Cboe Global Markets just put out Q2 2026 numbers that lit a fire under the share price. The stock jumped 6.8% in regular trading to about $335, even though trading desks already knew this options heavy exchange operator had been posting solid profit figures.
The real story is sentiment. A one day pop is reacting to a clean earnings headline, with basic EPS at $3.36 on revenue of $1.44b, yet the longer term picture carries more mixed signals on growth and valuation that the market is largely brushing aside for now.
Like the clean earnings headline from Cboe Global Markets but uneasy about what the mixed growth and valuation signals really imply for risk and reward? Check out the 30 resilient stocks with low risk scores to see how this options focused operator compares with other resilient stocks that have steadier profiles.
Q2 2026 Earnings Summary
- Total Revenue, Q2 2026 vs. Q2 2025: US$1,442.8m vs. US$1,173.5m (up 23.0%)
- Net Income (Excl. Extra Items), Q2 2026 vs. Q2 2025: US$351.8m vs. US$233.9m (up 50.4%)
- Basic EPS, Q2 2026 vs. Q2 2025: US$3.36 vs. US$2.23 (up 50.5%)
- Trailing 12 Month Basic EPS, Q2 2026 vs. Q2 2025: US$12.87 vs. US$8.56 (up 50.3%)
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Cboe bull case: diversification claims meet hard numbers
The bullish story says Cboe Global Markets is becoming less dependent on pure trading swings and more balanced across derivatives, data, and global venues.
"Strategic international expansion and recurring high-margin data services enhance revenue stability, while technology investment and divestitures improve efficiency and margins."
Q3 backs up parts of that. Data Vantage net revenue grew in the low to mid teens, with access and capacity fees driving about 82% of that uplift. Global FX and European equities added steady fee lines. Margin structure also held up, with adjusted operating EBITDA margin at 73.3% and expense guidance cut after the Australia sale.
Cboe bear case: concentration and cost risks under the microscope
The cautious view argues that Cboe Global Markets remains heavily tied to S&P licensing terms, while rising tech and expansion spend could squeeze profitability.
"Cboe's significant reliance on its proprietary S&P index options franchise and the upcoming need to renew its long-term partnership with S&P creates concentration risk; any material change or non-renewal in that relationship could disrupt core revenue streams and impact future earnings."
That specific overhang looks reduced today. Management now has a 25 year S&P extension in place through 2051 and describes the 2027 royalty step up as expected to be de minimis relative to SPX volume growth and fee levers. Technology and clearing costs remain high. However, adjusted expense guidance has been trimmed, and operating margins expanded in Q3 instead of compressing.
One Narrative disagrees with today's price. → See where this Narrative says Cboe Global Markets should trade.
Hunt For Mispriced Earnings Power
Cboe Global Markets just reminded investors how quickly sentiment can change after clear quarterly results. The real opportunity is focusing on stocks that could be undervalued before any valuation gap narrows.
- Company 1 - 46% below our estimate - uses large LED video systems, software and services to turn growing orders and backlog into higher margin display projects.
- Company 2 - 27% below our estimate - supplies grid testing technologies and aerospace components aligned with electrification, grid modernization and utility-focused infrastructure spending.
- Company 3 - 31% below our estimate - connects artificial intelligence chips, data traffic and enterprise software through custom semiconductors and deeply embedded infrastructure products.
Three companies from the same screener. Open all 29 potentially undervalued companies →
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