Nasdaq Inc. (NASDAQ:NDAQ) reported better-than-expected third-quarter earnings and revenue Thursday, driven by strong growth in its financial technology and index businesses.

The exchange operator reported adjusted earnings of $1.04 per share, beating analysts’ consensus estimate of $1.02 and rising 18% from 88 cents a year earlier.

Revenue increased 12.6% year over year to $1.481 billion, exceeding the $1.466 billion consensus estimate, according to market data.

Nasdaq Index Revenue Jumps 39%

Nasdaq’s third-quarter results showed broad-based growth across its technology, data and index businesses.

Solutions revenue rose 17%, while Financial Technology revenue increased 16% to $529 million.

Index revenue surged 39% to $286 million, supported by $49 billion in net inflows during the quarter and $141 billion over the trailing 12 months.

Market Services net revenue rose 2% to $309 million.

Annualized recurring revenue (ARR), a measure of revenue expected to repeat annually, climbed 12% to $3.4 billion. Software-as-a-service revenue accounted for 38% of ARR.

Operating Expenses Rise As Nasdaq Invests In Technology

Non-GAAP operating expenses rose 9% to $638 million, reflecting higher compensation costs and continued technology investments.

GAAP earnings increased 31% to 96 cents per share.

Nasdaq generated $521 million in operating cash flow during the quarter and ended Sept. 30 with $365 million in cash and cash equivalents.

The company returned $496 million to shareholders, including $173 million in dividends and $323 million through share repurchases.

Nasdaq had $2.2 billion remaining under its board-authorized share repurchase program.

The company also declared a quarterly dividend of 31 cents per share, payable Dec. 18 to shareholders of record as of Dec. 4.

Nasdaq CEO Highlights Record Index Inflows

Chair and CEO Adena Friedman said the company’s third-quarter performance reflected strong business momentum, with milestones across all three divisions.

“Nasdaq’s third-quarter performance demonstrates the strength and momentum of our business, with new milestones achieved across all three divisions, including record Index net inflows, record FinTech ARR growth, and the establishment of Nasdaq Digital Liquidity Networks within Market Services,” Friedman said.

Friedman also said global markets are evolving toward an AI-driven, “always-on” future, with greater integration across asset classes and geographies, creating new opportunities for the company to expand its market infrastructure and technology businesses.

NDAQ Price Action: Nasdaq shares rose 2.41% to $98.44 in premarket trading Thursday, according to market data.