These Analysts Boost Their Forecasts On Nasdaq Following Strong Q3 Earnings

Nasdaq, Inc. (NDAQ) reported stronger-than-expected third-quarter results, with revenue increasing 15% year-over-year to $1.315 billion and adjusted EPS reaching 88 cents, both surpassing analyst consensus estimates. The company also updated its 2025 guidance, raising adjusted operating expense projections while lowering its adjusted tax rate. Despite the positive earnings beat, Nasdaq shares declined 2.5% to $88.12 following the announcement, though some analysts subsequently raised their price targets.

Analysis

Nasdaq, Inc. (NDAQ) reported robust third-quarter results, with revenue growing 15% year-over-year to $1.315 billion, surpassing the analyst consensus estimate of $1.297 billion. Adjusted EPS of 88 cents also exceeded the 85-cent estimate, demonstrating strong operational performance.

Despite the positive earnings beat, NDAQ shares experienced a 2.5% decline, trading at $88.12 post-announcement, indicating a potential 'sell-the-news' reaction or profit-taking. The company updated its 2025 adjusted operating expense guidance to a slightly higher range of $2.305 billion-$2.335 billion, while simultaneously lowering its adjusted tax rate guidance to 22.5%-23.5%.

Analyst sentiment remained largely positive, with TD Cowen maintaining a Hold rating and raising its price target from $94 to $96. Barclays also reiterated an Overweight rating, increasing its price target from $108 to $109, suggesting continued long-term confidence in Nasdaq's fundamentals despite the immediate market reaction.

Key Decisions for Investors

• Monitor NDAQ's share price for stabilization or further downward pressure, as the immediate post-earnings decline contrasts with strong fundamental performance and positive analyst revisions.
• Evaluate the net impact of Nasdaq's updated 2025 guidance, weighing the slightly increased operating expense projections against the benefit of a lower adjusted tax rate on future profitability.
• Consider the analyst price target increases as an indicator of sustained long-term value, potentially presenting a buying opportunity if the current market dip is perceived as a short-term correction rather than a fundamental shift.