Nasdaq profit beats estimates; CEO touts IPO pipeline

By Prakhar Srivastava and Ateev Bhandari

Jan 29 (Reuters) - Nasdaq NDAQ.O beat estimates for fourth-quarter profit on Thursday, gaining from prolonged market volatility, and CEO Adena Friedman reinforced the outlook for accelerated first-time share sales in 2026.

New listings made a long-awaited comeback last year, braving tariff concerns and a U.S. government shutdown to raise their biggest haul since 2021, according to data from Dealogic.

Dealmakers and investors expect the momentum to carry into 2026 on the back of soaring equity markets and a resilient 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 a post-earnings call.

Medical supply giant Medline MDLN.O, diagnostic imaging services provider Lumexa Imaging LMRI.O and molecular diagnostics firm BillionToOne BLLN.O were among the notable debuts on the Nasdaq in the quarter.

Nasdaq's total new listings rose to 215 in the fourth quarter from 162 a year earlier, resulting in an increase of about 10% increase in the company's data and listing services revenue.

EXCEEDS $5 BILLION NET REVENUE

Nasdaq reported adjusted profit of 96 cents per share, beating analysts' average expectations of 91 cents per share, according to data compiled by LSEG.

"For the first time, Nasdaq exceeded $5 billion in annual net revenue and $4 billion in annual Solutions revenue," Friedman said in a statement.

Heightened volatility from U.S. policy and macroeconomic fears boosted volumes in equity options and cash equities, lifting transaction and clearing fees for exchange operators.

The company's market services revenue from trading grew 16% to $311 million in the reported quarter, helped by record industry volumes in U.S. cash equities and equity derivatives.

Revenue from the company's financial technology unit increased 13.7%, while its index business revenue jumped 23.4%.

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.