Nasdaq (NDAQ)
NASDAQ:NDAQ
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Nasdaq
(NASDAQ:NDAQ)
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Rating:75Outperform
Price Target:
$101.00
â–²(13.98% Upside)
Action:ReiteratedDate:04/25/26
The score is driven primarily by strong financial performance (high margins, sharp TTM revenue and free-cash-flow growth, and improving leverage). Earnings-call commentary reinforces the outlook with durable ARR/fintech momentum and increased shareholder returns, though raised expense guidance and mix/capture headwinds are key near-term risks. Technicals are constructive but not decisively strong, and valuation looks reasonable rather than deeply discounted.
Positive Factors
Recurring revenue / ARR growth
Nasdaq's expanding ARR and Solutions growth indicate a durable shift toward subscription-like, SaaS-style revenue. That increases revenue predictability, improves customer lifetime value, and supports scalable sales and R&D investments, making top-line performance less cyclical over time.
Negative Factors
Higher expense guidance
Raised expense guidance and near-term compensation timing increase operating cost base, pressuring margin expansion unless matched by sustained revenue growth. Multi-year AI efficiency targets largely benefit 2027, so near-term expense creep could compress operating leverage and FCF growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue / ARR growth
Nasdaq's expanding ARR and Solutions growth indicate a durable shift toward subscription-like, SaaS-style revenue. That increases revenue predictability, improves customer lifetime value, and supports scalable sales and R&D investments, making top-line performance less cyclical over time.
Read all positive factors
Nasdaq (NDAQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$50.28B
Dividend Yield1.07%
Average Volume (3M)2.97M
Price to Earnings (P/E)23.2
Beta (1Y)0.75
Revenue Growth5.79%
EPS Growth50.79%
CountryUS
Employees9,377
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)3.36
Shares Outstanding565,540,800
10 Day Avg. Volume3,105,078
30 Day Avg. Volume2,970,467
Financial Highlights & Ratios
PEG Ratio0.51
Price to Book (P/B)4.53
Price to Sales (P/S)6.75
P/FCF Ratio27.87
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue7.16
Enterprise Value/Gross Profit13.06
Enterprise Value/Ebitda19.01
Forecast
1Y Price Target
$107.91Price Target Upside21.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)3.93
Revenue Forecast (FY)$5.76B
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 ...
How the Company Makes Money
Nasdaq primarily makes money through a mix of recurring subscription-based revenue and transaction-linked fees tied to capital markets activity. A major revenue stream is Market Services, where Nasdaq earns transaction revenues from trading activi...
Nasdaq Key Performance Indicators (KPIs)
Nasdaq Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 22, 2026
Earnings Call Sentiment Positive
The call presented a broad set of strong operational and financial wins: double-digit top-line growth, record fintech performance, improved margins, robust ACV bookings, accelerating AI and data adoption, solid cash generation and elevated shareholder returns. Headwinds were largely mix-related (derivatives and capture), a muted corporate solutions environment tied to lower IPO activity, modest short-term index flow volatility, and managed expense growth with near-term timing effects. Overall, the positive growth drivers, scalable ARR momentum, and margin expansion materially outweigh the contained challenges.Positive Updates
Strong Top-Line Growth
Net revenue of $1.4B, up 13% year-over-year; solutions revenue $1.1B, up 14% YoY; annualized recurring revenue (ARR) $3.2B, up 12% YoY.
Negative Updates
Muted Corporate Solutions & IPO Environment
Corporate Solutions revenue was essentially flat in Q1; overall corporate buying environment remains muted and IPO activity lower than historic levels, although management noted improving pipeline and early Q2 pickup.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Net revenue of $1.4B, up 13% year-over-year; solutions revenue $1.1B, up 14% YoY; annualized recurring revenue (ARR) $3.2B, up 12% YoY.
