MSCI Inc. (MSCI) Earnings

metirFinance

Sep 2026upcoming

Next quarter

Reports Oct 20, 2026, before the open.

Consensus is $5.01 EPS for Sep 2026 across 6 estimates, ranging $4.92 to $5.12.

MSCI Jun 2026

Reported Jul 21, 2026

: 0.82%
: +1.64%

: $4.90
: $4.94
: —
: $867.00M

Reported results

: $867.00M; from $772.70M
: $487.50M; from $425.30M
: 56.23%; from 55.04%
: $342.00M; from $303.70M
: $4.69; from $3.92

Highlights

Revenue: Second-quarter operating revenue rose 12.2% year over year to $867.0 million, with organic growth also 12.2%; revenue increased 1.9% from $850.8 million in Q1.
Adjusted EPS: Adjusted EPS was $4.94, 0.82% above the $4.90 consensus and up 18.5% from $4.17 a year ago; GAAP diluted EPS was $4.69 versus $3.92 in Q2 2025 and $5.53 in Q1 2026.
Index strength: Index revenue grew 17.5% to $511.0 million, led by a 26.6% increase in asset-based fees to $233.1 million; Index adjusted EBITDA rose 20.5% to $397.8 million.
Recurring base: Total run rate increased 12.0% to $3.48 billion, including 8.1% organic recurring-subscription run-rate growth; retention improved to 95.3% from 94.4%.
ETF-linked AUM: Assets in ETFs linked to MSCI equity indexes reached a record $2.82 trillion at quarter-end, up from $2.03 trillion a year earlier, supporting the asset-based-fee acceleration.
Margins and cash flow: Operating margin expanded to 56.2% from 55.0%, while adjusted EBITDA margin rose to 62.1% from 61.4%; free cash flow increased 8.2% to $326.4 million.
Other segments: Analytics revenue grew 6.6% to $189.4 million but adjusted EBITDA fell 5.0% to $88.0 million; Sustainability and Climate revenue rose 3.4% to $91.9 million, and Private Assets revenue increased 4.9% to $74.7 million.
Outlook and capital allocation: MSCI raised full-year expense guidance by $45 million at both ends, to $1.535-$1.575 billion of operating expense, while increasing operating cash-flow guidance to $1.655-$1.705 billion and free-cash-flow guidance to $1.485-$1.545 billion; it repurchased $145.0 million of shares and declared a $2.05 dividend.

Analysis

MSCI’s second quarter was a modest adjusted-EPS beat with accelerating top-line momentum, particularly in Index. Adjusted EPS of $4.94 exceeded the $4.90 consensus by 0.82% and increased 18.5% from $4.17 a year ago. Revenue of $867.0 million rose 12.2% year over year and 1.9% sequentially from $850.8 million, while GAAP diluted EPS was $4.69, up from $3.92 in Q2 2025 but below the $5.53 reported in Q1. The sequential GAAP EPS comparison is affected by the prior quarter’s results and does not represent a like-for-like adjusted-EPS comparison.

The defining feature was Index: revenue grew 17.5%, asset-based fees climbed 26.6%, and the segment’s run rate reached $2.03 billion, up 17.4%. Record ETF-linked AUM of $2.82 trillion helped drive the asset-based-fee performance, while recurring sales and retention also improved. Consolidated profitability remained strong, with operating margin up 120 basis points and adjusted EBITDA margin up 70 basis points. Management raised expense guidance to reflect acquisitions, stronger AUM-driven revenue and increased investment, while also lifting cash-flow guidance. The main offset was uneven execution outside Index: Analytics revenue grew 6.6% but adjusted EBITDA declined 5.0%, and Sustainability and Climate run-rate growth remained only 1.9% reported.

Index-led growth

Index was the quarter’s central growth engine. Revenue increased 17.5% to $511.0 million, with organic growth at the same rate. Asset-based fees rose 26.6% to $233.1 million as AUM increased across ETFs and non-ETF indexed funds, while recurring subscription revenue grew 11.6% to $263.0 million. Adjusted EBITDA increased 20.5% to $397.8 million, lifting the margin to 77.8% from 75.9%.

