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Nasdaq (NDAQ)
NASDAQ:NDAQ
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Nasdaq (NDAQ) AI Stock Analysis

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NDAQ

Nasdaq

(NASDAQ:NDAQ)

Rating:78Outperform
Price Target:
$107.00
â–²(14.46% Upside)
Nasdaq's overall stock score reflects strong financial performance and positive earnings call highlights, particularly the robust revenue and EPS growth. The technical analysis shows strong momentum, though caution is advised due to a high P/E ratio suggesting potential overvaluation. The positive earnings call sentiment further elevates the score.
Positive Factors
Earnings
Nasdaq reported adjusted EPS of $0.85 in the quarter, which beat the estimate of $0.80 and consensus of $0.81.
Revenue Growth
The company delivered strong growth across all segments in the quarter, with total revenues up 13% and solutions revenue up 10%.
Negative Factors
Capital Raising
There are still some delays on the capital raising side from the larger corporates.
Economic Uncertainty
Some revenue weakness is expected in the near term from heightened economic uncertainty and a tough market for the listings business.

Nasdaq (NDAQ) vs. SPDR S&P 500 ETF (SPY)

Nasdaq Business Overview & Revenue Model

Company DescriptionNasdaq, 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 MoneyNasdaq generates revenue through multiple key streams. Primarily, it earns money from transaction-based fees on trades executed on its exchanges, which include equities, options, and futures. Additionally, Nasdaq collects listing fees from companies that choose to list their shares on its exchanges. Another significant revenue stream comes from market data services, where the company sells real-time and historical market data to institutional clients, brokers, and financial professionals. Nasdaq also provides technology solutions to other exchanges and financial institutions, which include trading, surveillance, and clearing services. Partnerships with various financial institutions and market participants enhance its earnings by expanding its client base and product offerings, while ongoing innovations in technology and trading platforms contribute to its competitive edge in the financial markets.

Nasdaq Key Performance Indicators (KPIs)

Any
Any
Annual Recurring Revenue
Annual Recurring Revenue
Measures the predictable and stable revenue generated from ongoing subscriptions or contracts, highlighting the company's financial stability and potential for sustainable growth.
Chart InsightsNasdaq's Annual Recurring Revenue (ARR) has shown consistent growth, with a notable acceleration in 2023, reaching $2.9 billion by mid-2025. This growth aligns with the company's strategic focus on expanding its Financial Technology and Market Services divisions, which have shown robust performance. Despite challenges like expense growth and regulatory uncertainties, the momentum in Financial Crime and Regulatory Technology, along with record net inflows in its index business, underscores Nasdaq's strong positioning and potential for sustained ARR growth.
Data provided by:Main Street Data

Nasdaq Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 15, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Nasdaq's strong financial performance and growth across various segments, particularly in Market Services and IPOs. However, expense increases and regulatory uncertainties presented challenges. Overall, the positives significantly outweigh the negatives, indicating a robust and promising outlook.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Nasdaq delivered $1.3 billion in net revenue, a year-over-year increase of 12%. Operating income grew 16%, and EPS increased by 24%.
Record Growth in Market Services
Market Services delivered record net revenues, reflecting broad-based strength across U.S. and European markets with a 21% growth.
IPO Success and Listings Leadership
Nasdaq welcomed 38 new operating companies with a 79% win rate and extended its listings leadership to 46 consecutive quarters.
Agentic AI Launch
Nasdaq Verafin announced the launch of Agentic AI workforce, showing potential to reduce alert review workload by over 80%.
Negative Updates
Expense Increase
Operating expenses were up just under 8% year-over-year, driven by the timing of the annual compensation cycle.
Regulatory Uncertainty
Uncertainty in U.S. and European regulatory environments affected client readiness and delayed implementations.
Company Guidance
During Nasdaq's Second Quarter 2025 Earnings Call, the company provided robust guidance and highlighted key financial metrics. Net revenue reached $1.3 billion, marking a year-over-year increase of 12%, with solutions revenues growing by 10% to $991 million. The overall annualized recurring revenue (ARR) saw a 9% rise, totaling $2.9 billion. Operating income increased by 16% to $721 million, contributing to an EPS growth of 24%. Expenses rose by just under 8%, primarily due to the timing of the annual compensation cycle. The Capital Access Platforms division reported 9% revenue growth and 6% ARR growth, while Financial Technology delivered 10% revenue growth and 11% ARR growth. Market Services experienced a significant 21% net revenue growth. Despite ongoing macroeconomic uncertainty, Nasdaq remains optimistic about the IPO outlook for the remainder of the year and into 2026, supported by strong performance in recent listings and an improving business environment.

