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NDAQ posted Q4 2025 adjusted EPS of 96 cents, up 26.3% year over year, as net revenues rose 13%.
Nasdaq Market Services revenues jump 16% on record U.S. equity volumes, with index options revenues doubling.
NDAQ Solutions revenues rose 13% as ARR grew 10%, SaaS hit 38% of ARR, and operating margin expanded to 56%.
Nasdaq, Inc. (NDAQ - Free Report) reported fourth-quarter 2025 adjusted earnings per share of 96 cents, beating the Zacks Consensus Estimate by 5.5%. The bottom line improved 26.3% year over year.
The improvement was mainly driven by higher revenues across divisions and organic growth, partially offset by higher expenses.
Nasdaq’s net revenues of $1.4 billion increased 13% year over year. The top line beat the Zacks Consensus Estimate by 1.7%. Annualized Recurring Revenue (ARR) increased 10% year over year. Annualized SaaS revenues rose 11% and represented 38% of ARR. Organic growth was 13%.
Market Services net revenues were $311 million, up 16%. The increase was primarily driven by record industry volumes in U.S. cash equities and U.S. equity derivatives. Growth was also driven by index options revenues, more than doubling for the second straight quarter, higher market share in European equities, and strong U.S. Tape Plan revenues. Organic growth was 14%.
Revenues at the Solutions business increased 13% year over year to $1.1 billion, reflecting strong growth from Index and Financial Technology.
Adjusted operating expenses were $762 million, up 7% from the year-ago period. The increases primarily reflect organic growth due to increased investments in technology and people to drive innovation and long-term growth. It was partially offset by a decrease in regulatory and merger and strategic initiatives expenses.
The company’s operating margin of 56% expanded 100 basis points year over year.
The Nasdaq stock market welcomed 215 new company listings in the fourth quarter of 2025, including 63 initial public offerings. The number of listed companies was 4,480 at the end of the quarter.
Full-Year Highlights
For 2025, the company reported adjusted earnings per share of $3.48, which increased 23.4% year over year. The figure also beat the Zacks Consensus Estimate by 1.2%.
Net revenues were $5.2 billion, up 13% year over year. This included Solutions revenues, which increased 12%. Net revenues beat the Zacks Consensus Estimate by 0.1%.
Operating margin of 56% expanded 200 basis points year over year.
The Nasdaq stock market welcomed 784 new company listings, including 281 initial public offerings. The number of listed companies was 4,480 at the year-end.
Financial Update
Nasdaq had cash and cash equivalents of $604 million as of Dec. 31, 2025, which increased 2% from the end of 2024. Long-term debt increased to $8.5 billion, as of Dec. 31, 2025, which decreased 5.6% from the end of 2024.
Nasdaq generated $625 million in cash flow from operations in the reported quarter.
Capital Deployment
Nasdaq returned $153 million to shareholders in the fourth quarter of 2025 through dividends and $286 million through repurchases. Nasdaq also repaid $100 million of senior unsecured notes in the quarter.
The board of directors approved a dividend of 27 cents per share. The dividend will be paid out on March 30, 2026, to shareholders of record at the close of business on March 16, 2026.
As of Dec. 31, 2025, there was $1.1 billion remaining under the board-authorized share repurchase program.
2026 Guidance
Nasdaq expects 2026 non-GAAP operating expenses to be in the range of $2.455 billion to $2.535 billion. Nasdaq forecasts 2026 non-GAAP tax rate guidance to be in the range of 22.5-24.5%.
CME Group Inc. (CME - Free Report) is slated to release fourth-quarter 2025 earnings on Feb. 4. The Zacks Consensus Estimate for the fourth quarter earnings is pegged at $2.75 per share, indicating an increase of 9.1% from the year-ago reported figure.
CME Group delivered an earnings surprise in the three reported quarters of 2025.
Cboe Global Markets, Inc. (CBOE - Free Report) is set to release fourth-quarter 2025 earnings on Feb. 6. The Zacks Consensus Estimate for the fourth quarter earnings is pegged at $2.81, indicating an increase of 33.8% from the year-ago reported figure.
CBOE delivered an earnings surprise in each of the three reported quarters of 2025.
Intercontinental Exchange Inc. (ICE - Free Report) is set to release fourth-quarter 2025 earnings on Feb. 5. The Zacks Consensus Estimate for the fourth quarter earnings is pegged at $1.67, indicating an increase of 9.8% from the year-ago reported figure.
ICE delivered an earnings surprise in each of the three reported quarters of 2025.
