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Tradeweb Markets
(NASDAQ:TW)
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Rating:84Outperform
Price Target:
$140.00
▲(29.98% Upside)
Action:Reiterated
Date:10/29/26
The score is driven primarily by strong financial performance (high margins, minimal leverage, and >$1B TTM free cash flow) and supportive technical momentum (price above key moving averages with positive MACD). These positives are moderated by a less-attractive valuation (P/E 28.53 with a ~0.45% yield) and, to a lesser extent, earnings-call risks around fee/mix pressure, rising expenses, and competitive dynamics; the Trumid acquisition is a positive strategic catalyst but carries execution/regulatory risk.
Positive Factors
Strong profitability and cash generation
Tradeweb combines high profitability with substantial internally generated cash, supporting investment, capital returns, and resilience through market cycles. Free cash flow close to net income also indicates strong earnings quality and gives management flexibility to fund growth without relying heavily on debt.
Negative Factors
Fee pressure from adverse product mix
Lower fees per million can limit revenue conversion even when trading activity grows, particularly if volume shifts toward lower-priced protocols or products. Persistent mix pressure would make it harder for Tradeweb to translate market-share gains into proportional revenue and margin expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability and cash generation
Tradeweb combines high profitability with substantial internally generated cash, supporting investment, capital returns, and resilience through market cycles. Free cash flow close to net income also indicates strong earnings quality and gives management flexibility to fund growth without relying heavily on debt.
Read all positive factors
Tradeweb Markets (TW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.04B
Dividend Yield0.45%
Average Volume (3M)1.44M
Price to Earnings (P/E)28.5
Beta (1Y)0.33
Revenue Growth14.04%
EPS Growth60.95%
CountryUS
Employees1,613
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)4.27
Shares Outstanding114,038,200
10 Day Avg. Volume1,641,483
30 Day Avg. Volume1,444,521
Financial Highlights & Ratios
PEG Ratio0.46
Price to Book (P/B)3.52
Price to Sales (P/S)11.17
P/FCF Ratio20.34
Enterprise Value/Market Cap0.71
Enterprise Value/Revenue8.76
Enterprise Value/Gross Profit12.84
Enterprise Value/Ebitda14.55
Forecast
1Y Price Target
$129.50Price Target Upside20.23% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)4.08
Revenue Forecast (FY)$2.36B
Tradeweb Markets Business Overview & Revenue Model
Company Description
Tradeweb Markets Inc. is a global provider that develops and manages sophisticated electronic trading platforms across the Americas, Europe, the Middle East, Africa, and Asia Pacific. These digital venues facilitate transactions in a diverse array...
How the Company Makes Money
Tradeweb primarily makes money by charging fees tied to trading activity executed on its electronic platforms and by earning recurring revenue from market data and technology services.
1) Transaction-based revenue (core): The largest driver of re...
Tradeweb Markets Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 04, 2027
Earnings Call Sentiment Positive
The call conveyed strong, broad-based operational momentum: second-highest quarterly revenue ($559M, +9% YoY), accelerated June revenue (+20% YoY), robust international growth (+14% YoY), meaningful gains across swaps, ETFs and credit protocols, healthy margins (adjusted EBITDA margin 54.4%) and strong cash generation (> $1B FCF TTM, $2.1B cash). Management is balancing margin expansion with targeted investments in AI, data infrastructure and frontier markets, and returning capital via dividends and buybacks. Key negatives include fee‑per‑million pressure from product mix shifts, a 22% drop in retail credit, rising operating costs (notably tech and occupancy), and competitive/market‑structure risks (e.g., ICE/MarketAxess transaction). On balance, the positives — diversified revenue growth, market share gains (swaps and U.S. institutional Treasuries), product automation adoption, and strong cash generation — outweigh the lowlights, though management noted areas of vigilance and flexibility on spending and capital allocation.Positive Updates
Strong Top-Line Performance and Acceleration
Q2 revenue of $559 million, up 9% year-over-year (8.3% constant currency); second-highest quarterly revenue in company history. First half revenue nearly $1.2 billion (approaching full-year 2022 total). June revenue accelerated to +20% year-over-year, and July-to-date average daily revenue growth was up low‑teens vs. July 2025.
Negative Updates
Fee per Million Pressures and Mix Shifts
Average fees per million declined for key products: long‑tenor swaps -10.3% (mix shift within currencies and lower duration) and cash credit -11.4% (mix shift away from higher‑fee munis and retail credit toward lower‑fee European credit and portfolio trading).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Performance and Acceleration
Q2 revenue of $559 million, up 9% year-over-year (8.3% constant currency); second-highest quarterly revenue in company history. First half revenue nearly $1.2 billion (approaching full-year 2022 total). June revenue accelerated to +20% year-over-year, and July-to-date average daily revenue growth was up low‑teens vs. July 2025.