Read all positive updates
Company Guidance
Nasdaq updated its 2026 financial guidance and capital-allocation posture: it raised non‑GAAP operating expense guidance to $2.485–$2.545 billion (from $2.455–$2.535B) while assuming FX impacts consistent with prior expectations, reiterated a 2026 non‑GAAP tax rate of 22.5%–24.5%, and warned of higher expense growth in Q2 driven by the timing of the annual compensation cycle; the company also reiterated a program targeting ~$100 million of AI-driven expense efficiencies by end‑2027 (with the majority in 2027). On capital allocation it generated $629 million of free cash flow in Q1 and $2.1 billion LTM (FCF conversion 12%, or 108% excluding tax‑timing), exited the quarter with gross leverage of 2.8x (in its mid‑to‑high target range), repurchased $548 million of stock in Q1 (versus $616 million in all of 2025), returned over $700 million to shareholders in the quarter (including a $153 million dividend at $0.27/share), and the Board approved raising the dividend to $0.31/share starting with the June payment.Nasdaq Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
70
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.27B | 8.22B | 7.40B | 6.06B | 6.23B | 5.89B |
| Gross Profit | 4.53B | 3.94B | 2.99B | 2.55B | 2.34B | 2.23B |
| EBITDA | 3.11B | 3.13B | 2.46B | 2.00B | 1.85B | 1.93B |
| Net Income | 1.91B | 1.79B | 1.12B | 1.06B | 1.13B | 1.19B |
Balance Sheet | ||||||
| Total Assets | 27.30B | 31.05B | 30.39B | 32.29B | 20.87B | 20.11B |
| Cash, Cash Equivalents and Short-Term Investments | 748.00M | 842.00M | 776.00M | 641.00M | 683.00M | 601.00M |
| Total Debt | 9.45B | 9.93B | 9.87B | 10.87B | 5.85B | 6.22B |
| Total Liabilities | 15.26B | 18.82B | 19.20B | 21.47B | 14.70B | 13.71B |
| Stockholders Equity | 12.03B | 12.23B | 11.19B | 10.82B | 6.15B | 6.39B |
Cash Flow | ||||||
| Free Cash Flow | 2.00B | 1.99B | 1.73B | 1.54B | 1.55B | 920.00M |
| Operating Cash Flow | 2.28B | 2.25B | 1.94B | 1.70B | 1.71B | 1.08B |
| Investing Cash Flow | -95.00M | -1.10B | -953.00M | -5.99B | 49.00M | -2.65B |
| Financing Cash Flow | -6.05B | -2.95B | -2.56B | 4.22B | 1.04B | 1.42B |
Nasdaq Technical Analysis
Positive
88.61
Price Trends
84.98
Positive
89.92
Negative
90.04
Negative
Market Momentum
0.51
Negative
56.81
Neutral
90.86
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 88.61 is above the 20-day moving average (MA) of 85.74, above the 50-day MA of 84.98, and below the 200-day MA of 90.04, indicating a neutral trend. The MACD of 0.51 indicates Negative momentum. The RSI at 56.81 is Neutral, neither overbought nor oversold. The STOCH value of 90.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $36.48B | 19.07 | 24.63% | 1.06% | 10.61% | 53.46% | |
78 Outperform | $101.91B | 22.98 | 15.25% | 3.92% | 7.54% | 18.50% | |
77 Outperform | $42.62B | 24.33 | -74.96% | 1.24% | 10.86% | 20.25% | |
76 Outperform | $88.12B | 15.78 | 13.57% | 1.19% | 14.25% | 42.14% | |
76 Outperform | $124.36B | 22.66 | 13.84% | 0.73% | 8.54% | 24.07% | |
75 Outperform | $50.28B | 23.18 | 15.91% | 1.07% | 5.79% | 50.79% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
NDAQ
Nasdaq
88.91
9.13
11.45%
CBOE
Cboe Global Markets
348.56
129.88
59.39%
CME
CME Group
281.25
20.75
7.97%
ICE
Intercontinental Exchange
155.82
-15.61
-9.10%
SPGI
S&P Global
420.12
-94.17
-18.31%
MSCI
MSCI
585.42
24.02
4.28%
Nasdaq Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Nasdaq Reports Strong First-Quarter 2026 Financial Results
Positive
Apr 23, 2026
Nasdaq, Inc. reported strong first quarter 2026 results on April 23, 2026, posting net revenue of $1.4 billion, up 14% year over year, with solutions revenue rising 14% and market services net revenue climbing 13%. Annualized recurring revenue rea...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Nasdaq Reports Strong Q4 and Full-Year 2025 Results
Positive
Jan 29, 2026
On January 29, 2026, Nasdaq reported strong financial results for the fourth quarter and full year 2025, with net revenue reaching $5.25 billion, up 13% year over year, and Solutions revenue surpassing $4.0 billion, up 12%. Fourth-quarter net reve...
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.