Nasdaq Q2 Earnings Surge 24% on 13% Revenue Growth, Beats Forecasts

Nasdaq, Inc. (NASDAQ: NDAQ) delivered a standout second-quarter performance in 2025, with net revenue rising 13% year-over-year to $1.3 billion, surpassing analyst forecasts of $1.28 billion [1]. Non-GAAP diluted earnings per share (EPS) hit $0.85, a 24% increase from the prior year, outpacing the projected $0.81 [2]. The results reflect strong momentum across core divisions, including a 22% surge in Market Services net revenue and a 10% growth in Solutions revenue. Annualized Recurring Revenue (ARR) climbed 10% to $2.9 billion, driven by a 13% rise in annualized SaaS revenue, now accounting for 37% of ARR. Index revenue also saw a 17% increase, supported by $20 billion in net inflows during Q2 alone [1].

Operational efficiency further bolstered the results, with GAAP operating income rising 34% to $568 million and non-GAAP operating income up 16% to $721 million. Nasdaq’s shareholder returns included $155 million in dividends and $100 million in stock repurchases [1]. The company attributed its success to strategic initiatives such as cross-selling and innovation, highlighted by the launch of Nasdaq Verafin’s Agentic AI workforce and Calypso’s digital asset collateral management proof of concept. These efforts align with the firm’s “One Nasdaq” strategy, which aims to generate $100 million in run-rate revenue from cross-sells by 2027 [1].

Nasdaq updated its 2025 non-GAAP operating expense guidance to $2.295 billion–$2.335 billion, factoring in foreign exchange rate impacts. The tax rate guidance remains at 22.5%–24.5% [1]. Analysts have noted that the firm’s diversified business model—spanning market data, clearing services, and index licensing—positions it to navigate macroeconomic uncertainty [3]. The Q2 performance builds on Q1 2025 results, where EPS of $0.79 and revenue of $1.24 billion also exceeded expectations [3].

Looking ahead, Nasdaq’s focus on innovation and international expansion is expected to drive sustained growth. Notable milestones include the addition of 46 new clients by Nasdaq Verafin in the Financial Crime Management Technology division and a proof-of-concept project with a European Tier 1 bank. These initiatives underscore the company’s adaptability in a dynamic market environment [1]. While analysts had previously projected Q2 2025 EPS of $0.383 based on the Zacks Consensus Estimate [5], the actual performance—surpassing $0.85—suggests upward revisions to forecasts as the firm continues to outperform expectations.

The Q2 results reinforce Nasdaq’s leadership in financial technology, with robust revenue growth and operational efficiency aligning with its long-term strategy. As the company navigates interest rate trends and regulatory developments, its ability to capitalize on digital asset trading and AI-driven solutions will be critical to maintaining momentum.

Source:

[1] [Nasdaq, Inc. (NDAQ) Reports Strong Q2 Results, Beats Expectations] (https://tokenist.com/nasdaq-inc-ndaq-reports-strong-q2-results-beats-expectations/)

[2] [Nasdaq Inc earnings beat by $0.04, revenue topped estimates] (https://www.investing.com/news/earnings/nasdaq-inc-earnings-beat-by-004-revenue-topped-estimates-4150373)

[3] [Nasdaq Q2 2025 slides: Revenue up 13%, EPS surges 24%] (https://za.investing.com/news/company-news/nasdaq-q2-2025-slides-revenue-up-13-eps-surges-24-on-record-index-aum-93CH-3802634)

[5] [Earnings Outlook For Nasdaq] (https://www.tipranks.com/stocks/ndaq/earnings)