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Nasdaq
(NASDAQ:NDAQ)
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Rating:77Outperform
Price Target:
$116.00
▲(17.49% Upside)
Action:Reiterated
Date:10/26/26
The score is driven primarily by strong financial quality (high margins and growing free cash flow) and a notably positive earnings call with accelerating recurring-revenue momentum and strategic initiatives. These positives are tempered by elevated technical overbought signals and a relatively rich valuation (P/E ~27.7 with a modest ~1.13% dividend yield).
Positive Factors
Recurring revenue growth
Strong growth in recurring revenue and solutions indicates increasing customer dependence on Nasdaq’s data, software, and infrastructure platforms. This mix can improve revenue visibility, support operating leverage, and make the company’s earnings base more durable across market cycles.
Negative Factors
Material debt burden
Although leverage has improved, the absolute debt balance remains significant and requires consistent earnings and cash generation. Debt service and refinancing needs could constrain capital allocation or reduce flexibility if market conditions weaken or investments require more funding than expected.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue growth
Strong growth in recurring revenue and solutions indicates increasing customer dependence on Nasdaq’s data, software, and infrastructure platforms. This mix can improve revenue visibility, support operating leverage, and make the company’s earnings base more durable across market cycles.
Read all positive factors
Nasdaq Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks total revenue into the company's business lines (for example market services, information/data, technology and issuer solutions), showing which areas drive growth, margins, and risk. A shift toward higher-margin, recurring segments points to more durable earnings and lower cyclicality, while concentration in volume-dependent segments makes results sensitive to trading activity and market volatility. Tracking segment trends helps reveal strategic focus, margin potential, and exposure to competitive or regulatory changes.
Breaks total revenue into the company's business lines (for example market services, information/data, technology and issuer solutions), showing which areas drive growth, margins, and risk. A shift toward higher-margin, recurring segments points to more durable earnings and lower cyclicality, while concentration in volume-dependent segments makes results sensitive to trading activity and market volatility. Tracking segment trends helps reveal strategic focus, margin potential, and exposure to competitive or regulatory changes.
Data provided by:
The Fly
The FlyNasdaq (NDAQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$58.58B
Dividend Yield1.1%
Average Volume (3M)3.34M
Price to Earnings (P/E)28.5
Beta (1Y)0.83
Revenue Growth11.94%
EPS Growth30.40%
CountryUS
Employees9,593
SectorFinancial
Sector Strength70
IndustryFinancial - Data & Stock Exchanges
Share Statistics
EPS (TTM)3.70
Shares Outstanding554,962,770
10 Day Avg. Volume3,455,851
30 Day Avg. Volume3,339,637
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 Cap1.04
Enterprise Value/Revenue6.64
Enterprise Value/Gross Profit10.51
Enterprise Value/Ebitda18.01
Forecast
1Y Price Target
$116.40Price Target Upside17.90% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)4.14
Revenue Forecast (FY)$5.92B
Nasdaq Business Overview & Revenue Model
Company Description
Nasdaq, Inc., a technology powerhouse founded in 1971 and based in New York City, is dedicated to supporting capital markets and various other sectors worldwide. Its Market Technology division specializes in fighting financial crime, offering prod...
How the Company Makes Money
Nasdaq makes money through a diversified model centered on market infrastructure and recurring information-and-technology revenues. Key revenue streams typically include: (1) Market Services: fees tied to operating trading venues and related marke...
Nasdaq Earnings Call Summary
Earnings Call Date:Oct 22, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Feb 03, 2027
Earnings Call Sentiment Positive
The call was strongly positive, supported by double-digit growth in revenue, solutions revenue, ARR, earnings, fintech, index products, and client demand for AI, cloud, and always-on-market solutions. Nasdaq also reported record or near-record performance in several businesses, significant capital returns, and multiple strategic product and partnership initiatives. The main challenges were a modest softening in the IPO environment, higher expenses and expense guidance, lower Market Services operating margin, market-services capture and volatility-related offsets, and selected revenue-comparison headwinds. Overall, the highlights significantly outweighed the lowlights.Positive Updates
Strong Third-Quarter Financial Performance
Nasdaq delivered $1.5 billion in net revenue, up 14% year-over-year, and $1.2 billion in solutions revenue, up 18%. Annualized recurring revenue grew 14% to $3.4 billion, diluted EPS increased 19% to $1.04, operating income grew 16%, and net income was $588 million.
Negative Updates
Modest Softening in the IPO Environment
Nasdaq reported a modest softening in the IPO environment in recent weeks, with some companies in certain sectors reevaluating the timing of their IPOs. Management said the listings pipeline remains robust.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Financial Performance
Nasdaq delivered $1.5 billion in net revenue, up 14% year-over-year, and $1.2 billion in solutions revenue, up 18%. Annualized recurring revenue grew 14% to $3.4 billion, diluted EPS increased 19% to $1.04, operating income grew 16%, and net income was $588 million.
