📊 NDAQ Key Takeaways
Is Nasdaq, Inc.. (NDAQ) a Good Investment?
NDAQ demonstrates strong fundamental health with exceptional profitability margins (Operating: 30.7%, Net: 24.3%), accelerating earnings (60.3% YoY growth), and robust free cash flow generation (29.4% FCF margin). Revenue growth of 11.6% combined with superior cash conversion quality indicates sustainable business fundamentals, though tight liquidity and low return on equity metrics warrant continued monitoring.
Nasdaq shows strong fundamental quality with double-digit revenue growth, high margins, and robust free cash flow generation, which supports resilience and capital flexibility. Profitability remains solid across gross, operating, and net levels, while leverage appears manageable given strong interest coverage. The main limitation is that net income growth is essentially flat, suggesting some recent EPS strength may be driven by factors other than broad-based earnings expansion.
Why Buy Nasdaq, Inc.. Stock? NDAQ Key Strengths
- Outstanding operating margin of 30.7% and net margin of 24.3% indicating pricing power and operational efficiency
- Exceptional earnings acceleration with 60.3% YoY net income growth and 60.1% EPS growth showing operating leverage
- Strong free cash flow generation of $629M (29.4% FCF margin) with minimal CapEx intensity, indicating earnings quality
- Manageable leverage with 0.71x Debt/Equity and solid 6.1x interest coverage despite $8.5B long-term debt
- Double-digit revenue growth with strong 63.5% gross margin and 28.2% operating margin
- Robust free cash flow of $1.99B and a healthy 24.1% FCF margin
- Manageable leverage profile with 0.70x debt-to-equity and strong 21.6x interest coverage
NDAQ Stock Risks: Nasdaq, Inc.. Investment Risks
- Critically low ROE of 4.3% and ROA of 1.9% suggest inefficient capital deployment and asset utilization concerns
- Tight liquidity position with Current and Quick ratios both at 1.0x, indicating limited financial flexibility for unexpected disruptions
- Significant long-term debt of $8.5B represents material leverage risk in market downturns affecting trading volumes
- Dependence on market activity as a financial exchange creates cyclical earnings sensitivity
- Net income growth of just 0.1% may indicate slower underlying earnings expansion despite strong EPS growth
- Liquidity is only adequate with a 1.01x current and quick ratio and relatively modest cash balance
- Long-term debt of $8.57B remains meaningful and could pressure flexibility if operating conditions weaken
Key Metrics to Watch
- Return on Equity trend - current 4.3% is concerning and needs improvement toward 8-10% range for financial services sector
- Current ratio improvement - monitor movement above 1.2x to ensure adequate working capital and financial flexibility
- Free Cash Flow conversion maintenance - ensure FCF margins remain above 25% to validate earnings quality
- Operating margin sustainability - watch for any compression below 28% indicating pricing or cost pressures
- Net income growth relative to revenue growth
- Free cash flow conversion and debt reduction progress
Nasdaq, Inc.. (NDAQ) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 29.4% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
NDAQ Profit Margin, ROE & Profitability Analysis
NDAQ vs Services Sector: How Nasdaq, Inc.. Compares
How Nasdaq, Inc.. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Nasdaq, Inc.. Stock Overvalued? NDAQ Valuation Analysis 2026
Based on fundamental analysis, Nasdaq, Inc.. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Nasdaq, Inc.. Balance Sheet: NDAQ Debt, Cash & Liquidity
NDAQ Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Nasdaq, Inc..'s revenue has grown significantly by 40% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.08 reflects profitable operations.
NDAQ Revenue Growth, EPS Growth & YoY Performance
NDAQ Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.1B | $395.0M | $0.68 |
| Q3 2025 | $1.9B | $306.0M | $0.53 |
| Q2 2025 | $1.8B | $222.0M | $0.38 |
| Q1 2025 | $1.7B | $234.0M | $0.40 |
| Q3 2024 | $1.5B | $294.0M | $0.53 |
| Q2 2024 | $1.4B | $222.0M | $0.38 |
| Q1 2024 | $1.5B | $234.0M | $0.40 |
| Q3 2023 | $1.5B | $294.0M | $0.59 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Nasdaq, Inc.. Dividends, Buybacks & Capital Allocation
NDAQ SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Nasdaq, Inc.. (CIK: 0001120193)
📋 Recent SEC Filings
❓ Frequently Asked Questions about NDAQ
What is the AI rating for NDAQ?
Nasdaq, Inc.. (NDAQ) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 81% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are NDAQ's key strengths?
Claude: Outstanding operating margin of 30.7% and net margin of 24.3% indicating pricing power and operational efficiency. Exceptional earnings acceleration with 60.3% YoY net income growth and 60.1% EPS growth showing operating leverage. ChatGPT: Double-digit revenue growth with strong 63.5% gross margin and 28.2% operating margin. Robust free cash flow of $1.99B and a healthy 24.1% FCF margin.
What are the risks of investing in NDAQ?
Claude: Critically low ROE of 4.3% and ROA of 1.9% suggest inefficient capital deployment and asset utilization concerns. Tight liquidity position with Current and Quick ratios both at 1.0x, indicating limited financial flexibility for unexpected disruptions. ChatGPT: Net income growth of just 0.1% may indicate slower underlying earnings expansion despite strong EPS growth. Liquidity is only adequate with a 1.01x current and quick ratio and relatively modest cash balance.
What is NDAQ's revenue and growth?
Nasdaq, Inc.. reported revenue of $2.1B.
Does NDAQ pay dividends?
Nasdaq, Inc.. pays dividends, with $153.0M distributed to shareholders in the trailing twelve months.
Where can I find NDAQ SEC filings?
Official SEC filings for Nasdaq, Inc.. (CIK: 0001120193) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is NDAQ's EPS?
Nasdaq, Inc.. has a diluted EPS of $0.91.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is NDAQ a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Nasdaq, Inc.. has a BUY rating with 81% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is NDAQ stock overvalued or undervalued?
Valuation metrics for NDAQ: ROE of 4.3% (sector avg: 16%), net margin of 24.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy NDAQ stock in 2026?
Our dual AI analysis gives Nasdaq, Inc.. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is NDAQ's free cash flow?
Nasdaq, Inc..'s operating cash flow is $689.0M, with capital expenditures of $60.0M. FCF margin is 29.4%.
How does NDAQ compare to other Services stocks?
Vs Services sector averages: Net margin 24.3% (avg: 10%), ROE 4.3% (avg: 16%), current ratio 1.00 (avg: 1.5).