NDAQ

Nasdaq reported Q3 2026 revenue of $1.48 billion, up 12.6% year-over-year, with EPS of $1.04 versus $0.88 in the prior year quarter. The company beat both revenue and EPS consensus estimates by 1% and 1.96% respectively.

Key business segments showed mixed performance, with strong growth in Financial Technology (+15.8%) and Capital Access Platforms (+17.4%), offset by a decline in U.S. Equity Derivatives Trading (-11.3%). The stock has a Zacks Rank #3 (Hold) rating.

Nasdaq reported Q3 2026 non-GAAP EPS of $1.04, up 18% YoY and beating consensus by 1.96%. Net revenues increased 13% to $1.48 billion, driven by strong Solutions and Financial Technology segments.

Operating margins expanded to 57% as the company returned $496 billion through dividends and share repurchases. Index revenues surged 39% with record ETP assets under management reaching $1.11 trillion.

Nasdaq is expected to report Q3 2026 earnings of $1.02 per share (up 15.9% YoY) and revenues of $1.47 billion (up 11.7% YoY) on October 22. With a positive Earnings ESP of +0.98% and Zacks Rank #3, the stock is positioned as a likely earnings-beat candidate. The company has beaten consensus EPS estimates in all four of the last quarters.

Nasdaq reported Q3 2026 net revenue of $1.5 billion, up 14% year-over-year, driven by cloud migration, anti-financial crime software adoption, and 24/7 trading infrastructure demand. The company is successfully converting capital markets infrastructure into high-margin recurring revenue through cloud-based solutions (85% of fintech bookings) and enterprise wins in fraud prevention, positioning itself as a transformation partner with strong free cash flow of $616 million.

CME Group delivered solid third-quarter 2026 results with revenues rising 13% to $1.73 billion and adjusted EPS increasing 12.7% to $3.02, beating consensus estimates. Record average daily volume climbed 16.3% to 29.4 million contracts across all major product lines. The company returned $1 billion to shareholders through dividends and share repurchases.

Nasdaq CEO Adena Friedman believes tokenized money (stablecoins) is essential for enabling 24/7 trading and unlocking tens of billions in trapped bank capital. Starting December 6, Nasdaq will trade U.S. stocks 23 hours a day, five days a week.

The strategy involves first tokenizing money, then tokenizing collateral and assets. However, Wall Street is expected to adopt crypto tools selectively rather than wholesale, with the biggest beneficiaries being infrastructure operators like Circle, Visa, and Nasdaq itself rather than crypto tokens.

S&P Global is expected to report a year-over-year decline in earnings and revenues for Q3 2026, with consensus EPS estimates of $4.43 (down 6.3%) and revenues of $3.64 billion (down 6.5%). With a negative Earnings ESP of -0.56% and Zacks Rank #3, the stock is not considered a compelling earnings-beat candidate. In contrast, Nasdaq is expected to report earnings growth of 15.9% and has a positive Earnings ESP of +0.14%, making it more likely to beat consensus estimates.

CME Group and Coinbase Global represent two different approaches to financial infrastructure. CME operates a high-margin derivatives marketplace with a 62% net margin and strong cash generation, while Coinbase scales rapidly in crypto trading but faces regulatory uncertainty. The author recommends CME due to its superior profitability, lower valuation multiple, dividend payment, and skepticism about crypto's fundamental value.

CME Group is expected to report Q3 2026 earnings of $2.98 per share (11.2% YoY growth) and revenues of $1.71 billion (11.4% YoY growth) on October 21. The company's Earnings ESP of +0.73% combined with a Zacks Rank #3 suggests an earnings beat. Strong trading volumes (up 16% to 29.4 million contracts) and market data revenue growth (up 16.7%) are key drivers, though expenses are expected to rise due to employee compensation and technology investments.

Meridian International Center announced the inaugural cohort of 25 leaders across business, technology, culture, sports, and state government recognized for shaping U.S. global influence. The group spans sectors including AI, space, medicine, energy, and finance, reflecting how American power is increasingly exercised beyond Washington through private sector innovation, international relationships, and cross-sector partnerships.

Zacks analyzes five securities exchange stocks amid industry headwinds. While diversified revenue streams, higher trading volumes, and technology investments support growth, the Securities and Exchanges industry faces challenges from regulatory changes, cybersecurity threats, and competition.

The industry ranks #166 out of 247 Zacks industries with negative earnings outlook, having underperformed the S&P 500 year-to-date. Five Hold-rated stocks are highlighted for consideration.

The Securities and Exchanges industry faces mixed prospects with a Zacks Industry Rank #166 (bottom 33%). While growth drivers include higher trading volumes, cryptocurrency adoption, AI investments, and diversification into recurring revenue streams, challenges include intense competition, regulatory pressures, and cybersecurity threats. The industry has underperformed year-to-date, trading at 20.27X P/E versus the S&P 500's 18X, with analyst confidence declining as 2026 earnings estimates decreased 3% since June.

Cboe Global Markets has extended its exclusive licensing agreement with S&P Dow Jones Indices for SPX options through 2051. SPX options recorded record volume of 970.6 million contracts in 2025 with 25% year-over-year daily volume growth.

While the extension supports long-term revenue growth and product innovation, revised royalty terms beginning in 2027 could increase costs. Competitors CME Group and Nasdaq continue expanding their own index derivatives offerings.

Cboe Global Markets plans to launch binary contracts tied to company-specific key performance indicators (KPIs) in October 2026, pending regulatory approval. The products will initially be linked to 23 U.S.-listed companies and will be offered through Robinhood as the first retail broker. CBOE Clear U.S. is seeking SEC registration to clear these contracts, potentially expanding CBOE's clearing business and retail reach.

Nasdaq's FinTech division is becoming a major growth driver, with revenues rising 16% to $539 million in Q2 2026 and 15% organic growth. The business spans Financial Crime Management, Regulatory Technology, and Capital Markets Technology, with strong client additions and cross-selling opportunities. Competitors ICE and CME are also expanding their technology and subscription-based offerings.