Nasdaq (NDAQ) Earnings Date & Reports
Founded in 1971, Nasdaq is primarily known for its equity exchange, but in addition to its trading business (about 22... Show more
NDAQ is expected to report earnings to fall 1.72% to 94 cents per share on July 22
Nasdaq (NDAQ) First Quarter 2026 Earnings Recap: Double-Digit Growth Across All Divisions
Key Takeaways
- Nasdaq reported net revenue of $1.4 billion for Q1 2026, up 14% year-over-year and beating consensus estimates of approximately $1.37 billion.
- Non-GAAP diluted earnings per share (EPS) rose 22% to $0.96, exceeding analyst expectations of $0.93.
- All three divisions delivered double-digit revenue growth: Financial Technology up 20% to $517 million, Index up 14% to $220 million, and Market Services net revenue up 13% to $317 million.
- Annualized Recurring Revenue (ARR, a measure of predictable subscription-based income) hit $3.2 billion, increasing 13% year-over-year.
- The company returned over $700 million to shareholders through $153 million in dividends and $548 million in share repurchases.
- Non-GAAP operating expense guidance for the full year was narrowed to $2.485 billion to $2.545 billion.
Earnings Context and Why It Matters
Nasdaq, a leading global exchange operator and provider of trading, clearing, data, and financial technology solutions, kicked off 2026 with robust results amid resilient capital markets. This Q1 report underscores the company's shift toward high-margin technology services, which now represent a growing portion of revenue. Investors closely watch these earnings for signals on trading volumes, data demand, and SaaS (software-as-a-service) adoption in fintech. With markets navigating volatility and AI-driven transformations, Nasdaq's performance highlights its role as a key infrastructure provider, influencing stock valuation and sector peers.
Nasdaq's First Quarter 2026 results showcased broad strength. Net revenue totaled $1,407 million, a 14% increase from Q1 2025 (13% excluding acquisitions and dividends), surpassing Wall Street's $1.37 billion consensus. Solutions revenue, encompassing Capital Access Platforms and Financial Technology, climbed 14% to $1,082 million. GAAP diluted EPS reached $0.91 (up 33%), while non-GAAP EPS hit $0.96 (up 22%), topping the $0.93 forecast.
Segment highlights included Financial Technology's 20% surge to $517 million, driven by anti-money laundering (AML) and regulatory tech demand. The Index business grew 14% to $220 million on higher licensing and ETF inflows ($6 billion in Q1). Market Services net revenue rose 13% to $317 million, supported by elevated equity and derivatives trading.
Operating expenses increased 8% but delivered leverage, with ARR up 13% to $3.2 billion. Nasdaq narrowed full-year non-GAAP operating expense guidance and maintained its tax rate outlook at 22.5%-24.5%.
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Market Reaction and Investor Sentiment
Shares of Nasdaq rose about 2% in premarket trading following the earnings release, reflecting positive investor response to the revenue beat, EPS outperformance, and capital returns. Sentiment turned optimistic on strong execution across divisions, though attention shifted to sustained organic growth amid moderating trading volumes.
Forward Outlook and Key Factors to Monitor
Nasdaq's narrowed operating expense guidance signals confidence in cost discipline, supporting margin expansion as SaaS revenue—now 38% of ARR—grows faster at 16% organically. Investors should track progress on the "Expand, Evolve, Transform" strategy, including AI integration for client efficiency and risk management.
Upcoming catalysts include Q2 results on July 23, 2026, and sustained index inflows ($79 billion trailing twelve months). Monitor Financial Technology bookings, as over 50% year-over-year growth in Annual Contract Value highlights demand for modernization tools. Broader industry dynamics, such as regulatory changes and market volatility, will influence trading revenues.
Balance sheet strength enables continued buybacks and a recent dividend hike to $0.31 per share (up 14.8%). Key risks involve slower ARR growth or integration challenges from acquisitions.
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. Disclaimers and Limitations
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General Information
an operator of stock exchanges
Industry FinancialPublishingServices