NDAQ — Nasdaq, Inc.

Nasdaq (NDAQ) 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%.
• Diluted EPS: $0.96, up 21%.
• Annualized Recurring Revenue (ARR): $3.2 billion, up 12%.
• Expenses: $608 million, up 8%.
• Operating Margin: 57%, EBITDA Margin: 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 one of the strongest Q1 performances in its history, particularly in the Financial Technology division, which saw an 18% revenue growth.
• The Capital Access Platforms division grew revenue by 10%, driven by strong IPO activity and data business growth.
• Nasdaq welcomed 15 new operating companies, raising over $5 billion in proceeds during the quarter.
• The company is focusing on AI integration across its services, with significant adoption in financial crime management and regulatory technology.
• Nasdaq is advancing its tokenization strategy and preparing for the launch of 23/5 trading on December 6, 2026, which aims to enhance market access and liquidity.

3. Forward Guidance and Outlook:

• Nasdaq expects continued strong demand for its services, particularly in AI and cloud-based solutions.
• The company anticipates a higher expense growth rate in Q2 due to annual compensation cycles.
• The updated non-GAAP expense guidance for 2026 is now $2.485 billion to $2.545 billion.
• Nasdaq remains confident in its ability to deliver durable value for clients and shareholders, with a focus on modernization and innovation in financial markets.

4. Bad News, Challenges, or Points of Concern:

• The IPO environment remains uneven amid market volatility, and while issuer engagement is strong, there are concerns about the sustainability of this momentum.
• A mix shift in futures trading has led to lower revenue capture, impacting index revenues despite strong volumes.
• The corporate buying environment is described as muted, particularly in Corporate Solutions, due to lower IPO activity compared to historical levels.
• The company faces competitive pressures in the fintech space, particularly regarding regulatory technology and financial crime management.

5. Notable Q&A Insights:

• AI Adoption: Nasdaq is implementing AI internally to drive efficiencies, targeting $100 million in expense efficiencies by 2027.
• Fintech Demand: Strong momentum is noted across all fintech subdivisions, particularly in trade management services and collateral management.
• International Data Demand: There is increasing global demand for Nasdaq's market data, driven by retail investor accessibility and the upcoming 23/5 trading.
• Tokenization Strategy: Nasdaq is actively working with DTCC and industry partners to facilitate the launch of tokenized trading, with expectations for a phased rollout.
• Market Education: The company plans to invest in educating market participants about the new trading capabilities to ensure successful adoption.

Overall, Nasdaq's Q1 2026 results reflect strong growth and strategic positioning, though challenges in the IPO market and competitive pressures in fintech remain areas to watch.