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Cboe raised its quarterly dividend by 19 percent to $0.86 per share. This is the 16th year in a row the company has increased its payout to shareholders.
This double-digit raise is a sign of confidence in the company's cash flow as it moves through a major restructuring. Cboe is currently cutting costs and selling off less profitable international units to focus on its high-margin derivatives business. The ability to sharply increase the dividend while undergoing these changes suggests the core business remains a strong cash generator.
Source: PRNewsWire
Cboe is expanding its European clearing service to include government and corporate bonds from the US, UK, and Europe. Clearing is the process where an exchange acts as a middleman to ensure a trade is completed even if one side fails to pay. This move builds on a service Cboe launched last year for stocks. While this is a smaller part of the overall business compared to its US options trading, it helps the company earn more steady fees from its existing infrastructure in Europe.
Source: PRNewsWire
Loop Capital raised its price target for the exchange operator from $304 to $315. This adjustment follows a quarter where the company raised its own growth targets for the year. The new target sits right at the average for analysts covering the stock and suggests some room for the price to rise from current levels.
Source: Loop Capital Markets
Cboe has finalized the sale of its Australian unit to TMX Group. This move is part of a larger strategy to shed international businesses that earn lower profits and instead focus resources on its core U.S. derivatives and data businesses.
By selling off these units, management aims to simplify the company and improve its overall profit margins. This divestiture follows the company's broader plan to cut costs and double down on the proprietary products, like VIX and SPX options, where it has no competition.
Source: PRNewsWire
Cboe delivered a strong second quarter, with adjusted earnings of $3.56 per share beating the $3.48 analysts expected. Revenue reached a record $731.6 million, a 25 percent jump from last year. This growth was fueled by heavy trading in the company's exclusive index options and a steady rise in its data services business.
Management is now more optimistic about the rest of the year. They raised their 2026 organic revenue growth target to the mid-to-high teens, up from an earlier forecast of low-double digits. They also increased the growth target for Data Vantage, the arm that sells market data. This suggests the company is successfully turning its unique market position into higher, more predictable income.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Management has a habit of clearing the bar, beating analyst expectations in seven of the last eight quarters. This suggests a predictable business that is currently outrunning most forecasts.
| Expectation | |
|---|---|
| EPS | $3.37 |
| Revenue | $708M |
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