Core Insights - Cboe Global Markets, Inc. is a leading provider of market infrastructure and tradable products, including options, futures, and equities, operating one of the largest options exchanges globally [1] - RBC Capital has set a new price target for Cboe at $303, indicating a potential increase of about 9.85% from its current trading price of $275.82 [1][5] - The company's market capitalization is approximately $28.99 billion, reflecting its significant presence in the financial markets [3][5] Financial Performance - Cboe's stock is currently priced at $277.01, reflecting a 1.33% increase or $3.65, with trading occurring between $272.30 and $277.01 during the day [2] - Over the past year, Cboe's stock has experienced a high of $279.33 and a low of $200.88, indicating market volatility [2] Strategic Direction - Insights from C-suite executives during the recent Q4 2025 earnings call provide valuable perspectives on Cboe's future outlook and growth strategies [4] - The earnings call likely covered key financial metrics and operational highlights, essential for understanding Cboe's approach to maintaining its competitive edge in the market [3][4]

Core Insights - The Zacks Securities and Exchanges industry is benefiting from a diversified product portfolio, increased trading volumes, and the adoption of crypto assets, which is expected to drive revenues for key players like S&P Global, Intercontinental Exchange, CME Group, Nasdaq, and Cboe Global Markets [1][4][5] - The industry is experiencing a shift towards non-trading revenue sources, including market technology and data services, which enhances business dynamism and stability [1][6] - Mergers and acquisitions are becoming more prevalent as companies seek to innovate and adapt to changing market conditions [3][7] Industry Overview - The Zacks Securities and Exchanges industry includes companies that operate electronic marketplaces for trading various financial instruments, generating revenue from fees and data services [4] - The industry is witnessing a growing adoption of crypto assets, although regulatory compliance remains a challenge [4] Trends Impacting the Industry - Volatility in financial markets is driving trading volumes, which in turn boosts transaction and clearing fees, a primary revenue driver [5] - Companies are diversifying into recurring revenue sources to reduce reliance on trading income, focusing on data services and technology platforms [6] - Continuous investment in technology, including AI and blockchain, is enhancing operational efficiency and competitiveness [8] Performance Metrics - The Zacks Securities and Exchanges industry has underperformed compared to the broader Zacks Finance sector and the S&P 500, with a year-to-date gain of 0.6% versus 13% and 17% respectively [13] - The industry is currently trading at a trailing P/E ratio of 23.31, higher than the S&P 500's 22.6 and the sector's 17.5 [16] Earnings Outlook - The Zacks Industry Rank for the Securities and Exchanges industry is 48, placing it in the top 20% of 243 Zacks industries, indicating positive near-term prospects [9][10] - Aggregate earnings estimates for the industry have increased by 8.8% over the past year, reflecting growing analyst confidence [11] Notable Companies - **Cboe Global Markets**: Expected to grow with a 6.1% increase in 2026 EPS and a long-term growth rate of 16.5% [20][21] - **S&P Global**: Anticipated 11.4% increase in 2026 EPS, supported by ongoing service launches [24][26] - **Nasdaq**: Projected 8.9% and 12.3% increases in 2026 and 2027 EPS respectively, with a focus on non-trading revenue [28][29] - **CME Group**: Expected to see 4.5% and 5.3% increases in 2026 and 2027 EPS, driven by product expansion [31][33] - **Intercontinental Exchange**: Forecasted 9.3% increase in 2026 EPS, benefiting from digitization in the mortgage industry [35][36]

Core Viewpoint - Cboe Global Markets reported strong fourth-quarter results, driven by increased market volatility that boosted options trading volumes, despite a slight decline in total options market share [7]. Group 1: Market Conditions - Recent months have seen a surge in market volatility due to uncertain trade policies and heightened geopolitical tensions, prompting traders to increase bets and hedge positions [7]. - Exchanges across Wall Street, including CME Group, Nasdaq, and Intercontinental Exchange, have reported strong quarterly results attributed to higher trading volumes [7]. Group 2: Company Performance - Cboe's net revenue from its options trading arm increased by 34% to $433 million, with total average daily volume in options rising by 24% [4][7]. - The adjusted profit was reported at $3.06 per share, surpassing analysts' average estimate of $2.94, while revenue reached a record $671.1 million, exceeding expectations of approximately $660 million [6][7]. Group 3: Strategic Focus - The company is streamlining its operations to concentrate on high-growth areas such as prediction markets and cryptocurrency, in response to increasing competition for market share [5][7]. - Cboe is exploring a new product that would utilize an options structure for all-or-none payouts, aiming to compete with emerging prediction market platforms [5][7]. - The exchange plans to exit its businesses in Australia and Canada, following the previous decision to wind down its Japanese equities business [5][7].

