Nasdaq Inc. beat Wall Street expectations for second-quarter earnings on Thursday, driven by prominent listings on its exchange, along with strong demand for its data services, as market volatility persists.

The second quarter saw a series of major listings, including the record initial public offering of SpaceX, which saw trading volume exceed 500 million shares on its first day, according to Reuters.

Although initial public offerings typically generate limited fees from the listing process itself, the trading of stocks and options and related market services represent important revenue sources for exchange operators.

Trading companies also benefited during the quarter from elevated volatility levels, as developments related to the US-Iran war escalated and investor sentiment shifted toward AI trading, boosting demand for hedging and risk management tools.

Nasdaq has sought in recent years to diversify its business to reduce reliance on fluctuations in trading volumes, by expanding into fintech and software areas, which helped it boost recurring revenues and increase the resilience of its business model.

The company's net revenue in the second quarter rose 15% to $1.5 billion, driven mainly by the strong performance of its capital access platforms segment, which includes listing services and market data related to equities and options, with revenue jumping 19% to $621 million.

Despite rising trading volumes, investor confidence in some trading platforms declined this year, amid concerns over the impact of the Commodity Futures Trading Commission's decision to allow Kalshi and Coinbase to offer perpetual futures contracts for cryptocurrencies on the market share of traditional exchanges.

Sarah Youngwood, Nasdaq's chief financial officer, downplayed these concerns, stating during a call with analysts that the exchange expects a limited impact not exceeding 1% of revenue, even if approvals expand to include equity-linked products.

Nasdaq's stock has fallen more than 6% since the start of the year, but outperformed CME Group and Intercontinental Exchange, which recorded larger declines. Nasdaq's stock rose 2.3% on Thursday.

Analysts noted that Nasdaq's expansion into software, data, and anti-fraud services enhances its business resilience and ability to withstand market volatility.

JPMorgan analysts said in a note: 'We view this as another strong quarter for Nasdaq, and we appreciate the broad momentum in its business despite ongoing market discussions about AI, exchange regulations, and others.'

Revenue from the fintech segment rose 16% to $539 million, while net revenue from market services climbed 11% to $340 million, supported by higher trading volumes in equities and stock options.

Nasdaq posted adjusted earnings of $1.07 per share, exceeding the average analyst estimate of 98 cents per share, according to data from the London Stock Exchange Group.

CME Group had also beaten Wall Street expectations for second-quarter earnings, while Intercontinental Exchange and Cboe Global Markets are scheduled to report their results next week.