Nasdaq, Inc. (NDAQ) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Nasdaq, Inc. (NDAQ) Financial Services Profile

Nasdaq, Inc. is a global technology company at the heart of capital markets, providing trading, clearing, exchange technology, and information services. With a significant presence in market surveillance and anti-financial crime solutions, Nasdaq supports a diverse range of assets and listed companies worldwide, competing with established players in the financial data and exchange sector.

What Is the Investment Thesis for NDAQ?

Nasdaq, Inc. presents a compelling investment case driven by its diversified revenue streams and strategic positioning in the financial technology sector. The company's Market Technology segment, particularly its anti-financial crime solutions, offers substantial growth potential amid increasing regulatory scrutiny. With a P/E ratio of 25.7 and a profit margin of 23.1%, Nasdaq demonstrates solid profitability. The dividend yield of 1.21% provides a steady return for investors. Upcoming catalysts include further expansion of its SaaS-based anti-financial crime offerings and continued growth in its Investment Intelligence segment. Potential risks include increased competition from established exchange operators and the impact of macroeconomic factors on trading volumes.

Based on FMP financials and quantitative analysis

NDAQ Key Highlights

Market Cap of $55.0B reflects Nasdaq's significant presence and valuation in the financial technology sector.

• P/E Ratio of 25.7 indicates investor confidence in Nasdaq's earnings potential relative to its stock price.
• Profit Margin of 23.1% showcases Nasdaq's ability to generate profits efficiently.
• Gross Margin of 54.8% demonstrates strong pricing power and cost management.
• Dividend Yield of 1.21% provides a consistent income stream for investors.

Who Are NDAQ's Competitors?

NDAQ is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are NDAQ's Key Strengths?

Strong brand recognition and reputation.

• Diversified revenue streams across multiple business segments.
• Leading position in market technology and anti-financial crime solutions.
• Global presence and reach.

What Are NDAQ's Weaknesses?

Dependence on market volatility and trading volumes.

• Exposure to regulatory changes and compliance costs.
• Competition from established exchange operators and fintech companies.
• Potential for cybersecurity breaches and data privacy concerns.

What Could Drive NDAQ Stock Higher?

Expansion of SaaS-based anti-financial crime offerings to new markets.

• Continued growth in demand for market data and analytics.
• Strategic acquisitions to enhance product offerings and market share.
• Launch of new index products and investment solutions.
• Increasing adoption of cloud-based technology solutions.

What Are the Key Risks for NDAQ?

Rich valuation — a P/E of 25.7 runs well above the Financial Services sector’s ~18x, leaving little room for a miss.

• Economic downturns and market corrections could reduce trading volumes.
• Increased competition from alternative trading systems and fintech companies.
• Regulatory scrutiny and potential fines for non-compliance.
• Technological disruptions and cybersecurity threats.
• Geopolitical risks and trade tensions could impact global capital markets.

What Are the Growth Opportunities for NDAQ?

• Expansion of Anti-Financial Crime Technology: The anti-financial crime technology market is experiencing rapid growth, driven by increasing regulatory scrutiny and the need to combat financial fraud. Nasdaq's Verafin and other SaaS solutions position it to capture a significant share of this market. This market is estimated to reach $20 billion by 2028, offering substantial growth potential for Nasdaq. Timeline: Ongoing.
• Growth in Investment Intelligence Segment: The demand for real-time market data, analytics, and investment insights is increasing as investors seek to make informed decisions. Nasdaq's Investment Intelligence segment is well-positioned to capitalize on this trend by offering innovative data solutions and index products. The global market for financial data is projected to reach $40 billion by 2027. Timeline: Ongoing.
• Strategic Acquisitions: Nasdaq has a history of strategic acquisitions to expand its product offerings and market reach. Future acquisitions in areas such as data analytics, fintech, and regulatory technology could drive further growth. Identifying and integrating synergistic acquisitions will be crucial for maintaining a competitive edge. Timeline: Ongoing.
• Expansion of Corporate Platforms: The market for listing services and investor relations solutions is growing as more companies seek to access public markets and engage with investors. Nasdaq's Corporate Platforms segment can benefit from this trend by attracting new listings and offering innovative investor relations tools. The global IPO market is expected to rebound in the coming years. Timeline: Upcoming.
• International Expansion: Nasdaq has opportunities to expand its presence in international markets, particularly in emerging economies with growing capital markets. By establishing partnerships and offering localized solutions, Nasdaq can tap into new revenue streams and diversify its geographic footprint. The growth of capital markets in Asia and Latin America presents significant opportunities. Timeline: Ongoing.

What Are NDAQ's Competitive Advantages?

