MSCI’s fourth quarter results were well received, reflecting solid execution across core business lines and continued expansion in client segments. Management attributed the positive momentum to strong demand for custom index solutions, robust inflows into non-U.S. equity ETFs, and notable growth in private capital solutions. CEO Henry Fernandez emphasized that the company’s commitment to innovation, particularly in artificial intelligence (AI) applications, played a significant role in boosting both recurring subscription and asset-based fee revenues this quarter. Fernandez noted, “Our index flywheel is helping clients form thematic baskets, gain global exposures, and unlock new distribution channels.”
Is now the time to buy MSCI? Find out in our full research report (it’s free for active Edge members).
MSCI (MSCI) Q4 CY2025 Highlights:
- Revenue: $822.5 million vs analyst estimates of $824.9 million (10.6% year-on-year growth, in line)
- Adjusted EPS: $4.66 vs analyst estimates of $4.59 (1.6% beat)
- Adjusted EBITDA: $512 million vs analyst estimates of $505.5 million (62.2% margin, 1.3% beat)
- EBITDA guidance for the upcoming financial year 2026 is $1.32 billion at the midpoint, below analyst estimates of $2.12 billion
- Operating Margin: 56.4%, up from 54.5% in the same quarter last year
- Annual Recurring Revenue: $2.45 billion vs analyst estimates of $2.44 billion (9.2% year-on-year growth, in line)
- Market Capitalization: $42.8 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From MSCI’s Q4 Earnings Call
-
Toni Kaplan (Morgan Stanley) asked which AI product launches are most likely to drive adoption, to which CEO Henry Fernandez cited analytics insights and automated custom index creation as early areas of client interest.
-
Alex Kramm (UBS) questioned the impact of rising international ETF flows on new sales and pricing power; Fernandez explained non-U.S. inflows are beginning to support both subscription activity and selective pricing opportunities, especially in Europe.
-
Brendan Popson (Barclays) inquired about private capital growth drivers; CFO Andy Wiechmann pointed to strong demand for transparency offerings and new product launches, particularly in EMEA, as evidence of a positive trend.
-
Kelsey Zhu (Autonomous) asked about ESG recovery in Europe; Fernandez noted a slow but ongoing rebound, emphasizing supplier consolidation and a pivot toward broader risk analytics beyond ESG.
-
Faiza Alwy (Deutsche Bank) sought quantification of AI-driven efficiency gains; Fernandez said cost savings from AI will be reinvested in innovation, with incremental benefits to profitability emerging over several years.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the pace of adoption and monetization for AI-enabled index and analytics products, (2) continued growth in international ETF inflows and asset-based fee expansion, and (3) signs of stabilization or renewed momentum in U.S. sustainability and climate demand. Progress on private capital solutions and execution of new product launches will also be key markers of MSCI’s ability to deliver against its growth targets.
MSCI currently trades at $580.00, in line with $581.75 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
