The Old Post Office building in Chicago, which houses Cboe Global Markets’ headquarters, in October 2022. Archive photo.
Photo: Sea Cow / Wikimedia Commons / CC BY-SA 4.0.
Cboe Global Markets reported an 18% rise in quarterly net revenue Friday and raised its full-year growth outlook as heavier options trading helped the exchange operator post record earnings per share.
Third-quarter net revenue reached $712.2 million, up from $605.5 million a year earlier. Net income allocated to common shareholders rose 43% to $426.7 million, while diluted earnings per share increased to $4.08 from $2.85.
The reported results included a $71.5 million net gain on a divestiture. Cboe said the sale of its Australian business also contributed to a lower effective tax rate. Adjusted earnings, which remove specified items, rose 36% to $379.6 million, or $3.63 a share.
Cboe operates options, stock, futures and foreign-exchange markets. Its options business generated $469.5 million in net revenue, up 23%, as total options average daily volume rose 14% and revenue per contract increased 9%.
Index options average daily volume climbed 24%. The company said record activity in options that expire on the day they are traded helped drive growth.
The improvement was not uniform across its businesses. Futures net revenue fell 5% to $28.2 million as average daily volume declined 7%. North American equities net revenue rose 10%, and global foreign-exchange net revenue increased 23%.
Cboe now expects organic total net revenue growth in the high teens for 2026, up from a prior forecast of mid-to-high teens. It also raised its Data Vantage organic growth target to the mid-teens from the low teens and lowered its adjusted operating expense forecast to $830 million to $845 million, from $838 million to $853 million.
JBizNews Desk | Chicago
© JBizNews.com. All rights reserved. Unauthorized reproduction or redistribution is strictly prohibited.
