Nasdaq reports $1.5 billion third quarter revenue, up 13%

Nasdaq, Inc. reported third quarter 2026 net revenue of $1.5 billion, a 13% increase over the same period in 2025, or 14% on an organic basis. The New York-based exchange operator also posted GAAP diluted earnings per share of $0.96, up 31% year-over-year.

Adena Friedman, Chair and CEO of Nasdaq, stated that the quarter demonstrated business strength with record Index net inflows and Financial Technology annualized recurring revenue (ARR) growth. She noted that the company is establishing Digital Liquidity Networks within its Market Services division as markets evolve toward an AI-driven future.

Solutions revenue reached $1.2 billion, rising 17% on a reported basis and 18% on an organic basis. This segment drove the majority of the company's growth, with Capital Access Platforms revenue increasing 20% year-over-year. Financial Technology revenue grew 16% to $529 million, while Index revenue surged 39% to $286 million. The Index division recorded $141 billion in net inflows over the trailing twelve months, including $49 billion in the third quarter of 2026 alone.

Total ARR stood at $3.4 billion as of the quarter's end, a 12% reported increase and a 14% organic increase from the prior year period. Financial Technology ARR grew 18%, while Capital Access Platforms ARR rose 8%. Market Services net revenue was $309 million, up 2% year-over-year.

Sarah Youngwood, Executive Vice President and CFO, attributed the results to strong Solutions revenue growth and continued operating leverage. She emphasized that the company's capital allocation strategy prioritizes long-term investment while returning more than $1.7 billion to shareholders year-to-date through repurchases and dividends.

In the third quarter, Nasdaq returned $173 million to shareholders via dividends and $323 million through common stock repurchases. Cash flow from operations was $521 million. As of September 30, 2026, $2.2 billion remained under the board-authorized share repurchase program.

The company updated its full-year 2026 non-GAAP operating expense guidance to a range of $2.550 billion to $2.580 billion. It maintained its non-GAAP tax rate guidance at 22.5% to 24.5%. Operating expenses increased primarily due to higher compensation costs and technology investments, partially offset by lower general and administrative expenses on a GAAP basis due to a favorable legal settlement.

Financial Technology signed 54 new clients and 135 upsells during the quarter, with cloud-based solutions accounting for 85% of annual contract value bookings. Nasdaq Verafin announced the general availability of two new AI workers, the Agentic AML Analyst and Agentic Fraud Analyst, bringing the number of clients using its Agentic AI Workforce to more than 850. Regulatory Technology added 10 new clients, including strategic wins with Kalshi and Kraken for its Surveillance product.