Nasdaq, Inc.

What they do

Nasdaq operates exchanges and market infrastructure and sells technology, data and analytics to financial institutions. It reports in three segments: Capital Access Platforms, Financial Technology and Market Services, following the 2021 Verafin and 2023 Adenza (AxiomSL and Calypso) acquisitions. Its stated growth areas are financial crime management, compliance, marketplace technology, investment-manager workflow and insight solutions.

Revenue drivers

• Capital Access Platforms — Includes Data & Listing Services, Index and Workflow & Insights; in 2Q26 segment revenue growth was 19% year-over-year reported, or 18% adjusted, with segment ARR growth of 8%.
• Financial Technology — Combines regulatory technology, capital markets technology and financial crime management offerings; 2Q26 revenue was $539 million, up 16% reported or 15% organic, with segment ARR growth of 16%.
• Index — Index revenue was $271 million in 2Q26, up 38% or 35% adjusted, with $109 billion of net inflows over the trailing twelve months including $51 billion in 2Q26.
• Market Services — Exchange trading and related services; 2Q26 net revenue was $340 million, up 11% on both a reported and organic basis.

Recent performance

Second quarter 2026 net revenue was $1.5 billion, up 15% reported and adjusted versus 2Q25, with Solutions revenue of $1.16 billion up 17%. GAAP diluted EPS was $0.89 (up 14%) and non-GAAP diluted EPS was $1.07 (up 25% reported and adjusted). ARR was $3.3 billion, up 11% reported or 12% organic, with annualized SaaS revenue up 12% and representing 38% of ARR. The company returned $174 million via dividends and $356 million via buybacks in the quarter and net repaid $162 million of debt. Full-year 2025 revenue was $8.26 billion with net income of $1.79 billion and diluted EPS of $3.09.

Strategy

Nasdaq describes itself as a technology platform powering markets, the innovation economy and trust in the financial system, and targets growth in financial crime solutions, compliance, marketplace technology, investment-manager workflow and insight solutions. It cites a single One Nasdaq go-to-market approach and says the Verafin and Adenza integrations let it use its existing divisional structure. Management ties the model to disciplined capital allocation, returning capital through dividends and buybacks while investing in innovation.

Risks

• Market and economic conditions — Weak economic conditions could reduce demand for data, indices and corporate solutions and lower IPO counts, trading volumes or values, potentially increasing delistings.
• Customer concentration in Market Services — Market Services revenue comes from a relatively small number of customers concentrated in the financial industry, so an event affecting one or more customers could reduce revenue.
• Interest rate and credit risk — Nasdaq holds fixed-rate European government debt securities whose fair value falls if rates rise, and has variable-rate exposure through its 2026 Revolving Credit Facility and $269 million of commercial paper outstanding at June 30, 2026.
• Foreign currency exposure — For the three months ended June 30, 2026, a 10% adverse currency move would reduce revenues less transaction-based expenses by about $12 million for the Euro, $5 million for the Swedish Krona, $1 million for the Canadian Dollar and $5 million for other currencies, and operating income by corresponding amounts.

Outlook

Chair and CEO Adena Friedman said the second quarter set new records and milestones, with double-digit growth across all three divisions, and stated confidence in capturing the opportunity ahead and delivering durable long-term value. CFO Sarah Youngwood cited expanding operating margins, strong EPS growth and robust cash flow, and described continued capital returns through dividends and buybacks alongside investment in innovation. The release does not include quantitative full-year guidance.