Nasdaq's Market Services Growth Cools to 2%

The Tip Desk · October 22, 2026 · 3 min read

Third-quarter net revenue was $1.481 billion, up 13% reported and 14% organic, as Index net inflows hit a record $141 billion over the trailing twelve months.

Nasdaq, Inc. (NDAQ) reported third-quarter 2026 net revenue of $1.481 billion, up 13% from a year earlier and 14% on an organic basis. That year-over-year pace slowed from 15% reported growth in the second quarter.

Solutions revenue was $1.172 billion, up 17% reported and 18% organic, matching the second quarter’s 17% increase. Capital Access Platforms revenue grew 20% on both bases. Financial Technology revenue was $529 million, up 16% reported and organic.

Market Services net revenue was $309 million, up 2% on both a reported and organic basis. The company said the quarter’s net revenue benefitted from higher industry volumes across U.S. options and European equities, with U.S. cash equities achieving higher market share and near-record capture. Market Services set a new record in third-quarter net revenue.

Index revenue of $286 million grew 39% on both a reported and organic basis. Trailing-twelve-month Index net inflows reached a record $141 billion, including $49 billion in the third quarter. End-of-period ETP assets under management were a record $1.160 trillion; average third-quarter ETP AUM was a record $1.108 trillion. Nasdaq launched 32 new Index products in the quarter, including 10 in the institutional annuity space; half of the new products were outside the U.S.

Annualized recurring revenue was $3.365 billion, up 12% reported and 14% organic. Financial Technology ARR growth was 18% on both bases, and Capital Access Platforms ARR growth was 8%. Annualized SaaS revenue increased 12% reported and 16% organic, and represented 38% of ARR.

GAAP diluted earnings per share were $0.96, up 31% from the year-ago quarter. Non-GAAP diluted earnings per share were $1.04, up 18% reported and 19% organic. GAAP operating income was $732 million, up 25%. Non-GAAP operating income was $843 million, up 15% reported and 16% organic. GAAP operating margin was 49%; non-GAAP operating margin was 57%.

GAAP operating expenses were $749 million, up 3% from the year-ago quarter. Non-GAAP operating expenses were $638 million, up 9% reported and 12% organic. The company said the increases were primarily driven by higher compensation and benefits costs from revenue execution and increased investments in technology. On a GAAP basis, the increase was partially offset by lower general and administrative expenses, primarily due to a favorable legal settlement, and lower restructuring charges.

Cash flow from operations was $521 million. The company returned $173 million through dividends and $323 million through share repurchases. As of September 30, 2026, $2.2 billion remained under the board-authorized repurchase program. Year to date, the company said it had returned more than $1.7 billion through repurchases and dividends.

Nasdaq formed Digital Liquidity Networks within Market Services and completed the acquisition of LeveL Markets, the third-largest U.S. alternative trading system by trading volume, which closed early in the fourth quarter. The company said the deal enhances its ability to serve a wider liquidity pool across off-exchange venues. The Nasdaq Stock Market remains on track to go live with 23/5 trading on December 6, 2026.

Nasdaq updated 2026 non-GAAP operating expense guidance to a range of $2.550 billion to $2.580 billion and maintained 2026 non-GAAP tax rate guidance of 22.5% to 24.5%.