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Nasdaq Beats Q4 Earnings & Revenue Estimates, Tweaks Expense View
Key Takeaways
Nasdaq, Inc. (NDAQ - Free Report) reported fourth-quarter 2025 adjusted earnings per share of 96 cents, beating the Zacks Consensus Estimate by 5.5%. The bottom line improved 26.3% year over year.
The improvement was mainly driven by higher revenues across divisions and organic growth, partially offset by higher expenses.
Nasdaq, Inc. Price, Consensus and EPS Surprise
Nasdaq, Inc. price-consensus-eps-surprise-chart | Nasdaq, Inc. Quote
Performance in Detail
Nasdaq’s net revenues of $1.4 billion increased 13% year over year. The top line beat the Zacks Consensus Estimate by 1.7%.
Annualized Recurring Revenue (ARR) increased 10% year over year. Annualized SaaS revenues rose 11% and represented 38% of ARR. Organic growth was 13%.
Market Services net revenues were $311 million, up 16%. The increase was primarily driven by record industry volumes in U.S. cash equities and U.S. equity derivatives. Growth was also driven by index options revenues, more than doubling for the second straight quarter, higher market share in European equities, and strong U.S. Tape Plan revenues. Organic growth was 14%.
Revenues at the Solutions business increased 13% year over year to $1.1 billion, reflecting strong growth from Index and Financial Technology.
Adjusted operating expenses were $762 million, up 7% from the year-ago period. The increases primarily reflect organic growth due to increased investments in technology and people to drive innovation and long-term growth. It was partially offset by a decrease in regulatory and merger and strategic initiatives expenses.
The company’s operating margin of 56% expanded 100 basis points year over year.
The Nasdaq stock market welcomed 215 new company listings in the fourth quarter of 2025, including 63 initial public offerings. The number of listed companies was 4,480 at the end of the quarter.
Full-Year Highlights
For 2025, the company reported adjusted earnings per share of $3.48, which increased 23.4% year over year. The figure also beat the Zacks Consensus Estimate by 1.2%.
Net revenues were $5.2 billion, up 13% year over year. This included Solutions revenues, which increased 12%. Net revenues beat the Zacks Consensus Estimate by 0.1%.
Operating margin of 56% expanded 200 basis points year over year.
The Nasdaq stock market welcomed 784 new company listings, including 281 initial public offerings. The number of listed companies was 4,480 at the year-end.
Financial Update
Nasdaq had cash and cash equivalents of $604 million as of Dec. 31, 2025, which increased 2% from the end of 2024. Long-term debt increased to $8.5 billion, as of Dec. 31, 2025, which decreased 5.6% from the end of 2024.
Nasdaq generated $625 million in cash flow from operations in the reported quarter.
Capital Deployment
Nasdaq returned $153 million to shareholders in the fourth quarter of 2025 through dividends and $286 million through repurchases. Nasdaq also repaid $100 million of senior unsecured notes in the quarter.
The board of directors approved a dividend of 27 cents per share. The dividend will be paid out on March 30, 2026, to shareholders of record at the close of business on March 16, 2026.
As of Dec. 31, 2025, there was $1.1 billion remaining under the board-authorized share repurchase program.
2026 Guidance
Nasdaq expects 2026 non-GAAP operating expenses to be in the range of $2.455 billion to $2.535 billion. Nasdaq forecasts 2026 non-GAAP tax rate guidance to be in the range of 22.5-24.5%.
Zacks Rank
Nasdaq currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
CME Group Inc. (CME - Free Report) is slated to release fourth-quarter 2025 earnings on Feb. 4. The Zacks Consensus Estimate for the fourth quarter earnings is pegged at $2.75 per share, indicating an increase of 9.1% from the year-ago reported figure.
CME Group delivered an earnings surprise in the three reported quarters of 2025.
Cboe Global Markets, Inc. (CBOE - Free Report) is set to release fourth-quarter 2025 earnings on Feb. 6. The Zacks Consensus Estimate for the fourth quarter earnings is pegged at $2.81, indicating an increase of 33.8% from the year-ago reported figure.
CBOE delivered an earnings surprise in each of the three reported quarters of 2025.
Intercontinental Exchange Inc. (ICE - Free Report) is set to release fourth-quarter 2025 earnings on Feb. 5. The Zacks Consensus Estimate for the fourth quarter earnings is pegged at $1.67, indicating an increase of 9.8% from the year-ago reported figure.
ICE delivered an earnings surprise in each of the three reported quarters of 2025.