchange U.S. Equities and European Equities each reported year-over-year market-share declines despite revenue growth. Continued declines could make growth more dependent on industry-wide trading activity and capture rates.
• Rising investment requirements: Cboe increased its capital expenditure range to $98 million to $108 million. Higher bonuses, travel spending and strategic realignment costs also contributed to expense growth during the quarter.
• Divestiture and guidance comparability: The expected Cboe Australia sale and planned actions involving other businesses affect the scope of organic growth and expense guidance, making consistent period-to-period comparisons more complex.

Summary

Cboe’s Q2 2026 results were led by record Options activity, higher volumes and improved capture rates, allowing net revenue and earnings to grow much faster than operating expenses. The resulting margin expansion and higher organic growth targets point to continued operating momentum, while investors should monitor market-share trends, the increased capital spending plan and the financial effects of ongoing portfolio changes.