Nasdaq delivered a better than expected fourth quarter profit, helped by strong trading activity and higher market volatility. CEO Adena Friedman also said the company is seeing encouraging signs that IPO activity could speed up in 2026, supported by Fed rate cuts and a strong pipeline of late stage private firms.
Nasdaq Q4 Profit Tops Forecasts
Nasdaq reported adjusted earnings of 96 cents per share, beating analyst expectations of 91 cents per share (LSEG data). The company also hit a major milestone in 2025, crossing $5 billion in annual net revenue and $4 billion in annual Solutions revenue, according to Friedman.
IPO Market Shows Signs of Strength
After a slow period in public listings, IPO momentum returned in 2025. New listings raised the biggest amount since 2021, according to Dealogic, even with challenges like tariff worries and a US government shutdown.
Nasdaq saw total new listings rise to 215 in Q4, compared to 162 in the same quarter last year. This helped push data and listing services revenue up around 10%.
Some of the notable companies that debuted on Nasdaq during the quarter included:
- Medline
- Lumexa Imaging
- BillionToOne
Friedman said Nasdaq expects this listing momentum to continue, and she pointed to a healthy backlog of late stage private companies preparing for public markets.
Market Volatility Boosts Trading Revenue
Nasdaq benefited from heavy trading volumes across US cash equities and equity derivatives. Volatility tied to US policy shifts and macroeconomic concerns increased investor activity, which supported transaction and clearing fee revenue.
Key revenue highlights:
- Market services revenue rose 16% to $311 million
- Financial technology revenue increased 13.7%
- Index business revenue jumped 23.4%
Nasdaq continues shifting beyond its traditional exchange trading business, expanding more into software and financial technology to build steadier, recurring revenue that is less sensitive to market swings.
