MSCI Q4 profit beats estimates on asset-based fee growth

Overview

• Financial data provider's Q4 revenue rose 10.6%, slightly beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations, rising 11.5%

• Company repurchased $2.47 bln in shares during full year 2025

Outlook

• MSCI expects full-year 2026 operating expenses between $1,490 mln and $1,530 mln

• Company anticipates full-year 2026 adjusted EBITDA expenses of $1,305 mln to $1,335 mln

• MSCI forecasts full-year 2026 capital expenditures of $160 mln to $170 mln

Result Drivers

• ASSET-BASED FEES - MSCI's Q4 revenue growth was significantly driven by a 20.7% increase in asset-based fees, primarily from ETFs linked to MSCI indexes

• RECURRING SUBSCRIPTIONS - New recurring subscription sales increased by 11.7%, contributing to organic revenue growth

• COST MANAGEMENT - Operating margin improved to 56.4% due to operational efficiencies and cost management

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 3 "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 $662.50, about 13.9% above its January 27 closing price of $581.75

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 30 three months ago

Press Release: ID:nBw1xpCPHa

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