Nasdaq (NDAQ) just turned in its latest scorecard, with recent quarterly revenue running at about US$1.4 billion and basic EPS at roughly US$0.91, backed by year over year earnings growth of 60.1% on a trailing basis. Over the last several quarters, total revenue has moved from US$1,146 million in Q3 2024 to US$1,392 million in Q4 2025, while quarterly basic EPS shifted from US$0.53 to US$0.91, and trailing twelve month EPS reached US$3.12 alongside a net profit margin of 34.1% versus 24% a year earlier, setting up a story of expanding profitability that investors will be weighing against the latest print.

See our full analysis for Nasdaq.

With the numbers on the table, the next step is to see how this earnings profile lines up with the big narratives investors follow around Nasdaq’s growth, risk, and long term positioning.

60.1% earnings growth versus slower 6.3% multi year trend

• Trailing twelve month earnings grew 60.1% year over year, while the five year compound annual earnings growth rate sits at 6.3% per year, so the latest jump is much stronger than the longer term pace.
• Consensus narrative expects product expansion, the AWS partnership, and Verafin’s AI tools to support revenue growth. However, the 6.3% five year earnings trend and analysts’ forecast of roughly 9.52% annual earnings growth suggest results may track closer to steady compounding than the recent 60.1% surge.
  • Analysts are assuming revenue growth of about 8.3% per year and flat profit margins at 34.1%, which is more measured than the trailing spike.
  • Earnings are expected to reach about US$2.3b by around 2029, compared with US$1.8b in the latest trailing twelve month figure, which lines up with this smoother growth path.

Margins at 34.1% versus softer revenue outlook

• Net profit margin on a trailing basis is 34.1%, up from 24% a year earlier, while revenue is forecast to grow around 6.5% per year compared with a 10.9% revenue growth forecast for the broader US market.
• Analysts’ consensus view highlights strong product pipelines and global expansion as supports for future revenue. At the same time, the 6.5% revenue growth forecast and margin assumption of 34.1% suggest the story leans more on sustaining current profitability than on outsized top line growth.
  • Trailing twelve month revenue is about US$5.2b compared with US$4.5b a year earlier, which gives the higher margin more weight in the overall profit picture.
  • Forecast earnings growth of 9.52% per year, slower than the US market’s 15.9% forecast, shows how margin strength may need to work harder if revenue grows at a more modest rate.

P/E at 27.7x with price above DCF fair value

• Nasdaq trades on a trailing P/E of 27.7x, below both the peer average of 30.2x and the US Capital Markets industry average of 42.4x, while the current share price of US$87.04 sits above the DCF fair value of about US$77.68.
• What stands out for valuation focused investors is the mix of a below peer P/E, a DCF fair value of US$77.68 that is below the current US$87.04 share price, and an analyst target of US$105.93. Taken together, these create tension between the bullish and cautious takes.
  • Supporters of the bullish view can point to the trailing twelve month EPS of US$3.12 and strong margin profile to argue that a 27.7x P/E is not stretched relative to the sector’s 42.4x average.
  • More cautious investors may focus on the gap between the current share price and the DCF fair value, alongside the note that Nasdaq carries a high level of debt, as reasons to treat the 21.7% implied upside to the US$105.93 target as something to test carefully against personal assumptions.

On days like this when valuation signals point in different directions, it can help to walk through the detailed bull and bear cases side by side before deciding how these numbers fit your own expectations for Nasdaq. See what the community is saying about Nasdaq

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Nasdaq on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of solid earnings, valuation tension, and mixed sentiment feels finely balanced, take a moment to review the underlying data and decide what matters most to you, then weigh both sides of the story using the 4 key rewards and 1 important warning sign

See What Else Is Out There

Nasdaq faces tension between a P/E above its DCF fair value, slower forecast earnings and revenue growth, and a high level of debt on the balance sheet.

If that mix of valuation questions and leverage gives you pause, compare it with companies screened for stronger financial footing and resilience using the solid balance sheet and fundamentals stocks screener (42 results).

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.