Run rate: Index run rate rose 17.4% to $2.03 billion, including 25.2% growth in asset-based-fee run rate and 11.1% organic growth in recurring-subscription run rate.
Demand: Net new recurring subscription sales increased 40.5% to $28.1 million, while Index retention improved to 97.5% from 96.0%.
Market exposure: ETF-linked MSCI equity-index AUM rose to $2.82 trillion at June 30 from $2.03 trillion a year earlier, with period-average AUM of $2.59 trillion versus $1.83 trillion.

Recurring revenue base

MSCI’s recurring model continued to build, although the growth mix was heavily influenced by market levels and indexed-product assets. Total run rate rose 12.0% to $3.48 billion, while organic recurring-subscription run-rate growth was 8.1%. Consolidated retention improved year over year, and net new recurring sales increased despite weaker performance in Analytics and Sustainability and Climate.

Consolidated sales: Net new recurring subscription sales rose 8.4% to $47.5 million; cancellations declined to $29.1 million from $31.4 million.
Client retention: Total retention increased to 95.3% from 94.4%, with Index at 97.5%, Analytics at 94.3%, Sustainability and Climate at 92.3%, and Private Assets at 93.8%.
Private assets: Private Assets run rate grew 8.0% to $302.6 million, supported by Private Capital Solutions products; net new recurring sales rose 57.5% to $6.3 million.

Mixed non-Index execution

Growth outside Index was positive but less consistent. Analytics revenue increased 6.6% to $189.4 million and its run rate grew 5.8% to $773.3 million, but adjusted EBITDA declined 5.0% to $88.0 million as expenses rose 19.2%. Sustainability and Climate revenue increased 3.4% to $91.9 million, with adjusted EBITDA up 12.3% to $35.6 million, although its run rate grew only 1.9% to $376.8 million.

Analytics sales: Net new recurring subscription sales fell 24.3% to $11.2 million, and total net sales declined 31.1% to $14.2 million.
Sustainability retention: Retention fell to 92.3% from 93.8%, while net new recurring subscription sales declined 62.0% to $1.9 million.
Acquisition pipeline: MSCI agreed to acquire First Street Technology for $120.0 million in cash at closing, plus potential earn-out payments; closing is expected in Q3 and the business will join Sustainability and Climate.

Margins and cash generation

Operating leverage remained favorable despite higher investment and acquisition-related costs. Operating expenses rose 9.2% to $379.5 million, below the 12.2% revenue increase. Higher technology, market-data, professional-fee, occupancy and compensation costs were partly offset by the revenue growth, resulting in operating income of $487.5 million, up 14.6%. Interest expense increased to $71.0 million from $46.2 million as debt levels rose.

Profitability: Adjusted EBITDA increased 13.5% to $538.5 million, and adjusted EBITDA margin expanded to 62.1% from 61.4%.
Cash flow: Operating cash flow rose 10.3% to $370.8 million; after $44.4 million of capex, free cash flow was $326.4 million, up 8.2%.
Balance sheet: Principal debt was $6.4 billion, equal to 3.1x trailing adjusted EBITDA, within MSCI’s 3.0x-3.5x target range.

Raised full-year spending

The revised outlook reflects stronger-than-assumed AUM-linked revenue, recently completed acquisitions and additional investment to support growth. MSCI raised full-year operating-expense guidance to $1.535-$1.575 billion from $1.490-$1.530 billion and adjusted EBITDA-expense guidance to $1.340-$1.370 billion from $1.305-$1.335 billion. The company also increased operating-cash-flow and free-cash-flow guidance by $15 million at both ends.

Cash outlook: Full-year operating cash flow is now expected at $1.655-$1.705 billion, versus $1.640-$1.690 billion previously; free cash flow is expected at $1.485-$1.545 billion, versus $1.470-$1.530 billion.
Share repurchases: MSCI repurchased $145.0 million of stock during the quarter at an average price of $557.34; $1.6 billion remained available under the authorization as of July 20.
Dividend: The board declared a third-quarter cash dividend of $2.05 per share, payable August 28, 2026.

MSCI Inc.

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