NDAQ US S&P 500Russell 1000 Earnings call · transcribed from the recording

Nasdaq, Inc. (NDAQ) · Q3 2026 results and valuation

Share price: $109.68 · 2026-11-11

Nasdaq, Inc. provides technology, data, and analytics for the financial system, including capital access platforms, financial technology, and market services. The company operates global exchanges and provides infrastructure, listing services, and market information to institutional and non-professional investors and corporate issuers. Source: 10-K annual report (2026-02-12)

Results Q3 2026 vs Q2 2026 · previous quarter · published 22 Oct 2026 and 23 Jul 2026

Net income up 6.5% on the previous quarter. Management sounded upbeat, though noticeably less so answering analysts.

1 · Numbers

+6.5%

Net income vs Q2 2026

Outlook given

Net income 540.0M vs 507.0M

Revenue −5.5%

Why Against the same quarter last year (+27.7%), net income rose primarily because of a 16% growth in operating income and the benefit of the company's share repurchase program.

2 · How management spoke

Upbeat

More upbeat than 83% of company calls

Answers to analysts: typical, but clearly less so than the script.

The step down under questioning is smaller than last call.

3 · What stood out

Nasdaq's index franchise achieved a record $141 billion in net inflows over the last 12 months and $49 billion in the quarter.

Valuation

Is Nasdaq, Inc. undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 9.9% growth a year (3-year revenue growth), the model's fair value is $68.09 a share — the stock trades 61% above it. Today's price assumes 15.4% growth a year.

Current price

$109.68

close of 2026-11-11

Market implies growth of i

+15.4% for 10 yrs

Fair value / share

$68.09

Buy below

$51.06

Price vs fair value

Overvalued 61%

Price vs buy-below price

Overvalued 115%

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Read between the lines

Figure

Net revenue reached $1.5 billion, up 14% year-over-year, while solutions revenue grew 18% to $1.2 billion in the third quarter.

Source quote
“In the third quarter, we delivered $1.5 billion in net revenue, up 14% year-over-year, and solutions revenue of $1.2 billion, up 18%.”
Figure

Nasdaq reported a 16% increase in financial technology revenue and record ARR growth of 18% for the quarter.

Source quote
“Turning to financial technology, we achieved another excellent quarter, delivering revenue growth of 16% and record ARR growth of 18%.”
Figure

The division delivered 2% revenue growth to $309 million, which represents a record for the third quarter.

Source quote
“The division developed, sorry, the division delivered 2% revenue growth to $309 million, a record for the third quarter.”
Figure

Volume-based revenue grew as derivatives contract volumes reached a record 70% increase in the quarter despite a shift toward lower-priced micro E-mini contracts.

Source quote
“Volume-based revenue was also a contributor to growth, with record derivatives contract volumes up 70% in the quarter and amidst the continued mix shift in derivatives from higher priced E-mini contracts to lower priced micro E-mini contracts.”
Guidance

Nasdaq updated its annual non-GAAP expense guidance to a range of $2.550 billion to $2.580 billion from the previous range of $2.530 billion to $2.570 billion.

4 more

Figure

NASDAQ generated $2.3 billion in free cash flow over the last 12 months at a conversion ratio of 98%.

Source quote
“Over the last 12 months, NASDAQ generated $2.3 billion in free cash flow at a conversion ratio of 98%.”
Figure

Nasdaq welcomed 15 new operating companies raising $32 billion in proceeds, including eight of the top ten largest IPOs, contributing to a 79% win rate.

Source quote
“We welcomed 15 new operating companies raising $32 billion in proceeds, including eight of the top ten largest IPOs in the quarter, contributor, contributing to a 79% win rate.”
Figure

Year-to-date, 25 percent of investment bookings were related to AI use cases.
Figure

NASDAQ announced that HSBC is extending its 15-year partnership with the company to include Calypso's comprehensive exchange-traded derivatives clearing capabilities.

Source quote
“We announced that HSBC is extending its 15-year partnership with NASDAQ, adding Calypso's comprehensive exchange-traded derivatives clearing capabilities.”

Tone

How upbeat the language was, compared with other companiesi. Dot: Q3 2026. Ring: Q2 2026.

Prepared remarks Upbeat (was very upbeat)

Answers to analysts Typical (was restrained)

Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 87% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.

Sentences that drove the tone

“Capital Markets Tech continued its strong momentum, driven by robust growth in trade management services, as well as new client wins and upsells in our software solutions.”

“Our index franchise achieved a record $141 billion in net inflows over the last 12 months and $49 billion in the quarter, driven by product innovation, global expansion, and growing...”

