Overview

* MSCI ( MSCI ) Q3 revenue grows 9.5% but misses analyst expectations

* Adjusted EPS for Q3 beats consensus, reflecting strong operational performance

* Company announces new $3 bln share repurchase program, indicating confidence in future growth

Outlook

* MSCI ( MSCI ) raises full-year 2025 operating expense guidance to $1,415-$1,445 mln

* Financial analytics firm expects full-year 2025 adjusted EBITDA expenses of $1,230-$1,250 mln

* MSCI ( MSCI ) forecasts full-year 2025 free cash flow of $1,410-$1,470 mln

Result Drivers

* ASSET-BASED FEES - Record asset-based fee run rate driven by 17% growth, reflecting record AUM levels in ETF and non-ETF products linked to MSCI ( MSCI ) indexes

* RECURRING SUBSCRIPTIONS - Growth in recurring subscription revenues driven by Index and Analytics products, with strong retention rate of 94.7%

* EXPANSION IN EMEA - Growth in Sustainability and Climate segment driven by EMEA region, with focus on Ratings and Climate products

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $793.42 $795.04

Revenue mln mln (12

Analysts

)

Q3 Beat $4.47 $4.37

Adjusted (15

EPS Analysts

)

Q3 EPS $4.25

Q3 Net $325.38

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 5 "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 ( MSCI ) is $627.50, about 12.9% above its October 27 closing price of $546.86

* The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 32 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)