Nasdaq (NASDAQ:NDAQ) Releases Earnings Results

Nasdaq (NASDAQ:NDAQ) issued its earnings results on Thursday. The financial services provider reported $1.04 EPS for the quarter, topping the consensus estimate of $1.02 by $0.02, FiscalAI reports. Nasdaq had a return on equity of 18.38% and a net margin of 22.60%. The firm had revenue of $2.39 billion during the quarter, compared to the consensus estimate of $1.47 billion. During the same quarter in the previous year, the firm earned $0.88 earnings per share. The business’s quarterly revenue was up 12.6% on a year-over-year basis.

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

• Strong third-quarter performance: Net revenue rose 14% to $1.5 billion, solutions revenue increased 18%, ARR grew 14% to $3.4 billion, and diluted EPS climbed 19% to $1.04. Operating and EBITDA margins each expanded by one percentage point.
• Financial technology and AI momentum remained robust: FinTech revenue increased 16% and ARR grew a record 18%, with 85% of bookings tied to cloud solutions. Nasdaq also reported growing adoption and monetization of agentic AI tools, including more than 850 Verafin clients using its AI workforce and 70 paying clients.
• Listings and market modernization initiatives advanced, including 15 new operating-company listings, the planned December launch of 23/5 Nasdaq trading, the Level ATS acquisition, and plans to launch a Nasdaq equity token in the first half of 2027. Management noted, however, that the IPO environment softened modestly in recent weeks.
• Shareholder returns increased: Nasdaq returned nearly $500 million through dividends and share repurchases during the quarter, repurchased $1.2 billion of stock through the first three quarters, and launched an additional $315 million-$385 million accelerated share repurchase plan. The company maintained gross leverage at 2.5x.
• Expense guidance was raised to $2.550 billion-$2.580 billion for 2026, reflecting acquisition costs and stronger business activity, while Market Services’ operating margin declined five percentage points year over year due partly to weaker revenue performance and a prior-year benefit.

Nasdaq Stock Performance

Shares of Nasdaq stock traded up $6.43 during trading hours on Thursday, reaching $102.55. The company had a trading volume of 1,253,206 shares, compared to its average volume of 3,758,225. The business has a fifty day simple moving average of $94.64 and a 200 day simple moving average of $90.85. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.01 and a quick ratio of 1.01. Nasdaq has a one year low of $76.55 and a one year high of $102.30. The firm has a market cap of $57.32 billion, a PE ratio of 29.82, a price-to-earnings-growth ratio of 1.71 and a beta of 0.99.

Analyst Ratings Changes

Several equities research analysts recently commented on NDAQ shares. Bank of America cut their target price on Nasdaq from $135.00 to $132.00 and set a “buy” rating on the stock in a research report on Friday, October 2nd. Weiss Ratings reissued a “buy (b)” rating on shares of Nasdaq in a research report on Friday, October 16th. Piper Sandler restated an “overweight” rating and issued a $108.00 target price (up from $104.00) on shares of Nasdaq in a research note on Friday, October 2nd. Deutsche Bank Aktiengesellschaft raised their target price on Nasdaq from $115.00 to $116.00 and gave the company a “buy” rating in a research note on Monday, October 12th. Finally, Wells Fargo & Company started coverage on Nasdaq in a research report on Friday, October 2nd. They issued an “equal weight” rating and a $100.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, Nasdaq presently has a consensus rating of “Moderate Buy” and an average target price of $109.24.

Insider Activity

In other Nasdaq news, insider Nelson Griggs sold 11,010 shares of the business’s stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $96.35, for a total value of $1,060,813.50. Following the completion of the sale, the insider directly owned 205,001 shares of the company’s stock, valued at $19,751,846.35. The trade was a 5.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Jeremy Skule sold 1,125 shares of the stock in a transaction that occurred on Monday, October 12th. The shares were sold at an average price of $94.13, for a total value of $105,896.25. Following the sale, the executive vice president directly owned 97,686 shares of the company’s stock, valued at approximately $9,195,183.18. This trade represents a 1.14% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 45,172 shares of company stock worth $4,245,088 in the last three months. Corporate insiders own 0.60% of the company’s stock.

Nasdaq News Summary

Here are the key news stories impacting Nasdaq this week:

• Positive Sentiment: Quarterly earnings beat expectations: Nasdaq reported adjusted earnings of $1.04 per share, up from $0.88 a year earlier and ahead of the $1.02 analyst consensus. Revenue also exceeded expectations, with reported revenue of $2.39 billion versus the $1.47 billion consensus estimate. Nasdaq Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Strong recurring-revenue performance: Third-quarter net revenue increased 13% year over year to approximately $1.5 billion, or 14% on an organic basis. Solutions revenue reached $1.2 billion, while ARR set a record at $3.4 billion, supporting investor confidence in Nasdaq’s data, technology and index businesses. Nasdaq Reports Third Quarter 2026 Results
• Positive Sentiment: Dividend maintained: Nasdaq declared a regular quarterly dividend of $0.31 per share, payable December 18 to shareholders of record December 4. The payout provides modest income support and signals continued confidence in cash generation. Nasdaq Announces Quarterly Dividend
• Neutral Sentiment: Business drivers remain mixed: Technology revenue growth, new listings and data sales were identified as potential growth supports, while higher expenses could limit profit expansion. Investors will likely focus on management’s outlook and expense control during the earnings call. Nasdaq Q3 Earnings Preview
• Neutral Sentiment: Routine listing enforcement: Nasdaq notified Robot Consulting that it may be delisted on October 30 unless it appeals. The action is unlikely to have a material financial effect on NDAQ.

About Nasdaq

Nasdaq, Inc is a global financial technology and market infrastructure company best known for operating the Nasdaq Stock Market, one of the world’s largest electronic stock exchanges. The company provides listing services for public companies and operates trading venues for equities, options and other financial products. Its exchange business serves companies, investors and market participants in the United States, as well as through Nasdaq’s Nordic and Baltic market operations.

Beyond its exchange activities, Nasdaq provides market data, analytics, indexes and technology used by exchanges, brokers, banks, asset managers and other financial institutions.