Nasdaq beats profit estimates as trading activity and Fintech demand surge
Exchange operator Nasdaq Inc. reported stronger-than-expected third-quarter earnings on Tuesday, driven by higher trading volumes and robust growth in its financial technology business.
Persistent market volatility and uncertainty over Trump administration trade policies pushed traders to rebalance portfolios, lifting volumes across U.S. equity options and cash equities, News.Az reports, citing Reuters.
Nasdaq’s market services revenue rose 14% to $303 million, while net revenue climbed 15% to $1.32 billion. The company posted an adjusted profit of $511 million, or 88 cents per share, beating Wall Street estimates of 85 cents per share, according to LSEG data.
Shares gained about 1% in premarket trading following the results.
Revenue from Nasdaq’s financial technology division, which includes anti-financial crime and regulatory software, jumped 23% to $457 million. Its index business also grew 13% to $206 million.
“Nasdaq achieved significant milestones in the third quarter, with Solutions revenue surpassing $1 billion and annual recurring revenue reaching $3 billion for the first time,” said CEO Adena Friedman.
The exchange also benefited from a revival in IPO activity, with the strongest first nine months for new listings since 2021. Notable debuts included Firefly Aerospace and Figure, a blockchain-based lender.
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