Msci's Q3 Profit Beats On Record Asset: based fee run rate

MSCI

28/10/2025 10:56

Overview

MSCI Q3 revenue grows 9.5% but misses analyst expectations

Adjusted EPS for Q3 beats consensus, reflecting strong operational performance

Company announces new $3 bln share repurchase program, indicating confidence in future growth

Outlook

MSCI raises full-year 2025 operating expense guidance to $1,415-$1,445 mln

Financial analytics firm expects full-year 2025 adjusted EBITDA expenses of $1,230-$1,250 mln

MSCI forecasts full-year 2025 free cash flow of $1,410-$1,470 mln

Result Drivers

ASSET-BASED FEES - Record asset-based fee run rate driven by 17% growth, reflecting record AUM levels in ETF and non-ETF products linked to MSCI indexes

RECURRING SUBSCRIPTIONS - Growth in recurring subscription revenues driven by Index and Analytics products, with strong retention rate of 94.7%

EXPANSION IN EMEA - Growth in Sustainability and Climate segment driven by EMEA region, with focus on Ratings and Climate products

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$793.42 mln
$795.04 mln (12 Analysts)
Q3 Adjusted EPS
Beat
$4.47
$4.37 (15 Analysts)
Q3 EPS
$4.25
Q3 Net Income
$325.38 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the professional information services peer group is "buy"

Wall Street's median 12-month price target for MSCI Inc is $627.50, about 12.9% above its October 27 closing price of $546.86

The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 32 three months ago

Press Release: ID:nBw6Dyhyna

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)