Nasdaq (NASDAQ:NDAQ) Releases Earnings Results, Beats Estimates By $0.02 EPS

Nasdaq (NASDAQ:NDAQ) released its earnings results on Thursday. The financial services provider reported $1.04 earnings per share (EPS) for the quarter, beating the consensus estimate 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 net margin of 22.60% and a return on equity of 18.38%. Nasdaq’s revenue for the quarter was up 12.6% on a year-over-year basis. During the same quarter in the previous year, the business 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

NASDAQ:NDAQ opened at $103.30 on Friday. The business’s 50-day moving average price is $94.75 and its two-hundred day moving average price is $90.97. The stock has a market cap of $57.74 billion, a P/E ratio of 30.12, a PEG ratio of 1.73 and a beta of 0.99. The company has a quick ratio of 1.01, a current ratio of 1.01 and a debt-to-equity ratio of 0.71. Nasdaq has a twelve month low of $76.55 and a twelve month high of $103.39.

Nasdaq Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, December 18th. Shareholders of record on Friday, December 4th will be issued a $0.31 dividend. The ex-dividend date of this dividend is Friday, December 4th. This represents a $1.24 annualized dividend and a dividend yield of 1.2%. Nasdaq’s dividend payout ratio (DPR) is presently 36.15%.

Insiders Place Their Bets

In other news, insider Nelson Griggs sold 11,010 shares of the business’s stock in a transaction that occurred 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 in the company, valued at approximately $19,751,846.35. The trade was a 5.10% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Jeremy Skule sold 1,125 shares of the firm’s stock in a transaction dated Tuesday, October 20th. The shares were sold at an average price of $95.00, for a total value of $106,875.00. Following the transaction, 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 SEC filing for this sale provides additional information. Insiders have sold a total of 26,520 shares of company stock valued at $2,520,957 over the last ninety days. 0.60% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the stock. Keefe, Bruyette & Woods upped their price objective on shares of Nasdaq from $92.00 to $102.00 and gave the company a “market perform” rating in a report on Friday, July 24th. Jefferies Financial Group restated a “hold” rating on shares of Nasdaq in a research note on Thursday. Argus upped their target price on Nasdaq from $103.00 to $111.00 in a report on Wednesday, August 5th. Barclays restated an “overweight” rating and set a $109.00 price objective (down from $111.00) on shares of Nasdaq in a report on Wednesday, October 7th. Finally, Piper Sandler reaffirmed an “overweight” rating and set a $108.00 price target (up from $104.00) on shares of Nasdaq in a research report on Friday, October 2nd. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $110.47.

Nasdaq News Summary

Here are the key news stories impacting Nasdaq this week:

• Positive Sentiment: Q3 earnings exceeded expectations: Nasdaq reported adjusted EPS of $1.04, above the $1.02 consensus and up from $0.88 a year earlier. Reported revenue was $2.39 billion, while net revenue rose 13% year over year to approximately $1.5 billion. The stock gained about 4.7% after hours following the release. Nasdaq Q3 Results
• Positive Sentiment: Growth in recurring and higher-margin businesses supported the outlook: Annualized recurring revenue reached a record $3.4 billion, solutions revenue increased 17% to roughly $1.2 billion, and index revenue jumped 39%. Management also cited double-digit technology and fintech growth, along with continued share repurchases and dividends. NDAQ Q3 Earnings Beat
• Positive Sentiment: Analyst sentiment was supportive: RBC Capital Markets issued a Buy rating after the results. Nasdaq shares are trading near their 52-week high, and the broader analyst consensus remains favorable, with an average price target of approximately $110.47. RBC Buy Rating
• Neutral Sentiment: Quarterly dividend maintained: Nasdaq declared a $0.31-per-share dividend payable December 18, equivalent to a $1.24 annualized payout and roughly a 1.2% yield. This supports shareholder returns but was not an increase. Nasdaq Dividend Announcement
• Negative Sentiment: Insider selling presents a minor caution: EVP Jeremy Skule sold 1,125 shares for approximately $106,875, reducing his holdings by 1.15%. The transaction is small relative to his remaining stake and appears unlikely to offset the positive earnings reaction. SEC Insider Filing

Nasdaq Company Profile

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.