MSCI surges on record index fees as ETF inflows offset subscription headwinds

MSCI (NYSE:MSCI) reported a strong finish to 2025 on Wednesday, as record-breaking inflows into ETFs linked to its indexes propelled the company to double-digit adjusted earnings growth.

The New York-based financial data leader posted fourth-quarter operating revenues of $822.5 million, a 10.6% increase over the prior year, driven primarily by a massive 20.7% surge in asset-based fees.

The quarter highlighted MSCI’s status as the "toll booth" of global investing.

While recurring subscription revenue grew at a steady 7.5%, the real excitement came from the Index segment, where a record run rate was fueled by unprecedented investor appetite for equity ETFs.

Despite a slight 2.3% dip in GAAP diluted EPS to $3.81—impacted by higher tax provisions and restructuring costs—adjusted EPS rose 11.5% to $4.66, meeting the high end of market expectations.

"Our results demonstrate the enduring strength of our all-weather franchise," said Henry A. Fernandez, Chairman and CEO of MSCI.

"We achieved our eleventh consecutive year of double-digit adjusted EPS growth, powered by the incredible momentum in our index business and our ability to leverage AI to drive operational efficiencies."

The company’s profitability remained a standout in the financial services sector, with an adjusted EBITDA margin of 62.2%.

This efficiency allowed MSCI to remain aggressive in returning capital to its owners.

During 2025 and into early January 2026, the company repurchased $2.47 billion worth of its own shares.

Furthermore, the Board of Directors signaled continued confidence by declaring a first-quarter 2026 dividend of $2.05 per share, a substantial 13.9% increase.