Nasdaq Lifts Revenue Outlook for Solutions Business

Nasdaq Updates Financial Projections

Nasdaq has raised its medium-term revenue growth forecast for its solutions business, its largest division. The exchange operator now expects revenue growth between 9% and 12%, an increase from the previous target of 8% to 11%. The announcement was made during the company's biennial investor day.

Details from Investor Day

The revised outlook is primarily driven by strength in the capital access platforms division, which encompasses data, listing, and index services. The solutions business, which accounted for approximately 76% of Nasdaq’s total revenue in 2025, houses both the capital access platforms and financial technology divisions. Chief Financial Officer Sarah Youngwood cited the durability of solutions-led growth and strong client demand as key factors.

Market Impact and Outlook

Reflecting this confidence, Nasdaq specifically increased the growth target for its capital access platforms to a range of 6% to 10%, up from its prior 5% to 8% forecast. This new outlook covers a three-to-five year period and assumes a stable market backdrop. The company also outlined plans to accelerate AI deployment and modernize market infrastructure to support future growth.

Summary: Confidence in Core Operations

Nasdaq's upgraded forecast signals strong confidence in its core non-trading operations. This highlights the company's successful diversification strategy. Investors will closely watch the execution of its strategic initiatives, including geographic expansion and technology modernization, in the coming years.

FAQ

Q: What is Nasdaq's new revenue growth target?
A: The new medium-term target for its solutions business is 9-12% growth, revised upward from the previous 8-11%.

Q: Why did Nasdaq raise its forecast?
A: The increase is driven by a stronger outlook for its capital access platforms division, which includes its data, listing, and index businesses.

Source: Investing.com