MSCI Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.53%.
Did MSCI Beat Earnings? Q3 2025 Results
MSCI delivered a largely solid third quarter for fiscal 2025, posting adjusted EPS of $4.47 against a consensus estimate of $4.37, a 2.33% beat, even as revenue of $793.43 million edged just 0.55% below the $797.83 million analysts had expected. The top line still grew 9.5% year-over-year, carried by the company's standout Index segment, which generated $451.16 million in revenue, up 11.4%, as record ETF-linked AUM of roughly $2.21 trillion powered asset-based fees to an all-time quarterly run rate. A sharply lower effective tax rate of 17.9%, down from 21.3% a year earlier, amplified the earnings momentum, lifting net income growth to 15.8% and diluted EPS growth to 19.0%. MSCI also moved aggressively on capital returns, repurchasing $1.23 billion of stock during the quarter and receiving board approval for a fresh $3.00 billion buyback program, a move that sent shares up roughly 8.5% in the days following the print. Looking ahead, the company raised its full-year free cash flow guidance to $1.41 billion to $1.47 billion, underscoring management's confidence in sustained operating momentum.
- Record Q3 recurring sales in Index and Analytics product lines
- Record asset-based-fee run rate driven by 17% growth and record AUM of ~$6.4 trillion
- Growth in market-cap weighted Index products driving recurring subscription revenue increases
- Higher AUM in ETFs and non-ETF indexed funds linked to MSCI indexes
- Favorable effective tax rate of 17.9% vs. 21.3% in prior year quarter
- Expansion with hedge fund and bank client segments
- Growth in EMEA for Sustainability and Climate Ratings and Climate products
- Private Capital Solutions growth driven by Total Plan Portfolio Management and Private Capital Intel products
“In the third quarter, MSCI delivered strong financial and sales performance, including record Q3 recurring sales in our two largest product lines — Index and Analytics — and also with hedge funds and banks. In addition, we achieved a record asset-based-fee run rate driven by 17 percent growth, which reflected record AUM levels of about $6.4 trillion combined in ETF and non-ETF products linked to our indexes.”
MSCI CEO, on the earnings call
Forward Guidance & Outlook
MSCI updated its full-year 2025 guidance: Operating Expense of $1,415M to $1,445M (up from $1,405M-$1,445M), Adjusted EBITDA Expense of $1,230M to $1,250M (up from $1,220M-$1,250M), Interest Expense of $205M to $209M (unchanged), D&A Expense of $185M to $195M (unchanged), Effective Tax Rate narrowed to 16.0%-18.0% (from 17.5%-20.0%), Capital Expenditures of $120M to $130M (up from $115M-$125M), Net Cash from Operating Activities of $1,540M to $1,590M (up from $1,525M-$1,575M), and Free Cash Flow of $1,410M to $1,470M (up from $1,400M-$1,460M). Guidance is subject to uncertainty around macroeconomic factors and capital markets.
MSCI YoY Financials
MSCI Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.