Cboe (CBOE) Q3 2026 Earnings: Data Vantage Growth Rises, Costs Fall

Cboe Global Markets (CBOE) reported third-quarter 2026 earnings on October 30, 2026, in a results press release covering the quarter ended September 30. Net revenue rose 18% year over year to $712.2 million, and the adjusted operating margin reached 71.4% [1]. Going into the quarter, four questions mattered most: whether the surge in index options volume would hold, whether the Data Vantage data and access business could keep growing at a double-digit pace after the sale of its Australian unit, whether Cboe's U.S. stock exchanges could keep their higher pricing without losing more market share, and whether expenses would stay within full-year guidance. Index options volume and pricing held near first-half levels, and the U.S. equities business continued to trade market share for higher net capture. The biggest changes were a higher growth target for Data Vantage and lower expense guidance. Overall, growth did not slow and margins kept improving, but the fourth quarter faces a tougher comparison and part of the expense decline may reflect timing.

Cboe runs options, equities, futures and foreign exchange trading venues. Most of its profit comes from exclusively licensed S&P 500 index options (SPX) and its proprietary VIX products. Its customers are market makers, institutions and retail investors; the company earns transaction fees on trading and also charges for exchange connectivity and market data, which it groups under Data Vantage. In September 2026, Cboe extended its exclusive S&P 500 index options license through 2051, with new fee terms starting in 2027 [2].

Data Vantage growth rises to about 16%

Data Vantage net revenue was $179.1 million in the third quarter, up 13% year over year and above the second quarter's $177.8 million [1][3]. Excluding Cboe Australia, which was sold on July 31, organic net revenue was $176.7 million, up 15.9% [1]. Cboe raised its 2026 organic growth target for the business from "low teens" to "mid teens" [1], after lifting it from "low double-digit" in the second quarter [3].

Most of the increase came from access and capacity fees, which reached $120.4 million, up 15.9%, as members bought more ports to connect to Cboe's options exchanges [1]. Management said growth excluding Australia was about 16% and also came from new market data subscriptions and analytics, with notable demand from Japan, South Korea and Hong Kong [4]. Reported market data fees rose only 6.8%; because the company did not split Australia's revenue between the two fee lines, organic market data growth is unknown [1].

The business carries almost no cost of revenue: third-quarter revenue was $182.6 million against $3.5 million of costs, and organic net revenue grew 16.4% over the first nine months [1]. Data Vantage accounts for about a quarter of group net revenue and is becoming a growth source alongside options volume. Access fees move with trading activity, however, so this growth does not yet prove subscription stickiness.

Adjusted expenses fall and guidance is cut

Adjusted operating expenses were $204.0 million in the third quarter, down 3% year over year and below the second quarter's $216.7 million [1][3]. Cboe attributed the decline to lower salaries from its restructuring and to travel and promotional expenses falling to $8.4 million from $13.2 million in the second quarter [1]. The company also lowered its 2026 adjusted operating expense guidance to $830 million to $845 million from $838 million to $853 million [1].

Lower costs flowed straight into profit. Adjusted operating income was $508.2 million, up 29%, and the adjusted operating margin rose 6.1 percentage points from a year earlier [1]. Cboe kept its targets of $20 million to $25 million in 2026 savings and a $40 million to $50 million annualized run rate [4]. The new guidance implies fourth-quarter adjusted expenses of roughly $208.4 million to $223.4 million, above the third-quarter level.

Other areas: prior view unchanged

Index options averaged 6.051 million contracts a day, up 24% year over year, and index options revenue per contract was $0.952, flat with the second quarter. Options segment net revenue was $469.5 million, up 23%, but slightly below the second quarter because multi-listed options pricing fell [1]. Cboe raised its 2026 organic total net revenue growth target to "high teens" [1] and said the new license fees would have a de minimis effect on 2027 net revenue growth [4]. On Cboe's U.S. stock exchanges, net capture rose to $0.022 per 100 shares while market share fell to 8.9%, so share losses have not yet stopped [1].

Conclusion

The quarter strengthens the case for Cboe's growth and profit conversion: index options volume held up, Data Vantage growth accelerated, and restructuring savings began to show in profit. Cash generation remained strong, with adjusted cash of $2,720.5 million at quarter end and $146.3 million returned through dividends and buybacks during the quarter [1]. The main uncertainties are the volatility of access fees, whether lower travel spending lasts, and the effect of the 2027 fee changes and new product investment. Whether Data Vantage reaches its full-year target and expenses stay inside the new range in the fourth quarter will test this view.

Sources

[1] CBOE Q3 2026 8-K filed 2026-10-30 [2] CBOE 8-K filed 2026-09-29 [3] CBOE Q2 2026 8-K filed 2026-07-31 [4] CBOE Q3 2026 earnings call 2026-10-30