Nasdaq (NDAQ) Q3 2026 Earnings Call: Q&A Summary

Q: Ashish Sabadra from RBC Capital Markets asked how AI is becoming a source of competitive differentiation and driving upsell and cross-sell momentum across the platform.

A: Adena Friedman, Chair and CEO, stated that Nasdaq is delivering AI-ready data and agentic capabilities, noting 25% of new eVestment bookings related to AI use cases and over 850 users of agentic workers within Verafin.

Q: Michael Cho from JPMorgan asked about the broader pricing roadmap for agentic solutions, specifically for Verafin and other products.

A: Adena Friedman, Chair and CEO, explained that Nasdaq is initially building trust and adoption through a try-before-you-buy model, resulting in 70 paying clients, while also upcharging for new data delivery methods like MCP connectors.

Q: Patrick Moley from Piper Sandler asked about thoughts on the SEC's innovation exemption and conversations with issuers regarding tokenized equities.

A: Adena Friedman, Chair and CEO, noted that Nasdaq is not supportive of the sidecar exemption structure due to lack of tape reporting and transparency, but is engaging issuers on the Nasdaq Equity Token standard and Level ATS.

Q: Kwun Sum Lau from Clear Street asked how Nasdaq's approach to tokenization will convince companies to tokenize their shares.

A: Adena Friedman, Chair and CEO, stated that conversations with issuers have been constructive, educating them on the Nasdaq Equity Token and how it improves share management and investor communication, with some clients wishing to be early adopters.

Q: Michael Cyprys from Morgan Stanley asked where commercial demand for tokenization is seen today and about milestones over the next 12 to 18 months, including instant settlement.

A: Adena Friedman, Chair and CEO, highlighted collateral mobility and management as a nearer-term driver utilizing Calypso and tokenized assets like treasuries, and noted proof-of-concept work with Vanguard and Wellington.

Q: Alex Blostein from Goldman Sachs asked about incremental demand for the financial crime business and how cyber security risks relate to AI and longer-term growth.

A: Adena Friedman, Chair and CEO, explained that demand is driven by moving upmarket into enterprise fraud and AML, where the consortium data lake and generative AI help uncover complex criminal networks across multiple institutions.

Q: Alex Kramm from UBS asked about the sustainability of capital markets technology strength and where new sales momentum is coming from.

A: Adena Friedman, Chair and CEO, cited trade management services pricing actions, connectivity demand, and elevated testing, alongside new offerings like exchange-traded derivatives clearing on Calypso in partnership with HSBC.

Q: Jeffrey Scott from William Blair asked about the runway for cloud migration across Axioma and Calypso and how migrations affect contract values and AI sales.

A: Adena Friedman, Chair and CEO, stated there is a long runway with a typical 1.5x uplift on cloud migrations as Nasdaq becomes a managed service provider, and noted AI capabilities are delivered through cloud solutions.

Q: Benjamin Budish from Barclays asked about growth in the Nasdaq 100 futures franchise, particularly micros, and potential opportunities for NDX growth.

A: Adena Friedman, Chair and CEO, praised the partnership with CME and noted that smaller notional values on futures contracts drive direct retail participation, creating a flywheel with the underlying ETF and options.

Q: Simon Clinch from Rothschild & Co Redburn asked how choice in trade execution and tokenization might alter the mix of business between solutions and market services over the next decade.

A: Adena Friedman, Chair and CEO, stated that solutions businesses are growing faster than market services, but both segments have strong growth drivers and are intimately linked through liquidity flywheels.

Q: Daniel Fannon from Jefferies asked for updated thoughts on large-scale M&A and capital return priorities beyond the accelerated share repurchase plan into 2027.

A: Sarah Youngwood, CFO, highlighted strong free cash flow generation exceeding $2 billion, leverage at 2.5x, a commitment to bolt-on acquisitions and partnerships, and a strong focus on share repurchases, noting $1.2 billion repurchased in the first three quarters.