NDAQ — Nasdaq, Inc.

Nasdaq Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Net Revenue: $1.4 billion, up 13% year-over-year.
• Solutions Revenue: $1.1 billion, up 14%.
• Operating Income: $799 million, up 17%.
• Expenses: $608 million, up 8%.
• Diluted EPS: $0.96, up 21%.
• Annualized Recurring Revenue (ARR): $3.2 billion, up 12%.
• Operating Margin: 57%, EBITDA margin at 60%.
• Free Cash Flow: $629 million for the quarter, $2.1 billion over the last 12 months.

2. Strategic Updates and Business Highlights

• Nasdaq reported its strongest Q1 organic growth since 2021, with notable performance in Financial Technology, which saw an 18% revenue increase.
• The Capital Access Platforms division generated 10% revenue growth, with strong IPO activity, welcoming 15 new companies that raised over $5 billion.
• The Financial Technology division signed 64 new clients and achieved over 50% year-over-year growth in ACV bookings, with 80% of bookings being cloud-based.
• The company is well-positioned to capitalize on trends such as the transition to always-on markets and the tokenization of assets.
• Nasdaq plans to launch 23/5 trading on December 6, 2026, enhancing market accessibility.

3. Forward Guidance and Outlook

• Nasdaq anticipates continued strong performance in the second quarter, particularly in IPO activity and data services.
• The company updated its non-GAAP expense guidance for 2026 to a range of $2.485 billion to $2.545 billion, reflecting strong revenue performance.
• Nasdaq maintains a long-term outlook focused on modernization and AI integration across its services.

4. Bad News, Challenges, or Points of Concern

• The company noted a mixed performance in index revenues, impacted by a shift in futures trading volumes towards lower-priced contracts.
• The corporate solutions segment remains muted, primarily due to lower IPO activity compared to historical levels.
• There are concerns regarding the stability of the private credit market and geopolitical tensions that could impact market conditions.

5. Notable Q&A Insights

• AI Integration: Nasdaq is focused on internal AI adoption to achieve $100 million in expense efficiencies by 2027, with significant investments in automation across various departments.
• FinTech Demand: There is strong momentum in the Capital Markets Technology segment, particularly in trade management services and collateral management.
• International Data Demand: Nasdaq has seen increased demand for its market data internationally, driven by retail investor growth and the upcoming 23/5 trading capabilities.
• Tokenization Strategy: The company is actively working on tokenized trading capabilities, with expectations for initial trades by the end of 2026, although it may take time for full market penetration.
• Market Concerns: Some market participants express hesitance regarding liquidity in overnight trading sessions, which Nasdaq aims to address through education and infrastructure enhancements.

Overall, Nasdaq's Q1 2026 results reflect strong growth and strategic positioning, although challenges in certain segments and market conditions remain areas to watch.