Nasdaq Upgraded to Buy on FinTech Strength and Robust 2026 Earnings Outlook

Key Facts

1Nasdaq stock was upgraded to buy as valuation became attractive following underperformance relative to the S&P 500.

2The company delivered double-digit revenue growth with robust operating margins and strong free cash flow across all divisions.

3Earnings outlook suggests FY 2026 EPS could reach $4, with recent sell-side upgrades outpacing downgrades.

Reflecting growing confidence in the transformation of traditional exchange business models, Nasdaq stock has been upgraded to a 'Buy' rating due to attractive valuation levels following a period of underperformance relative to the S&P 500. The company delivered double-digit revenue growth supported by robust operating margins and strong free cash flow across all divisions. Furthermore, the earnings outlook suggests that earnings per share (EPS) could reach $4 by fiscal year 2026, amid a rising trend of sell-side upgrades.

This optimism comes as fintech companies and integrated platforms experience surging demand, with Nasdaq's operational performance outpacing sector peers such as Intercontinental Exchange (ICE), which reported a 7% growth in data and services revenue in its latest quarterly results per market data. Nasdaq's current valuation is viewed as a strategic entry point, particularly as the company has successfully diversified its revenue streams away from volatile trading commissions toward subscription-based technology services.

Regarding market performance, NDAQ stood at $88.08 (close July 10, 2026), having reached a day high of $89.38. Investors are monitoring support levels near $87.46, the recent session low, as a signal for the sustainability of this upward trend. With no immediate catalysts in the upcoming economic calendar specifically for the exchange sector, focus remains on institutional capital flows into large-cap fintech equities.