Investing.com - Financial Markets Worldwide

MSCI tops third quarter estimates as asset-based fees surge 17%

Published 28/10/2025, 11:52
MSCI tops third quarter estimates as asset-based fees surge 17%
MSCI
0.93%

Investing.com - MSCI Inc. (NYSE:MSCI) reported better-than-expected third quarter earnings on Tuesday, driven by strong growth in asset-based fees as assets under management in ETFs linked to its indexes reached record levels.

The financial data and analytics provider posted adjusted earnings per share of $4.47, exceeding analyst estimates of $4.37. Revenue rose 9.5% YoY to $793.4 million, slightly below the consensus estimate of $795.7 million.

"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," said Henry A. Fernandez, Chairman and CEO of MSCI.

"We achieved a record asset-based-fee run rate driven by 17% growth, which reflected record AUM levels of about $6.4 trillion combined in ETF and non-ETF products linked to our indexes."

Asset-based fees jumped 17.1% to $197.5 million, while recurring subscription revenues increased 7.9% to $579.1 million. The company’s operating margin improved to 56.4% from 55.4% in the same period last year.

MSCI’s Index segment, its largest business, saw revenue increase 11.4% to $451.2 million, with assets under management in ETFs linked to MSCI equity indexes reaching $2.21 trillion at quarter-end, up from $1.76 trillion a year earlier.

The company maintained a strong retention rate of 94.7%, up from 94.2% in the third quarter of 2024, indicating high customer loyalty.

For the full year 2025, MSCI narrowed its effective tax rate guidance to 16.0%-18.0% from 17.5%-20.0% previously, while slightly raising its operating expense and capital expenditure forecasts.

During the quarter, MSCI repurchased approximately 2.2 million shares at an average price of $559.85 per share, totaling $1.23 billion. The board also authorized a new $3.0 billion share repurchase program and declared a quarterly dividend of $1.80 per share.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.