Read all positive updates
Company Guidance
Nasdaq updated its non-GAAP expense guidance for the year to a range of $2.550 billion-$2.580 billion, from $2.530 billion-$2.570 billion, and maintained its 2026 non-GAAP tax rate guidance of 22.5%-24.5%; LeveL revenue contribution for the fourth quarter is expected to be $7 million-$8 million, with the expenses included in the updated expense guidance, the $315 million-$385 million variable notional accelerated share repurchase plan will be completed in the fourth quarter, Nasdaq remains on track to launch 23/5 trading on the Nasdaq stock market on December 6, 2026, and remains on track to launch the Nasdaq equity token in the first half of next year, while Nasdaq described a $3 billion-$6 billion TAM from tokenization by 2030.Nasdaq Financial Statement Overview
Summary
Income Statement
83
Very Positive
Balance Sheet
74
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.14B | 8.22B | 7.40B | 6.06B | 6.23B | 5.89B |
| Gross Profit | 5.78B | 3.94B | 2.99B | 2.55B | 2.34B | 2.23B |
| EBITDA | 3.37B | 3.13B | 2.46B | 2.00B | 1.85B | 1.93B |
| Net Income | 2.08B | 1.79B | 1.12B | 1.06B | 1.13B | 1.19B |
Balance Sheet | ||||||
| Total Assets | 27.38B | 31.05B | 30.39B | 32.29B | 20.87B | 20.11B |
| Cash, Cash Equivalents and Short-Term Investments | 516.00M | 842.00M | 776.00M | 641.00M | 683.00M | 601.00M |
| Total Debt | 9.29B | 9.93B | 9.87B | 10.87B | 5.85B | 6.22B |
| Total Liabilities | 15.38B | 18.82B | 19.20B | 21.47B | 14.70B | 13.71B |
| Stockholders Equity | 12.00B | 12.23B | 11.19B | 10.82B | 6.15B | 6.39B |
Cash Flow | ||||||
| Free Cash Flow | 2.26B | 1.99B | 1.73B | 1.54B | 1.55B | 920.00M |
| Operating Cash Flow | 2.55B | 2.25B | 1.94B | 1.70B | 1.71B | 1.08B |
| Investing Cash Flow | -272.00M | -1.10B | -953.00M | -5.99B | 49.00M | -2.65B |
| Financing Cash Flow | -5.55B | -2.95B | -2.56B | 4.22B | 1.04B | 1.42B |
Nasdaq Technical Analysis
Positive
98.73
Price Trends
95.06
Positive
91.97
Positive
90.03
Positive
Market Momentum
2.45
Negative
72.92
Negative
92.31
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 98.73 is above the 20-day moving average (MA) of 95.13, above the 50-day MA of 95.06, and above the 200-day MA of 90.03, indicating a bullish trend. The MACD of 2.45 indicates Negative momentum. The RSI at 72.92 is Negative, neither overbought nor oversold. The STOCH value of 92.31 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 2 risk factors in its most recent earnings report. Nasdaq reported the most risks in the "Legal & Regulatory" 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 |
|---|---|---|---|---|---|---|---|
86 Outperform | $105.25B | 23.98 | 16.24% | 3.84% | 8.99% | 18.85% | |
79 Outperform | $132.46B | 26.71 | 17.54% | 0.86% | 5.99% | 22.20% | |
77 Outperform | $58.58B | 28.53 | 17.29% | 1.10% | 11.94% | 30.40% | |
76 Outperform | $87.56B | 21.94 | 13.81% | 1.31% | 12.60% | 35.84% | |
74 Outperform | $33.46B | 24.90 | 25.75% | 0.94% | 11.68% | 50.39% | |
72 Outperform | $43.25B | 32.18 | -49.71% | 1.31% | 12.33% | 19.69% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
NDAQ
Nasdaq
105.55
21.24
25.20%
CBOE
Cboe Global Markets
320.42
90.09
39.11%
CME
CME Group
294.04
42.28
16.79%
ICE
Intercontinental Exchange
155.96
7.32
4.92%
SPGI
S&P Global
449.33
5.84
1.32%
MSCI
MSCI
604.94
45.43
8.12%
Nasdaq Corporate Events
Business Operations and StrategyExecutive/Board Changes
Nasdaq refreshes board with strategic leadership changes
Positive
Oct 26, 2026
On October 21, 2026, Nasdaq elected former Ericsson President and CEO Börje Ekholm to its Board of Directors, effective November 1, 2026, as an independent director serving on the Audit Risk Committee. Ekholm, who previously chaired Nasdaq&#...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Nasdaq Reports Strong Third-Quarter 2026 Financial Results
Positive
Oct 22, 2026
On October 22, 2026, Nasdaq reported strong third-quarter 2026 results, underscoring the momentum in its solutions and FinTech businesses and its role in evolving AI-driven, Always-On markets. Net revenue rose 13% year-on-year to $1.5 billion, sol...
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.