Nasdaq (NDAQ) reported second quarter 2026 earnings, giving investors fresh detail on how its exchange and technology businesses are performing. The update included revenue, profits, earnings per share, and year-to-date figures.

Nasdaq shares closed at $90.42, with the stock down over the year to date but recording a 9.61% 1 month share price return. The 3 year total shareholder return of 87.45% reflects stronger long term momentum.

If Nasdaq's latest earnings have you thinking about what else is moving in market infrastructure and related technologies, it could be a good time to review 54 AI infrastructure stocks.

Nasdaq’s share price has climbed over the past month, yet the stock still trades at a discount to average analyst targets while screens flag only a modest value score. Is the market being sensibly cautious, or too pessimistic?

Most Popular Narrative: 15.1% Undervalued

With Nasdaq stock at $90.42 and the most followed narrative pointing to a fair value of $106.53, the gap between price and story is clear enough to merit attention.

The enhanced partnership with AWS is expected to modernize Nasdaq's market infrastructure across its financial services clientele, driving operational efficiencies, improving scalability, and potentially increasing market share, positively impacting net margins and future revenue growth. The expansion of Verafin's AI driven solutions is anticipated to enhance the platform's value, facilitating upselling opportunities, attracting new clients, and increasing engagement.

The fair value call hinges on a detailed playbook for earnings, revenue and margins, including how far Nasdaq could stretch its P/E by 2029. Curious which growth lanes, profit assumptions and capital returns need to line up to support that number? The full narrative lays out those moving parts in plain detail.

Result: Fair Value of $106.53 (UNDERVALUED)

However, if client decision making slows further or competition in listings and financial technology tightens, Nasdaq’s revenue and margin story could look very different.

Another View on Nasdaq Valuation

The analyst narrative leans on future earnings to argue Nasdaq is 15.1% undervalued at a fair value of $106.53. Yet on a simple P/E check, the stock trades at 26.7x, above its peer average of 25.3x and well above a fair ratio of 17.5x, which points to valuation risk instead of a clear bargain. Which lens do you think tells the more useful story for your own decision making?

Next Steps

Mixed signals around Nasdaq can be a useful prompt to look more closely instead of waiting on consensus. Take a moment to review the company's numbers, weigh the potential upsides against the concerns, and then check the 4 key rewards and 2 important warning signs.

Looking for more investment ideas beyond Nasdaq?

If Nasdaq’s update has sharpened your focus, do not stop here. Broaden your watchlist with a few targeted sets of stocks that match clear goals.

• Target potential upside by scanning companies that combine quality with appealing valuations through the 38 high quality undervalued stocks.
• Strengthen your income stream by reviewing businesses with robust payouts using the 7 dividend fortresses.
• Prioritize resilience by filtering for companies that show lower overall risk characteristics via the 79 resilient stocks with low risk scores.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.