Tradeweb Mkts Inc.

Tradeweb runs at a 40.7% operating margin, and you still pay 35.4 times trailing earnings for the privilege.

If you own Tradeweb, you own a trading toll road that gets busier when markets get nervous.

tw

financials large cap updated jan 2, 2026
$106.25
market cap ~$25B · 52-week range $88–$153
xvary composite: 66 / 100 · average
our overall rating — combines growth, value, risk, and momentum
Start here if you're new
what it is
Tradeweb runs digital markets where big investors trade bonds, rates, credit, equities, and cash products.
how it gets paid
Last year Tradeweb Mkts made $2.1B in revenue. Rates was the main engine at $0.84B, or 40% of sales.
why it's growing
FY 2025 revenue grew 18.9% to ~$2.05B; Q4 adjusted EPS was $0.87— read GAAP EPS separately after the Q4 non-operating items.
what just happened
Q4 2025 adjusted diluted EPS was $0.87— check GAAP EPS separately because other income moved a lot in that quarter.
At a glance
A balance sheet — strong enough to weather a downturn
100/100 earnings predictability — you can trust these numbers
35.4x trailing p/e — you're paying up for this one
0.5% dividend yield — cash in your pocket every quarter
9.5% return on capital — nothing to write home about
xvary composite: 66/100 — average
What they do
Tradeweb runs digital markets where big investors trade bonds, rates, credit, equities, and cash products.
If your desk already trades where 3,000 clients in 85 countries show up, leaving means worse prices and slower execution. Network effect → more users attract more users → so what: the venue with the most participants usually gives you the best chance at a fast fill. That helps explain why Tradeweb converts revenue into a 40.7% operating margin.
financials large-cap marketplace trading-volumes fixed-income
How they make money
$2.1B annual revenue · their business grew +18.9% last year
Rates
$0.84B
+18%
Credit
$0.59B
+22%
Equities
$0.25B
+12%
Money Markets
$0.21B
+15%
Market Data and Other
$0.21B
+9%
The products that matter
matches institutional trades electronically
Electronic Trading Marketplace
$1.89B · ~90% of revenue
this is the engine. rates + credit + equities + money markets on this page sum to about $1.89B of the $2.1B total—roughly 90%—which means most of your investment case comes down to trading activity staying healthy.
~90% of revenue
supports platform clients and workflows
Services & Other
$210M · about 10% of revenue
this smaller $210M segment matters because it diversifies the story a little, but the quiet part is that TW is still overwhelmingly a marketplace stock.
supporting revenue
Key numbers
$3.20
fy2026 eps est
$2B
fy2028 rev est
35.4x
trailing p/e
0.5%
dividend yield
Financial health
A
strength
  • balance sheet grade A — very strong financial position
  • risk rank 2 — safer than 80% of stocks
  • price stability 80 / 100
  • net profit margin 37.0% — keeps 37 cents of every dollar in revenue
  • return on equity 10% — $0.10 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 TW 3 years ago → it's now worth $17,030.

The index would have given you $13,920.

source: institutional data · total return
What just happened
beat estimates
Q4 2025 revenue was ~$521M (+12.5% YoY); adjusted diluted EPS was $0.87 vs. $0.76 in Q4 2024 (per the Feb 5, 2026 release).
GAAP diluted EPS was $1.51 in Q4 2025— materially lifted by non-operating gains (e.g., digital-asset-related items called out in the release), so compare adjusted vs. adjusted when you talk about “core” earnings power. FY 2025 total revenue was ~$2.05B (+18.9% YoY) with ~40.7% GAAP operating margin.
~$521M
Q4 2025 revenue
$0.87
adj. diluted EPS
40.7%
operating margin
the number that mattered
Adjusted EPS progression matters because TW screens expensive— but read GAAP vs. adjusted side by side after Q4’s non-operating noise.
source: company earnings report, 2026

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What could go wrong

the top threat is regulatory changes in electronic fixed-income and institutional trading.

med
regulatory rule changes
Tradeweb operates in market plumbing, which means regulators can change the rules in ways that directly affect pricing, reporting, or trading workflows.
the direct exposure is large: the core marketplace lines above sum to about $1.89B last year, or ~90% of the $2.1B total.
med
volume normalization
Recent strength has been tied to elevated trading activity and volatility. If market activity cools, the growth rate can cool with it.
that matters because the market is still underwriting 18.9% revenue growth and premium margins.
med
multiple compression
A 35.4x trailing p/e leaves less room for operational wobble. You can own a good business and still get a flat stock if expectations were too generous.
the share price is already 20% above the low end of the $130–$175 long-range target band, but still far from the high end. That gap cuts both ways.
med
international execution
Roughly half of revenue comes from overseas markets. That's a growth opportunity, but it also widens the map of regulatory, competitive, and market-structure risks.
when about 50% of the top line is international, overseas softness stops being a footnote.
a rule change that hits core trading volumes or fee economics would land on the part of the business that generates ~90% of revenue, and slower activity would test whether 35.4x earnings is still justified.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
revenue growth versus the 18.9% baseline
if growth starts falling toward single digits while the stock still trades above 30x earnings, the valuation debate changes fast.
calendar
next earnings release
you want another read on whether the 36.5% quarterly net margin was a one-quarter spike or the new level.
trend
international contribution
roughly half of revenue comes from overseas markets. sustained double-digit growth there would make the story less dependent on one engine.
risk
regulatory headlines around market structure
this is market infrastructure. When regulators talk about transparency, execution, or electronic trading rules, you should assume TW is somewhere in the sentence.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts think the next stretch may lag even if the business itself stays solid.
risk profile
above average
stability score 2 — safer than roughly 80% of stocks. Not risk-free. Just sturdier than most.
chart momentum
average
technical score 3 — no major signal from the chart. The business case matters more than the tape right now.
earnings predictability
100 / 100
management's numbers are unusually consistent. That's rare, and part of why the stock gets a premium multiple.
source: institutional data
Institutional activity

261 buyers vs. 314 sellers in 3q2025. total institutional holdings: 0.1B shares.

source: institutional data
Price targets
3-5 year target range
$95 $188
$106 current price
$142 target midpoint · +34% from current · 3-5yr high: $175 (+65% · 14% ann'l return)
source: institutional data · analyst targets

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