Detailed performance report for NASDAQ INC covering Q3 2026. Gain clarity on earnings, revenue trends, and AI-enhanced strategic analysis.
Summary of Financial Performance: Nasdaq reported strong Q3 2026 results with net revenue of $1.5 billion, up 14% year over year, and solutions revenue of $1.2 billion, up 18%. ARR increased 14% to $3.4 billion. Diluted EPS grew 19% to $1.04, supported by 16% operating income growth and buybacks. Operating margin was 57% and EBITDA margin was 60%, both up 1 point. Free cash flow was $616 million in the quarter and $2.3 billion over the last 12 months with 98% conversion. Segment performance was broad-based: Capital Access Platforms revenue up 20%, Financial Technology up 16%, and Market Services up 2%.
Company Outlook & Strategy: Management emphasized Nasdaq’s role as a transformation partner positioned at the center of long-term market shifts, especially passive investing, retail participation, always-on markets, and AI adoption. Strategic priorities include expanding data and AI-enabled products, growing cloud-based fintech solutions, advancing market modernization through 23/5 trading, and building Digital Liquidity Networks around tokenization and off-exchange liquidity. Guidance was raised for 2026 non-GAAP expenses to $2.550 billion-$2.580 billion due to recent acquisitions and better revenue performance. The company remains confident in its long-term growth opportunity.
Key Industry Trends: The call highlighted durable trends in passive investing, direct retail ownership, AI-driven workflows, and the move toward connected, always-on markets. Management also pointed to constructive macro conditions, including resilient U.S. economic activity, strong corporate earnings, healthy consumer spending, and continued investment in AI and digital infrastructure. In market structure, increased interest in 24/7 or extended-hours trading and tokenization was a major theme.
Operational Highlights: Listings momentum remained strong, with 15 new operating companies, $32 billion raised, and a 79% win rate in the quarter. Nasdaq also saw strong index product growth, with record $141 billion in 12-month net inflows and 32 new product launches in the quarter. AI-related growth was notable across eVestment, Data Link, Verafin, and Calypso, including new agentic AI capabilities. The company also closed the LeveL Markets acquisition, continued integration of AI and cloud offerings, and announced progress toward 23/5 trading launch on December 6, 2026. HSBC renewed and expanded its Calypso relationship, and Bruce ATS selected Nasdaq technology for a 24/7 U.S. equities ecosystem.
Challenges & Risks: Management noted a modest softening in the IPO environment in recent weeks, with some companies delaying offerings. There were also pressures in Market Services from lower volatility, mix shifts in options order flow, lower European equities capture due to pricing changes, and weaker Canadian equities revenue tied to commodity volatility. Fintech also faced a tough year-over-year comp in Capital Markets Technology due to prior-period upfront revenue. Integration and expense impacts from recent acquisitions added to the updated cost outlook.
Key Analyst Questions & Responses: The transcript excerpt provided does not include analyst questions or management responses beyond the start of Q&A, so there were no substantive Q&A takeaways available in this data.
Access the official earnings call transcript for NASDAQ-INC 2026 Q3. It provides valuable insights into management commentary, performance drivers, and forward-looking guidance directly from the company.