Nasdaq quarterly profit rises on trading boom amid volatility

[NEW YORK] Nasdaq reported a rise in its first-quarter profit on Thursday (Apr 23), gaining from higher trading volumes as investors scrambled to rebalance their portfolios in an uncertain macroeconomic environment.

Artificial intelligence-linked stocks drew early investor interest this year, but concerns about a potential bubble in the sector pulled markets in the opposite direction, leaving the tech-heavy exchange mixed and pushing up trading volumes.

Effects of escalations in the Middle East also spilt into the markets late in the quarter, as price swings forced investors to rejig their portfolios to hedge losses.

Market volatility benefits exchanges because it drives up trading volumes, which contributes directly to such companies’ top lines.

The benchmark S&P 500 index lost 4.6 per cent in the quarter.

The company’s market services revenue ‍from trading grew 13 per cent to US$317 million in the reported quarter, helped by record US cash equities and equity options volumes.

Revenue from the company’s financial technology unit increased 20 per cent, while that from its index business ​jumped 14 per cent.

Nasdaq has widened its footprint from trading ‍business into financial technology and software, building predictable, recurring revenue streams that are less exposed to the market’s swings.

However, the volatility in the market pushed back on the initial public offering market as several companies delayed their listing to weather the storm in stock bourses. Analysts and bankers had touted 2026 to be the comeback year for the IPO market.

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Nasdaq’s total new listings ‍rose 3.5 per cent in the first quarter from 170 a year earlier, boosting the company’s data and listing services revenue by ‌11.5 per cent.

The company reported a profit of US$519 million, or 91 cents US per share, in the three months ended March 31, compared with US$395 million, or 68 US cents, in the year earlier.

Shares of the company, which have lost about 11 per cent so far in 2026, were marginally up in trading before the bell. They have underperformed most of the bigger exchanges in the country.

Derivatives exchange CME Group reported a rise in first-quarter profit on Wednesday, also helped by hedging demand that boosted average daily volumes across all its six asset classes.

New York Stock Exchange-parent Intercontinental Exchange is set to report its quarterly earnings next week. REUTERS