Global exchange operator Nasdaq (NASDAQ: NDAQ) reported Q3 CY2025 results beating Wall Street’s revenue expectations, with sales up 65.9% year on year to $1.96 billion. Its non-GAAP profit of $0.88 per share was 3.8% above analysts’ consensus estimates.

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Adena Friedman, Chair and CEO, said, “Nasdaq achieved significant milestones in the third quarter, with Solutions quarterly revenue surpassing $1 billion and annual recurring revenues reaching $3 billion for the first time. This achievement reflects our successful transformation into a leading technology platform.

Company Overview

Originally founded in 1971 as the world's first electronic stock market, Nasdaq (NASDAQ: NDAQ) operates global exchanges and provides technology, data, and corporate services that help companies, investors, and financial institutions navigate capital markets.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, Nasdaq’s 15.7% annualized revenue growth over the last five years was impressive. Its growth beat the average financials company and shows its offerings resonate with customers.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Nasdaq’s annualized revenue growth of 24.7% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Nasdaq reported magnificent year-on-year revenue growth of 65.9%, and its $1.96 billion of revenue beat Wall Street’s estimates by 50.1%.

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Key Takeaways from Nasdaq’s Q3 Results

We were impressed by how significantly Nasdaq blew past analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. Zooming out, we think this was a solid print. The stock remained flat at $89.75 immediately after reporting.

Sure, Nasdaq had a solid quarter, but if we look at the bigger picture, is this stock a buy? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.