MSCI earnings increased in the third quarter of 2026 as strong growth in asset-based fees and index subscriptions lifted revenue 12.4% to $892.0 million. The investment data and analytics company reported net income of $351.0 million, up 7.9%, and diluted earnings of $4.86 per share for the quarter ended September 30.
Key Takeaways
- Asset-based fees rose 24.9%, helping Index revenue grow 18.1%.
- Diluted EPS increased 14.4%, outpacing profit growth as the share count fell.
- MSCI maintained its full-year cash-flow guidance but raised its interest-expense forecast.
Table of Contents
- MSCI earnings grow faster per share than total profit
- Index growth contrasts with Analytics margin pressure
- Cash flow falls as interest costs increase
- Full-year cash-flow outlook holds steady
- Conclusion
MSCI earnings grow faster per share than total profit
MSCI’s third-quarter 2026 earnings release, published October 20, showed organic revenue growth of 12.3%, close to the reported increase. Adjusted earnings per share, a non-GAAP measure, rose 14.3% to $5.11 from $4.47 a year earlier.
Reported diluted EPS increased from $4.25 to $4.86. That 14.4% gain exceeded the 7.9% increase in net income, with weighted average diluted shares outstanding down 5.6% to 72.3 million.
Operating income grew 12.2% to $502.1 million, but the operating margin edged down to 56.3% from 56.4%. Total operating expenses rose 12.8%, slightly faster than revenue, reflecting higher technology, professional services, market data and compensation costs.
| Item | Details |
|---|---|
| Third-quarter share repurchases | $552.3 million at an average price of $562.92 per share |
| Remaining repurchase authorization | Approximately $0.9 billion as of October 19, 2026 |
| Third-quarter dividends paid | Approximately $147.5 million |
| Fourth-quarter dividend record date | November 13, 2026, at the close of trading |
| Fourth-quarter dividend payment date | November 27, 2026 |
Index growth contrasts with Analytics margin pressure
Index revenue increased 18.1% to $532.6 million. Asset-based fees reached $246.6 million, up 24.9%, while Index recurring subscription revenue rose 11.1% to $269.5 million. Higher assets in exchange-traded funds and other indexed funds linked to MSCI indexes drove growth in the asset-based fee run rate.
Across MSCI, recurring subscription revenue increased 7.7%, and organic recurring subscription run-rate growth was 8.7%. Customer retention improved to 95.0% from 94.7% a year earlier.
Analytics presented a more mixed picture: revenue rose 4.8% to $191.0 million, but adjusted EBITDA fell 4.9% to $85.7 million as segment expenses grew faster than sales. Its adjusted EBITDA margin declined to 44.9% from 49.4%.
Sustainability and Climate revenue rose 4.0% to $93.7 million, with adjusted EBITDA increasing 10.1%. Private Assets revenue grew 6.7% to $74.7 million, although its adjusted EBITDA fell 4.6%.
Cash flow falls as interest costs increase
Quarterly operating cash flow declined 3.0% to $436.1 million, primarily because of higher cash interest payments, partly offset by increased customer collections. Free cash flow, a non-GAAP measure, fell 8.9% to $385.4 million.
MSCI ended September with $6.8 billion in principal debt outstanding. Its debt-to-adjusted-EBITDA ratio was 3.2 times, within management’s target range of 3.0 to 3.5 times.
The company continued returning capital through repurchases and dividends. Its board also declared a fourth-quarter dividend of $2.05 per share on October 19.
Full-year cash-flow outlook holds steady
Management maintained its 2026 operating cash-flow forecast at $1.655 billion to $1.705 billion and its non-GAAP free-cash-flow forecast at $1.485 billion to $1.545 billion. Operating expense guidance remained $1.535 billion to $1.575 billion.
The interest-expense forecast increased to $288 million–$291 million from $282 million–$286 million. MSCI also narrowed its expected effective tax rate to 18.0%–19.5%, from 18.0%–20.0%. The tax guidance excludes the effect of its internal legal-entity restructuring.
These ranges are management forecasts for the year ending December 31, 2026, rather than completed results.
Conclusion
MSCI’s quarter combined strong Index growth with weaker cash flow and pressure on Analytics profitability. Full-year cash-flow guidance remains unchanged; the next confirmed shareholder dates are the November 13 dividend record date and November 27 payment.
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