Nasdaq (NDAQ) has just posted its Q2 2026 scorecard, with revenue of US$1.5 billion and basic EPS of US$0.90. This is set against trailing 12 month revenue of US$5.6 billion and EPS of US$3.46 that reflects earnings growth of 30.4% and revenue growth of about 7.2% over the past year. Over the last six reported quarters, the company has seen revenue move from US$1.24 billion in Q1 2025 to US$1.5 billion in Q2 2026, while quarterly basic EPS shifted from US$0.69 to US$0.90. This has been supported by a net profit margin profile that currently sits at 35% and frames this update as a margins focused story for investors.
See our full analysis for Nasdaq.With the headline numbers set, the next step is to compare these results with the prevailing narratives around Nasdaq’s growth, income appeal, and risk profile to see which stories line up with the data and which are challenged.
Curious how numbers become stories that shape markets? Explore Community Narratives
35% margin highlights Nasdaq’s profit profile
- Across the last 12 months, Nasdaq converted US$5.6 billion of revenue into US$1.97 billion of net income, which works out to a 35% net profit margin compared with 30.7% a year earlier.
- What stands out for a more bullish take is that earnings grew 30.4% over the past year while revenue grew about 7.2%. This strongly supports the idea that the business is getting more efficient even as revenue growth trails the broader US market’s 12.7% pace.
- Supporters often point to this kind of margin profile as evidence that Nasdaq’s mix of exchange activity and data or software style revenue can sustain high quality earnings.
- The five year earnings growth rate of 10.3% per year, alongside the recent 30.4% jump, backs the view that profitability has held up through different conditions.
If you want a clearer picture of how these numbers fit into longer term stories around growth, income and risk for Nasdaq, it is worth checking how other investors are framing the company’s path through detailed narratives and data driven breakdowns 📊 Read the what the Community is saying about Nasdaq..
Revenue growth at 7.2% versus market’s 12.7%
- Over the past year, Nasdaq’s revenue growth rate of about 7.2% per year sat below the US market’s 12.7% pace, even as trailing EPS climbed 30.4% and the five year earnings compound growth rate is shown at 10.3% per year.
- Bears often argue that slower top line growth can be a concern, and this gap with the wider market gives them some support. Yet the same data also shows stronger earnings progress than the five year trend, which complicates a purely cautious story.
- On one hand, the forecast revenue growth of 7.2% per year and earnings growth of about 8.7% per year are both below the US market forecasts of 12.7% and 17.3% respectively, which fits a more restrained view on Nasdaq’s growth pace.
- On the other hand, the trailing 30.4% earnings growth rate and higher 35% margin contrast with those slower forecasts, so anyone leaning on a bearish angle needs to reconcile weaker growth expectations with stronger recent profitability.
Mixed valuation signals at 26.2x P/E
- Nasdaq trades on a P/E of 26.2x versus a Capital Markets industry average of 39.3x and a peer average of 25.4x, while the DCF fair value shown in the data is US$33.15 against a current share price of US$92.09.
- For investors testing a more cautious or bearish view, the contrast between a P/E that looks lower than the broader industry and a DCF fair value that is well below the current price provides a clear tension that needs work through the rest of the numbers.
- The lower P/E relative to the Capital Markets industry can be read as supportive for those who see Nasdaq as a solid earnings generator, especially with a 1.35% dividend yield and high quality earnings flagged in the analysis.
- At the same time, the combination of a higher P/E than direct peers, a DCF fair value far below the market price, a high level of debt and recent insider selling shows why some investors point to valuation and balance sheet risk as key watchpoints.
Next Steps
Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Nasdaq's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.
If the mixed signals around Nasdaq leave you unsure, that is the point. Now is the time to weigh the upside against the downside with 4 key rewards and 2 important warning signs.
See What Else Is Out There Beyond Nasdaq
Nasdaq’s slower 7.2% revenue growth versus the broader US market, alongside mixed valuation and balance sheet concerns, highlights that growth and risk are not fully aligned.
If those softer growth numbers and questions around debt make you cautious about concentration in Nasdaq, now is a good time to compare it with stronger balance sheet ideas through the solid balance sheet and fundamentals stocks screener (49 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.
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