Nasdaq beats Q2 profit estimates, updates FY operating expense forecast

Overview

• US exchange operator's Q2 net revenue rose 15% yr/yr to $1.5 bln

• Adjusted EPS for Q2 rose 25% and beat analyst expectations

• Company repurchased $356 mln in shares and paid $174 mln in dividends in Q2

Outlook

• Nasdaq updates 2026 non-GAAP operating expense guidance to $2.53 bln-$2.57 bln

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

Result Drivers

• SOLUTIONS REVENUE GROWTH - Solutions revenue rose 17% yr/yr, driven by strong growth in Capital Access Platforms and Financial Technology segments

• INDEX REVENUE SURGE - Index revenue grew 38% yr/yr, supported by record net inflows and new product launches

• MARKET SERVICES MOMENTUM - Market Services net revenue increased 11% yr/yr, aided by record industry volumes and product innovation

Company press release: ID:nGNX9YpMkG

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "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 $110.00, about 21% above its July 22 closing price of $90.90

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)