Global exchange operator Nasdaq (NASDAQ: NDAQ) reported Q1 CY2026 results exceeding the market’s revenue expectations, with sales up 13.7% year on year to $1.41 billion. Its non-GAAP profit of $0.96 per share was 3.1% above analysts’ consensus estimates.

Is now the time to buy NDAQ? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Nasdaq’s first quarter results for 2026 reflected broad-based momentum across its core businesses, with management attributing the strong performance to robust growth in its Financial Technology division and continued demand for cloud-based and AI-powered solutions. CEO Adena Friedman highlighted that the company delivered its highest organic growth since 2021, underpinned by client adoption of mission-critical technology and increased engagement across data, index, and market services. The positive market reaction to the results suggests investors were encouraged by Nasdaq’s ability to generate double-digit organic revenue growth and higher operating margins, supported by product innovation and expansion into new client segments.

Looking ahead, Nasdaq’s forward guidance is shaped by ongoing investment in AI capabilities, expansion into tokenized markets, and continued modernization of trading infrastructure. Management is focused on supporting the transition to always-on markets, increasing cloud-based solution adoption, and deepening partnerships with major asset managers. CFO Sarah Youngwood noted, “Our updated outlook reflects both the strength of our pipeline in cloud and AI-enabled regulatory solutions and the expected impact of expanded trading hours and tokenization initiatives.” The company is positioning itself at the intersection of technology and financial infrastructure, aiming to capture growth from global market modernization and increased demand for digital financial products.

Key Insights from Management’s Remarks

Management attributed Nasdaq’s outperformance to exceptional demand for cloud and AI-driven solutions, expanding international data revenues, and strong execution in both new and existing client segments.

• AI and cloud adoption accelerates: Over 80% of annual contract value bookings in Financial Technology came from cloud-based solutions, with AI features embedded across regulatory and surveillance products. CEO Adena Friedman highlighted the company’s internal and client-facing Agentic-AI programs as key drivers of efficiency and product differentiation.
• Financial crime management gains: Nasdaq’s Verafin platform grew its revenue by 21% as banks and financial institutions sought advanced anti-money laundering and fraud solutions. The company signed 58 new small- and medium-sized business clients, and expanded enterprise relationships, illustrating strong demand for AI-driven compliance tools.
• International data demand rising: Management noted a significant uptick in data licensing demand from Asia and the Middle East, tied to the global expansion of retail investing and preparations for extended trading hours. This contributed to 32% growth in enterprise data license agreements and increased non-U.S. assets under management.
• Index business expands partnerships: Nasdaq launched 31 new index products and deepened distribution by adding BlackRock and State Street as partners for the Nasdaq-100, with consistent pricing terms. Institutional adoption grew, particularly among insurance providers, supporting a 30% increase in insurance-related revenues.
• Market Services volume surge: Record trading volumes in U.S. equities and options, along with new product launches in short-dated and index options, drove growth. Management pointed to the upcoming transition to 23/5 trading hours and regulatory approvals for tokenized securities as foundational for future market infrastructure.

Drivers of Future Performance

Nasdaq’s outlook for the next quarters centers on leveraging AI, expanding cloud-based services, and capitalizing on market infrastructure transitions to drive sustainable margin growth and broaden its client base.

• Always-on markets and tokenization: The transition to near-continuous trading (23/5 operations) and the rollout of tokenized securities are expected to enhance client engagement, drive new data revenue streams, and position Nasdaq as a key infrastructure provider for digital assets. Management highlighted plans to launch 23/5 trading in December and to scale tokenized equity solutions in partnership with industry consortia.
• AI-driven product pipeline: Nasdaq continues to invest in generative AI for both internal operations and client-facing platforms. The company expects these investments to improve efficiency (targeting $100 million in expense efficiencies by 2027) and increase the value of its regulatory, surveillance, and financial crime solutions, particularly as banks and asset managers modernize their infrastructure.
• International expansion and partnerships: Management is focused on growing its international presence, especially in data licensing and index products, by collaborating with global asset managers and retail platforms. Expanding relationships with BlackRock, State Street, and Invesco are expected to drive broader distribution and adoption of flagship indexes.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be closely monitoring (1) the adoption and impact of always-on trading and tokenized securities, (2) progress in AI-enabled platform deployments across regulatory, surveillance, and anti-financial crime technologies, and (3) the effectiveness of international expansion, especially in data and index distribution. Execution on these priorities will be crucial as Nasdaq seeks to differentiate itself amid rapid industry change.

Nasdaq currently trades at $87.00, in line with $86.37 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).

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