Nasdaq, Inc. (NDAQ) Earnings Preview – Continued Growth Expected

Nasdaq, Inc. (NASDAQ:NDAQ) is preparing to release earnings tomorrow morning, and the street is expectant after an impressive 20.47% rally in the stock over the past year.

Analysts estimate an earnings per share (EPS) of $0.85 for the current quarter, reflecting a 14.9% year-over-year growth. For the fiscal year ending December 2025, the projected EPS is $3.37, indicating an impressive 19.5% increase from the previous year.

Nasdaq's recent earnings reports have consistently exceeded expectations. In the fourth quarter of 2024, the company reported adjusted EPS of $0.76, slightly above the consensus estimate of $0.75. This trend continued in the first and second quarters of 2025, with adjusted EPS of $0.79 and $0.85, respectively, both surpassing analyst predictions. The consistent outperformance is driven by robust growth across its business segments, including Capital Access Platforms, Financial Technology, and Market Services.

The Capital Access Platforms segment has been a significant contributor to Nasdaq's revenue growth. In Q4 2024, it contributed $511 million, an 11% increase year-over-year. The Financial Technology segment also demonstrated strong performance, adding $438 million in Q4 2024, up 9.8% from the prior year. The Market Services segment has experienced particularly strong growth, with a 19% increase in revenue in both Q1 and Q2 2025.

Despite the positive earnings reports and revenue growth, there are factors that could potentially hinder NDAQ's future performance. The global economic outlook remains uncertain, and any significant downturn could negatively impact trading volumes and demand for Nasdaq's services. Increased competition from other exchanges and financial technology providers also poses a threat to Nasdaq's market share.

While the prevailing sentiment surrounding NDAQ is largely positive, bears may point to the reliance on continued growth in its Market Services segment, which is heavily influenced by market volatility, as a potential vulnerability. A prolonged period of market stability or a significant market correction could lead to a decline in trading volumes and a subsequent decrease in revenue for this segment.

Furthermore, the high adjusted operating margin of 55% may be difficult to maintain in the face of increasing competition and rising operating costs.

The strong performance in the Market Services segment may also be a double-edged sword. While it has boosted revenues in the short term, its reliance on market volatility makes it a less predictable and stable source of income compared to the Capital Access Platforms and Financial Technology segments.

The company's consistent earnings growth and strategic initiatives are undoubtedly positive factors, but one should also be mindful of the potential headwinds, including global economic uncertainty, increased competition, and the stock's current technical indicators.