Nasdaq (NASDAQ:NDAQ) Announces Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Nasdaq (NASDAQ:NDAQ) released its earnings results on Thursday. The financial services provider reported $0.96 EPS for the quarter, topping the consensus estimate of $0.93 by $0.03, FiscalAI reports. Nasdaq had a return on equity of 16.90% and a net margin of 21.77%.The firm had revenue of $2.14 billion during the quarter, compared to analysts’ expectations of $1.42 billion. During the same period in the previous year, the firm posted $0.79 EPS. Nasdaq’s revenue for the quarter was up 13.7% on a year-over-year basis.

Here are the key takeaways from Nasdaq’s conference call:

• Strong Q1 results: Nasdaq reported $1.4B in net revenue (+13% YoY), ARR of $3.2B (+12%), operating income up 17% and diluted EPS up 21%, driven by solutions and record Financial Technology growth.
• Financial Technology momentum: Record ACV bookings (>50% YoY), 64 new clients, 85 upsells, and 80% of bookings cloud-based, with Verafin revenue +21% and expanding SMB and enterprise traction.
• Market innovation & expansion: SEC approval to extend to 23/5 trading (target launch Dec 6, 2026) and permission for tokenized securities position Nasdaq to lead in always-on markets and new tokenization-related products and services.
• Rising operating expense guidance: Operating expenses rose 8% in Q1 and management raised 2026 non-GAAP expense guidance ($2.485B–$2.545B), warning of higher expense growth in Q2 due to annual compensation timing.
• Capital returns & cash flow: Generated $629M of free cash flow in Q1, repurchased $548M of stock in the quarter, and announced a dividend increase to $0.31, returning over $700M to shareholders in Q1.

Nasdaq Stock Performance

Shares of Nasdaq stock traded up $0.59 on Thursday, hitting $86.96. The stock had a trading volume of 2,148,217 shares, compared to its average volume of 4,131,153. Nasdaq has a 52-week low of $71.98 and a 52-week high of $101.79. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.70. The stock has a market cap of $49.43 billion, a price-to-earnings ratio of 28.15, a P/E/G ratio of 1.80 and a beta of 1.02. The company’s 50 day moving average price is $85.28 and its 200 day moving average price is $89.61.

Nasdaq Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, March 30th. Stockholders of record on Monday, March 16th were issued a $0.27 dividend. This represents a $1.08 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend was Monday, March 16th. Nasdaq’s payout ratio is presently 34.95%.

Insider Buying and Selling at Nasdaq

In other news, CEO Adena T. Friedman sold 113,611 shares of the business’s stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $85.44, for a total value of $9,706,923.84. Following the completion of the sale, the chief executive officer directly owned 1,965,751 shares of the company’s stock, valued at approximately $167,953,765.44. The trade was a 5.46% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 506,451 shares of company stock valued at $47,142,951. 0.70% of the stock is currently owned by insiders.

Institutional Trading of Nasdaq

Institutional investors and hedge funds have recently made changes to their positions in the company. EP Wealth Advisors LLC acquired a new position in Nasdaq during the 2nd quarter worth approximately $226,000. SmartHarvest Portfolios LLC acquired a new position in Nasdaq during the 4th quarter worth approximately $224,000. Jacobi Capital Management LLC acquired a new position in Nasdaq during the 4th quarter worth approximately $223,000. Wealthspire Advisors LLC increased its position in Nasdaq by 724.7% during the 4th quarter. Wealthspire Advisors LLC now owns 2,268 shares of the financial services provider’s stock worth $220,000 after purchasing an additional 1,993 shares during the period. Finally, Haverford Trust Co acquired a new stake in shares of Nasdaq in the 4th quarter worth approximately $215,000. 72.47% of the stock is owned by hedge funds and other institutional investors.

Key Nasdaq News

Here are the key news stories impacting Nasdaq this week:

• Positive Sentiment: Q1 results beat expectations — Nasdaq reported adjusted EPS of $0.96, topping consensus, and delivered double‑digit net revenue growth year‑over‑year, signaling broad execution across its businesses. Nasdaq (NDAQ) Tops Q1 Earnings and Revenue Estimates
• Positive Sentiment: Fintech and index businesses were key drivers of the beat — strength in recurring-data, index licensing and fintech solutions supported margins and revenue upside. This helps justify the stock rally as investors favor predictable, high‑margin streams. Nasdaq stock up as fintech, index segments drive Q1 earnings beat
• Positive Sentiment: Board raised the quarterly dividend to $0.31 per share, payable June 26 — a direct shareholder return and a signal of confidence in cash flow. That tends to support income‑oriented demand for the shares. Nasdaq Announces Increase in Quarterly Dividend to $0.31 Per Share
• Neutral Sentiment: Analysts and commentary are reassessing valuation after recent share‑price weakness; some see upside vs. targets while others caution on stretched multiples — this discussion could temper further rallies until forward growth visibility is clearer. Assessing Nasdaq (NDAQ) Valuation After Recent Share Price Weakness And Growth Expectations
• Neutral Sentiment: Pre‑earnings previews and metric deep dives were published ahead of results — useful for framing the beat but not materially new now that results are out. Nasdaq (NDAQ) To Report Earnings Tomorrow: Here Is What To Expect
• Negative Sentiment: Insider selling and large institutional position reductions were noted in recent filings (several executive sales and a major institutional cut), which can weigh on sentiment if perceived as profit‑taking or reduced conviction. Monitor ongoing insider/institutional activity for follow‑through. Nasdaq Reports Strong First‑Quarter 2026 Financial Results (with insider/institutional notes)

Analyst Upgrades and Downgrades

Several research firms recently commented on NDAQ. Royal Bank Of Canada reissued an “outperform” rating and set a $108.00 target price on shares of Nasdaq in a research note on Friday, January 30th. TD Cowen raised Nasdaq from a “hold” rating to a “buy” rating and boosted their target price for the stock from $105.00 to $106.00 in a research note on Thursday, February 26th. JPMorgan Chase & Co. boosted their target price on Nasdaq from $100.00 to $101.00 and gave the stock an “overweight” rating in a research note on Friday, January 30th. Weiss Ratings reissued a “buy (b-)” rating on shares of Nasdaq in a research note on Friday, January 9th. Finally, Keefe, Bruyette & Woods began coverage on Nasdaq in a research note on Wednesday, April 8th. They set a “market perform” rating and a $92.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $106.25.

Nasdaq Company Profile

Nasdaq, Inc is a global financial technology company that operates one of the world’s leading electronic securities exchanges and provides a broad array of products and services to capital markets participants. Its core activities include operating the Nasdaq Stock Market and other trading venues, developing and supplying market technology and matching engines to exchanges and trading firms, licensing market data and indices, and offering clearing, trade execution and post-trade solutions. The company also provides market surveillance, risk management and regulatory technology used by exchanges and regulators.

Founded in 1971 by the National Association of Securities Dealers (NASD) as the first electronic stock market, Nasdaq has evolved into a diversified marketplace and technology provider.