Cboe Global Markets, Inc. (CBOE) saw its stock price surge 5.16% in Friday's pre-market trading session following the release of its third-quarter earnings report and announcement of strategic business realignment plans. The company's strong financial performance and proactive measures to streamline operations have sparked investor optimism.

Cboe reported adjusted earnings per share of $2.67 for the quarter ended September 30, significantly beating the analyst consensus estimate of $2.53. The company's net revenue rose 14% year-over-year to $605.5 million, surpassing Wall Street expectations of $588.95 million. This robust financial performance was primarily driven by growth in the derivatives business, with options trading volumes reaching record levels.

In addition to the impressive earnings, Cboe announced a strategic realignment of its business portfolio. The company plans to initiate a sales process for Cboe Australia and Cboe Canada, discontinue its U.S. and European corporate listings efforts, and reduce costs in several areas including its U.S. and European ETP listings business and Cboe Europe Derivatives. These actions are expected to result in approximately a 3% reduction in net revenue and an 8% to 10% reduction in adjusted operating expenses, based on 2025 guidance ranges. Investors appear to view this streamlining positively, as it allows Cboe to focus on its core strengths and higher-growth areas.

Furthermore, Cboe raised its 2025 organic net revenue growth target to the low double-digit to mid-teens range, up from its previous guidance of high single-digit growth. This optimistic outlook, combined with the strong quarterly results and strategic initiatives, has contributed to the significant stock price increase. As the market opens, investors will be watching closely to see if this upward momentum continues throughout the trading day.