Nasdaq profit rises 27.8% to $540 million in third quarter
Key Facts
Net income attributable to Nasdaq rose to $540 million in the third quarter of 2026 from $423 million in the same period of 2025, according to the company's quarterly financial filing. The 27.8% annual increase in profit outpaced revenue growth during the period. Revenue less transaction-based expenses reached $1,481 million, compared with $1,315 million a year earlier, an increase of 12.6%. GAAP diluted earnings per share rose to $0.96 from $0.73 in the third quarter of the previous year. Earnings per share on that basis grew 31.3%, according to the same filing. GAAP operating income reached $732 million during the quarter, alongside growth in the company's solutions revenue and annualized recurring revenue.
Nasdaq's earnings presentation showed adjusted diluted earnings per share of $1.04 in the third quarter of 2026. The measure grew 18% year on year on a reported basis and 19% organically. Solutions revenue reached $1,172 million during the period, up 17% on a reported basis and 18% organically from the same period a year earlier. Annualized recurring revenue stood at $3,365 million at quarter-end, representing reported growth of 12% and organic growth of 14%, according to the presentation. In its index business, Nasdaq said in its earnings release that its products attracted "record net inflows of $141 billion over the trailing twelve months." That total included net inflows of $49 billion in the third quarter alone, within the period ending that quarter.
As its business expanded, Nasdaq announced in October that it had completed the acquisition of LeveL Markets, according to the company's deal announcement. The platform serves more than 2,500 clients, giving the acquired business an established client base in the U.S. alternative trading system market. The platform reaches those clients through more than 15 integrations with order and execution management systems, according to the acquisition announcement. The platform's average daily trading volume grew 56% year on year during 2025, the year before the deal was announced. That growth made it the third-largest alternative trading system in the United States by volume, according to Nasdaq.
Alongside the results, Nasdaq raised its adjusted operating expense guidance for fiscal 2026 to $2.550–2.580 billion, according to earnings commentary published by the company. The previous guidance range was between $2.530 billion and $2.570 billion, before the update raised both the lower and upper bounds. Management attributed the increase in the upper end to expected costs from recently completed acquisitions. It said the higher midpoint also reflected the impact of those acquisitions and strong year-to-date revenue, as part of its explanation for revising the annual guidance. For the fourth quarter of 2026, Nasdaq expects LeveL to contribute revenue of between $7 million and $8 million, according to the same earnings commentary.
On shareholder returns, Nasdaq paid $173 million in cash dividends during the third quarter of 2026, according to the earnings release. It also spent $323 million repurchasing its shares during the same period. In October, the company launched an accelerated share repurchase program worth between $315 million and $385 million, according to the earnings commentary. It expects to complete the program during the fourth quarter of 2026, alongside the acquired business's contribution to revenue for the period. Nasdaq also declared a new quarterly cash dividend of $0.31 per share, according to its October dividend announcement. The dividend is payable to shareholders of record at the close of business on December 4, 2026. Payment is scheduled for December 18, 2026.