NASDAQ, INC. (NDAQ): Results of Operations and Financial Condition
NASDAQ, INC. (NDAQ) filed an SEC Form 8-K — Results of Operations and Financial Condition. 1 Exhibit 99.1 NEW YORK, October 22, 2026 - Nasdaq, Inc. (Nasdaq: NDAQ) today reported financial results for the third quarter of 2026 . Adena Friedman, Chair and CEO said, “Nasdaq’s third quarter performance demonstrates the strength and momentum of our business, with new milest
How this was made
The 30-second read
Why it matters
The earnings release provides fresh quantitative data that can shift valuation models and short‑term trading sentiment.
Market read
First‑hand earnings data for a major market‑infrastructure firm, likely to influence both the stock and related fintech sector sentiment.
What to watch
The modest 2% growth in Market Services revenue may temper enthusiasm for the overall earnings beat.
Third quarter net revenue was $1.5 billion, up 13% year-over-year, as Solutions revenue rose 17%, GAAP diluted EPS increased 31% to $0.96, and the company updated 2026 non-GAAP operating expense guidance.
Net revenue, Solutions revenue, ARR, operating income and both GAAP and non-GAAP diluted EPS increased year-over-year. Growth was led by Index and Financial Technology, while GAAP operating expenses grew more slowly than net revenue.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| 3Q26 revenues less transaction-based expensesGAAP | $1,481 | – | 13% |
| 3Q26 total revenuesGAAP | $2,393 | – | – |
| 3Q26 Solutions revenueother | $1,172 | – | 17% |
| 3Q26 Market Services net revenueGAAP | $309M | – | 2% |
| 3Q26 ARRother | $3,365 | – | 12% |
| 3Q26 annualized SaaS revenue as a percentage of ARRother | 38% of ARR | – | 12% |
| 3Q26 GAAP operating incomeGAAP | $732 | – | 25% |
| 3Q26 non-GAAP operating incomenon-GAAP | $843 | – | 15% |
| 3Q26 GAAP operating marginGAAP | 49 % | – | – |
| 3Q26 non-GAAP operating marginnon-GAAP | 57 % | – | – |
| 3Q26 GAAP operating expensesGAAP | $749M | – | 3% |
| 3Q26 non-GAAP operating expensesnon-GAAP | $638M | – | 9% |
| 3Q26 net incomeGAAP | $539 | – | – |
| 3Q26 net income attributable to NasdaqGAAP | $540 | – | – |
| 3Q26 non-GAAP net income attributable to Nasdaqnon-GAAP | $588 | – | – |
| 3Q26 basic earnings per shareGAAP | $ 0.97 | – | – |
| 3Q26 diluted earnings per shareGAAP | $ 0.96 | – | 31% |
| 3Q26 non-GAAP diluted earnings per sharenon-GAAP | $ 1.04 | – | 18% |
| Nine months ended September 30, 2026 revenues less transaction-based expensesGAAP | $4,388 | – | – |
| Nine months ended September 30, 2026 GAAP operating incomeGAAP | $2,101 | – | – |
| Nine months ended September 30, 2026 net income attributable to NasdaqGAAP | $1,566 | – | – |
| Nine months ended September 30, 2026 GAAP diluted earnings per shareGAAP | $ 2.76 | – | – |
| Nine months ended September 30, 2026 non-GAAP diluted earnings per sharenon-GAAP | $ 3.07 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Capital Access PlatformsIndex revenue was $ 286 versus $ 206, while Data and Listing Services revenue was $ 224 versus $ 204 and Workflow and Insights revenue was $ 131 versus $ 124. | $ 641 | – | 20 % |
| Financial TechnologyFinancial Crime Management Technology revenue was $ 103 versus $ 84, Regulatory Technology revenue was $ 123 versus $ 109, and Capital Markets Technology revenue was $ 303 versus $ 264. | $529M | – | 16 % |
| Market ServicesMarket Services net revenue was $ 309 versus $ 303 and benefitted from higher industry volumes across U.S. options and European equities, robust U.S. cash-equities performance, higher market share and near record capture. | $ 1,221 | – | – |
| Other RevenuesOther revenues were related to the sale of the Nasdaq Fund Secondaries business and the sale of the Nasdaq Metrio platform and related customer contracts. | $ 2 | – | (91) % |
2026 outlook
- Operating expenses$2.550 billion to $2.580 billion non-GAAP operating expense guidance
- Tax rate22.5% to 24.5% non-GAAP tax rate guidance
- NoteU.S. GAAP operating expense and tax rate guidance are not provided.
