Nasdaq (NDAQ) Stock Forecast & Price Target

Nasdaq has demonstrated robust growth across its financial technology segment, with a 12% year-over-year increase in Annual Recurring Revenue (ARR) and notable customer engagement reflected by 120 new clients and 127 upsells in the fourth quarter of 2024. In addition, the Capital Access Platforms segment experienced an 11% year-over-year revenue growth, largely fueled by a 29% surge in index-related revenue and significant net inflows of approximately $80 billion over the fiscal year. The company's assets under management tracking Nasdaq indexes also saw a remarkable 45% year-over-year increase to $632 billion, indicating a strong upward trend that solidifies Nasdaq's position as a leading diversified technology company in the financial services sector.

The negative outlook on Nasdaq's stock is primarily driven by the expectation of weak growth in the Workflow and Insights segment, which is projected to fall below mid-term outlooks due to ongoing challenges in the Corporate Solutions business despite a more favorable issuance environment. Additionally, there is concern over a potential 10% reduction in FY26 EPS, stemming from a slower-than-anticipated recovery in capital markets activity, particularly in IPOs, and underperformance in the financial technology segment led by Adenza. Furthermore, declines in trading volumes for European options and equities, as well as downturns in quarterly listing volumes, indicate broader market pressures that could adversely impact Nasdaq's financial performance.