Earnings Outlook For Nasdaq

Nasdaq NDAQ will release its quarterly earnings report on Thursday, 2025-07-24. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Nasdaq to report an earnings per share (EPS) of $0.81.

Anticipation surrounds Nasdaq's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings History Snapshot

In the previous earnings release, the company beat EPS by $0.02, leading to a 0.83% increase in the share price the following trading session.

Here's a look at Nasdaq's past performance and the resulting price change:

Performance of Nasdaq Shares

Shares of Nasdaq were trading at $88.93 as of July 22. Over the last 52-week period, shares are up 31.27%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Take on Nasdaq

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Nasdaq.

The consensus rating for Nasdaq is Outperform, based on 12 analyst ratings. With an average one-year price target of $91.5, there's a potential 2.89% upside.

Comparing Ratings with Peers

The following analysis focuses on the analyst ratings and average 1-year price targets of Tradeweb Markets, FactSet Research Systems and Morningstar, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Tradeweb Markets, with an average 1-year price target of $146.75, suggesting a potential 65.02% upside.
• Analysts currently favor an Neutral trajectory for FactSet Research Systems, with an average 1-year price target of $450.67, suggesting a potential 406.77% upside.
• Analysts currently favor an Outperform trajectory for Morningstar, with an average 1-year price target of $355.0, suggesting a potential 299.19% upside.

Peers Comparative Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Tradeweb Markets, FactSet Research Systems and Morningstar, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Nasdaq ranks at the top for Revenue Growth and Gross Profit among its peers. However, it ranks at the bottom for Return on Equity. Overall, Nasdaq's performance is strong in terms of revenue and profit growth, but lags behind in generating returns for shareholders.

Delving into Nasdaq's Background

Founded in 1971, Nasdaq is primarily known for its equity exchange, but in addition to its trading business (about 22.5% of sales), the company sells market and financial data to investors, offers Nasdaq-branded indexes, and lists companies through its capital access segment (42.5%). Nasdaq's newest segment, financial technology, was primarily constructed through the acquisitions of Verafin and Adenza and has expanded the company into capital management, financial crime, and regulatory compliance software (35%) as the firm seeks to become a diversified technology company.

Nasdaq's Economic Impact: An Analysis

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Nasdaq displayed positive results in 3 months. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 24.85%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: Nasdaq's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 18.9%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Nasdaq's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 3.47%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 1.29%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.84.

To track all earnings releases for Nasdaq visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.