Nasdaq (NDAQ) AI Stock Analysis

• Market Cap: $53.59B
• Dividend Yield: 1.12%
• Average Volume (3M): 2.85M
• Price to Earnings (P/E): 33.5
• Beta (1Y): 0.72
• Revenue Growth: 16.41%
• EPS Growth: 68.03%
• Country: US
• Employees: 9,377
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 0.88
• Shares Outstanding: 570,995,400
• 10 Day Avg. Volume: 3,776,373
• 30 Day Avg. Volume: 2,845,098
• PEG Ratio: -5.22
• Price to Book (P/B): 3.97
• Price to Sales (P/S): 6.01
• P/FCF Ratio: 25.67
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 7.36
• Enterprise Value/Gross Profit: 17.91
• Enterprise Value/Ebitda: 20.08
• 1Y Price Target: $106.09
• Price Target Upside: 13.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 3.42
• Revenue Forecast (FY): $5.22B

• Rating: 78 Outperform
• Price Target: $102.00 ▲(9.01% Upside)

Nasdaq's strong financial performance and positive earnings call sentiment are the primary drivers of its overall score. While technical indicators are moderately positive, the high P/E ratio and concerns over free cash flow growth slightly temper the outlook. The company's strategic initiatives and AI integration position it well for future growth, despite some challenges.

Positive Factors

Revenue Growth

The consistent revenue growth underscores Nasdaq's expanding market presence and effective business strategies, enhancing its competitive position.

Strategic Partnerships

Expanding partnerships, like with Revolut, enhance Nasdaq's service offerings and market reach, supporting sustainable growth and innovation.

AI Integration

AI integration improves operational efficiency and client offerings, positioning Nasdaq as a leader in tech-driven financial services.

Negative Factors

Decline in Free Cash Flow Growth

A significant decline in free cash flow growth could limit Nasdaq's ability to reinvest in its business and manage debt, impacting long-term financial health.

Delayed IPO Activity

Delayed IPO activity can affect Nasdaq's transaction fee revenue, potentially slowing growth in its core exchange services.

Challenges in Financial Crime Management Technology

Challenges in Financial Crime Management Technology may hinder growth in a critical area, affecting Nasdaq's ability to capitalize on market demand.

Nasdaq Business Overview & Revenue Model

Company Description

Nasdaq, Inc. operates as a technology company that serves capital markets and other industries worldwide. The Market Technology segment includes anti financial crime technology business, which offers Nasdaq Trade Surveillance, a SaaS solution for brokers and other market participants to assist them in complying with market rules, regulations, and internal market surveillance policies; Nasdaq Automated Investigator, a cloud-deployed anti-money laundering tool; and Verafin, a SaaS technology provider of anti-financial crime management solutions. This segment also handles assets, such as cash equities, equity derivatives, currencies, interest-bearing securities, commodities, energy products, and digital currencies. The Investment Intelligence segment sells and distributes historical and real-time market data; develops and licenses Nasdaq-branded indexes and financial products; and provides investment insights and workflow solutions. The Corporate Platforms segment operates listing platforms; and offers investor relations intelligence and governance solutions. As of December 31, 2021, it had 4,178 companies listed securities on The Nasdaq Stock Market, including 1,632 listings on The Nasdaq Global Select Market; 1,169 on The Nasdaq Global Market; and 1,377 on The Nasdaq Capital Market. The Market Services segment includes equity derivative trading and clearing, cash equity trading, fixed income and commodities trading and clearing, and trade management service businesses. This segment operates various exchanges and other marketplace facilities across various asset classes, which include derivatives, commodities, cash equity, debt, structured products, and exchange traded products; and provides broker, clearing, settlement, and central depository services. The company was formerly known as The NASDAQ OMX Group, Inc. and changed its name to Nasdaq, Inc. in September 2015. Nasdaq, Inc. was founded in 1971 and is headquartered in New York, New York.

How the Company Makes Money

Nasdaq generates revenue through multiple streams, primarily from transaction fees, listing fees, and market data services. Transaction fees are earned from trades executed on its exchanges, while listing fees are charged to companies for being listed on Nasdaq. Additionally, Nasdaq provides market data services, selling real-time and historical data to financial institutions and traders. The company also earns revenues from technology solutions, offering proprietary trading technology to other exchanges and financial institutions. Strategic partnerships with financial organizations and technology firms further enhance its revenue potential, allowing Nasdaq to expand its service offerings and reach a broader client base.

Nasdaq Financial Statement Overview

Summary

Nasdaq exhibits strong financial health with robust revenue growth and profitability. The income statement shows impressive margins and growth, though the decline in free cash flow growth is a concern. The balance sheet is stable with moderate leverage, but high total debt requires monitoring.