Capital returns
- In the third quarter of 2026, the company returned $ 173 million to shareholders through dividends.
- In the third quarter of 2026, the company returned $ 323 million through repurchases of common stock.
- The company returned more than $1.7 billion to shareholders year to date through share repurchases and dividends.
- Cash dividends declared per common share were $ 0.31 for the three months ended September 30, 2026, compared with $ 0.27 for the three months ended September 30, 2025.
- As of September 30, 2026, there was $ 2.2 billion remaining under the board authorized share repurchase program.
What drove it
- Index revenue grew 39% on both a reported and organic basis, with $141 billion of net inflows over the trailing twelve months, including $49 billion in the third quarter of 2026.
- Financial Technology delivered record 18% organic ARR growth and double-digit revenue growth in each subdivision for the third consecutive quarter.
- Financial Technology signed 54 new clients and 135 upsells; cloud-based solutions accounted for 85% of ACV bookings.
- End-of-period ETP AUM was $ 1.160 trillion and average ETP AUM over the third quarter was $ 1.108 trillion, both new records.
- Nasdaq welcomed 15 new operating companies that raised $32 billion in capital, reflecting a 79% win rate of new operating company listings.
- GAAP operating expenses increased 3%, primarily reflecting higher compensation and benefits costs and increased technology investment, partly offset by a favorable legal settlement and lower restructuring charges.
Concerns
- Market Services net revenue increased 2%, below Solutions revenue growth of 17%.
- Other revenues declined to $ 2 from $ 21, with an organic variance of — after divestiture impacts.
- GAAP operating results included a favorable legal settlement recorded in general, administrative and other expense.
- The company does not provide U.S. GAAP operating expense or tax rate guidance because of difficulty quantifying foreign currency movements and future charges or reversals outside the normal course of business.
What to watch
- Execution against 2026 non-GAAP operating expense guidance of $2.550 billion to $2.580 billion and non-GAAP tax rate guidance of 22.5% to 24.5%.
- Financial Technology ARR growth, client signings, upsells, cloud-based ACV bookings and cross-sell activity.
- Index net inflows, ETP AUM and new Index product launches.
- Market Services performance as the Nasdaq Stock Market remains on track to go live with 23/5 trading on December 6, 2026.
- The integration and client impact of the LeveL Markets acquisition, which closed early in the fourth quarter.
Balance sheet and cash flow
- Cash flow from operations was $ 521 million in the third quarter.
- Cash and cash equivalents were $ 365 as of September 30, 2026, compared with $ 604 as of December 31, 2025.
- Short-term investments were $ 151 as of September 30, 2026, compared with $ 28 as of December 31, 2025.
- Short-term debt was $ 269 as of September 30, 2026, compared with $ 431 as of December 31, 2025.
- Long-term debt was $ 8,471 as of September 30, 2026, compared with $ 8,573 as of December 31, 2025.
- Total assets were $ 27,383 as of September 30, 2026, compared with $ 31,053 as of December 31, 2025.
- Total liabilities were $ 15,380 as of September 30, 2026, compared with $ 18,821 as of December 31, 2025.
