Nasdaq: 3 Key Takeaways for Long-Term Investors | The Motley Fool
On its third-quarter 2026 earnings call, held on Oct. 22, 2026, Nasdaq (NDAQ +7.47%) announced net revenue grew 14% year over year to $1.5 billion, propelled by demand for cloud technology and index products. The business is converting capital markets infrastructure into high-margin annualized recurring revenue, or predictable subscription software fees. Three things management said stand out.
1. Cloud Migration Expands Contract Value Across Financial Technology
Institutional clients are moving core operations from on-premises servers to cloud-based architectures, thereby expanding contract sizes and recurring fees. Software bookings reflect this shift as clients modernize risk management and trading workflows.
This quarter, 85% of bookings across our fintech portfolio were for cloud-based solutions.
— Adena Friedman, Chair and Chief Executive Officer
2. Anti-Financial Crime Demand Drives Enterprise Wins
Banks are adopting automated tools to combat fraud and money laundering, boosting adoption of Nasdaq Verafin, the company’s financial crime prevention software. The software serves small and medium-sized business (SMB) clients alongside global financial institutions, where enterprise adoption is pacing ahead of last year’s total.
During the quarter, we signed 45 new SMB clients and three enterprise deals, bringing the total enterprise signings to 12 year to date, exceeding the nine enterprise signings we delivered in the entirety of last year.
— Adena Friedman, Chair and Chief Executive Officer
3. Infrastructure Support Expands Toward 24/7 Trading Venues
Capital markets are moving toward continuous operating schedules, creating demand for market technology capable of handling around-the-clock volume. Capitalizing on this trend, the company powers alternative trading systems, or broker-operated private trading venues, designed for non-stop equity execution.
This quarter, Bruce ATS signed an agreement to use Nasdaq’s trading technology to power the first 24/7 U.S. equities trading ecosystem.
— Adena Friedman, Chair and Chief Executive Officer
Looking Ahead
Revenue expansion across divisions reflects demand for workflow automation. Mission-critical infrastructure and proprietary index licensing provide structural operational advantages.
In the third quarter, Nasdaq delivered strong results across each of our divisions, building on the outstanding momentum from the first half of the year and reinforcing our position as a trusted transformation partner to our clients.
— Adena Friedman, Chair and Chief Executive Officer
Capital allocation emphasizes organic technology investments and share repurchases, supported by $616 million in quarterly free cash flow, or operating cash minus capital spending.
As we enter the fourth quarter and move toward the new year, we are extremely confident in our opportunity, and we remain focused on executing on our strategic objectives and delivering long-term value to shareholders.
— Sarah Youngwood, Chief Financial Officer