Income Statement

Nasdaq's income statement shows strong profitability with a TTM gross profit margin of 49.72% and a net profit margin of 19.89%. The company has demonstrated impressive revenue growth of 69% in the TTM period, indicating robust business expansion. EBIT and EBITDA margins are healthy at 28.84% and 36.50%, respectively, reflecting efficient operations. Overall, the income statement reflects a strong financial performance with significant growth and profitability.

Balance Sheet

The balance sheet indicates a stable financial position with a debt-to-equity ratio of 0.79, showing moderate leverage. Return on equity is solid at 13.96%, suggesting effective use of equity capital. The equity ratio stands at 39.22%, indicating a balanced capital structure. While the company maintains a healthy balance sheet, the relatively high total debt requires monitoring to ensure continued financial stability.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 168.7% in the TTM period, which is a concern. However, the operating cash flow to net income ratio is 0.30, and the free cash flow to net income ratio is 0.90, indicating that the company generates sufficient cash relative to its net income. While cash generation remains strong, the negative free cash flow growth warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	8.17B	7.40B	6.06B	6.23B	5.89B	5.63B
Gross Profit	3.36B	2.99B	2.55B	2.34B	2.23B	1.94B
EBITDA	2.99B	2.46B	2.00B	1.85B	1.93B	1.51B
Net Income	1.63B	1.12B	1.06B	1.13B	1.19B	933.00M
Balance Sheet
Total Assets	30.65B	30.39B	32.29B	20.87B	20.11B	17.98B
Cash, Cash Equivalents and Short-Term Investments	2.53B	776.00M	641.00M	683.00M	601.00M	2.94B
Total Debt	9.55B	9.87B	10.87B	5.85B	6.22B	5.93B
Total Liabilities	18.62B	19.20B	21.47B	14.70B	13.71B	11.54B
Stockholders Equity	12.02B	11.19B	10.82B	6.15B	6.39B	6.43B
Cash Flow
Free Cash Flow	2.10B	1.73B	1.54B	1.55B	920.00M	1.06B
Operating Cash Flow	2.33B	1.94B	1.70B	1.71B	1.08B	1.25B
Investing Cash Flow	-1.47B	-953.00M	-5.99B	49.00M	-2.65B	-231.00M
Financing Cash Flow	-2.41B	-2.56B	4.22B	1.04B	1.42B	1.38B

Nasdaq Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 93.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NDAQ, the sentiment is Positive. The current price of 93.57 is above the 20-day moving average (MA) of 89.02, above the 50-day MA of 88.24, and above the 200-day MA of 85.24, indicating a bullish trend. The MACD of 1.32 indicates Negative momentum. The RSI at 68.45 is Neutral, neither overbought nor oversold. The STOCH value of 91.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NDAQ.

Nasdaq Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICE	80 Outperform	$93.00B	29.69	11.32%	1.16%	8.96%	30.16%
NDAQ	78 Outperform	$53.59B	33.46	14.07%	1.12%	16.41%	68.03%
CBOE	75 Outperform	$26.06B	26.74	21.51%	1.07%	16.74%	26.74%
CME	74 Outperform	$98.23B	26.40	13.35%	3.96%	5.84%	8.51%
SPGI	73 Outperform	$150.66B	36.17	12.57%	0.77%	9.04%	21.35%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MSCI	62 Neutral	$40.44B	34.12	―	1.31%	9.02%	3.45%

Nasdaq Corporate Events

Nasdaq Announces $95 Million Cash Tender Offers

On December 1, 2025, Nasdaq, Inc. announced cash tender offers to purchase up to $95 million of its outstanding notes, aiming to reduce its total public debt. The tender offers include a sub-cap of $80 million for its 5.350% Senior Notes due 2028 and $10 million for its 3.950% Senior Notes due 2052, with the offers set to expire on December 30, 2025. This strategic move is intended to optimize Nasdaq’s financial structure by utilizing available cash and other liquidity sources, potentially impacting its debt profile and stakeholder interests.

Nasdaq Achieves Milestone with Q3 2025 Financial Results

On October 21, 2025, Nasdaq reported its financial results for the third quarter of 2025, highlighting a significant milestone with Solutions quarterly revenue surpassing $1 billion and annual recurring revenues reaching $3 billion for the first time. The company experienced a 15% increase in net revenue compared to the previous year, driven by strong growth in Financial Technology and Index revenues. Nasdaq’s performance reflects its successful transformation into a leading technology platform, with substantial investments in technology and people to drive long-term growth. The company also returned $155 million to shareholders through dividends and share repurchases, and updated its 2025 non-GAAP operating expense and tax rate guidance.