Nasdaq tops profit estimates on high-profile listings and data revenue

Nasdaq just reminded everyone why owning the pipes matters more than owning the water. The exchange operator posted second-quarter net revenue of $1.5 billion, a 15% increase year-over-year, powered by a wave of high-profile IPO listings and a data business that keeps compounding quietly in the background. Non-GAAP diluted earnings per share landed at $1.07, roughly 9% above analyst estimates of approximately $0.98. The numbers behind the beat The standout driver was Nasdaq’s Solutions segment, which includes its data services and index products. Solutions revenue climbed 17% compared to the same period last year, outpacing the company’s overall growth rate. Annualized recurring revenue hit $3.3 billion, an 11-12% increase year-over-year. The company also maintained its decade-long leadership in US listings. When companies go public on your exchange, you collect listing fees. When they trade on your exchange, you collect transaction fees. When their data flows through your pipes, you collect data fees. The 25% year-over-year jump in non-GAAP EPS suggests that Nasdaq isn’t just growing revenue. It’s doing so with improving margins. Revenue grew 15%, but earnings grew 25%. Where cryp...