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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(12.82%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
Financial Performance
Nasdaq reported adjusted EPS of $0.85 in the quarter, which beat our estimate of $0.80 and consensus of $0.81.
Market Position
NDAQ has been the best performing exchange over the last 3 months, driven by equity market strength and improving market sentiment.
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. (NDAQ) is a global technology company that serves the capital markets and other industries. It operates one of the largest electronic securities exchanges in the world, where it facilitates the trading of equities, options, fixed income, commodities, and other financial instruments. In addition to its exchange services, Nasdaq provides a variety of market technology solutions, data analytics, and investor services to institutions and corporations worldwide.
How the Company Makes MoneyNasdaq generates revenue through several key streams. First, the company earns transaction fees from its trading operations, where it charges for each trade executed on its platform. It also receives revenue from data products, as it sells real-time and historical market data to financial institutions, investors, and other market participants. Additionally, Nasdaq offers market technology solutions, providing software and infrastructure for trading, clearing, and market surveillance to exchanges and other financial institutions globally. Furthermore, the company derives income from its corporate services, including listing fees from companies that choose to list their shares on Nasdaq's exchanges, and additional services such as investor relations and governance solutions. Strategic partnerships and acquisitions also play a role in expanding its product offerings and increasing its market reach, contributing to its overall earnings.

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, reaching $2.83 billion in early 2025, reflecting a 9% increase. This aligns with strategic initiatives and partnerships, such as the enhanced collaboration with AWS. Despite geopolitical and economic uncertainties causing delays in client decisions, particularly in the Financial Technology division, Nasdaq remains on track with its medium-term revenue growth targets. The company's focus on cost efficiency and innovation, especially in Capital Access Platforms and Financial Technology, supports its robust financial performance and strategic resilience.
Data provided by:Main Street Data

Nasdaq Earnings Call Summary

Earnings Call Date:Jul 24, 2025
(Q2-2025)
|
% Change Since: 7.43%|
Next Earnings Date:Oct 15, 2025
Earnings Call Sentiment Positive
Nasdaq's earnings call highlighted strong financial performance with record revenues and growth across various segments, particularly in Market Services and Financial Technology. While there were challenges related to expense growth and regulatory uncertainty, the overall momentum and successful execution in key areas overshadowed these issues.
Q2-2025 Updates
Positive Updates
Strong Revenue and Growth
Nasdaq delivered $1.3 billion in net revenue, a year-over-year increase of 12%. Solutions revenues were $991 million, representing 10% year-over-year growth. Overall annualized recurring revenue grew 9% to $2.9 billion.
Market Services Record Performance
Market Services delivered record net revenues, reflecting broad-based strength across U.S. and European markets. The division achieved a record notional value of $102 billion during the Russell rebalance.
Successful IPO and Listings Performance
Nasdaq welcomed 38 new operating companies in Q2 with a 79% win rate, raising $3.6 billion. Year-to-date, Nasdaq saw the highest level of new issuances since the first half of 2021.
Financial Technology Division Growth
The Financial Technology division reported 10% revenue growth and 11% ARR growth, with 19% growth in Financial Crime Management Technology and 11% growth in Regulatory Technology.
Continued Expansion in Index Business
Nasdaq's index business achieved a new record for net inflows of $88 billion over the last 12 months and exited the quarter with a new record ETP AUM at $745 billion.
Negative Updates
Expense Growth
Operating expenses were up just under 8% year-over-year, primarily due to the timing of the annual compensation cycle.
Regulatory Uncertainty Impact
Regulatory uncertainty in the U.S. and Europe led to modest delays in client readiness, affecting professional services revenue growth, particularly in AxiomSL.
Company Guidance
During Nasdaq's Second Quarter 2025 Earnings Call, the company reported a robust financial performance, with net revenue reaching $1.3 billion, marking a 12% year-over-year increase. Solutions revenues were $991 million, growing by 10% compared to the previous year, while annualized recurring revenue (ARR) saw a 9% rise to $2.9 billion. Operating income increased by 16% to $721 million, and earnings per share (EPS) grew by 24%. The Capital Access Platforms division experienced a 9% revenue growth, with Financial Technology and Market Services delivering revenue growths of 10% and 21%, respectively. The company also highlighted strong momentum across its Financial Technology solutions, with Financial Crime Management Technology growing by 19% and Regulatory Technology by 10%. Additionally, the company achieved record net inflows of $88 billion in its index franchise over the past 12 months, contributing to a new record ETP AUM of $745 billion. Nasdaq's expense efficiency program was on track, with approximately $130 million actioned by the end of the quarter, and it achieved a gross leverage ratio of 3.2x, surpassing its milestone set after the Adenza acquisition.

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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.40B6.06B6.23B5.89B5.63B
Gross Profit2.99B3.90B2.58B2.48B2.12B
EBITDA2.56B2.00B1.95B1.90B1.55B
Net Income1.12B1.06B1.13B1.19B933.00M
Balance Sheet
Total Assets30.39B32.29B20.87B20.11B17.98B
Cash, Cash Equivalents and Short-Term Investments776.00M473.00M683.00M601.00M2.94B
Total Debt9.87B10.87B5.85B6.22B5.93B
Total Liabilities19.20B21.47B14.70B13.71B11.54B
Stockholders Equity11.19B10.82B6.15B6.39B6.43B
Cash Flow
Free Cash Flow1.73B1.54B1.55B920.00M1.06B
Operating Cash Flow1.94B1.70B1.71B1.08B1.25B
Investing Cash Flow-953.00M-5.99B49.00M-2.65B-231.00M
Financing Cash Flow-2.56B4.22B1.04B1.42B1.38B

Nasdaq Technical Analysis

Technical Analysis Sentiment
Positive
Last Price94.84
Price Trends
50DMA
86.50
Positive
100DMA
80.60
Positive
200DMA
79.34
Positive
Market Momentum
MACD
1.50
Negative
RSI
72.20
Negative
STOCH
71.81
Neutral
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 94.84 is above the 20-day moving average (MA) of 89.87, above the 50-day MA of 86.50, and above the 200-day MA of 79.34, indicating a bullish trend. The MACD of 1.50 indicates Negative momentum. The RSI at 72.20 is Negative, neither overbought nor oversold. The STOCH value of 71.81 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$162.81B41.2711.68%0.70%12.98%42.72%
80
Outperform
$25.75B31.5618.93%1.02%15.76%1.97%
80
Outperform
$99.88B26.7613.62%3.79%11.15%13.98%
79
Outperform
$105.31B37.4810.27%1.01%13.25%10.82%
78
Outperform
$50.68B40.0313.28%1.04%23.55%49.91%
68
Neutral
$17.10B11.449.70%3.58%11.11%-4.78%
66
Neutral
$42.03B35.17-117.99%1.24%10.48%0.98%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NDAQ
Nasdaq
94.84
28.73
43.46%
CBOE
Cboe Global Markets
246.51
62.23
33.77%
CME
CME Group
279.55
87.66
45.68%
ICE
Intercontinental Exchange
184.44
35.12
23.52%
SPGI
S&P Global
534.95
48.66
10.01%
MSCI
MSCI
546.29
12.07
2.26%

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