Cboe posts higher Q1 revenue, lifts FY view, to cut 20% jobs

Overview

• US exchange operator's Q1 total revenue rose 6.5% yr/yr on growth across all segments

• Adjusted diluted EPS for Q1 increased 48% yr/yr

• Company to cut workforce by about 20% as part of strategic realignment

Outlook

• Cboe raises 2026 organic net revenue growth target to low double-digit to mid-teens, up from prior guidance of mid single-digit

• Company lifts 2026 Data Vantage organic net revenue growth target to low double-digit, from mid to high single-digit earlier

• Cboe lowers 2026 adjusted operating expense guidance to $838-$853 mln from $864-$879 mln

Result Drivers

• OPTIONS VOLUME AND MIX - Record options net revenue driven by a 10% increase in total options average daily volume and a higher proportion of index options, resulting in a 19% rise in revenue per contract

• EQUITIES AND FX GROWTH - North American Equities and Global FX segments saw higher net transaction and clearing fees, supported by stronger industry volumes and improved net capture rates

• STRATEGIC REALIGNMENT - Company cited ongoing portfolio realignment, including divestiture of non-core businesses and workforce reduction, to focus investment on core and emerging business areas

Company press release: ID:nPn6C0MN9a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 10 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the financial & commodity market operators & service providers peer group is "buy."

• Wall Street's median 12-month price target for CBOE Global Markets Inc is $304.00, about 1.3% above its April 30 closing price of $300.09

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 24 three months ago

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