Core Insights - Cboe Global Markets, Inc. (CBOE) reported fourth-quarter 2025 adjusted earnings of $3.06 per share, exceeding the Zacks Consensus Estimate by 4.4% and reflecting a 46% year-over-year increase [1][8] - The company achieved record total adjusted revenues of $671.1 million, up 28% year over year, surpassing the consensus mark by 6% [2] - CBOE's strong performance was driven by higher volumes across its derivatives platform and solid cash and spot markets, despite increased expenses [1][8] Operational Details - Options revenues rose 34% year over year to $433.1 million, fueled by growth in net transaction and clearing fees as well as access and capacity fees [2] - North American Equities revenues totaled $110.7 million, up 17% year over year, driven by higher net transaction and clearing fees, access and capacity fees, and market data fees [3] - Revenues from Europe and Asia Pacific increased 24% year over year to $69.9 million, reflecting growth in net transaction and clearing fees and non-transaction revenues [3] - Futures net revenues grew 12% year over year to $33.7 million, supported by a 13% increase in net transaction and clearing fees [3] - Global FX net revenues rose 22% year over year to $23.7 million, attributed to higher net transaction and clearing fees [4] Financial Performance - Adjusted operating expenses were $220.6 million, a 7.7% increase year over year, primarily due to higher compensation and benefits [4] - Adjusted operating income grew 41% year over year to $450.5 million, with an adjusted operating margin of 67.1%, expanding 610 basis points year over year [5][4] - Adjusted EBITDA margin was 69.2%, also expanding 600 basis points year over year [5] Full-Year Highlights - For the full year, adjusted earnings were $10.67 per share, up 24% from 2024, although slightly missing the consensus estimate by 1.1% [6] - Net revenues reached $2.4 billion, a 17.3% increase from 2024, beating the consensus estimate by 1.6% [6] - The adjusted EBITDA margin for the full year was 67.7%, expanding 250 basis points year over year [6] Financial Update - CBOE ended 2025 with cash and cash equivalents of $2.2 billion, more than doubling from the end of 2024 [7] - Total assets as of December 31, 2025, were $9.3 billion, a 19.5% increase from the previous year [9] - Long-term debt was $1.4 billion, a slight increase of 0.1% from the end of 2024 [9] - Total shareholders' equity rose to $5.1 billion, up 20% from December 31, 2024 [10] Share Repurchase and Dividend Update - In Q4, CBOE paid out cash dividends totaling $75.8 million, or 72 cents per share [11] - As of December 31, 2025, CBOE had $614.5 million remaining under its current share repurchase authorization [11] 2026 Guidance - CBOE expects total organic net revenue growth in the mid single-digit range for 2026 [12] - Data Vantage organic net revenue growth is anticipated to be in the mid to high single-digit range [12] - Projected adjusted operating expenses are expected to be between $864 million and $879 million [12] - Capital expenditures are forecasted to be in the range of $73 million to $83 million [12]

Group 1 - Cboe Global Markets reported better-than-expected fourth-quarter results, with adjusted earnings increasing by 46% to $3.06 per share and net revenue rising by 28% to $671.1 million [1] - Analysts had anticipated earnings of $2.94 per share on revenue of $659.5 million, indicating that Cboe outperformed market expectations [1] - The company experienced record trading volumes in index and options, contributing to its strong financial performance [1] Group 2 - Cboe Global Markets' stock showed improved price performance, earning an upgrade to its IBD Relative Strength Rating [1] - The company's Relative Strength Rating rose to 74, reflecting its positive market position [1] - Cboe is attempting to close in on key technical measures, indicating a focus on enhancing its market standing [1]

Core Insights - CBOE Global reported quarterly earnings of $3.06 per share, exceeding the Zacks Consensus Estimate of $2.93 per share, and up from $2.1 per share a year ago [1] - The company achieved a revenue of $671.1 million for the quarter, surpassing the Zacks Consensus Estimate by 1.75%, and an increase from $524.5 million year-over-year [3] Earnings Performance - The earnings surprise for the quarter was +4.52%, following a previous surprise of +5.53% in the last quarter [2] - CBOE has consistently surpassed consensus EPS estimates over the last four quarters [2] Stock Performance - CBOE shares have increased approximately 9.7% since the beginning of the year, contrasting with a 0.7% decline in the S&P 500 [4] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.73, with expected revenues of $624.11 million, and for the current fiscal year, the EPS estimate is $11.19 on revenues of $2.52 billion [8] - The Zacks Rank for CBOE is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [7] Industry Context - The Securities and Exchanges industry, to which CBOE belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [9]

