01—Abstract
Summary
Summary of the 10-Q filed April 24, 2026. Cited figures are marked; the original filing is the authoritative source.
Nasdaq, Inc. (NDAQ) reported strong performance for the first quarter of 2026, demonstrating revenue growth across key segments and improved profitability.
Total revenues increased by 2.0% to $2.137 billiona, while revenues less transaction-based expenses saw a more significant jump of 13.8% to $1.407 billion. This top-line growth translated into a substantial 31.4% increase in net income, reaching $519 million, and diluted earnings per share rose by 33.3% to $0.91. The company's strategic focus on its Capital Access Platforms and Financial Technology segments appears to be paying off, with reported revenue growth of 11.4% and 19.7%, respectively.
The Market Services segment experienced a slight revenue decline of 8.1%b, though net revenues in this segment increased by 12.8% after accounting for transaction-based expenses. Nasdaq also highlighted a robust share repurchase program and an increase in its quarterly cash dividend, signaling confidence in its financial health and commitment to shareholder returns.
02—Key points
Key Highlights
- Total revenues increased by 2.0% to $2.137 billion for the three months ended March 31, 2026, compared to the same period in 2025.
- Revenues less transaction-based expenses grew by 13.8% to $1.407 billion, indicating improved operational efficiency.
- Net income saw a substantial increase of 31.4% to $519 million, demonstrating strong profitability.
- Diluted earnings per share rose by 33.3% to $0.91, reflecting enhanced shareholder value.
- Capital Access Platforms and Financial Technology segments showed robust revenue growth of 11.4% and 19.7%, respectively.
- The company repurchased $548 million of its common stock in the first quarter of 2026 and declared a quarterly cash dividend of $0.27 per share.
- Nasdaq is actively managing its debt, with a decrease in total debt obligations from $9.004 billion to $8.957 billion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Nasdaq, Inc. kept $0.24.
- Revenue$2.14B100.0%
- Cost of revenue−$730.0M34.2%
- Gross profit$1.41B65.8%
- Operating costs−$750.0M35.1%
- Operating income$657.0M30.7%
- Interest, other & tax−$138.0M6.5%
- Net income$519.0M24.3%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 24, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $2.14B$2.10B | +2.0% |
| Cost of Revenue | $730.00M$859.00M | −15.0% |
| Gross Profit | $1.41B$1.24B | +13.7% |
| Operating Expenses | $750.00M$690.00M | +8.7% |
| Operating Income | $657.00M$547.00M | +20.1% |
| Net Income | $519.00M$395.00M | +31.4% |
| EPS (Basic) | $0.92$0.69 | +33.3% |
| EPS (Diluted) | $0.91$0.68 | +33.8% |
| Shares Outstanding (Basic) | 566.82M575.05M | −1.4% |
| Shares Outstanding (Diluted) | 571.75M579.98M | −1.4% |
05—Questions
Frequently Asked Questions
What was the primary driver of Nasdaq's revenue growth in the first quarter of 2026?
Nasdaq's overall revenue growth was driven by increases in its Capital Access Platforms and Financial Technology segments. Specifically, Data & Listing Services, Index, Financial Crime Management Technology, Regulatory Technology, and Capital Markets Technology all reported strong revenue growth. The Market Services segment saw a decline in gross revenues but an increase in net revenues after accounting for transaction-based expenses, supported by higher trading volumes in U.S. equities and equity derivatives.
How did Nasdaq's profitability change compared to the previous year?
Nasdaq experienced a significant improvement in profitability. Net income increased by 31.4% to $519 million, and diluted earnings per share grew by 33.3% to $0.91. This was primarily due to higher revenues less transaction-based expenses and effective management of operating expenses.
What is Nasdaq's approach to returning capital to shareholders?
Nasdaq continues to prioritize shareholder returns through a combination of share repurchases and dividends. In the first quarter of 2026, the company repurchased $548 million of its common stock and declared a quarterly cash dividend of $0.27 per share. The company also indicated an intention to provide regular and increasing dividends as earnings and cash flows grow.
Are there any significant legal or regulatory matters that investors should be aware of?
Nasdaq is involved in an ongoing antitrust investigation by the European Commission concerning alleged coordination of conduct in the financial derivatives market. While the company is cooperating, the duration, outcome, and potential fines are uncertain. Management believes that any findings will not have a material adverse effect on the consolidated financial position or results of operations, but this remains a point of scrutiny.
06—Continue