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Learn Why The Bull Case For Cboe Stock Could Change Following Strong Earnings Report

Simply Wall St · 2d ago
  • Cboe Global Markets reported third quarter 2026 revenue of US$1,358.8 million and net income of US$428.2 million, with basic EPS from continuing operations of US$4.08, with the nine month period showing revenue of US$4,074.4 million and net income of US$1,167 million.
  • The wide gap between revenue and earnings growth, reflected in basic EPS from continuing operations rising faster than the top line over both periods, points to meaningful operating leverage and cost efficiency becoming a bigger part of the Cboe Global Markets narrative.
  • This earnings expansion and margin improvement are important factors in understanding Cboe Global Markets' overall investment profile.

Scan how Cboe Global Markets' earnings momentum compares with peers by checking a hand picked list of 38 high quality undervalued stocks that show strong cash generation and balance sheet support.

Cboe Global Markets Investment Narrative Recap

To own Cboe Global Markets, you need to be comfortable with a business that leans heavily on derivatives, data and clearing, and with the fact that recent profit strength is tied to this mix. The latest quarter shows earnings scaling faster than revenue. This points to operating leverage but also raises the bar for maintaining discipline on technology and clearing spend.

The near term swing factor is whether derivatives and data volumes stay strong enough to support higher margins while Cboe invests in infrastructure and new contracts. The biggest risk right now is that rising capital expenditure and tech costs run ahead of activity, which would put pressure on the recent margin gains.

The most relevant announcement here is the Q3 2026 earnings release itself because it shows how this operating model is working in real time. Cboe Global Markets reported Q3 revenue of US$1,358.8 million and net income of US$428.2 million, with basic EPS from continuing operations of US$4.08, all higher than the figures a year earlier.

Across the first nine months of 2026, the group recorded US$4,074.4 million of revenue and US$1,167 million of net income. For a shareholder, that link between higher earnings, firmer margins and a derivatives heavy, data rich portfolio is central to the catalyst story, while the reliance on key index products and ongoing tech investment needs frames the main execution risk.

Cboe Global Markets Forecasts and Valuation Benchmarks

Analyst expectations around Cboe Global Markets now hinge on a mix of softer top line assumptions and far stronger profitability. Forecasts point to revenue declining by 15.3% a year over the next three years, while profit margins are modelled to rise from 27.9% today to 48.5% in that same window.

On earnings, the consensus view circles around US$1.5b of profit today and US$1.6b by the 2029 forecast horizon, with estimates stretching from US$1.4b on the cautious side to US$1.8b at the upper end. That shift from US$1.5b to US$1.6b is an increase of about US$100m, which is relatively modest compared with the swing in projected margins, so the story here is less about breakneck earnings expansion and more about mix and efficiency.

Those profit expectations sit inside a valuation framework that assumes Cboe Global Markets trades on a P/E of 29.6x in 2029, compared with 25.0x implied today and a current US Capital Markets industry multiple of 36.7x. Analysts tie that rating to a revenue line of US$3.2b and earnings of US$1.6b in 2029, using a discount rate around 7.9% to connect those future numbers back to current price targets.

The consensus target sits at US$354.13 per share against a recent price of US$353.27, only about 0.2% higher. For you as an investor, this tight gap signals that the average analyst does not see a big mispricing in Cboe Global Markets based on these revenue, earnings and valuation inputs. Any different view on the stock likely comes down to how you rate the durability of derivatives activity, data revenue and the cost base behind them.

Cboe Global Markets' narrative projects US$3.2b revenue and US$1.6b earnings by 2029. This assumes revenue falling 15.3% per year and an earnings increase of about US$100m from US$1.5b today.

Uncover why Cboe Global Markets' fair value indicates Cboe Global Markets is roughly in line with its current price.

BATS:CBOE 1-Year Stock Price Chart
BATS:CBOE 1-Year Stock Price Chart

Exploring Other Perspectives

One alternate view on Cboe Global Markets leans hard on rising technology and clearing costs as the main risk. Before this earnings release, the most cautious analysts were modelling revenue at about US$2.6b and earnings around US$1.4b by 2029. That is a more pessimistic read, so use this new Q3 data to test which story you find more convincing.

Explore 4 other Cboe Global Markets fair value estimates, including one that suggests as much as 32% downside from the current price!

Reach Your Own Conclusion

Don't just follow the ticker. Dig into the data and build a conviction that's truly your own.

  • A great starting point for your Cboe Global Markets research is our analysis highlighting 2 key rewards that could impact your investment decision.
  • See our latest analysis for Cboe Global Markets. The report includes a comprehensive fundamental analysis summarized in a single visual, the Snowflake, making it easy to evaluate Cboe Global Markets' overall financial health at a glance.

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