Nasdaq, Inc. Delivers Strong Q1 2026 Results: Double-Digit Revenue and Earnings Growth, Robust Cash Returns to Shareholders

Key Financial Highlights

• Net revenue: \$1.4 billion, +14% YoY, 13% organic growth
• Annualized Recurring Revenue (ARR): \$3.2 billion, +13% YoY, 12% organic
• Solutions revenue: \$1.1 billion, +14% YoY (reported & organic)
• Financial Technology revenue: \$517 million, +20% YoY (18% organic)
• Index revenue: \$220 million, +14% YoY; \$79 billion net inflows in TTM, \$6 billion in Q1
• GAAP diluted EPS: \$0.91, +33% YoY
• Non-GAAP diluted EPS: \$0.96, +22% YoY (21% organic)
• Operating income (GAAP): \$657 million, +20% YoY
• Operating income (Non-GAAP): \$799 million, +17% YoY
• Cash flow from operations: \$689 million in Q1
• Shareholder returns: \$153 million in dividends, \$548 million in share repurchases in Q1
• Remaining share buyback authorization: \$2.9 billion as of March 31, 2026

Divisional Performance and Strategic Updates

Financial Technology

• Record first quarter for annualized contract value (ACV) bookings; cloud-based solutions accounted for 80% of ACV
• Nasdaq Verafin (Financial Crime Management Technology) added 58 new SMB bank clients in Q1, +24% in new ACV bookings YoY; more than 500 clients using its Agentic AI Workforce
• Regulatory Technology: 2 new clients, 58 upsells; launched new AI surveillance capabilities; AxiomSL saw >2x ACV bookings YoY, 90% cloud deployments; Surveillance expanded AI with Calibration Copilot and GenAI platform extension
• Capital Markets Technology: 20% organic revenue growth, 18% organic ARR growth; 5 new clients (1 cross-sell), 26 upsells; Calypso signed 4 new clients (1 cross-sell with a large US insurer), 16 upsells; Market Technology signed deal for cloud trading of tokenized receivables

Index and Capital Access Platforms

• Index division: 14% revenue growth; \$6 billion net inflows in Q1, \$79 billion in TTM; record high ETP AUM of \$836 billion at period end, \$877 billion average in Q1
• 31 new index products launched in Q1, including expansion in institutional insurance annuity and international markets; products launched in the past 5 years accounted for 46% of TTM net inflows
• Expanded Nasdaq-100 access via new partnerships with BlackRock and State Street; pricing terms for new ETFs consistent with Invesco QQQ
• Launched Nasdaq Private Capital Indexes, enabling new benchmarks and analytics for the \$11.4 trillion private markets AUM dataset
• Listings leadership: 7 of top 10 largest operating company IPOs in Q1; 15 operating companies raised \$5+ billion; 71% win rate for eligible US listings, direct listings, and SPACs

Market Services

• Record quarterly net revenues, record US cash equity and equity options volumes
• Index options revenue more than doubled YoY; European cash equities grew on higher volumes
• Nasdaq’s Closing Cross set new Q1 records in revenue, volume, and notional value at major rebalancing events
• Launched short-dated single-stock options (Monday/Wednesday expiries for a select cohort) and filed with the SEC for Outcome-Related Options tied to Nasdaq-100

Strategic Initiatives and Market Modernization

• SEC approved Nasdaq’s proposal for tokenized equity settlement to enhance liquidity and collateral mobility, maintaining investor protections
• Advanced tokenization efforts with equity token design to modernize governance and engagement
• SEC approved 23/5 trading; Nasdaq plans to launch on December 6, 2026, expanding global investor access to US equities

Expense and Tax Guidance

• 2026 non-GAAP operating expense guidance updated: \$2.485–\$2.545 billion
• 2026 non-GAAP tax rate guidance maintained: 22.5%–24.5%

Balance Sheet and Capital Allocation

• Total assets as of March 31, 2026: \$27.3 billion
• Total liabilities: \$15.3 billion
• Total equity: \$12.0 billion
• Cash and cash equivalents: \$515 million; financial investments: \$184 million
• Long-term debt: \$8.5 billion; short-term debt: \$431 million

Management Commentary

Adena Friedman, Chair and CEO:
“Nasdaq delivered one of the strongest starts to the year in our company’s history with broad-based growth across all three divisions. Our clients are increasingly turning to Nasdaq as a trusted transformation partner to modernize their core infrastructure, manage risk and increasing complexity, adapt to the evolution of capital markets, and integrate AI to drive greater efficiency in their operations. As we execute against our strategic priorities of Expand, Evolve, and Transform, we are well positioned to deliver increasing value to our clients and shareholders.”

Sarah Youngwood, CFO:
“Nasdaq delivered exceptional first quarter performance with double-digit growth across our three divisions and particular strength in Financial Technology. The mission critical nature of our solutions combined with our execution excellence is helping Nasdaq deliver operating leverage with strong earnings growth. Nasdaq’s robust cash flow generation enabled the company to return over \$700 million to shareholders in the quarter, including nearly \$550 million of share repurchases, while reducing leverage and investing for long-term growth.”

Shareholder and Investor Considerations

• Price-sensitive positives:
  • Strong double-digit revenue and EPS growth with particularly high growth in Financial Technology and Index segments
  • Record levels of cash flow, share repurchases, and dividends indicating strong capital return policy and confidence in future prospects
  • Expansion of index product partnerships and new product launches point to ongoing growth in high-margin segments
  • SEC approvals for new market models (tokenized equity settlement, 23/5 trading) may enhance Nasdaq’s competitive position and open new revenue streams
  • Robust organic growth and continued investments in AI and cloud solutions positions Nasdaq as an innovation leader in financial infrastructure
• Potential risks:
  • Operating expense growth (up 10% non-GAAP YoY) driven by investments in people and technology; future expense discipline will be crucial
  • Large swings in margin deposits and default funds highlight ongoing volatility and potential risk exposures
  • Forward-looking statements subject to risks from regulation, market volatility, M&A integration, and geopolitical factors

Conclusion

Nasdaq, Inc. delivered a standout first quarter in 2026, with broad-based growth across all major business lines and a strong commitment to returning capital to shareholders. The company’s ongoing strategic evolution—anchored by investments in cloud, AI, and market modernization—positions it as a leader in the transformation of global capital markets infrastructure. Investors should closely watch continued traction in Financial Technology, the roll-out of new market models, and execution on expense guidance as key drivers of future performance and share price direction.

View NASDAQ, INC. Historical chart here