• Network effect: The more companies that list on Nasdaq, the more attractive it becomes to investors, and vice versa.
• Switching costs: High switching costs for exchanges and clearinghouses due to regulatory requirements and operational complexity.
• Brand reputation: Nasdaq is a well-known and respected brand in the financial industry.
• Proprietary technology: Nasdaq's technology solutions are highly sophisticated and difficult to replicate.

What Does NDAQ Do?

Founded in 1971 and headquartered in New York City, Nasdaq, Inc. has evolved from the world's first electronic stock market to a diversified technology company serving the global capital markets and beyond. Initially known as The NASDAQ OMX Group, Inc., the company rebranded to Nasdaq, Inc. in September 2015, reflecting its broader scope. Nasdaq operates through four primary segments: Market Technology, Investment Intelligence, Corporate Platforms, and Market Services. The Market Technology segment offers anti-financial crime technology, including Nasdaq Trade Surveillance, Nasdaq Automated Investigator, and Verafin, catering to brokers and market participants. The Investment Intelligence segment focuses on market data distribution, index development, and investment solutions. Corporate Platforms provides listing platforms and investor relations services. The Market Services segment operates exchanges and clearing facilities for various asset classes. As of December 31, 2021, Nasdaq had 4,178 listed companies on The Nasdaq Stock Market. Nasdaq's evolution reflects its commitment to innovation and its pivotal role in shaping modern capital markets.

What Products and Services Does NDAQ Offer?

• Operates exchanges for trading stocks, options, and other securities.
• Provides clearing and settlement services for trades.
• Offers market data and analytics to investors and traders.
• Develops and licenses indexes for financial products.
• Provides technology solutions for exchanges and clearinghouses.
• Offers anti-financial crime technology solutions.
• Provides listing services for companies going public.
• Offers investor relations and governance solutions.

How Does NDAQ Make Money?

• Transaction fees from trading and clearing activities.
• Subscription fees for market data and analytics.
• Licensing fees for indexes and technology solutions.
• Listing fees from companies listed on Nasdaq exchanges.
• Fees for anti-financial crime technology solutions.

What Industry Does NDAQ Operate In?

Nasdaq, Inc. operates within the financial data and stock exchange industry, a sector characterized by rapid technological advancements and increasing regulatory complexity. The industry is witnessing a growing demand for sophisticated market surveillance and anti-financial crime solutions, driven by heightened regulatory scrutiny and the need to combat financial fraud. Nasdaq competes with established players like S&P Global Inc. (SPGI), CME Group Inc. (CME), and Intercontinental Exchange, Inc. (ICE), all vying for market share in trading, data services, and exchange technology. The industry is also influenced by macroeconomic factors, such as interest rates and trading volumes.

Who Are NDAQ's Key Customers?

• Broker-dealers and other market participants.
• Institutional investors, such as hedge funds and mutual funds.
• Corporations seeking to list their shares on Nasdaq.
• Exchanges and clearinghouses around the world.
• Regulatory agencies and law enforcement.

Over the past six months, Nasdaq, Inc. insiders filed 15 SEC Form 4 transactions — 10 sales and 5 purchases. On net that is roughly 10K shares acquired (about $790K) — insiders putting money in tends to read as conviction.

Wall Street analysts project Nasdaq, Inc. revenue of about $5.91B for fiscal 2026, with EPS near $4.13. The estimate reflects 10 contributing analysts.

Nasdaq, Inc. has beaten Wall Street's EPS estimate in 8 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 4.4% above estimates on average.

Nasdaq, Inc.'s Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 3.22 places it in the safe zone, indicating low near-term bankruptcy risk.

Return on equity for Nasdaq, Inc. stands at 15.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 7.0%, showing how much profit it generates from its asset base. NDAQ trades at a trailing price-to-earnings ratio of 25.71, above the Financial Services sector average of ~18x. Its free cash flow yield is 4.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 10.15 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.9%, the inverse of the P/E and a quick read on earnings relative to price.

Nasdaq, Inc. (NDAQ) Valuation Context

Valued at $55.0B, NDAQ is classified as a large-cap stock. Relative to its peer group, NDAQ's quantitative score of 91/100 is above the peer average of 77/100.

NDAQ Revenue & Earnings Trend

In Q2 2026, NDAQ generated $2.53B in top-line revenue, marking a sequential increase of 18.5%. The company recorded net income of $507.0M, with diluted EPS of $0.89. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this large-cap Financial Services company. Across the four most recent quarters, NDAQ averaged $0.86 in diluted EPS.

Company Profile

Nasdaq, Inc. operates in the Financial - Data & Stock Exchanges industry within the Financial Services sector. It is headquartered in New York City, US. The company is led by CEO Adena T. Friedman. NDAQ has traded publicly since 2002.

NDAQ Financials

NDAQ Latest News

NDAQ Analyst Consensus

NDAQ MoonshotScore

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Common Questions About NDAQ (Financial Services)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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