Nasdaq Financial Statement Overview

Summary
Nasdaq exhibits strong profitability and effective cash management, with a Gross Profit Margin of 54.8% and a Net Profit Margin of 16.4%. Revenue has grown by 5.6%, and the company maintains robust EBIT and EBITDA margins. A moderate Debt-to-Equity Ratio of 0.84 indicates balanced leverage, though increasing liabilities should be monitored.
Income Statement
85
Very Positive
Nasdaq demonstrates strong profitability with a Gross Profit Margin of 54.8% and a Net Profit Margin of 16.4% for TTM. Revenue has grown by 5.6% over the past year, indicating a positive growth trajectory. The EBIT and EBITDA margins are robust at 25.5% and 32.3% respectively, showcasing efficient operational management. However, Gross Profit Margin has decreased compared to the previous year, indicating rising costs.
Balance Sheet
78
Positive
Nasdaq maintains a moderate Debt-to-Equity Ratio of 0.84, reflecting a balanced approach to leveraging. The Return on Equity stands at 11.1%, indicating efficient use of equity to generate profits. With an Equity Ratio of 37.7%, Nasdaq shows good financial stability, although there has been a slight increase in total liabilities over assets, which could pose a risk if not managed.
Cash Flow
80
Positive
The company has shown a 7.1% growth in Free Cash Flow, indicating effective cash generation capabilities. The Operating Cash Flow to Net Income Ratio is 1.62, suggesting strong cash flow relative to net income. The Free Cash Flow to Net Income Ratio of 1.45 further underscores solid cash management. However, continued investment activities resulting in negative investing cash flow could warrant monitoring.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.81B7.40B6.06B6.23B5.89B5.63B
Gross Profit3.10B2.99B2.55B2.34B2.23B1.94B
EBITDA2.63B2.46B2.00B1.85B1.93B1.51B
Net Income1.28B1.12B1.06B1.13B1.19B933.00M
Balance Sheet
Total Assets30.65B30.39B32.29B20.87B20.11B17.98B
Cash, Cash Equivalents and Short-Term Investments2.55B776.00M641.00M683.00M601.00M2.94B
Total Debt9.72B9.87B10.87B5.85B6.22B5.93B
Total Liabilities19.09B19.20B21.47B14.70B13.71B11.54B
Stockholders Equity11.55B11.19B10.82B6.15B6.39B6.43B
Cash Flow
Free Cash Flow1.85B1.73B1.54B1.55B920.00M1.06B
Operating Cash Flow2.07B1.94B1.70B1.71B1.08B1.25B
Investing Cash Flow-979.00M-953.00M-5.99B49.00M-2.65B-231.00M
Financing Cash Flow-1.77B-2.56B4.22B1.04B1.42B1.38B

Nasdaq Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price93.48
Price Trends
50DMA
92.93
Positive
100DMA
86.74
Positive
200DMA
82.36
Positive
Market Momentum
MACD
0.21
Positive
RSI
46.27
Neutral
STOCH
39.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NDAQ, the sentiment is Neutral. The current price of 93.48 is below the 20-day moving average (MA) of 94.81, above the 50-day MA of 92.93, and above the 200-day MA of 82.36, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 46.27 is Neutral, neither overbought nor oversold. The STOCH value of 39.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NDAQ.

Nasdaq Risk Analysis

Nasdaq disclosed 42 risk factors in its most recent earnings report. Nasdaq reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Nasdaq Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$100.23B33.6110.89%1.07%11.44%29.10%
78
Outperform
$54.11B36.0313.28%1.06%23.55%49.91%
77
Outperform
$96.38B26.0713.62%3.96%11.15%13.98%
76
Outperform
$164.94B41.4511.76%0.70%10.72%23.30%
70
Outperform
$24.49B27.4520.64%1.11%18.99%17.97%
70
Outperform
$42.85B36.70-117.99%1.26%10.48%0.98%
68
Neutral
$18.06B11.9710.24%3.74%9.75%1.30%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NDAQ
Nasdaq
93.48
22.44
31.59%
CBOE
Cboe Global Markets
232.58
23.90
11.45%
CME
CME Group
261.94
50.95
24.15%
ICE
Intercontinental Exchange
174.27
15.57
9.81%
SPGI
S&P Global
538.06
31.06
6.13%
MSCI
MSCI
555.15
2.04
0.37%

Nasdaq Corporate Events

Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Nasdaq Reports Strong Q2 2025 Financial Results
Positive
Jul 24, 2025

On July 24, 2025, Nasdaq announced its financial results for the second quarter of 2025, highlighting a 13% increase in net revenue to $1.3 billion compared to the previous year. The company reported strong growth across all divisions, with notable increases in solutions revenue, annualized recurring revenue, and financial technology revenue. Nasdaq also returned $155 million to shareholders through dividends and $100 million through stock repurchases while repaying $400 million of senior unsecured notes. The results reflect Nasdaq’s resilience and strategic focus on innovation and client relationships, as emphasized by CEO Adena Friedman and CFO Sarah Youngwood.

The most recent analyst rating on (NDAQ) stock is a Buy with a $98.00 price target. To see the full list of analyst forecasts on Nasdaq stock, see the NDAQ Stock Forecast page.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Nasdaq Holds Annual Shareholders Meeting on June 11
Neutral
Jun 16, 2025

On June 11, 2025, Nasdaq, Inc. held its Annual Meeting of Shareholders where several key decisions were made. Shareholders elected twelve directors to serve until the 2026 meeting, approved executive compensation on an advisory basis, ratified Ernst & Young LLP as the independent accounting firm for 2025, and amended the company’s Certificate of Incorporation to allow limited exculpation of officers. These actions reflect Nasdaq’s ongoing governance and operational strategies, potentially impacting its corporate structure and stakeholder relations.

The most recent analyst rating on (NDAQ) stock is a Buy with a $98.00 price target. To see the full list of analyst forecasts on Nasdaq stock, see the NDAQ Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 25, 2025