NASDAQ INC 2026 Q2
Earnings Overview & AI Insights

Earnings Performance

Summary of Financial Performance: Nasdaq reported strong Q2 2026 results with net revenue of $1.5 billion, up 15%, and solutions revenue of $1.2 billion, up 17%. ARR rose 12% to $3.3 billion. Operating expense increased 10% to $641 million, but margins improved, with operating margin at 57% and EBITDA margin at 60%, both up 2 points year over year. Net income was $605 million and diluted EPS was $1.07, up 25%, marking the first time quarterly EPS exceeded $1. Free cash flow was $477 million for the quarter and $2.2 billion over the last 12 months.

Company Outlook & Strategy: Management remained highly confident and emphasized continued execution of the “expand, evolve and transform” framework. Key priorities include scaling recurring revenue, deepening client relationships through the One Nasdaq strategy, and investing in AI, market modernization, and product innovation. The company also highlighted strategic portfolio moves, including the sale of Nasdaq Fund Secondaries to Nasdaq Private Market and the acquisition of Dasseti to enhance eVestment. Guidance was updated for full-year non-GAAP expenses to $2.530 billion–$2.570 billion, driven by higher compensation and marketing.

Key Industry Trends: Nasdaq pointed to a constructive U.S. economic backdrop, resilient corporate earnings, ongoing AI and digital infrastructure investment, and healthy consumer spending. In capital markets, themes included always-on trading, tokenization, perpetual-style derivatives, and broader market modernization. Management also cited strong IPO conditions and record industry volumes in U.S. options and cash equities, as well as growing demand from digital asset platforms and AI-driven use cases.

Operational Highlights: Capital Access Platforms delivered 18% revenue growth, led by Index revenue up 35% and record ETP AUM above $1 trillion, supported by $51 billion in quarterly net inflows. Nasdaq welcomed major listings including SpaceX and SK hynix and saw robust IPO activity. Financial Technology grew 15%, with Verafin revenue up 22% and more than 2,800 clients using the platform across $13 trillion in assets. AI remained a major operational theme, including agentic AI workforce expansion and new MCP integration in Data Link. Market Services grew 11%, benefiting from record trading volumes, stronger European market share, and progress toward 23/5 trading and event options launches. Challenges & Risks: Management noted continued weakness in Corporate Solutions, tougher comparisons in upcoming quarters, and some pressure from lower U.S. options capture due to order flow mix shifts and entry of new consolidators. Market Services also faced lower tape plan revenue and the absence of prior-year one-time benefits. Expense growth was elevated due to compensation, IPO-related marketing, technology investment, and severance costs. Management also acknowledged regulatory uncertainty around new products, though it said even broad approval of perpetual-style derivatives would have minimal near-term revenue impact.

Key Analyst Questions & Responses: No analyst Q&A was included in the provided transcript, so no specific questions or responses were available.