Nasdaq (NASDAQ:NDAQ) Announces Earnings Results

Key Points

• Nasdaq exceeded quarterly expectations: EPS was $1.04 versus the $1.02 consensus, while revenue rose 12.6% year over year to $2.39 billion. Net revenue increased 14%, and diluted EPS grew 19%.
• Financial technology and AI remained key growth drivers: FinTech revenue rose 16%, annual recurring revenue reached $3.4 billion, and more than 850 Verafin clients were using Nasdaq’s AI workforce tools.
• Strategic expansion and shareholder returns continued, including planned 23/5 trading, a potential equity-token launch, and nearly $500 million returned through dividends and buybacks. However, Nasdaq raised expense guidance and noted weaker recent IPO activity and a decline in Market Services’ operating margin.

Nasdaq (NASDAQ:NDAQ - Get Free Report) posted its quarterly earnings data on Thursday. The financial services provider reported $1.04 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.02 by $0.02, FiscalAI reports. Nasdaq had a net margin of 22.60% and a return on equity of 18.38%. The firm had revenue of $2.39 billion for the quarter, compared to the consensus estimate of $1.47 billion. During the same period in the previous year, the firm earned $0.88 EPS. The business's revenue for the quarter was up 12.6% compared to the same quarter last year.

Here are the key takeaways from Nasdaq's conference call:

• Strong third-quarter performance: Net revenue rose 14% to $1.5 billion, solutions revenue increased 18%, ARR grew 14% to $3.4 billion, and diluted EPS climbed 19% to $1.04. Operating and EBITDA margins each expanded by one percentage point.
• Financial technology and AI momentum remained robust: FinTech revenue increased 16% and ARR grew a record 18%, with 85% of bookings tied to cloud solutions. Nasdaq also reported growing adoption and monetization of agentic AI tools, including more than 850 Verafin clients using its AI workforce and 70 paying clients.
• Listings and market modernization initiatives advanced, including 15 new operating-company listings, the planned December launch of 23/5 Nasdaq trading, the Level ATS acquisition, and plans to launch a Nasdaq equity token in the first half of 2027. Management noted, however, that the IPO environment softened modestly in recent weeks.
• Shareholder returns increased: Nasdaq returned nearly $500 million through dividends and share repurchases during the quarter, repurchased $1.2 billion of stock through the first three quarters, and launched an additional $315 million-$385 million accelerated share repurchase plan. The company maintained gross leverage at 2.5x.
• Expense guidance was raised to $2.550 billion-$2.580 billion for 2026, reflecting acquisition costs and stronger business activity, while Market Services’ operating margin declined five percentage points year over year due partly to weaker revenue performance and a prior-year benefit.

Nasdaq Stock Performance

Nasdaq stock traded up $5.59 during mid-day trading on Thursday, reaching $101.71. 856,695 shares of the company's stock were exchanged, compared to its average volume of 3,753,371. The business's fifty day simple moving average is $94.64 and its 200 day simple moving average is $90.85. The firm has a market capitalization of $56.85 billion, a PE ratio of 29.68, a P/E/G ratio of 1.71 and a beta of 0.99. Nasdaq has a one year low of $76.55 and a one year high of $102.03. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.71.

Insiders Place Their Bets

In other news, insider Nelson Griggs sold 11,010 shares of Nasdaq stock in a transaction on Wednesday, July 29th. The stock was sold at an average price of $96.35, for a total transaction of $1,060,813.50. Following the sale, the insider directly owned 205,001 shares in the company, valued at $19,751,846.35. The trade was a 5.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Jeremy Skule sold 1,125 shares of the business's stock in a transaction dated Monday, October 12th. The stock was sold at an average price of $94.13, for a total transaction of $105,896.25. Following the completion of the transaction, the executive vice president directly owned 97,686 shares in the company, valued at $9,195,183.18. This trade represents a 1.14% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 45,172 shares of company stock valued at $4,245,088. Insiders own 0.60% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have recently commented on NDAQ shares. Piper Sandler reiterated an "overweight" rating and issued a $108.00 target price (up from $104.00) on shares of Nasdaq in a report on Friday, October 2nd. Raymond James Financial dropped their price target on shares of Nasdaq from $119.00 to $109.00 in a research report on Friday, October 9th. Argus boosted their price target on shares of Nasdaq from $103.00 to $111.00 in a report on Wednesday, August 5th. Jefferies Financial Group reaffirmed a "hold" rating on shares of Nasdaq in a research report on Thursday. Finally, TD Cowen reduced their price objective on shares of Nasdaq from $108.00 to $107.00 and set a "buy" rating for the company in a research report on Monday, October 12th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $109.24.

About Nasdaq

Nasdaq, Inc is a global financial technology and market infrastructure company best known for operating the Nasdaq Stock Market, one of the world's largest electronic stock exchanges. The company provides listing services for public companies and operates trading venues for equities, options and other financial products. Its exchange business serves companies, investors and market participants in the United States, as well as through Nasdaq's Nordic and Baltic market operations.

Beyond its exchange activities, Nasdaq provides market data, analytics, indexes and technology used by exchanges, brokers, banks, asset managers and other financial institutions.

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