Nasdaq (NDAQ) 2Q26 Earnings Preview

Timing note: Nasdaq scheduled its 2Q26 results release for Thursday, July 23, 2026 at approximately 7:00 a.m. ET, followed by an 8:00 a.m. ET conference call. That is today, not tomorrow. This preview is therefore framed around the scheduled event and the information available ahead of the release.

Investment view: execution versus elevated expectations

Nasdaq enters 2Q26 with substantial operating momentum. The key question is less whether it can post growth, and more whether it can sustain the unusually strong 1Q pace while demonstrating that the growth is increasingly recurring, broad-based, and not overly dependent on favorable trading conditions or discrete revenue items.

The setup is constructive:

The main challenge: 1Q was exceptionally strong. Financial Technology contained several favorable items, while Market Services had record activity. Investors will likely demand evidence that Nasdaq’s high-growth, high-margin “solutions” narrative remains intact even as quarterly comparisons become tougher.


What matters most in the print

1. Financial Technology: can the growth engine remain in the high teens?

This is the most important area of the report.

In 1Q26, Financial Technology revenue rose 20% reported / 18% organic to $517 million, with ARR up 16% organic. Capital Markets Technology grew 20% organically, Financial Crime Management Technology grew 21%, and Regulatory Technology grew 12%.

For 2Q, investors should focus on:

Read-through: Continued high-teens organic FinTech growth, with healthy ARR and bookings, would reinforce the view that Nasdaq is becoming more of a durable infrastructure-and-software compounder than a cyclical exchange operator.


2. Solutions growth and ARR: proof that the recurring-revenue mix is working

Nasdaq reported $1.082 billion of Solutions revenue in 1Q26, up 14%, and total ARR of $3.188 billion, up 13% reported / 12% organic.

The 2Q report should answer whether the company can keep compounding its subscription, data, software, and workflow franchises at a rate that supports its updated medium-term outlook:

Key metric 1Q26 result Why it matters in 2Q
Solutions revenue growth 14% Core measure of the less-cyclical business mix
Total ARR growth 12% organic Forward indicator for recurring revenue durability
FinTech ARR growth 16% organic Best measure of cloud/land-and-expand momentum
Capital Access Platforms ARR growth 7% organic Tests data, workflow, listings, and index-adjacent execution

A meaningful deceleration in ARR would matter more than a modest quarterly revenue miss, particularly if it points to slower cloud implementation, longer enterprise sales cycles, or pressure in Corporate Solutions.


3. Index: AUM, flows, and the broader distribution opportunity

Index revenue grew 14% in 1Q26 to $220 million, supported by record average ETP AUM of $877 billion. Net inflows were only $6 billion in 1Q, but management said that flows had improved to $15 billion through April 20, suggesting a potentially better 2Q setup.

Key items to watch:

Index is one of Nasdaq’s best long-term assets, but its quarterly revenue can be influenced by market levels, flows, and futures-volume mix. A strong print would likely feature both healthy AUM and indications that broadened distribution is expanding institutional adoption.


4. Market Services: strong beta, but market share and capture determine quality

Market Services generated record 1Q net revenue of $317 million, up 13% reported / 10% organic. The result benefited from record U.S. cash-equity and options volumes, higher European activity, and index-options growth.

For 2Q, the debate is not simply whether volumes stayed elevated. It is whether Nasdaq preserved its economics:

The 2Q25 comparison is demanding: Market Services net revenue was $306 million, up 21% organically at the time. As a result, even another good quarter may produce a more modest growth rate.


5. Expenses, margins, and guidance: the likely swing factor after a strong 1Q

Nasdaq produced a 57% non-GAAP operating margin in 1Q26, up two percentage points year over year, as non-GAAP operating income grew 17%.

However, management explicitly stated that 2Q expense growth should be higher than 1Q, partly due to the timing of its annual compensation cycle. Its full-year 2026 non-GAAP operating-expense guidance is $2.485 billion to $2.545 billion, while the non-GAAP tax-rate guide remains 22.5% to 24.5%.

The key questions:

  1. Does management maintain the expense range?
  2. If it raises expenses, is that due to revenue-linked compensation and growth investment—or a more concerning cost pressure?
  3. Can operating margin remain resilient despite the anticipated 2Q expense step-up?
  4. Is there any change in the timing or magnitude of AI-related efficiencies?

At its February Investor Day, Nasdaq outlined a goal of $100 million of run-rate AI productivity efficiencies by year-end 2027, with the majority of the benefit expected in 2027. Therefore, investors should not expect AI savings to fully offset near-term investment and compensation costs in 2Q26.


Quarterly baseline and likely comparison points

Metric 2Q25 actual 1Q26 actual 2Q26 watch item
Net revenue $1.306B $1.407B Ability to sustain double-digit growth
Solutions revenue $991M $1.082B Recurring-growth durability
Financial Technology revenue $464M $517M High-teens organic growth and bookings quality
Market Services, net $306M $317M Volumes, capture, and share
Index revenue $196M $220M AUM, flows, and derivatives mix
Non-GAAP EPS $0.85 $0.96 Revenue conversion after higher 2Q expenses
Non-GAAP operating margin 55% 57% Operating-leverage durability

Note: No consensus estimate is included here because no independently sourced current consensus was available in the research materials.


Stock setup

NDAQ closed at $90.92 on July 22, 2026. The shares have recovered from a late-June low near $76.85, but remain below the $96.66 close on January 2, 2026. That suggests the market has regained some confidence heading into earnings but may still be looking for confirmation on growth durability, margins, and the value of Nasdaq’s AI/always-on-market initiatives.

The report is likely to be judged on the combination of:

  1. FinTech growth and ARR;
  2. Index AUM/flows;
  3. Market Services monetization;
  4. 2026 expense guidance and margin trajectory; and
  5. Evidence that cross-sell, cloud, AI, 23/5 trading, and tokenization are becoming tangible commercial opportunities rather than only strategic narratives.

Bull case

A bullish outcome would include:

Bear case

A bearish result would likely involve:


Bottom line

Nasdaq’s 2Q26 report is primarily a test of whether the company can extend its 1Q26 broad-based growth and margin expansion. The highest-value indicators will be FinTech ARR and bookings quality, Index AUM/flows, Market Services capture, and management’s confidence in the 2026 expense framework.

The core investment debate is increasingly favorable: Nasdaq has a large and growing recurring-revenue base, high incremental margins, strong cash generation, and credible growth opportunities in AI, cloud modernization, cross-selling, data, index distribution, and always-on markets. But after a very strong first quarter, the bar is higher—particularly for Financial Technology—and investors will want proof that revenue growth remains durable beyond favorable market activity and discrete items.

Sources