Headline: Nasdaq's Q3 Profits Soar on the Back of Fintech Services Growth

Nasdaq Inc.'s third-quarter profit increased, driven by strong performance in the exchange operator's solutions segment, which includes financial technology products. The company's shares rose 1.5% in pre-market trading today.

Nasdaq has pursued a diversification strategy, moving beyond traditional trading and listing activities to ensure steady revenue growth. The company focused on products designed to assist traders and investors in navigating capital markets. This strategic shift has paid off, with the financial technology segment of the business recording an impressive revenue increase of about 56% in the third quarter. Additionally, the solutions segment overall reported a revenue growth of 31%, reaching $906 million on an adjusted basis.

Total revenue for Nasdaq in the quarter jumped significantly to $1.90 billion, up from $1.45 billion in the same period last year. The company benefited from optimism regarding potential interest rate cuts (with the first implemented at the end of September) and the possibility of a 'soft landing' for the economy.

This economic environment encouraged companies to pursue new listings, with Nasdaq's total number of listings rising to 138 in the third quarter, up from 87 in the same quarter last year. This increase in listings translated to a 1% revenue rise from data and listing services.

Notable listings during the quarter included financial software maker OneStream, backed by KKR, and cold storage real estate investment trust (REIT) Lineage, both choosing Nasdaq as their preferred exchange.

On an adjusted basis, net profit attributable to Nasdaq for the quarter ended September 30 was $429 million, or 74 cents per share, compared to $349 million, or 71 cents per share, reported last year. The exchange operator's shares have gained approximately 27% year-to-date.