Start here if you're new
what it is
Nasdaq runs stock exchanges and sells the software, data, and compliance tools that keep markets moving.
how it gets paid
Last year Nasdaq made $8.3B in revenue. Market Services was the main engine at $4.23B, or 51% of sales.
why it's growing
Revenue grew 11.6% last year. Annual revenue reached $8.3B, up 11.6% vs. prior year.
what just happened
Revenue hit $6.1B and EPS came in at $2.19, with the most recent reported quarter also beating estimates by 9.09%.
At a glance
A+ balance sheet — rock-solid finances — built to survive anything
100/100 earnings predictability — you can trust these numbers
28.7x trailing p/e — priced about right
1.2% dividend yield — cash in your pocket every quarter
10.0% return on capital — nothing to write home about
xvary composite: 82/100 — above average
What they do
Nasdaq runs stock exchanges and sells the software, data, and compliance tools that keep markets moving.
Nasdaq wins because it owns both the venue and the software behind the venue. It had 5,249 companies listed on its exchanges at 12/31/24, including 4,075 on the Nasdaq Stock Market, so you are not buying a one-trick exchange. Financial technology → software sold to banks and exchanges → so what: 22% of 2024 revenue came from tools customers build operations around, which makes leaving slow and expensive.
How they make money
$8.3B
annual revenue · their business grew +11.6% last year
Market Services
$4.23B
+11.6%
Capital Access Platforms
$2.24B
+11.6%
Financial Technology
$1.83B
+11.6%
Other
$0.00B
flat
The products that matter
trading and clearing infrastructure
Market Services
inside the $8.3B revenue base
this is the part most directly tied to market activity. The current snapshot does not break out segment dollars, but management flagged market services growth through the first nine months of 2025.
core engine
software for financial institutions
Financial Technology
growth flagged in 2025 update
this segment was also called out as growing through the first nine months of 2025. That matters because it means Nasdaq is not only a volume trade — some growth comes from software-like revenue too.
mix shift watch
Key numbers
5,249
listed companies
That is the installed base on Nasdaq's exchanges at 12/31/24, which tells you this business starts with a very large customer funnel.
$8.3B
annual revenue
Revenue grew 11.6% vs. prior year, which means this is not just a sleepy exchange collecting legacy fees.
28.2%
operating margin
Operating margin → profit after running the business → so what: Nasdaq keeps about 28 cents of every revenue dollar before interest and taxes.
100
earnings predictability
That score says profits have been unusually steady, which is exactly what you want from financial infrastructure.
Financial health
A+
strength
- balance sheet grade A+ — near the highest rating possible
- risk rank 1 — safer than 95% of stocks
- price stability 90 / 100
- long-term debt $8.7B (15% of capital)
- net profit margin 26.0% — keeps 26 cents of every dollar in revenue
- return on equity 14% — $0.14 profit for every $1 investors have put in
A+ with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in NDAQ 3 years ago → it's now worth $16,660.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Revenue hit $6.1B and EPS came in at $2.19, with the most recent reported quarter also beating estimates by 9.09%.
Annual revenue reached $8.3B, up 11.6% vs. prior year. Management also said integrating new assets and restructuring moves boosted 2025 totals, with full-year EPS rising to $3.40 from $2.82.
$6.1B
revenue
$2.19
eps
62.8%
gross margin
the number that mattered
$6.1B matters because it shows how much the acquired and existing businesses expanded the top line in one quarter, even if that growth rate was inflated by deal math.
-
nasdaq likely put in a strong performance in 2025.the exchange operator continued to benefit from a dynamic macroeconomic environment over the past few months, as market turbulence boosted trading activity and prompted demand for some of nasdaq’s risk management or other offerings.
-
moreover, the integration of new assets, combined with other restructuring moves, boosted totals.
-
in all, through the first nine months of 2025, revenues at its market services, financial technology, and capital access platforms increased 17%, 14%, and 9%, respectively, from a year ago.
-
for the full year, we think earnings per share jumped 21%, on an 11% revenue gain.
-
the company is well positioned for the coming quarters.
source: company earnings report, 2026
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What could go wrong
the #1 risk is a sustained calm market that cuts trading and data demand.
med
market activity cools down
Nasdaq benefits when markets stay busy. If volatility, trading volumes, and listing activity all fade at once, the exchange-and-data engine loses momentum. That matters because the company just printed $8.3B in annual revenue off this general business mix.
watch for weaker trading activity and a softer revenue cadence
med
pressure on exchange and data fees
Regulators can change market structure, data pricing, or trading rules. If that happens, one of the higher-margin parts of the model gets squeezed. This page does not give you the exact segment exposure, so pretending to know the precise damage would be theater.
the margin, not just the revenue line, is what to watch
low
integration lift fades
Recent results got help from acquired assets. If that benefit rolls off before organic growth fully takes over, the growth story looks less impressive than the headline numbers suggest.
watch the gap between reported growth and the cleaner underlying trend
med
valuation outruns business quality
At 28.7x trailing earnings, you are already paying up for safety and consistency. If growth settles closer to the $9B revenue outlook while the multiple keeps expanding, future returns get thinner even if the business stays good.
a good company can still be an average stock if the entry price gets too generous
with $8.3B in annual revenue and a 22.6% net margin, even a modest slowdown matters because this is infrastructure with real operating leverage.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
the path from $8.3B to $9B
analysts expect roughly $9B in revenue for fy2026. If that number starts slipping, the premium multiple gets harder to defend.
risk
how quiet markets get
the cleanest bear-case signal is a cooler activity backdrop. Nasdaq does best when the financial system is busy using its pipes.
calendar
the next earnings print
last quarter delivered $0.73 EPS on $2.0B revenue. You want the next report to show the same consistency, not a one-off spike.
trend
institutional flow staying positive
543 buyers versus 393 sellers in 3q2025 made it three straight quarters of net buying. If that reverses, pay attention.
Analyst rankings
short-term outlook
average
momentum score 3 — in human-speak, analysts see a normal setup, not a near-term breakout.
risk profile
safest 5%
stability score 1 — lower risk of permanent damage than almost any stock in the market.
chart momentum
average
technical score 3 — the chart is behaving like a mature large cap, not a momentum toy.
earnings predictability
100 / 100
few businesses give you steadier quarterly numbers. That reliability is part of why the market grants a premium multiple.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 543 buyers vs. 393 sellers in 3q2025. total institutional holdings: 0.5B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$82
$141
$97
current price
$112
target midpoint · +15% from current · 3-5yr high: $100 (+5% · 2% ann'l return)
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