EL7.AI
StocksMedium•26 October 2026•
3 min read

Nasdaq Reports Third-Quarter EPS of $0.96, Up 31%

Key Facts

1Diluted GAAP EPS was $0.96, up 31% in the third quarter of 2026.
2Financial technology revenue grew 16% to $529 million, while Market Services revenue rose 2% to $309 million.
3Non-GAAP operating expenses were $638 million, up 9% on a reported basis and 12% organically.
4The company raised its 2026 full-year operating expense forecast to a range of $2.550–$2.580 billion.

Nasdaq reported third-quarter 2026 results on October 22, with diluted GAAP earnings per share of $0.96, up 31% from the same period a year earlier. Non-GAAP EPS was $1.04, with reported growth of 18% or 19% on an organic basis. The figures reflect continued business growth, with performance varying across segments and operating costs rising. Meanwhile, the Nasdaq Composite fell 2.6% on the day results were announced, in a session marked by broad weakness in technology stocks.

The strongest growth came from the financial technology segment, where revenue rose 16% on both a reported and organic basis to $529 million in the third quarter, compared with the same period in 2025. Net revenues from Market Services increased 2% on both bases to $309 million. The gap between the two segments shows that growth was uneven across the company’s businesses. Net revenues also reached $1.5 billion in the second quarter, up 15% from the same quarter in 2025.

Revenue growth was accompanied by higher non-GAAP operating expenses, which reached $638 million, up 9% on a reported basis and 12% organically from the prior-year quarter. Nasdaq attributed the increase mainly to higher compensation and benefits costs and increased technology investment. Non-GAAP EPS grew more slowly than GAAP EPS, with reported growth of 18% and organic growth of 19%, against a 31% increase in the other accounting measure. The metrics offer different views of performance because they are calculated differently, while rising expenses put the cost of expansion at the center of results monitoring. Chief Executive Officer Adena Friedman said markets are moving toward "a future led by AI applications, operating continuously, with increasing integration across asset classes and geographies."

In its financial guidance, the company raised its forecast for 2026 full-year non-GAAP operating expenses to $2.550–$2.580 billion. It kept its annual tax-rate forecast within a range of 22.5% to 24.5%. The expense update sets out the path the company expects operating costs to take through the rest of the year, while the tax-rate range was unchanged. As part of its operating plans, Nasdaq said its U.S. equity market still targets launching trading for 23 hours a day, five days a week, on December 6, 2026. It added that its acquisition of LeveL Markets closed in the fourth quarter.

In the broader economic environment, the Chicago Fed National Activity Index registered +0.07 in September 2026, after a reading of -0.08 in August, according to data from the Federal Reserve Bank of St. Louis. The September reading was published on October 26, but covers the previous month. The Federal Open Market Committee meeting begins on October 27 and runs through October 28, with a press conference on the second day, according to the Federal Reserve’s official calendar. The meeting follows Nasdaq’s results announcement on October 22, while equity indexes were under pressure during the session in which the results were announced. The company did not identify a connection between the economic indicator or the Fed meeting and its operating performance in its results statement.