Financial Performance - Cboe reported record net revenue of $671.1 million for Q4 2025, an increase of 28% compared to $524.5 million in Q4 2024[7]. - Diluted EPS for Q4 2025 reached $2.97, up 60% from $1.86 in Q4 2024; adjusted diluted EPS was $3.06, up 46%[5][9]. - Total revenues for the three months ended December 31, 2025, were $1,204.0 million, an increase of 8.8% compared to $1,107.6 million in 2024[37]. - Net income for the same period was $312.2 million, up 59.8% from $195.6 million in 2024[37]. - Operating income for the three months ended December 31, 2025, was $403.8 million, a 35.4% increase from $298.5 million in 2024[37]. - Basic earnings per share for the three months ended December 31, 2025, were $2.98, compared to $1.87 in 2024, representing a 59.6% increase[37]. - Adjusted diluted earnings per share for the twelve months ended December 31, 2025, was $10.67, compared to $8.61 for the same period in 2024, reflecting a 24.0% growth[43]. - Adjusted operating income for Q4 2025 was $450.5 million, an increase of 40.9% from $319.7 million in Q4 2024[43]. - Adjusted operating margin for the twelve months ended December 31, 2025, was 65.6%, compared to 61.4% in 2024, indicating a 4.2 percentage point improvement[43]. - Operating EBITDA for Q4 2025 was $403.8 million, with an operating EBITDA margin of 67.1%[45]. - Adjusted Operating EBITDA for the twelve months ended December 31, 2025, reached $1,645.1 million, compared to $1,316.9 million in 2024, reflecting a 25% growth[46]. Revenue Segments - Cboe's Derivatives business saw a net revenue growth of 38% year-over-year, while Cash and Spot Markets net revenue rose 27%[3]. - The cash and spot markets generated revenues of $431.3 million, while derivatives markets contributed $610.1 million, reflecting growth in both segments[37]. - Record Options net revenue was $433.1 million, up 34% from $324.3 million in Q4 2024, driven by a 24% increase in total options average daily volume[13]. - North American Equities net revenue increased 17% to $110.7 million, reflecting higher net transaction and clearing fees[13]. - Europe and Asia Pacific net revenue for Q4 2025 was $69.9 million, up from $56.2 million in Q4 2024, marking a 24.5% increase[47]. Expenses and Costs - The company's total operating expenses were $267.3 million in Q4 2025, an increase of 18% from $226.0 million in Q4 2024[9]. - Total cost of revenues decreased to $532.9 million from $583.1 million year-over-year, resulting in a gross profit increase[37]. - Adjusted operating expenses in 2026 are expected to be in the range of $864 to $879 million, excluding the expected amortization of acquired intangible assets of $63 million[18]. - Depreciation and amortization expense for 2026 is expected to be in the range of $56 to $60 million, excluding the expected amortization of acquired intangible assets[18]. Tax and Financial Position - Cboe's effective tax rate for Q4 2025 was 30.6%, up from 29.7% in Q4 2024, primarily due to remeasuring deferred tax assets and liabilities[9]. - The effective tax rate on adjusted earnings for the full year 2026 is expected to be in the range of 27.5 to 29.5 percent[18]. - The effective tax rate on adjusted earnings for the twelve months ended December 31, 2025, was 29.3%[43]. - The company had cash and cash equivalents of $2,216.5 million and total debt of $1,442.9 million as of December 31, 2025[15]. - Cash and cash equivalents increased significantly to $2,216.5 million from $920.3 million year-over-year, indicating strong liquidity[38]. - Total assets rose to $9,305.3 million, up from $7,789.1 million in 2024, reflecting growth in the company's financial position[38]. Market Share and Growth Expectations - Cboe's market share in U.S. Equities decreased to 9.4% in Q4 2025 from 10.8% in Q4 2024[13]. - Cboe anticipates total organic net revenue growth in the 'mid single-digit' range for 2026, with Data Vantage organic net revenue growth expected in the 'mid to high single-digit' range[3][5]. - Organic total net revenue growth is expected to be in the 'mid single-digit' range in 2026[18]. - Organic net revenue growth from Data Vantage is expected to be in the 'mid to high single-digit' range in 2026[18]. - Total industry ADV for options in Q4 2025 was 66,608 thousand, compared to 51,635 thousand in Q4 2024, reflecting a significant increase[27]. - Total Company Options ADV in Q4 2025 was 19,419 thousand, up from 15,673 thousand in Q4 2024[27]. - Total Options market share in Q4 2025 was 29.2%, compared to 30.4% in Q4 2024[27]. Impairments and Adjustments - The company incurred impairment of assets amounting to $25.1 million in Q4 2025, compared to no impairment in Q4 2024[46]. - Impairment of assets for the twelve months ended December 31, 2025, was $46.7 million, compared to $81.0 million in 2024[43]. - Acquisition-related costs for the twelve months ended December 31, 2025, totaled $0.3 million, down from $1.3 million in 2024[43]. - Total non-GAAP adjustments for Q4 2025 amounted to $1.6 million, while for the twelve months, it was $28.7 million[43].

