Nasdaq Q2 2025 revenue up 13% to $1.3B, EPS surges 24% on strong market activity, beats estimates

Nasdaq, Inc. (NASDAQ: NDAQ) delivered a standout performance in the second quarter of 2025, with net revenue rising 13% year-over-year to $1.3 billion, exceeding analyst expectations [1]. The company reported non-GAAP diluted earnings per share (EPS) of $0.85, a 24% increase compared to the prior year, outperforming the $0.81 forecast by analysts [2]. This follows a strong Q1 2025, where Nasdaq similarly surpassed estimates with EPS of $0.79 and revenue of $1.24 billion [4]. The results highlight the firm’s ability to leverage elevated market activity and its leadership in global capital market infrastructure.

The growth was driven by robust contributions across multiple business lines. Solutions revenue increased by 10%, while Market Services net revenue surged 22%, reflecting strong demand for Nasdaq’s trading and clearing platforms [1]. Annualized Recurring Revenue (ARR) reached $2.9 billion, up 10% year-over-year, with SaaS revenue accounting for 37% of ARR and rising 13% from the previous year. Index revenue also saw a 17% increase, supported by $20 billion in net inflows during the quarter and $88 billion in inflows over the trailing twelve months [1]. These figures underscore Nasdaq’s diversified revenue model and its capacity to capitalize on market tailwinds.

Operating income expanded significantly, with GAAP operating income rising 34% to $568 million and non-GAAP operating income climbing 16% to $721 million [1]. Shareholder returns totaled $255 million in the quarter, including $155 million in dividends and $100 million in stock repurchases [1]. The company’s strategic focus on innovation and client relationships further strengthened its financial performance, particularly in the Financial Technology segment. This division added 57 new clients, executed 130 upsells, and achieved seven cross-sells, driven by products like Nasdaq Verafin and Calypso [1].

Looking ahead, Nasdaq revised its 2025 non-GAAP operating expense guidance to a range of $2,295 million to $2,335 million, a shift attributed to foreign exchange rate fluctuations offset by net revenue gains [1]. The company maintained its tax rate guidance of 22.5% to 24.5% and emphasized strategic priorities of integration, innovation, and acceleration to drive sustainable growth [1]. Notable innovations include the launch of Nasdaq Verafin’s Agentic AI workforce and a proof of concept for digital asset collateral management, which align with the firm’s broader goal to achieve $100 million in cross-sell revenue by 2027 [1].

Analysts have highlighted Nasdaq’s competitive advantages, including its technology-driven infrastructure and dominant index services, as key growth drivers [4]. While the market has reacted cautiously to the results, investors appear to value the company’s consistent ability to exceed expectations and expand margins. However, macroeconomic uncertainties remain a potential headwind, with the Zacks Consensus Estimate for Q2 2025 earnings still under watch [3].

Source: [1] [Tokenist](https://tokenist.com/nasdaq-inc-ndaq-reports-strong-q2-results-beats-expectations/) [2] [Investing.com](https://www.investing.com/news/earnings/nasdaq-inc-earnings-beat-by-004-revenue-topped-estimates-4150373) [3] [Nasdaq](https://www.nasdaq.com/articles/cme-q2-earnings-revenues-beat-estimates-higher-trading-volume) [4] [Investing.com](https://za.investing.com/news/company-news/nasdaq-q2-2025-slides-revenue-up-13-eps-surges-24-on-record-index-aum-93CH-3802634)