Nasdaq, Inc. announced unaudited consolidated earnings results for the second quarter ended June 30, 2018. For the quarter, the company reported net revenues were $615 million, a 3% increase compared to the second quarter of 2017. The year over year increase in revenues resulted from 7% organic revenue growth, a 1% positive impact from changes in FX, and a 5% revenue reduction due to the net impact of the divestiture and acquisition of businesses. GAAP diluted EPS was $0.97 compared to $0.87 in the second quarter of 2017, while non-GAAP diluted EPS was $1.18, an increase of 17% compared to $1.01 in the second quarter of 2017. Operating income was $269 million against $242 million a year ago. Income before income taxes was $288 million against $211 million a year ago. Net income attributable to shareholders was $162 million or $0.97 per diluted share against $146 million or $0.87 per diluted share a year ago. Non-GAAP operating income was $290 million against $285 million a year ago. On a non-GAAP basis, net income for the second quarter of 2018 was $198 million, or $1.18 per diluted share, compared with $170 million, or $1.01 per diluted share, in the second quarter of 2017. At June 30, 2018, the company had cash and cash equivalents of $322 million and total debt of $3,847 million, resulting in net debt of $3,525 million. The change in tax rate associated with the Tax Cut and Jobs Act drove a 12% increase in diluted EPS year-over-year.

For the full year 2018, the company's non-GAAP tax rate guidance is a range of 24.5% to 26.5%. On a year-over-year basis, the company is seeing the impact of investments that are making to upgrade its technology for the next-generation Nasdaq Financial Framework. Therefore, the company expects lower margins in 2018 and 2019 versus the 20% to 25% levels seen in 2016 to 2017. But over the medium term, the company expects to unlock both higher revenue and higher margin potential in the business as it moves more clients to the managed solutions model.