Nasdaq (NASDAQ:NDAQ) Issues Quarterly Earnings Results

Key Points

• Nasdaq beat expectations in its quarterly results, reporting EPS of $1.07 versus the $0.98 consensus and revenue of $2.53 billion, which was well above estimates and up 14.9% year over year.
• The company said its core businesses showed strong momentum, with net revenue up 15%, solutions revenue up 17%, and margin expansion, while growth areas like index assets, Verafin, and financial technology continued to scale.
• Management highlighted an exceptionally strong listings environment, including the SpaceX IPO and Nasdaq’s strongest first half ever for U.S. listings, with $111 billion in operating company proceeds raised.

Nasdaq (NASDAQ:NDAQ - Get Free Report) posted its quarterly earnings data on Thursday. The financial services provider reported $1.07 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.98 by $0.09, FiscalAI reports. The company had revenue of $2.53 billion for the quarter, compared to analysts' expectations of $1.46 billion. Nasdaq had a return on equity of 17.51% and a net margin of 23.15%.Nasdaq's revenue was up 14.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.85 EPS.

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

• Nasdaq reported a strong second quarter with net revenue up 15%, solutions revenue up 17%, and diluted EPS up 25% to $1.07, while operating and EBITDA margins both expanded by two points.
• The company highlighted major milestones in its growth businesses, including index AUM surpassing $1 trillion, record quarterly inflows of $51 billion, and Verafin crossing $13 trillion in combined assets across more than 2,800 financial institutions.
• Capital Access Platforms benefited from a very strong listings environment, led by the SpaceX IPO and other marquee deals, while Nasdaq said the U.S. listings franchise had its strongest first half ever with $111 billion in operating company proceeds raised.
• Financial Technology continued to post robust momentum, with 15% revenue growth and 16% ARR growth; management pointed to strong demand in Verafin, regulatory tech, and capital markets tech, plus growing adoption of its AI-driven tools.
• Management is leaning into AI, tokenization, always-on markets, and 24/7 trading as long-term opportunities, but it also warned that these areas are still early and may require significant regulatory and infrastructure changes before they materially scale.

Nasdaq Stock Up 1.8%

NASDAQ:NDAQ traded up $1.62 during midday trading on Thursday, reaching $92.52. The company had a trading volume of 1,107,960 shares, compared to its average volume of 4,069,121. Nasdaq has a 12-month low of $76.55 and a 12-month high of $101.79. The firm has a market capitalization of $52.32 billion, a price-to-earnings ratio of 27.90, a PEG ratio of 1.44 and a beta of 0.99. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.71. The stock's fifty day simple moving average is $87.42 and its 200-day simple moving average is $88.54.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on NDAQ shares. TD Cowen reissued a "buy" rating and issued a $105.00 price target (up from $101.00) on shares of Nasdaq in a research note on Monday. Morgan Stanley decreased their price target on Nasdaq from $116.00 to $112.00 and set an "overweight" rating on the stock in a research note on Friday, July 10th. Raymond James Financial restated an "outperform" rating and set a $113.00 price target (up from $111.00) on shares of Nasdaq in a research report on Thursday, July 9th. Loop Capital set a $113.00 price objective on Nasdaq in a report on Friday, April 24th. Finally, Keefe, Bruyette & Woods increased their target price on Nasdaq from $92.00 to $97.00 and gave the stock a "market perform" rating in a research note on Friday, April 24th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, Nasdaq presently has an average rating of "Buy" and a consensus target price of $108.00.

Insider Buying and Selling

In other news, SVP Michelle Lynn Daly sold 1,323 shares of the business's stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $88.82, for a total transaction of $117,508.86. Following the completion of the transaction, the senior vice president directly owned 10,089 shares of the company's stock, valued at approximately $896,104.98. The trade was a 11.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Cohen Tal sold 15,518 shares of the business's stock in a transaction dated Monday, April 27th. The stock was sold at an average price of $90.75, for a total value of $1,408,258.50. Following the transaction, the insider directly owned 215,208 shares of the company's stock, valued at approximately $19,530,126. This represents a 6.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 24,551 shares of company stock worth $2,225,990 in the last quarter. Company insiders own 0.60% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in NDAQ. Equitable Holdings Inc. grew its position in Nasdaq by 2.2% in the third quarter. Equitable Holdings Inc. now owns 7,237 shares of the financial services provider's stock worth $640,000 after acquiring an additional 157 shares in the last quarter. UMB Bank n.a. lifted its stake in shares of Nasdaq by 10.2% in the 4th quarter. UMB Bank n.a. now owns 1,705 shares of the financial services provider's stock valued at $166,000 after purchasing an additional 158 shares during the last quarter. Dorsey & Whitney Trust CO LLC boosted its holdings in Nasdaq by 2.5% in the fourth quarter. Dorsey & Whitney Trust CO LLC now owns 10,619 shares of the financial services provider's stock worth $1,031,000 after purchasing an additional 255 shares in the last quarter. Smartleaf Asset Management LLC boosted its holdings in Nasdaq by 11.1% in the fourth quarter. Smartleaf Asset Management LLC now owns 2,664 shares of the financial services provider's stock worth $262,000 after purchasing an additional 266 shares in the last quarter. Finally, L2 Asset Management LLC increased its position in Nasdaq by 12.1% during the fourth quarter. L2 Asset Management LLC now owns 2,551 shares of the financial services provider's stock worth $248,000 after buying an additional 276 shares during the last quarter. Hedge funds and other institutional investors own 72.47% of the company's stock.

Nasdaq Company Profile

Nasdaq, Inc is a global financial technology company that operates one of the world's leading electronic securities exchanges and provides a broad array of products and services to capital markets participants. Its core activities include operating the Nasdaq Stock Market and other trading venues, developing and supplying market technology and matching engines to exchanges and trading firms, licensing market data and indices, and offering clearing, trade execution and post-trade solutions. The company also provides market surveillance, risk management and regulatory technology used by exchanges and regulators.

Founded in 1971 by the National Association of Securities Dealers (NASD) as the first electronic stock market, Nasdaq has evolved into a diversified marketplace and technology provider.

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