Cboe Global MarketsCBOE

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

Key highlights

• Index options demand surging: Average daily volume for index options grew 32% compared to last year, which helped the company's derivatives business reach a record $473.9 million in net revenue. This is a vital sign for the business because index options generate much higher fees per trade than standard stock options.
• Revenue growth targets raised: Management increased the full-year organic revenue growth target to a range of mid to high teens, up from the previous forecast of low double digits to mid teens. This indicates that the company expects the high level of market activity seen in the first half of the year to continue.
• Data sales accelerating: The Data Vantage segment, which sells market data and access to Cboe systems, grew its revenue 15% to $181.6 million. Because of this performance, the company raised its full-year growth target for this division to the low teens range from its previous double digit forecast.
• Spending efficiency holding steady: Adjusted operating margins reached 70.4% this quarter, up from 63.7% a year ago, showing that the company is effectively controlling its costs as it grows. Management also kept its full-year spending forecast unchanged at a range of $838 million to $853 million.
• Capital spending ramped up: The company increased its 2026 capital expenditure guidance to a range of $98 million to $108 million, up from the prior range of $73 million to $83 million. This reflects higher planned investment in its clearinghouses and market platforms to support long term growth.

Our take: A very strong quarter that shows Cboe is successfully shifting toward more profitable products. The 32% jump in index options volume is the standout driver here, as it pushes margins higher and makes the business more efficient. This performance strengthens the long term case by proving the company can grow its data and derivatives revenue even as it divests smaller international units.