Core Insights - Cboe Global Markets reported record financial results for Q4 2025 and the full year, with net revenue of $671.1 million for the quarter, up 28% year-over-year, and $2.4 billion for the full year, up 17% [1][2] - The company achieved record adjusted diluted EPS of $3.06 for Q4 2025, a 46% increase, and $10.67 for the full year, a 24% increase [1][2] - Cboe's strategic realignment is aimed at enhancing growth and value creation in core businesses, with expectations for mid single-digit organic total net revenue growth in 2026 [1][3] Financial Performance - Q4 2025 total revenues less cost of revenues reached $671.1 million, a 28% increase from $524.5 million in Q4 2024 [2][6] - Total operating expenses for Q4 2025 were $267.3 million, up from $226.0 million in Q4 2024, primarily due to higher compensation and benefits [2][6] - Operating income for Q4 2025 was $403.8 million, reflecting a 35% increase compared to $298.5 million in Q4 2024 [2][6] Business Segment Performance - Options segment net revenue was $433.1 million, up 34% from $324.3 million in Q4 2024, driven by a 24% increase in total options average daily volume [2][6] - North American Equities segment net revenue increased to $110.7 million, a 17% rise from $94.9 million in Q4 2024, despite a decrease in market share [2][6] - European and Asia Pacific segment net revenue grew by 24% to $69.9 million, supported by increased transaction and clearing fees [2][6] 2026 Guidance - Cboe expects adjusted operating expenses for 2026 to be in the range of $864 million to $879 million [3] - The company anticipates organic total net revenue growth in the mid single-digit range and Data Vantage organic net revenue growth in the mid to high single-digit range for 2026 [3] - Capital expenditures for 2026 are projected to be between $73 million and $83 million [3]

Core Viewpoint - CBOE Global Markets is poised for a significant earnings report on February 6, 2026, with analysts projecting an EPS of $2.93 and revenue of $662.2 million, driven by year-over-year revenue growth [1][2]. Financial Performance - The anticipated increase in earnings is attributed to higher revenues for the quarter ending December 2025, which is critical for the company's stock price movement [2]. - CBOE's price-to-earnings (P/E) ratio stands at 28.86, indicating a positive investor outlook on future earnings potential [3]. - The price-to-sales ratio of 6.15 reflects the market's valuation of CBOE's revenue, suggesting strong investor confidence [3]. Market Valuation - The enterprise value to sales ratio is 6.17, and the enterprise value to operating cash flow ratio is 23.31, highlighting the market's valuation of CBOE's total worth relative to its sales and cash flow [4]. - An earnings yield of 3.47% provides insight into the return on investment for shareholders [4]. - The debt-to-equity ratio of 0.33 indicates a balanced financial structure with moderate debt levels compared to equity [4]. Financial Stability - CBOE's current ratio of 1.72 suggests a solid ability to cover short-term liabilities with short-term assets, indicating financial stability [5]. - The management's discussion during the earnings call will be crucial for assessing the sustainability of immediate price changes and future earnings projections [5].

Core Insights - Cboe Global Markets reported significant increases in trading volumes across various segments for January 2026 compared to the previous year and month, indicating strong market activity and growth [1][2]. Trading Volume Statistics - Multi-listed options reached an average daily trading volume (ADV) of 14,093 thousand contracts, a 7.2% increase year-over-year from January 2025 [3]. - Index options saw a notable rise to 5,477 thousand contracts, marking a 20.8% increase compared to January 2025 [3]. - Futures trading volume increased to 230 thousand contracts, up 4.6% from the previous year [3]. - U.S. equities on-exchange matched shares totaled 1,872 million, reflecting a 14.3% year-over-year growth [3]. - Off-exchange U.S. equities matched shares skyrocketed to 241 million, a remarkable 189.5% increase from January 2025 [3]. - Canadian equities matched shares reached 239,258 thousand, a 50.3% increase year-over-year [3]. - European equities matched shares totaled 15,218 million, up 33.2% from the previous year [3]. - Australian equities matched shares increased to 1,041 million, a 60.0% rise compared to January 2025 [3]. - Global FX trading set a new record with an aggregate monthly ADV of $67.2 billion, a 33.6% increase year-over-year [5]. Notable Achievements - Cboe Europe Periodic Auctions achieved a record monthly average daily notional value (ADNV) of €5.3 billion in January 2026 [4]. - A record 287 thousand S&P 500 Index (SPX) options contracts were traded during Cboe's Global Trading Hours session on January 20, surpassing the previous record set in April 2025 [6]. - Mini-SPX (XSP) options also set a monthly volume record in January with an ADV of 150 thousand contracts [6].