Wall Street analysts maintain bullish stance on Nasdaq despite stock underperformance
Nasdaq Inc shares have lagged the broader market, yet 19 analysts maintain a consensus Strong Buy rating following a quarter where revenue and earnings surpassed forecasts.
Wall Street analysts remain firmly bullish on Nasdaq Inc despite the stock’s recent underperformance against the broader market. While the S&P 500 Index surged 22.4 per cent over the past year, Nasdaq shares declined by 1.9 per cent. The divergence in performance has persisted into 2026, with Nasdaq falling nearly 2.6 per cent year-to-date compared to a 13.3 per cent rise for the S&P 500.
The company’s financial results for the second quarter of 2026 have bolstered investor sentiment. Nasdaq reported revenue of $1.5 billion, representing a 14.9 per cent increase from the previous year and surpassing Street estimates. Adjusted earnings per share came in at $1.07, also topping forecasts. The company credited the results to robust demand for its market infrastructure and technology solutions, alongside the adoption of AI-enabled tools.
This quarter marked the fourth consecutive period in which Nasdaq has surpassed consensus estimates. Following the earnings release on July 24, the stock rose 1.9 per cent. Looking ahead, analysts expect diluted earnings per share to rise 19.3 per cent to $4.15 for the current year ending in December.
Among the 19 analysts covering the stock, the consensus rating is a Strong Buy. This configuration comprises 14 Strong Buy ratings, three Moderate Buys, and two Holds. The sentiment has grown more positive over the past three months, with the number of Strong Buy ratings increasing from 13 to 14.
J.P. Morgan analyst Michael Cho recently raised his price target from $112 to $114 on July 29, maintaining a Buy rating. The mean analyst price target stands at $111.28, implying a 17.6 per cent upside from current levels. The highest target on the Street is $135, which suggests a 42.7 per cent potential gain.
