Key financial results
- Nasdaq delivered $1.5 billion in net revenue, up 14% year-over-year, and solutions revenue of $1.2 billion, up 18%.
- Overall annualized recurring revenue, or ARR, grew 14% year-over-year to $3.4 billion.
- Expenses were $638 million, up 12%.
- Diluted EPS grew 19% to $1.04, driven by 16% growth in operating income and the benefit of the share repurchase program.
- Operating margin was 57% and the EBITDA margin was 60%, both up 1 percentage point over the prior year period.
Business segment results
- Capital access platforms: Capital access platforms generated 20% revenue growth to $641 million and 8% ARR growth.
- Financial Technology: Financial Technology delivered 16% revenue growth to $529 million and record ARR growth of 18%.
- Market Services: Market Services delivered 2% net revenue growth to a third quarter record of $309 million.
- Listings: Listings franchise welcomed 15 new operating companies raising $32 billion in proceeds, contributing to a 79% win rate.
- Index: Index revenue was up 39%, driven by a record average ETP AUM surpassing $1.1 trillion and record net inflows of $49 million in the quarter.
- Financial crime management: Financial crime management technology revenue grew 23%, with ARR growth of 19% and net revenue retention of 111%.
- Regulatory technology: Regulatory technology delivered revenue growth of 13% and ARR growth of 15%.
- Capital Markets Technology: Capital Markets Technology revenue grew 14% with ARR growth of 19%.
Capital allocation
- Nasdaq generated free cash flow of $616 million in the third quarter and $2.3 billion over the last 12 months at a conversion ratio of 98%.
- The company paid a dividend of $0.31 per share, or $173 million, representing a 30% annualized payout ratio.
- During the quarter, Nasdaq repurchased 3.6 million shares for $323 million.
- In October, Nasdaq launched a variable notional accelerated share repurchase plan of $315 million to $385 million to be completed in the fourth quarter.
- Gross leverage finished the quarter at 2.5x.
Industry trends and dynamics
- The investing landscape is undergoing significant change from passive investing growth to expanding direct retail ownership and artificial intelligence integration.
- The U.S. economy continues to demonstrate resilience while managing through inflation and elevated interest rates.
- Markets are shifting toward connected and always-on operations, driving demand for modern market infrastructure and digital liquidity networks.
Competitive landscape
- Nasdaq achieved its highest ever ranking in Chartis RiskTech 100, placing second globally and earning 14 category awards.
- Nasdaq maintained a strong lead over its closest competitor in U.S. multi-listed options with a year-to-date market share gap of over 500 basis points.
- The company closed its acquisition of Level Markets on October 15, adding the third largest alternative trading system in the U.S. by trading volume.
Macroeconomic environment
- Management stated that the economic environment remains constructive for the progression of key industry trends, supported by strong corporate earnings and healthy consumer spending.
Growth opportunities and strategies
- Cloud deals accounted for 85% of ACV bookings in the fintech portfolio during the quarter.
- Nasdaq remains on track to launch extended weekday trading hours on the Nasdaq stock market on December 6, 2026.
- The company remains on track to launch the Nasdaq equity token in the first half of next year.
Financial guidance and outlook
- Nasdaq updated its non-GAAP expense guidance for the year to a range of $2.550 billion to $2.580 billion, up from $2.530 billion to $2.570 billion.
- The level revenue contribution for the fourth quarter is expected to be $7 million to $8 million.
- Nasdaq maintained its 2026 non-GAAP tax rate guidance of 22.5% to 24.5%.
Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Net revenue | $1.5 billion | Up 14% year-over-year |
| Solutions revenue | $1.2 billion | Up 18% year-over-year |
| Operating expenses | $638 million | Up 12% |
| Diluted EPS | $1.04 | Up 19% |
| Market Services net revenue | $309 million | Up 2% |
How management sounded
Balanced (+35 on our -100 to +100 scale). Management expressed strong confidence in their strategic positioning, robust demand for AI solutions, and durable growth across all divisions. Management sounded more upbeat than on 20% of the 302 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Read the analyst Q&A summary and guidance and outlook for this call.
What to watch before the next call
- The launch of 235 trading on the Nasdaq stock market on December 6, 2026.
- The integration and performance of Level ATS following the acquisition closed on October 15.
- Progress on the launch of the Nasdaq equity token scheduled for the first half of next year.
Earlier calls
- Q2 2026 (Jul 23, 2026), tone Positive: Nasdaq delivered Q2 net revenue of $1.5 billion, up 15%, and diluted EPS of $1.07, up 25%, driven by record solutions revenue and broad-based growth across all divisions.
