Nasdaq (NASDAQ:NDAQ) reported stronger-than-expected second-quarter results on Thursday, driven by robust growth across its index, financial technology and market services businesses, sending its shares modestly higher in premarket trading.
The exchange operator also highlighted record milestones during the quarter, including hosting the largest initial public offering in exchange history.
Earnings and revenue exceed forecasts
Nasdaq reported adjusted earnings of $1.07 per share for the second quarter, ahead of analysts’ consensus estimate of $0.97.
Revenue increased 15% year over year to $1.5 billion, surpassing market expectations of $1.43 billion and improving from $1.31 billion in the same period last year.
Following the earnings release, the company’s shares gained around 0.7% in premarket trading.
Growth broadens across core businesses
Revenue from Nasdaq’s Solutions segment rose 17% to $1.16 billion, supported by strong performances across all major business lines.
Index revenue climbed 38% to $271 million as assets under management in exchange-traded products linked to Nasdaq indexes surpassed the $1 trillion mark for the first time.
Financial Technology revenue increased 16% to $539 million, while Market Services net revenue advanced 11% to $340 million.
Chair and Chief Executive Officer Adena Friedman said, “Nasdaq delivered an outstanding second quarter, defined by new records and milestones.”
She added, “We delivered double-digit growth across all three divisions, surpassed $1 trillion in Index ETP AUM, and listed SpaceX, the largest IPO in exchange history.”
Record IPO activity supports momentum
Nasdaq’s second quarter included the listing of SpaceX, which raised $86 billion in what the company described as the largest initial public offering ever completed on an exchange.
The company said it captured 74% of all new operating company listings during the quarter and hosted seven of the ten largest operating company IPOs.
Annualized Recurring Revenue increased 11% year over year to $3.26 billion, or 12% on an organic basis.
The Index business also attracted $109 billion in net inflows over the past 12 months, including $51 billion during the second quarter alone.
Capital returns remain strong
Nasdaq updated its fiscal 2026 adjusted operating expense guidance to a range of $2.53 billion to $2.57 billion while maintaining its expected effective tax rate of between 22.5% and 24.5%.
The company continued returning capital to shareholders during the quarter, distributing a total of $530 million through dividends and share repurchases.
That included $174 million in dividend payments and $356 million used to repurchase outstanding shares.
Nasdaq stock price
