MSCI INC (NYSE:MSCI) Q3 2025 Earnings: EPS Beats Estimates, Revenue Misses

MSCI INC (NYSE:MSCI) has released its financial results for the third quarter of 2025, delivering a performance that met analyst expectations on the bottom line while showing a slight revenue miss, a combination that appears to have elicited a cautious response from the market in pre-market trading.

Quarterly Performance Versus Expectations

The investment analytics provider reported operating revenues of $793.4 million for the quarter ended September 30, 2025. This represents a solid 9.5% increase compared to the same period last year. However, this figure came in slightly below the analyst consensus estimate of $810.9 million.

On the profitability front, the company posted an adjusted earnings per share (EPS) of $4.47. This surpassed the analyst estimate of $4.46 and marked a 15.8% year-over-year increase. The company's ability to grow its bottom line at a faster clip than its top line highlights its operational efficiency and strong margin profile.

Key financial highlights from the quarter include:

• Operating revenue of $793.4 million, up 9.5% year-over-year
• Adjusted EPS of $4.47, up 15.8% year-over-year
• Operating margin of 56.4%
• Adjusted EBITDA margin of 62.3%
• Diluted EPS of $4.25, a 19.0% increase

Market Reaction and Capital Allocation

Following the earnings release, MSCI's stock was down approximately 2.3% in pre-market trading. This initial reaction suggests investor focus may be leaning toward the revenue miss against estimates, despite the earnings beat. The company's significant capital return program remains a key feature for shareholders, with the board authorizing a new $3.0 billion share repurchase program and declaring a quarterly cash dividend of $1.80 per share.

Operational and Segment Highlights

The company's performance was driven by strength across its major business segments, with particular momentum in its index-related revenues.

A breakdown of segment performance reveals:

• Index Segment: Revenues grew 11.4% to $451.2 million, fueled by a 17.1% surge in asset-based fees, which reached a record run rate.
• Analytics Segment: Revenues increased 5.7% to $182.2 million.
• Sustainability and Climate Segment: Revenues rose 7.7% to $90.1 million.
• All Other – Private Assets: Revenues grew 9.7% to $70.0 million.

The company also reported a robust retention rate of 94.7%, indicating strong client loyalty and the sticky nature of its subscription-based business model.

Looking Ahead

While the press release did not provide a specific quantitative outlook for the next quarter, it did reaffirm the company's full-year 2025 guidance. This guidance will be a point of focus for investors, especially in light of the current analyst estimates for the upcoming fourth quarter. Analysts are projecting Q4 revenue of $832.6 million and full-year 2025 sales of $3.20 billion. The company's ability to meet or exceed these forecasts will be critical for its stock performance in the coming months.

For a detailed view of historical earnings performance and future analyst estimates for MSCI, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.