GET DAILY SIGNALSNasdaq (NDAQ) Reports Strong Q3 2026 Results with Double-Digit Growth
Key Takeaways
- Nasdaq reported third quarter 2026 net revenue of $1.48 billion, up 13% year over year, topping consensus estimates.
- Non-GAAP diluted earnings per share (EPS) came in at $1.04, an 18% increase and above the analyst consensus of $1.02.
- Annualized Recurring Revenue (ARR) rose 12% to a record $3.37 billion, with organic growth of 14%.
- Index and Financial Technology (FinTech) businesses led growth, while Market Services delivered a third-quarter revenue record of $309 million.
- Nasdaq raised its full-year 2026 non-GAAP operating expense guidance to a range of $2.550 billion to $2.580 billion.
Earnings Context and Why It Matters
In my view, NDAQ's third quarter results reinforce its multi-year transformation from a traditional stock exchange into a diversified financial technology and data platform. The report matters because it tests whether the company's higher-margin Solutions business can keep compounding while its trading venues navigate fluctuating volumes and capture rates. Coming into the quarter, investors were watching Index asset growth and FinTech bookings as the primary drivers of recurring revenue. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry. The results also carry weight for the broader capital markets sector, offering a read on initial public offering (IPO) activity, exchange-traded product demand, and financial institutions' technology spending appetite.
Reported Results
NDAQ reported third quarter 2026 net revenue of $1.48 billion, a 13% increase from $1.315 billion a year earlier and roughly 14% growth on an organic basis. The figure exceeded the consensus estimate of approximately $1.46 billion. Non-GAAP diluted EPS reached $1.04, up 18% year over year and ahead of the $1.02 consensus, while GAAP diluted EPS climbed 31% to $0.96.
Solutions revenue — spanning Capital Access Platforms and Financial Technology — grew 17% to $1.17 billion and represented 79% of net revenue. ARR rose 12% to a record $3.37 billion, with organic growth of 14%. Capital Access Platforms revenue increased 20% to $641 million, led by a 39% surge in Index revenue to $286 million. Financial Technology revenue rose 16% to $529 million, while Market Services net revenue grew 2% to a third-quarter record of $309 million. Non-GAAP operating margin expanded 100 basis points to 57%. From what I see, these numbers highlight the durability of the recurring revenue base.
Market Reaction and Investor Sentiment
Investor sentiment heading into the report was constructive, reflecting NDAQ's streak of double-digit organic Solutions growth and record index inflows. The earnings beat on both revenue and EPS supported a modestly positive early reaction in the shares. Broader interpretation focused less on the top-line surprise and more on the durability of recurring revenue — with ARR reaching a record and Financial Technology ARR up 18% — alongside continued margin expansion and a further improvement in the gross leverage ratio to 2.5 times. The key offsetting factors were higher operating expenses and a slight full-year expense guidance increase, which tempered some of the enthusiasm.
Forward Outlook and Key Factors to Monitor
NDAQ's revised 2026 non-GAAP operating expense guidance of $2.550 billion to $2.580 billion signals continued investment in technology, people, and innovation, and investors will be watching whether that spending translates into sustained organic revenue growth. Management maintained its 2026 non-GAAP tax rate outlook of 22.5% to 24.5%.
Index momentum will remain a central theme. End-of-period exchange-traded product assets under management (AUM) hit a record $1.160 trillion, with $49 billion in net inflows during the quarter and $141 billion over the trailing twelve months. Sustaining those inflows depends on both equity market conditions and continued product innovation across institutional and international channels.
In Financial Technology, attention will focus on client signings and net revenue retention, particularly in Nasdaq Verafin's financial crime management tools and the expanding Agentic AI Workforce. The planned launch of 23/5 trading for U.S.-listed equities on December 6, 2026, represents a notable catalyst for Market Services, while the IPO pipeline and listings win rate offer another signal on Capital Access Platforms. Investors should also monitor capital deployment, including the company's share repurchase activity and dividend growth.
Using Tickeron’s AI Tools in My Research
I often turn to Tickeron’s AI Screener when analyzing earnings reports like this one. It lets me quickly filter stocks and ETFs by technical patterns, fundamentals, and AI-driven signals, helping me compare NDAQ against peers in the financial technology space without spending hours on manual screening. This kind of tool fits naturally into my workflow for spotting sector momentum and potential setups.
Disclaimer
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Contributor
Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.
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 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 49 of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 61%.
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 27 of 45 cases over the following month. The odds of a continued upward trend are 60%.
The 10-day moving average for NDAQ crossed bullishly above the 50-day moving average on October 22, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 67%.
Following a +8.97% 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 RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 23 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, 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 PE Growth Rating for this company is 47 (best 1 - 100 worst), pointing to consistent 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 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 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.
The Tickeron Valuation Rating of 89 (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 (4.817) is normal, around the industry mean (4.019). P/E Ratio (29.855) is within average values for comparable stocks, (17.786). Projected Growth (PEG Ratio) (1.712) is also within normal values, averaging (1.780). Dividend Yield (0.012) settles around the average of (0.019) among similar stocks. P/S Ratio (5.831) is also within normal values, averaging (7.166).
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