MSCI's third-quarter earnings rise 14% a share as index-linked asset fees jump 25%

MSCI's index franchise carried the third quarter. The New York-based provider of indexes and analytics tools said Tuesday adjusted earnings rose 14.3% to $5.11 a share from $4.47 a year earlier, as fees tied to assets in funds that track its indexes jumped 24.9%.

Operating revenue climbed 12.4% to $892.0 million from $793.4 million, according to its earnings release filed with an 8-K. Net income rose 7.9% to $351.0 million, and diluted earnings per share increased 14.4% to $4.86 from $4.25. Weighted average diluted shares outstanding fell 5.6% from a year earlier to 72.3 million.

The operating margin was 56.3%, compared with 56.4% a year ago, and the adjusted EBITDA margin was 62.2%.

Chairman and CEO Henry Fernandez pointed to the company's "best-ever recurring net-new sales in Analytics and Private Capital Solutions" and "another record quarter for asset-based fees."

Index leads the way

Index segment revenue rose 18.1% to $532.6 million, with asset-based fees climbing to $246.6 million from $197.5 million. The segment's run rate reached $2.1 billion, up 16.5%, which MSCI attributed primarily to higher assets in ETFs and non-ETF funds linked to its indexes. Index posted an adjusted EBITDA margin of 77.4%.

The other businesses grew more slowly. Analytics revenue rose 4.8% to $191.0 million, but the segment's adjusted EBITDA fell 4.9% to $85.7 million as its expenses rose 14.3%. Sustainability and Climate revenue increased 4.0% to $93.7 million.

Companywide, total run rate rose 12.1% to $3,571.9 million and the retention rate improved to 95.0% from 94.7%.

Buybacks and guidance

MSCI bought back $552.3 million of stock during the quarter, or 1.0 million shares at an average price of $562.92. Including purchases through Oct. 19, repurchases totaled $627.2 million, or 1,116,460 shares at an average of $561.81, and about $0.9 billion remains on its authorization.

The board declared a fourth-quarter dividend of $2.05 a share, payable Nov. 27 to holders of record on Nov. 13. MSCI paid about $147.5 million in dividends in the third quarter.

Interest costs climbed. Other expense, net rose 45.2% to $74.2 million, mainly on higher interest expense tied to higher debt levels, and total debt principal stood at $6.8 billion at Sept. 30. Free cash flow fell 8.9% to $385.4 million.

For full-year 2026, MSCI raised its interest expense forecast to $288 million to $291 million from $282 million to $286 million and narrowed its effective tax rate range to 18.0% to 19.5% from 18.0% to 20.0%. It left other guidance unchanged, including operating expense of $1,535 million to $1,575 million and free cash flow of $1,485 million to $1,545 million.

By the numbers

• Adjusted EPS: $5.11, vs. $4.47
• Diluted EPS: $4.86, vs. $4.25
• Operating revenue: $892.0 million, up 12.4%
• Asset-based fees: up 24.9%
• Retention rate: 95.0%
• Buybacks in Q3 and through Oct. 19: $627.2 million

Sources

1. MSCI Inc., Form 8-K (Item 2.02) with Exhibit 99.1 earnings release for the third quarter of 2026, filed Oct. 20, 2026, accession 0001408198-26-000054

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