TASE Raises Its Own Growth Bar to 15–18% a Year — But Can the Stock Keep Outrunning Its Earnings?

Shares of the Tel-Aviv Stock Exchange surged 16.1% to ILS 14,740 on September 18 after the company unveiled a five-year strategic plan that promises to nearly double its prior growth ambitions. The question for investors: with the stock already up roughly 105% per year over three years, how much of this optimism is already priced in?

• The Old Plan Worked — And Then Some. The new plan builds on the successful execution of the 2023–2027 strategy, under which TASE exceeded its organic revenue growth target of 10–12%.

Full-year 2025 revenue hit NIS 563.5 million, a 28.7% increase over 2024 , and annual net profit jumped 79% to NIS 181 million. Beating your own targets gives management credibility to aim higher — but it also sets a new floor that shareholders will now expect.

• The New Targets Are Ambitious for an Exchange. TASE is now targeting 15–18% compound annual revenue growth from 2027 through 2031, up from the prior 10–12% target. Stock exchanges are typically slow-growth monopolies. Key levers include expanding global connectivity, strengthening foreign-currency settlement, and evaluating extended trading hours — potentially an after-market session — to overlap with major international markets.

TASE also plans to advance AI-driven products, tokenization, and blockchain-based solutions as growth engines. The roadmap is broad; execution risk is real.

• A Boom in Market Activity Is Powering the Numbers. Q2 2026 revenue reached NIS 185.4 million, up 36% year-over-year, with adjusted net profit up 82%.

TASE facilitated 62 offerings in Q2 alone — a 195% increase — raising NIS 8.9 billion in equity capital, up 243% year-over-year.

IPOs surged to 55 in Q2 2026 versus just 17 a year earlier. This activity is cyclical — if capital markets cool, the revenue line cools with them.

• The Stock Price Has Sprinted Far Ahead of Earnings. Over the past three years, earnings per share have grown roughly 43% annually, yet the share price has risen about 105% per year — meaning investors are paying a steeper premium for each shekel of profit. TASE's dividend policy targets 50% of annual net profit , and in 2025 it paid a total dividend of NIS 1.56 per share including a special payout. Generous capital returns help, but the widening gap between stock gains and earnings growth is the kind of math that corrects eventually — unless the new plan delivers at the top end, consistently.