Nasdaq, Inc. stock research
FY2025 Q4
Nasdaq (NDAQ) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose sequentially but fell year-over-year. Gross margin weakened from the prior quarter but improved compared to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year, while cost of revenue rose sequentially but fell year-over-year. Gross margin weakened from the prior quarter but improved compared to the same quarter one year earlier.
- The strongest observable margin driver is the year-over-year reduction in cost of revenue relative to revenue, which supported gross margin expansion from the prior year period.
- Compared to the immediately preceding quarter, gross margin was lower as cost of revenue grew faster than revenue. Compared to the same quarter one year earlier, gross margin was higher, driven by a lower cost of revenue despite higher revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.5%
Gross profit
$1.4B
Revenue
$2.1B
Cost of revenue
$732.0M
Quarter-over-quarter change
-1.6 pts
Year-over-year change
+5.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $2.1B | $1.2B | $859.0M | 59.0% |
| Jun 30, 2025 | $2.1B | $1.3B | $784.0M | 62.5% |
| Sep 30, 2025 | $2.0B | $1.3B | $643.0M | 67.2% |
| Dec 31, 2025 | $2.1B | $1.4B | $732.0M | 65.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-1.6 pts
Year-over-year change
Dec 31, 2024
+5.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the year-over-year reduction in cost of revenue relative to revenue, which supported gross margin expansion from the prior year period.
Compared to the immediately preceding quarter, gross margin was lower as cost of revenue grew faster than revenue. Compared to the same quarter one year earlier, gross margin was higher, driven by a lower cost of revenue despite higher revenue.
Monitor the trend in cost of revenue, which increased sequentially and could pressure gross margin if revenue growth does not keep pace.