TLDR
- Nasdaq’s Q3 shines with 15% revenue surge and record recurring income.
- Financial Tech and Index growth fuel Nasdaq’s record-breaking quarter.
- Nasdaq hits $1B+ in solutions revenue, marking a new growth milestone.
- Strong margins and ARR boost Nasdaq’s stock amid tech-driven gains.
- Nasdaq’s innovation, AI tools, and new clients power double-digit growth.
Nasdaq, Inc.(NDAQ) shares closed at $88.86, up 0.30%, following a strong third-quarter 2025 earnings report.
Nasdaq, Inc., NDAQ
The company recorded a 38% rise in GAAP diluted earnings per share, reaching $0.73. Non-GAAP diluted EPS also advanced 19% to $0.88, supported by consistent revenue gains.
Net revenue increased 15% year-over-year to $1.315 billion, while organic revenue growth stood at 11%. Solutions revenue alone crossed $1 billion for the first time, reflecting a 15% increase. Market Services net revenue also climbed 14% to $303 million, with a 13% organic gain.
Nasdaq continues to expand its recurring revenue base, achieving $3.007 billion in Annualized Recurring Revenue (ARR), a 10% increase. ARR from SaaS contributed 38% of the total and grew 12%. The company’s steady margin improvement and revenue gains further supported the stock’s slight upward move.
Financial Technology and Index Segments Drive Topline Gains
Nasdaq’s Financial Technology revenue rose 23% to $457 million, with organic growth of 13%. The division added 65 new clients, 97 upsells, and four cross-sells, signaling strong client demand. Nasdaq Verafin, part of this segment, added 55 new small-to-medium bank clients during the quarter.
Regulatory Technology reported solid momentum with multiple upsells and new clients, including the CFTC. Surveillance offerings gained traction with 31 upsells and two cross-sells. AxiomSL added 22 upsells and signed a major cross-sell win for an enterprise cloud deployment.
Index revenue grew 13% to $206 million, backed by record Exchange-Traded Product (ETP) assets under management. The third quarter saw $17 billion in net inflows, contributing to a record $91 billion over the trailing twelve months. Nasdaq launched 30 new index products, further strengthening this revenue stream.
Strong Operational Execution and Strategic Progress
Nasdaq’s GAAP operating income rose 31% to $586 million, while non-GAAP operating income reached $732 million, up 15%. Operating cash flow for the quarter totaled $221 million. The company returned $155 million to shareholders via dividends and repurchased $115 million in common stock.
Nasdaq’s strategic execution showed results through its Integrate, Innovate, and Accelerate priorities. Over $150 million in cost savings have been achieved under the efficiency program. S&P also upgraded Nasdaq’s unsecured debt rating to BBB+, matching the pre-Adenza acquisition level.
Innovation efforts included a filing with the SEC to enable tokenized securities trading and AI-powered tools within Nasdaq Verafin and BoardVantage. Meanwhile, cross-sell activity across Financial Technology gained momentum, with a growing sales pipeline and $100 million revenue run-rate target by 2027.
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