Cboe Global Markets (CBOE) Is Up 6.7% After Record Q3, Divestitures, and Raised 2025 Outlook

• Cboe Global Markets recently announced record third-quarter results, raising its 2025 revenue guidance, and revealed plans to divest its Australia and Canada operations to sharpen focus on core derivatives and data businesses.
• Alongside financial highlights, the company is intensifying its push into digital and crypto-related products while reporting record trading volumes in options and index products.
• Next, we'll explore how Cboe's accelerated focus on core business growth and strategic realignment shapes its investment outlook.

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Cboe Global Markets Investment Narrative Recap

To own shares in Cboe Global Markets, I believe investors need confidence in the company’s ability to capitalize on secular growth in global derivatives and market data, while actively managing risks linked to product concentration and competition. The recent guidance uplift and ongoing restructuring toward derivatives and data reinforce the main short-term catalyst, Cboe’s options and index trading volumes, but do not materially ease the concentration risk from its reliance on proprietary S&P index options or uncertainty around the S&P partnership renewal.

One highlight from the latest announcements is the appointment of JJ Kinahan as Senior Vice President to lead the new Retail Expansion and Alternative Investment Products segment. This move aligns closely with Cboe’s efforts to access retail-driven product growth, especially in digital and event-based trading, areas tied to the most relevant catalysts of increased retail participation and innovation in derivatives.

Yet in contrast to growing volumes and digital product momentum, investors should also be aware of...

Read the full narrative on Cboe Global Markets (it's free!)

Cboe Global Markets' outlook anticipates $2.6 billion in revenue and $1.1 billion in earnings by 2028. This scenario assumes a 16.9% annual revenue decline and an earnings increase of about $200 million from current earnings of $896.3 million.

Uncover how Cboe Global Markets' forecasts yield a $250.62 fair value, in line with its current price.

Exploring Other Perspectives

Eight fair value estimates from the Simply Wall St Community range from US$41.96 to US$250.63 per share. With analysts emphasizing the ongoing dependence on S&P index options, these differing views highlight broader questions about Cboe’s revenue defensibility and future scalability, inviting you to explore various perspectives.

Explore 8 other fair value estimates on Cboe Global Markets - why the stock might be worth less than half the current price!

Build Your Own Cboe Global Markets Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Cboe Global Markets research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Cboe Global Markets research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cboe Global Markets' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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