Read all positive updates
Company Guidance
Tradeweb reiterated that 2026 adjusted expenses should trend toward the top half of the $1.10–$1.16 billion guidance range (implying ~11–14% full‑year expense growth) while still targeting adjusted EBITDA and operating margin expansion vs. 2025 (with more muted incremental margin improvement); Q2 adjusted EBITDA margin was 54.4% (up 43 bps vs. 2025 full year), Q2 adjusted expenses rose 9.4% (9.9% constant currency) after H1 expense growth of 14.8%, and management said ~45% of expenses are variable so investments in data infrastructure (including a ~$5.2M step‑up), AI/client innovations and frontier markets can be moderated; they closed Q2 with ~$2.1B cash, trailing‑12‑month free cash flow >$1B (+~13% YoY), net interest income ≈$18M, ~1.6B Canton Coins (fair value ≈$230M), declared a $0.14 quarterly dividend (+16.7% YoY), repurchased ~1.9M shares for $189M with $334M authorization remaining, and expect slower expense growth in H2.Tradeweb Markets Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
94
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.28B | 2.05B | 1.73B | 1.34B | 1.19B | 1.08B |
| Gross Profit | 1.56B | 1.38B | 1.13B | 877.91M | 756.36M | 669.19M |
| EBITDA | 1.38B | 1.43B | 978.68M | 681.10M | 617.82M | 542.88M |
| Net Income | 909.05M | 812.79M | 501.51M | 364.87M | 309.34M | 226.83M |
Balance Sheet | ||||||
| Total Assets | 8.43B | 8.19B | 7.27B | 7.06B | 6.26B | 5.99B |
| Cash, Cash Equivalents and Short-Term Investments | 2.11B | 2.08B | 1.34B | 1.71B | 1.26B | 973.05M |
| Total Debt | 149.29M | 278.34M | 35.75M | 49.08M | 27.94M | 24.33M |
| Total Liabilities | 1.10B | 1.00B | 869.11M | 1.13B | 713.82M | 681.24M |
| Stockholders Equity | 6.62B | 6.51B | 5.80B | 5.37B | 4.95B | 4.65B |
Cash Flow | ||||||
| Free Cash Flow | 1.14B | 1.13B | 856.78M | 684.33M | 572.73M | 526.67M |
| Operating Cash Flow | 1.20B | 1.17B | 897.74M | 746.09M | 632.82M | 578.02M |
| Investing Cash Flow | -195.21M | -126.53M | -969.19M | -132.76M | -60.10M | -259.11M |
| Financing Cash Flow | -797.67M | -307.48M | -290.26M | -168.17M | -276.70M | -136.10M |
Tradeweb Markets Technical Analysis
Positive
107.71
Price Trends
107.69
Positive
104.07
Positive
108.80
Positive
Market Momentum
4.53
Negative
68.63
Neutral
79.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TW, the sentiment is Positive. The current price of 107.71 is below the 20-day moving average (MA) of 113.33, above the 50-day MA of 107.69, and below the 200-day MA of 108.80, indicating a bullish trend. The MACD of 4.53 indicates Negative momentum. The RSI at 68.63 is Neutral, neither overbought nor oversold. The STOCH value of 79.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TW.
Tradeweb Markets Risk Analysis
Tradeweb Markets disclosed 56 risk factors in its most recent earnings report. Tradeweb Markets 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
Tradeweb Markets Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | $28.04B | 28.53 | 13.78% | 0.45% | 14.04% | 60.95% | |
78 Outperform | $8.60B | 7.02 | 41.25% | 1.73% | 27.58% | 36.35% | |
73 Outperform | $5.80B | 20.15 | 24.09% | 1.89% | 3.30% | 38.95% | |
68 Neutral | $6.76B | 9.10 | 20.18% | ― | 20.57% | 50.19% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $5.33B | 27.47 | 19.20% | 0.70% | 27.75% | 31.48% | |
59 Neutral | $10.91B | 12.21 | 8.81% | 3.28% | 26.48% | 29.87% |
* Financial Sector Average
TW
Tradeweb Markets
119.82
14.90
14.20%
BGC
BGC Group
11.44
2.38
26.33%
SNEX
StoneX Group
56.04
14.61
35.28%
JEF
Jefferies
47.51
-3.85
-7.49%
MKTX
Marketaxess Holdings
164.82
8.98
5.76%
VIRT
Virtu Financial
55.44
21.76
64.63%
Tradeweb Markets Corporate Events
Business Operations and StrategyM&A Transactions
Tradeweb Markets to Acquire Trumid in Major Deal
Positive
Oct 19, 2026
On October 19, 2026, Tradeweb Markets LLC agreed to acquire Trumid Holdings, a U.S.-focused fixed income electronic trading platform, for approximately $1.97 billion in cash and equity, including about $220 million of tax assets. The deal, unanimo...
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.