Nasdaq (NDAQ.O), reported better-than-estimated earnings for the fourth quarter on Thursday, benefited from the volatility, and its CEO, Adena Friedman, further confirmed the outlook for first-time share offerings in 2026.
New listings experienced a long-awaited resurgence in 2022, shrugging off concerns over tariffs and the U.S. government shutdown to attract the biggest haul since 2021, according to data from Dealogic.
Dealmakers and investors are already betting on the trend to continue in 2026, thanks to the surge in the stock market and the U.S. economy.
“Looking ahead to 2026, we see signs of accelerating capital market activity, further supported by recent Fed cuts and a very healthy pipeline of late stage private companies,” Friedman said on the company’s earnings call.
Medical supply company Medline (MDLN.O), diagnostic imaging services company Lumexa Imaging (LMRI.O), and molecular diagnostics company BillionToOne (BLLN.O), were among the notable companies that went public on the Nasdaq exchange in the latest quarter.
Nasdaq’s total new listings increased to 215 in the fourth quarter compared to 162 in the prior year, hence an increase of about 10% in the company’s data and listing services revenue.
EXCEEDS $5 BILLION NET REVENUE
Nasdaq reported an adjusted profit of 96 cents per share, surpassing analysts’ average estimates of 91 cents per share, based on data collected by LSEG.
“For the first time, Nasdaq exceeded $5 billion in annual net revenue and $4 billion in annual Solutions revenue.”
Volatility in the financial markets, fueled by U.S. policy and macroeconomic fears, drove volumes in the exchange’s equity options and cash equities, hence increasing fees for the exchange operators.
Revenue from the trading business, part of the company’s market services segment, increased by 16% to $311 million in the reported quarter, driven by a strong performance in the industry’s record volumes in U.S. cash equities and equity derivatives.
Revenue from the financial technology segment increased by 13.7%, while the company’s index business revenue increased by 23.4%.
Nasdaq’s expansion from the trading business into financial technology and software has helped the company create a more diversified revenue stream, which is less likely to be impacted by the financial markets’ fluctuations.
