Nasdaq (NDAQ) Earnings Date & Reports

Key Takeaways

• Net revenue rose 13% year over year to $1.48 billion, or 14% on an organic basis, exceeding analyst expectations.
• Non-GAAP diluted earnings per share (EPS) climbed 18% to $1.04, topping the consensus estimate of $1.02.
• Annualized Recurring Revenue (ARR), a measure of predictable subscription income, reached a record $3.4 billion, up 12%.
• Index ETP (Exchange-Traded Product) assets under management hit a record $1.16 trillion, with $49 billion in quarterly net inflows.
• Nasdaq raised its full-year 2026 non-GAAP operating expense guidance to $2.550 billion to $2.580 billion.
• GAAP diluted EPS increased 31% to $0.96, reflecting strong operating leverage across the business.

Earnings Context and Why It Matters

Nasdaq, Inc. (NDAQ) delivered its third quarter 2026 results on October 22, 2026, extending a run of double-digit growth that has reshaped the company's profile. Once defined primarily by exchange trading, Nasdaq now generates the large majority of its revenue from recurring, subscription-based Solutions businesses spanning Financial Technology, indexes, and data. This shift matters for investors because it reduces the company's reliance on transaction volumes and smooths out earnings volatility. The third quarter was also notable for record Index inflows and the company's progress toward "Always-On" 23/5 equities trading, scheduled to launch on December 6, 2026, positioning Nasdaq at the center of structural changes reshaping global capital markets.

Reported Results

Nasdaq reported third quarter 2026 net revenue of $1.48 billion, an increase of 13% on a reported basis and 14% organically, ahead of the consensus estimate of roughly $1.46 billion. Non-GAAP diluted EPS was $1.04, up 18% year over year, beating the Zacks Consensus Estimate of $1.02. On a GAAP (Generally Accepted Accounting Principles) basis, diluted EPS rose 31% to $0.96.

Solutions revenue advanced 17% to $1.17 billion, representing 79% of net revenue, with organic growth of 18%. ARR increased 12% to $3.4 billion. Within Capital Access Platforms, revenue grew 20% to $641 million, led by a 39% surge in Index revenue to $286 million. Financial Technology revenue rose 16% to $529 million, with segment ARR up 18% to $1.95 billion. Market Services net revenue increased 2% to a third-quarter record of $309 million, aided by higher U.S. options and European equities volumes.

Non-GAAP operating income grew 15% to $843 million, lifting the operating margin by 100 basis points to 57%. The company raised its 2026 expense outlook to a range of $2.550 billion to $2.580 billion, citing compensation, severance, and marketing costs, while maintaining its tax rate guidance of 22.5% to 24.5%.

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Market Reaction and Investor Sentiment

Heading into the report, sentiment around Nasdaq was constructive, with Zacks' quantitative model anticipating an earnings beat. The results largely validated that outlook: the top-line and bottom-line beats, combined with record Index net inflows and broad-based Financial Technology growth, reinforced confidence in the company's recurring-revenue strategy. Investors weighed these strengths against a more tempered view of Market Services, where revenue grew just 2% and U.S. equity derivatives revenue declined 12% on lower capture rates, and against the upwardly revised expense guidance, which modestly tempers near-term margin expectations. The quarter's record capital returns, including $323 million in share repurchases and a $0.31 per share dividend, provided additional support to shareholder sentiment.

Forward Outlook and Key Factors to Monitor

Following these results, investors are likely to focus on several forward-looking themes. The first is the planned launch of 23/5 trading on The Nasdaq Stock Market on December 6, 2026, a milestone that could influence Market Services revenue and competitive positioning as U.S. equities move toward near-continuous trading.

Second, the durability of Index momentum remains central. Nasdaq posted a record $141 billion in trailing twelve-month net inflows, and sustaining that pace will depend on continued product innovation, international expansion, and institutional adoption of Nasdaq-linked ETPs.

Third, expense discipline deserves close attention. Nasdaq raised its 2026 non-GAAP operating expense guidance, and management flagged a tough fourth-quarter comparison in Capital Markets Technology due to prior-year upfront Calypso revenue. How the company balances growth investment against operating leverage will shape margin progression.

Finally, watch the integration of recent strategic moves, including the formation of Digital Liquidity Networks and the completed acquisition of LeveL Markets, an Alternative Trading System (an off-exchange trading venue). These initiatives deepen Nasdaq's push into digital assets and market modernization, areas with meaningful long-term potential but also regulatory uncertainty.

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