“We are driving strong momentum in the NASDAQ 100 franchise, which is supported by secular growth in passive investing with strong retail ownership and further market share expansion.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)

Metric	Q3 2026period end 2026-09-30	Q2 2026period end 2026-06-30	Change	Q3 2025	YoY
Revenue	2.39B	2.53B	−5.5%	1.98B	+20.9%
Gross profit	1.48B	1.50B	−1.3%	1.31B	+12.6%
Operating income	732.0M	712.0M	+2.8%	586.0M	+24.9%
Net income	540.0M	507.0M	+6.5%	423.0M	+27.7%
EPS	0.96	0.89	+7.9%	0.73	+31.5%
P/E today 29.3	25.1	23.0	+2.1	31.6	−6.5

Topics

Most discussed now

The strong data revenue growth this quarter was driven primarily by upsells, new bookings, pricing, and usage.
The move towards always-on-markets and expanding AI use cases are supporting client demand for its data franchise, and Nasdaq expects...

Faded since Q2 2026

Fading Economic environment, supported by resilient corporate earnings, ongoing investment in AI and digital infrastructure, and healthy consumer…
Fading In the second quarter, Nasdaq delivered outstanding growth across each of Nasdaq's divisions, underpinned by its leadership in driving…
Fading I have to say, leveraging GenAI allows it also to look through the data in new ways and capture different...

Latest announcements

Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.

2026-10-26 Director or officer change · SEC 8-K
Nasdaq appointed Börje Ekholm to its Board of Directors effective November 1, 2026, while Holden Spaht is set to resign from the Board on December 31, 2026.
2026-10-22 Results of operations; Regulation FD disclosure; Other events · SEC 8-K
Nasdaq reported third-quarter 2026 net revenue of $1.5 billion, an increase of 13% over the third quarter of 2025, with GAAP diluted earnings per share of $0.96, up 31% year over year.
2026-07-23 Results of operations; Regulation FD disclosure; Other events · SEC 8-K
Nasdaq reported second-quarter 2026 net revenue of $1.5 billion, an increase of 15% compared to the second quarter of 2025.
2026-07-01 Material agreement; Agreement terminated; New financial obligation · SEC 8-K
Nasdaq, Inc. entered into an Amended and Restated Credit Agreement dated June 30, 2026, creating a new direct financial obligation.
2026-06-16 Shareholder vote results · SEC 8-K · routine
2026-04-23 Results of operations; Regulation FD disclosure; Other events · SEC 8-K
Nasdaq reported first-quarter 2026 net revenue of $1.4 billion, an increase of 14% over the first quarter of 2025, with GAAP diluted earnings per share of $0.91, up 33% year-over-year.
2026-01-29 Results of operations; Regulation FD disclosure; Other events · SEC 8-K
Nasdaq reported 2025 net revenue of $5.2 billion, an increase of 13% over 2024, and solutions revenue of $4.0 billion, up 12% year over year.
2026-01-16 Articles or bylaws amended · SEC 8-K · routine

Balance sheet & ownership

From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-27.

Cash & runway

Cash & equivalents

$365.0M

2026-09-30

Short-term investments

$151.0M

total $516.0M

Implied runway

—

operating cash flow positive over the TTM window

Dilution

weighted-average basic shares, per quarter. Change: -2.5% YoY, -0.9% QoQ.

Quarter	Shares
Q1 2025	575.0M
Q2 2025	574.1M
Q3 2025	573.3M
Q1 2026	566.8M
Q2 2026	564.2M
Q3 2026	558.9M

Shares outstanding: 555.0M (2026-10-16)

Insider transactions

Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 70 filings; 50 filings parsed.

Sold by insiders

307.4K shares

$27.4M · 22 transactions

Bought by insiders

56.8K shares

$4.9M · 1 transactions

Net direction

net selling

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

December 6, 2026

launch 23.5 trading on the NASDAQ stock market

Source quote
“Looking ahead, we remain on track to launch 23.5 trading on the NASDAQ stock market on December 6, 2026.”
this month

DTCC prepares to launch its tokenization service

Source quote
“Additionally, we continue to work closely with DTCC as it prepares to launch its tokenization service this month and we remain on track to launch the NASDAQ equity token in the first half of next year.”
fourth quarter

expected revenue contribution from the acquisition of Levo

Source quote
“The level of revenue contribution for the fourth quarter is expected to be $7 to $8 million, and the expenses are included in our updated expense guidance.”
fourth quarter

completion of a variable notional accelerated share purchase plan

Source quote
“It will be completed in the fourth quarter.”