GET DAILY SIGNALSNasdaq (NDAQ) Posts +13% Revenue Growth in Q3 2026 with Record ARR
Key Takeaways
- Net revenue rose 13% year over year to $1.5 billion, beating the consensus estimate of roughly $1.46 billion.
- Non-GAAP diluted earnings per share (EPS) climbed 18% to $1.04, topping the consensus estimate of $1.02.
- Solutions revenue jumped 17% to $1.2 billion, while annualized recurring revenue (ARR) reached a record $3.4 billion.
- Index revenue surged 39%, driven by record exchange-traded product (ETP) assets under management (AUM) and net inflows.
- Nasdaq updated its full-year 2026 non-GAAP operating expense guidance to a range of $2.550 billion to $2.580 billion.
Why These Results Matter Now
Nasdaq, Inc. (NDAQ) has been shifting from a traditional exchange operator toward a broader financial technology and data business. That evolution makes each earnings report a useful checkpoint on how steady, recurring revenue streams are balancing out fluctuations in trading activity. The third quarter of 2026 came amid active equity markets, solid interest in indexing and data offerings, and ongoing spending on artificial intelligence and digital assets. From what I see, the update gives investors a clear look at whether the company can keep delivering double-digit organic growth, improve margins, and return capital through buybacks and dividends while moving forward with deals like LeveL Markets and plans for extended trading hours.
Breaking Down the Quarter
NDAQ posted third-quarter 2026 net revenue of $1.5 billion, up 13% on a reported basis and 14% organically, which topped the consensus estimate of roughly $1.46 billion. Non-GAAP diluted EPS reached $1.04, an 18% rise from the year-ago period and ahead of the $1.02 consensus. On a GAAP basis, diluted EPS was $0.96, up 31% year over year, and net income increased to $540 million from $423 million. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Solutions revenue, covering Capital Access Platforms and Financial Technology, grew 17% to $1.2 billion and accounted for 79% of net revenue. ARR rose 12% to a record $3.4 billion, or 14% organically. Inside Solutions, Index revenue climbed 39% to $286 million, while Financial Technology revenue increased 16% to $529 million. Market Services net revenue edged up 2% to $309 million. Non-GAAP operating margin widened by 100 basis points to 57%. The quarter cleared expectations on revenue and adjusted EPS, though the updated expense guidance drew the most attention afterward.
How the Market Responded
The results strengthened confidence in NDAQ’s recurring-revenue approach, with the beat coming mainly from Index and Financial Technology strength rather than trading volatility. The stock’s reaction highlighted investor focus on Solutions growth and the new ARR high, even as management lifted full-year operating expense guidance. That update pointed to added spending on technology and longer-term initiatives, which the market balanced against the margin improvement and steady capital returns. Support also came from moves into digital assets and the scheduled December 6, 2026 start of 23/5 trading, which could support more continuous market activity.
What to Watch Going Forward
After this report, attention will likely turn to a few key areas. One is the path of ARR and Annualized SaaS revenue, which now makes up 38% of ARR. Steady double-digit organic growth here remains central to the recurring-revenue narrative and helps buffer against swings in trading volumes.
Another focus is how strategic steps play out. The Digital Liquidity Networks initiative and the LeveL Markets acquisition point to further growth in off-exchange trading and digital assets. The December 6, 2026 launch of 23/5 trading stands out as an operational step that may influence Market Services revenue over time.
Finally, expense and margin trends deserve monitoring. The updated 2026 non-GAAP operating expense range of $2.550 billion to $2.580 billion reflects higher compensation and technology outlays. The speed at which these investments translate into revenue will test operating leverage, alongside decisions on buybacks and dividends.
AI Tools in My Research Process
I often turn to Tickeron’s AI Screener when reviewing earnings beats like this one. It helps me quickly filter peers by fundamentals, technical patterns, and AI signals to put the numbers in broader context without spending hours on manual screens. The platform’s customizable options for industry, volatility, and performance metrics make it straightforward to spot comparable setups or emerging trends that align with a company’s reported momentum.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
NDAQ in upward trend: price rose above 50-day moving average on October 20, 2026
NDAQ moved above its 50-day moving average on October 20, 2026 date and that indicates a change from a downward trend to an upward trend. In 25 of 32 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 78%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where NDAQ's RSI Oscillator exited the oversold zone, 16 of 23 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 70%.
The Momentum Indicator moved above the 0 level on October 15, 2026. You may want to consider a long position or call options on NDAQ as a result. In 46 of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 57%.
The Moving Average Convergence Divergence (MACD) for NDAQ just turned positive on October 09, 2026. Looking at past instances where NDAQ's MACD turned positive, the stock continued to rise in 26 of 45 cases over the following month. The odds of a continued upward trend are 58%.
Following a +3.13% 3-day Advance, the price is estimated to grow further. Considering data from situations where NDAQ advanced for three days, in 224 of 356 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The 10-day moving average for NDAQ crossed bearishly below the 50-day moving average on September 16, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 6 of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 40%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NDAQ declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 51%.
NDAQ broke above its upper Bollinger Band on October 21, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for NDAQ entered a downward trend on September 25, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 30 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 33 (best 1 - 100 worst), indicating outstanding price growth. NDAQ’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 52 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 58 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.482) is normal, around the industry mean (3.954). P/E Ratio (27.780) is within average values for comparable stocks, (17.124). Projected Growth (PEG Ratio) (1.712) is also within normal values, averaging (1.780). Dividend Yield (0.013) settles around the average of (0.019) among similar stocks. P/S Ratio (5.831) is also within normal values, averaging (7.166).
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
an operator of stock exchanges
Industry FinancialPublishingServices
Advertisement