MSCI delivered a 10.6% year-over-year increase in total revenues for the quarter ended December 2025, driven by double-digit growth across all three business segments: Index (11.2%), Analytics (9.8%) and ESG & Climate (12.4%). Adjusted earnings per share rose by 11.5%, reflecting an expanded operating margin of 44.1%, up from 42.7% a year earlier. The company reported that subscription and licensing fees accounted for 78% of total revenues, underscoring the recurring nature of its cash flows and supporting free cash flow growth of 13% to $450 million for the quarter.

MSCI’s board authorized an additional $500 million share repurchase program, supplementing the $350 million repurchases already completed in fiscal 2025. During Q4, the company repurchased approximately 1.1 million shares, representing 1.2% of outstanding stock, and paid dividends of $120 million, a 10% increase over the prior year. The current dividend yield stands at 1.3%, and the firm reiterated its target payout ratio of 40%–45% of adjusted net income to dividends and buybacks combined. Management highlighted the high free-cash-flow conversion rate—near 90%—as the foundation for sustained capital returns.

Looking ahead, MSCI forecasts mid-single-digit organic revenue growth for fiscal 2026, propelled by strong demand for its risk and climate-risk analytics offerings. The firm is accelerating investment in artificial-intelligence-driven data solutions, expecting a 20% increase in R&D spending to $200 million. Emerging markets subscriptions grew 15% year-over-year in Q4, driven by new client acquisitions in Asia-Pacific and Latin America. Management noted a pipeline of over 200 new client proposals in ESG scoring and private markets data, positioning MSCI to capture long-term structural growth in sustainable investing and alternative asset classes.