MSCI said on Wednesday that its adjusted profit for the fourth quarter, the three months ended December 31, rose from a year earlier as clients increased spending on both index offerings and risk analytics services.
The data provider attributed the demand to persistent market volatility - including concerns linked to U.S. tariffs, geopolitical tensions and broad macroeconomic uncertainty - which prompted investors to reconfigure portfolios and turn to index products and risk analytics to manage exposure.
MSCI's indices function as reference points for a substantial portion of global investment activity, serving as benchmarks for trillions of dollars in assets held by investment funds, pension plans and asset managers. The company said its results shed light on appetite for market data and index-based investing, a diversified, lower-cost approach that has attracted interest across investor types.
For the quarter, MSCI reported adjusted earnings of $4.66 per share, up from $4.18 per share a year earlier. In a company statement, Chairman and CEO Henry Fernandez noted that MSCI achieved its 11th consecutive year of double-digit adjusted EPS growth while delivering "strong results" in the period.
Within MSCI's index segment, asset-based fees increased 20.7% year-over-year in the December quarter, reaching $211.7 million. The expansion in these fees reflected higher average assets under management tied to MSCI indices, the company said.
Overall, MSCI's total operating revenue rose 10.6% to $822.5 million compared with the prior-year period. Operating expenses also climbed, up about 6.1%, as the firm invested more in employee compensation and information technology.
The results underscore continued client demand for the firm's index products and analytics amid an uncertain backdrop that has driven investors to seek benchmark-based solutions and tools to measure and manage risk.
Financial highlights (quarter ended December 31)
- Adjusted earnings per share: $4.66, up from $4.18 a year earlier
- Index segment asset-based fees: $211.7 million, up 20.7%
- Total operating revenue: $822.5 million, up 10.6%
- Operating expenses: up about 6.1%, driven by compensation and information technology costs
"In the fourth quarter, MSCI delivered strong results, while achieving a number of key milestones, including our 11th straight year of double-digit adjusted EPS growth," the company said.
The company did not provide additional forward-looking commentary in the material provided with its quarterly figures. The quarter's performance, however, offers a snapshot of how demand for index-based products and market data is evolving in response to ongoing market movements and investor portfolio adjustments.