Nasdaq (NDAQ.O) surpassed Wall Street expectations for third-quarter profit as heightened market volatility and strong demand for its financial technology and regulatory solutions boosted revenue.

The exchange reported an adjusted profit of $511 million (88 cents per share) for the quarter ended September 30, beating analysts’ average estimate of 85 cents per share. Shares rose 1% in premarket trading.

Trading activity increased amid investor uncertainty over trade policies and growth prospects, driving U.S. equity options and cash equities volumes. Market services revenue climbed 14% to $303 million, while Nasdaq’s fintech and software divisions, including anti-financial crime and regulatory software, saw revenue surge 23.2% to $457 million.

The company’s index business also grew 13.2% to $206 million, and overall net revenue rose 15% to $1.32 billion. CEO Adena Friedman highlighted that Nasdaq’s solutions revenue exceeded $1 billion for the quarter, with annual recurring revenue reaching $3 billion for the first time.

The quarter marked a resurgence of initial public offerings (IPOs) on Nasdaq, with U.S. IPO volumes hitting their strongest first nine months since 2021. Notable debuts included Firefly Aerospace and blockchain lender Figure.

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Key Points:

• Adjusted profit: $511M (88¢ per share) vs 85¢ expected
• Market services revenue up 14% to $303M
• Fintech/software revenue up 23.2% to $457M
• Net revenue up 15% to $1.32B
• IPO activity rebounds, including Firefly Aerospace and Figure