01—Abstract
Summary
Summary of the 10-Q filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
Cboe Global Markets, Inc. reported a strong first quarter for 2026, with total revenues increasing by 7% year-over-year to $1.27 billiona.
This growth was primarily driven by a significant 13% increase in Derivatives Markets revenue, fueled by higher transaction and clearing fees due to increased options trading volumes. The Data Vantage segment also showed robust growth, up 19%, attributed to strong demand for access and capacity fees and proprietary market data. Profitability saw a substantial boost, with net income soaring by 54% to $385.7 millionb, leading to a diluted EPS of $3.66, a 54% increase from the prior year.
This performance was supported by a notable decrease in cost of revenues, largely due to the absence of regulatory fees that impacted the prior year, and a modest increase in operating expenses. The company also provided an optimistic outlook, announcing strategic realignment actions expected to yield significant cost savings and detailing a definitive agreement to sell its Australian and Canadian businesses.
02—Key points
Key Highlights
- Total revenues increased by 7% to $1.27 billion in Q1 2026 compared to Q1 2025.
- Net income grew by a significant 54% to $385.7 million in Q1 2026.
- Diluted earnings per share increased by 54% to $3.66 in Q1 2026.
- Derivatives Markets revenue saw a 13% increase, driven by higher options trading volumes.
- Data Vantage revenue grew by 19%, reflecting increased demand for data products.
- The company announced a strategic realignment expected to generate $40-50 million in annualized cost savings.
- A definitive agreement was reached to sell Cboe Australia and Cboe Canada for approximately $300 million.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Cboe Global Markets, Inc. kept $0.30.
- Revenue$1.27B100.0%
- Cost of revenue−$543.9M42.7%
- Gross profit$728.9M57.3%
- Operating costs−$223.3M17.5%
- Operating income$505.6M39.7%
- Interest, other & tax−$119.9M9.4%
- Net income$385.7M30.3%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 1, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.27B$1.20B | +6.5% |
| Cost of Revenue | $543.90M$629.80M | −13.6% |
| Gross Profit | $728.90M$565.20M | +29.0% |
| Operating Expenses | $223.30M$211.30M | +5.7% |
| Operating Income | $505.60M$353.90M | +42.9% |
| Interest Expense | $13.30M$12.80M | +3.9% |
| Net Income | $385.70M$250.60M | +53.9% |
| EPS (Basic) | $3.67$2.38 | +54.2% |
| EPS (Diluted) | $3.66$2.37 | +54.4% |
| Shares Outstanding (Basic) | 104.70M104.70M | 0.0% |
| Shares Outstanding (Diluted) | 105.00M105.10M | −0.1% |
05—Questions
Frequently Asked Questions
What were the main drivers of Cboe's revenue growth in Q1 2026?
Cboe's revenue growth was primarily driven by increases in its Derivatives Markets segment, which saw a 13% rise in revenue due to higher transaction and clearing fees from increased options trading volumes. The Data Vantage segment also contributed significantly with a 19% revenue increase, attributed to strong demand for access and capacity fees and proprietary market data.
How did Cboe's profitability change in Q1 2026 compared to the prior year?
Cboe experienced a substantial increase in profitability. Net income grew by 54% to $385.7 million, and diluted earnings per share rose by 54% to $3.66. This improvement was supported by a 29% increase in 'revenues less cost of revenues' and a more controlled increase in operating expenses.
What are Cboe's key strategic initiatives mentioned in the filing?
Cboe announced two major strategic initiatives. First, a strategic realignment expected to be completed by the end of 2026, aiming to optimize resource allocation and sharpen focus, which is projected to yield annualized pre-tax cost savings of $40 million to $50 million. Second, a definitive agreement to sell its Cboe Australia and Cboe Canada businesses to TMX Group Limited for approximately $300 million.
What is the status of Cboe's debt and liquidity?
As of March 31, 2026, Cboe had total debt of $1.44 billion, primarily consisting of fixed-rate Senior Notes. The company reported $2.13 billion in cash and cash equivalents and had $400 million available under its Revolving Credit Facility, indicating strong liquidity. The company also noted that its Revolving Credit Facility and Cboe Clear Europe Credit Facility are expected to terminate within the next year, and it may not be able to secure replacement facilities on commercially reasonable terms.
06—Continue