Nasdaq Reports Strong Q4 2025 Earnings Beat Driven by Index and FinTech Units
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 12h ago
0mins
Source: seekingalpha
- Earnings Beat: Nasdaq's Q4 2025 adjusted EPS of $0.96 exceeded Wall Street's $0.92 estimate and marked a 26.3% increase from $0.76 in Q4 2024, indicating a significant improvement in profitability.
- Revenue Growth: The company reported net revenue of $1.39 billion in Q4, surpassing the $1.37 billion analyst consensus and up 5.3% from $1.32 billion in Q3, reflecting strong performance in its Market Services and Financial Technology segments.
- Rising Expenses: Despite revenue growth, adjusted operating expenses surged to $762 million, significantly higher than $583 million in Q3 and $710 million in Q4 2024, highlighting ongoing investments in technology and talent.
- Shareholder Returns: During the quarter, Nasdaq returned $153 million to shareholders through dividends and $286 million via share buybacks, demonstrating a strong commitment to enhancing shareholder value.
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Analyst Views on NDAQ
Wall Street analysts forecast NDAQ stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NDAQ is 105.89 USD with a low forecast of 96.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
10 Buy
1 Hold
0 Sell
Strong Buy
Current: 98.710
Low
96.00
Averages
105.89
High
115.00
Current: 98.710
Low
96.00
Averages
105.89
High
115.00
About NDAQ
Nasdaq, Inc. is a global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. The Company manages, operates and provides its products and services in three business segments: Capital Access Platforms, Financial Technology and Market Services. Its Capital Access Platforms segment comprises Data & Listing Services, Index and Workflow & Insights. The Financial Technology segment comprises Financial Crime Management Technology, Regulatory Technology and Capital Markets Technology businesses. Its Market Services segment includes its equity derivative trading and clearing, cash equity trading, fixed income, currency and commodities trading. It operates over 19 exchanges across several asset classes, including derivatives, commodities, cash equity, debt, structured products and exchange-traded products (ETPs).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nasdaq Reports Strong Q4 Results, Exceeds Expectations
- Quarterly Revenue Growth: Nasdaq's Q4 revenue rose 13% year-over-year to $1.39 billion, surpassing analyst expectations of $1.37 billion, indicating strong performance in the financial services sector.
- Adjusted EPS: The company reported an adjusted EPS of 96 cents, exceeding the analyst consensus estimate of 91 cents, reflecting improved profitability and increased market confidence.
- Annual Recurring Revenue: Nasdaq's Annualized Recurring Revenue increased by 10% year-over-year to $3.1 billion, demonstrating robust growth in recurring revenue streams and enhancing future financial stability.
- Shareholder Return Strategy: In Q4 2025, Nasdaq returned $153 million to shareholders through dividends and repurchased $286 million of common stock, highlighting the company's commitment to shareholder value and its strong financial health.
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Nasdaq Reports Record Q4 2025 Earnings and Growth Insights
- Record Financial Performance: Nasdaq achieved a net revenue of $5.2 billion in 2025, with solutions revenue reaching $4.0 billion and operating income at $2.9 billion, reflecting strong performance across all divisions and exceeding expectations.
- AI Integration: The launch of the Agentic AI workforce, starting with the Agentic Sanctions Analyst, has received positive early client feedback, and plans to implement 23/5 trading in the second half of 2026 aim to enhance market competitiveness.
- Accelerated Market Activity: Management anticipates an acceleration in capital markets activity in 2026, supported by recent Fed cuts and a robust pipeline of late-stage private companies, indicating a vibrant new issuance environment.
- Financial Crime Management Partnership: The new partnership with BioCatch aims to enhance financial crime management technology, with a goal to exceed $100 million in run-rate revenue from cross-sells by the end of 2027, underscoring the company's strategic focus on compliance.
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