Cboe Global Markets reported higher revenue and earnings for the first quarter of 2026, along with the continued implementation of a strategic realignment focused on the core business, portfolio simplification, and cost discipline.
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Net revenues increased 29% year-on-year to US$728.9 million, supported by strong activity in the derivatives, equities and foreign exchange markets. Diluted EPS rose 54% to $3.66, while adjusted EPS rose 48% to $3.70.
Options activity was a key driver during the quarter, with index options reaching record volumes and supporting growth in the derivatives business.
CEO Craig Donohue said the company is implementing a strategic review starting in 2025 to increase focus on core earnings drivers. he Confirmed the planned sale of Cboe Canada and Cboe Australia Additional organizational changes are expected to reduce headcount by about 20%, he said.
Higher costs, higher guidelines, lower taxes
Operating expenses increased to $223.3 million compared to $211.3 million in the prior year, primarily due to higher compensation and accrued bonuses associated with stronger performance. Adjusted operating expenses also rose slightly.
The effective tax rate decreased to 25.2% from 28.4% the previous year, reflecting the resolution of uncertain tax positions with state and local authorities.
The company raised its outlook for 2026, and now expects organic net revenue to grow in the “low double-digit to mid-20s” range, up from previous guidance for mid-single-digit growth. It also raised its forecast for Data Vantage and lowered its full-year revised expense guidance from $838 million to $853 million, citing efficiency measures associated with its reorganization.
Revenues rise as restructuring continues
Jill Gribino, the company’s chief financial officer, said the company had an “exceptional first quarter,” highlighting growth in financial and cash derivatives. Stocksand data services, supported by strong index options activity.
Options revenue rose 33% to $467.6 million, driven by higher volumes and pricing, although market share fell to 29.1%. North American and Europe/Asia-Pacific stocks posted double-digit growth, while FX revenue rose 38% to a record high thanks to higher trading activity.
Donohue said the restructuring is being implemented from a position of strength and aims to increase investment in areas including event markets, tokenization and expansion initiatives. Clearing Services in the United States and Europe. He added that the changes aim to support long-term growth and discipline in capital allocation.
This article was written by Tariq Sikdar at www.financemagnates.com.
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