Nasdaq (NASDAQ:NDAQ) Releases Quarterly Earnings Results

Nasdaq (NASDAQ:NDAQ) posted its quarterly earnings data on Thursday. The financial services provider reported $1.04 earnings per share for the quarter, topping analysts’ consensus estimates of $1.02 by $0.02, FiscalAI reports. The business had revenue of $2.39 billion for the quarter, compared to analyst estimates of $1.47 billion. Nasdaq had a return on equity of 19.03% and a net margin of 22.81%. The company’s revenue was up 12.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.88 earnings per share.

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 NDAQ stock opened at $102.56 on Friday. The company has a current ratio of 1.00, a quick ratio of 1.01 and a debt-to-equity ratio of 0.71. The firm has a fifty day moving average price of $94.86 and a 200 day moving average price of $91.05. The company has a market cap of $57.33 billion, a P/E ratio of 28.02, a PEG ratio of 1.86 and a beta of 0.99. Nasdaq has a 12 month low of $76.55 and a 12 month high of $104.21.

Nasdaq Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, December 18th. Investors of record on Friday, December 4th will be paid a dividend of $0.31 per share. The ex-dividend date is Friday, December 4th. This represents a $1.24 dividend on an annualized basis and a dividend yield of 1.2%. Nasdaq’s payout ratio is presently 36.15%.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on the company. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $118.00 target price on shares of Nasdaq in a research note on Friday. Jefferies Financial Group reaffirmed a “hold” rating on shares of Nasdaq in a research report on Thursday. Raymond James Financial decreased their price objective on Nasdaq from $119.00 to $109.00 in a research note on Friday, October 9th. JPMorgan Chase & Co. lifted their price objective on Nasdaq from $120.00 to $122.00 and gave the company an “overweight” rating in a research note on Friday. Finally, Bank of America lowered their price objective on Nasdaq from $135.00 to $132.00 and set a “buy” rating for the company in a research report on Friday, October 2nd. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $113.53.

Insider Buying and Selling at Nasdaq

In other Nasdaq news, EVP Jeremy Skule sold 1,125 shares of the firm’s stock in a transaction on Tuesday, October 20th. The stock was sold at an average price of $95.00, for a total value of $106,875.00. Following the sale, the executive vice president directly owned 96,561 shares in the company, valued at $9,173,295. This trade represents a 1.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Nelson Griggs sold 11,010 shares of Nasdaq stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $96.35, for a total value of $1,060,813.50. Following the sale, the insider directly owned 205,001 shares of the company’s stock, valued at $19,751,846.35. This trade represents a 5.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 26,520 shares of company stock worth $2,520,957 in the last three months. 0.60% of the stock is currently owned by corporate insiders.

Key Nasdaq News

Here are the key news stories impacting Nasdaq this week:

• Positive Sentiment: Q3 earnings exceeded expectations: Nasdaq reported adjusted EPS of $1.04, topping the $1.02 consensus and rising from $0.88 a year earlier. Net revenue increased 13% year over year to approximately $1.5 billion, while solutions revenue grew 17%. Nasdaq Reports Third Quarter 2026 Results
• Positive Sentiment: Recurring revenue and growth businesses remain strong: Annualized recurring revenue reached a record $3.4 billion, with index revenue up 39% and continued double-digit growth in fintech and technology. Investors are also focused on Nasdaq’s AI-related solutions, tokenization opportunities and recurring-revenue model as potential long-term growth drivers. NDAQ Q3 Deep Dive
• Positive Sentiment: Analysts raised price targets: Goldman Sachs raised its target to $120 and maintained a Buy rating; Morgan Stanley increased its target to $132 with an Overweight rating; JPMorgan lifted its target to $122 and Wells Fargo raised its target to $111. The revisions signal greater confidence in Nasdaq’s earnings and recurring-revenue outlook. Analyst Rating Updates
• Positive Sentiment: Options activity was notably bullish: Traders purchased 7,716 call options, approximately 320% above average call volume, indicating increased speculative interest following the earnings release.
• Neutral Sentiment: Dividend was maintained: Nasdaq declared a quarterly dividend of $0.31 per share, equivalent to $1.24 annually and an approximate 1.2% yield. The payment is scheduled for December 18. Nasdaq Dividend Announcement
• Negative Sentiment: Valuation and insider selling may be limiting gains: Nasdaq trades near its 52-week high at roughly 30 times earnings. EVP Jeremy Skule also sold 1,125 shares for about $107,000, a modest transaction but part of a broader pattern of insider selling that could weigh on sentiment. SEC Insider Transaction Filing

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.