Nasdaq Q4 adjusted EPS beats estimates

Overview

• U.S. stock exchange operator's Q4 net revenue rose 13% yr/yr, driven by Solutions growth

• Adjusted EPS for Q4 beat analyst expectations, rising 27% yr/yr

• Company returned $439 mln to shareholders in Q4 through dividends and buybacks

Outlook

• Nasdaq initiates 2026 non-GAAP operating expense guidance at $2.455 bln to $2.535 bln

• Company sets 2026 non-GAAP tax rate guidance at 22.5% to 24.5%

• Nasdaq aims to deliver durable growth by deepening client relationships in 2026

Result Drivers

• FINANCIAL TECHNOLOGY GROWTH - Financial Technology revenue increased 14% in Q4, driven by sales momentum and new client acquisitions

• INDEX REVENUE GROWTH - Index revenue grew 23% in Q4, supported by $99 billion of net inflows over the trailing twelve months

• MARKET SERVICES PERFORMANCE - Market Services net revenue rose 16% in Q4, benefiting from record industry volumes and market share gains

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the financial & commodity market operators & service providers peer group is "buy"

• Wall Street's median 12-month price target for Nasdaq Inc is $109.00, about 10.4% above its January 28 closing price of $98.71

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nGNX9yy5cj

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