Analysis
Nasdaq reported $1,481 of third-quarter revenues less transaction-based expenses, up 13% from $1,315. Solutions revenue increased 17% to $1,172, while Market Services net revenue increased 2% to $309. ARR was $3,365 and increased 12% on a reported basis, with the company citing 14% organic ARR growth. The release identifies divestitures as the source of the difference between reported and organic ARR growth.
Capital Access Platforms revenue was $641 versus $534, led by Index revenue of $286 versus $206. Financial Technology revenue was $529 versus $457, spanning growth in Financial Crime Management Technology, Regulatory Technology and Capital Markets Technology. Index recorded $141 billion of trailing-twelve-month net inflows, including $49 billion in the quarter, and ended the period with $ 1.160 trillion of ETP AUM. Financial Technology reported record 18% organic ARR growth, 54 new clients and 135 upsells.
Operating leverage was evident in GAAP results. GAAP operating income increased to $732 from $586 and GAAP operating margin was 49 % versus 45 %. GAAP operating expenses were $749 versus $729, and the company said higher compensation and benefits expense and technology investment were partly offset by lower general and administrative expense from a favorable legal settlement and lower restructuring charges. GAAP diluted earnings per share was $ 0.96 versus $ 0.73, while non-GAAP diluted earnings per share was $ 1.04 versus $ 0.88.
Cash flow from operations was $ 521 million. Nasdaq returned $ 173 million through dividends and $ 323 million through common-stock repurchases in the quarter, with $ 2.2 billion remaining under its authorized repurchase program as of September 30, 2026. The company updated 2026 non-GAAP operating expense guidance to $2.550 billion to $2.580 billion and maintained non-GAAP tax rate guidance of 22.5% to 24.5%.
The reported figures place attention on the contrast between 17% Solutions revenue growth and 2% Market Services net revenue growth, as well as the durability of Financial Technology and Index activity. Strategic updates include the formation of Digital Liquidity Networks, the early-fourth-quarter closing of the LeveL Markets acquisition, and the planned December 6, 2026 launch of 23/5 trading on the Nasdaq Stock Market.
Management, verbatim
Nasdaq’s third quarter performance demonstrates the strength and momentum of our business, with new milestones achieved across all three divisions, including record Index net inflows, record FinTech ARR growth, and the establishment of Nasdaq Digital Liquidity Networks within Market Services.
Adena Friedman, Chair and CEO
Nasdaq delivered excellent third quarter results, headlined by outstanding Solutions revenue growth, continued operating leverage, and strong EPS growth.
Sarah Youngwood, Executive Vice President and CFO
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported quarterly metrics.
- Gross profit and gross margin.
- Free cash flow.
- Quarterly GAAP effective tax rate and non-GAAP effective tax rate.
- Revenue guidance.
- Prior outlook needed to compare actual results with prior guidance.
- A reported year-over-year percentage change for total revenues, net income, basic EPS, the individual operating expense categories and the nine-month metrics.
- A reported year-over-year percentage change for GAAP and non-GAAP operating margins.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Nasdaq, Inc. released its Q3 2026 earnings via an SEC Form 8‑K, highlighting record index inflows, fintech ARR growth, and an updated expense guidance range.
Ticker impact
Nasdaq, Inc. filed its Q3 2026 earnings, reporting 13% revenue growth and updated non‑GAAP operating expense guidance.
likely modest upside as investors price in strong revenue growth and clarified expense outlook
The filing is the first public disclosure of Q3 results and guidance; the company is a large‑cap with $1.5 B revenue, making the news material for immediate trading.
Market effects
Strong fintech and index revenue growth may boost sentiment toward market‑infrastructure and data‑service providers.
U.S. equity markets may see a slight lift in technology‑related indices.
Limited to U.S. markets; no direct global macro effect.
Counterpoint
If expense guidance range is seen as higher than expected, the stock could face pressure despite revenue growth.
Key entities
- companyNasdaq, Inc.
U.S.-listed provider of exchange and market‑technology services.
