NASDAQ, INC. Q1 FY2026 earnings call

Adena Friedman began by reviewing first quarter financial results, noting strong momentum with the highest Q1 organic growth since 2021. Capital access platforms saw 15 new operating companies in U.S. listings with over $5 billion in proceeds, and the data business had 32% YOY growth in enterprise license agreements. The index franchise had $79 billion in net inflows over the last 12 months. Workflow and Insights revenue grew 6% driven by analytics. Financial Technology had record 18% revenue growth. Sarah Youngwood detailed quarterly results, with solutions revenue up 14%, operating margin at 57%, and EBITDA margin at 60%. Capital access platforms had revenue of $565 million, up 10%, Workflow and Insights revenue up 6%, Financial Technology revenue $517 million, up 18%, and Market Services had net revenue of $317 million, up 10%

Capital access platforms generated 10% revenue growth and 7% ARR growth. Financial Technology delivered 18% revenue growth and 16% ARR growth. Market Services delivered 10% net revenue growth. In capital access platforms, data business had 32% year-over-year growth in enterprise license agreements, and the index franchise had $79 billion in net inflows over the last 12 months. Workflow and Insights revenue grew 6% driven by analytics. Financial Technology achieved record 18% revenue growth, with 80% of ACV bookings being cloud-based. Market Services had 10% net revenue growth with record volumes in U.S. markets

Updated non-GAAP expense guidance to a range of $2.485 billion to $2.545 billion from $2.455 billion to $2.535 billion due to strong year-to-date revenue performance. Anticipates a higher expense growth rate in the second quarter compared to the first quarter. Maintains 2026 non-GAAP tax rate guidance of 22.5% to 24.5%. Generated $629 million in free cash flow in the first quarter and repurchased $548 million worth of shares in the first quarter

Q: Bill Katz asked about Agentic AI capabilities and client uptake.

A: Adena Friedman discussed AI application within Nasdaq's business, including product development efficiencies and client benefits in anti-fincrime, surveillance, etc.

Q: Alexander Blostein inquired about fintech trends.

A: Adena Friedman talked about trade management services pricing, Calypso collateral management demand, and market technology trading opportunities.

Q: Daniel Fannon asked about data growth.

A: Adena Friedman spoke about international demand for data and how 24/5 trading is driving enterprise license deals.

Q: Benjamin Budish questioned index revenues.

A: Sarah Youngwood and Adena Friedman discussed mix shift in futures and fee reset impact.

Q: Owen Lau asked about tokenized trading.

A: Adena Friedman talked about DTCC collaboration and end-to-end testing for tokenized trading.

Q: Brian Bedell asked about the impact of always on markets.

A: Adena Friedman talked about surveillance, trading, and collateral management demand influenced by always on markets.

Q: Y. Cho asked about index licensing.

A: Adena Friedman talked about BlackRock and State Street providing access to new investors and index product expansion.

Q: Elias Abboud asked about Mythos model risks.

A: Adena Friedman talked about partner security reviews and model testing.

Q: Patrick Moley asked about the impact of tokenization on the IPO process.

A: Adena Friedman talked about the IPO process not being fundamentally changed by tokenization.

Q: Jeffrey Schmitt asked about outcome-related options.

A: Adena Friedman talked about outcome-oriented options as prediction market products.

Q: Ashish Sabadra asked about Tier 1 clients.

A: Adena Friedman talked about strong pipeline and client implementations.

Q: Alex Kramm asked about capital markets cancellations.

A: Sarah Youngwood talked about the one-time nature of such cancellations.

Q: Michael Cyprys asked about 23/5 trading.

A: Adena Friedman talked about steps, milestones, and addressing liquidity concerns related to 23/5 trading