Earnings
Nasdaq beats forecasts as index fees jump 39% on record inflows; 23-hour trading on track for December 6
The exchange operator's solutions businesses grew 17% in the third quarter, while trading-driven Market Services revenue rose just 2%.
HedgeWeekly News Desk ·
Nasdaq Inc. reported third-quarter adjusted earnings of $1.04 a share on Thursday, up 18% from a year earlier and two cents above the consensus estimate. Net revenue climbed 13% to $1.48 billion, and GAAP earnings rose 31% to $0.96 a share.
Index was the standout. Revenue from the unit rose 39% to $286 million after $49 billion of net inflows in the quarter, taking trailing 12-month inflows to $141 billion from $91 billion a year earlier. Assets in exchange-traded products tracking Nasdaq indexes hit a record $1.16 trillion. Financial crime software sales grew 23%, and the fintech division's annualized recurring revenue rose 18%. Market Services, the trading business, grew net revenue only 2% to $309 million.
Nasdaq returned $323 million through buybacks and $173 million in dividends in the quarter and had $2.2 billion of repurchase authority left at the end of September. It set 2026 non-GAAP operating expense guidance at $2.55 billion to $2.58 billion and held its tax-rate range. It also closed its purchase of LeveL Markets, which it describes as the third-largest US alternative trading system by volume, inside a new digital-assets and market-modernization group.
Why it matters: the mix shows Nasdaq earning less like an exchange and more like a data and index house, with recurring revenue now driving growth while trading fees barely moved. For funds and allocators, the date to note is December 6, when Nasdaq says its stock market will begin 23-hours-a-day, five-days-a-week trading. That extends the hours in which US-listed shares can move, with consequences for overnight risk, liquidity and how managers handle events outside the regular session.