MSCI Inc's stock fell 5.12% in pre-market trading on Wednesday following the release of its fourth-quarter financial results, which showed a decline in net income despite revenue growth.

The financial data provider reported net income of $284.7 million for the quarter, down from $305.5 million a year earlier, as higher operating expenses offset an 11% increase in revenue to $822.5 million. While adjusted earnings per share of $4.66 beat analyst estimates of $4.60, the year-over-year decline in profitability appears to have disappointed investors.

MSCI's asset-based fees, primarily from ETFs linked to its indexes, surged 20.7% during the quarter, but operating expenses rose 6% to $358.9 million, contributing to the net income decline. The company also provided its outlook for 2026, targeting free cash flow between $1.47 billion and $1.53 billion.