MSCI Reports Financial Results for Third Quarter and Nine Months 2026
MSCI Inc. (MSCI) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 MSCI Reports Financial Results for Third Quarter and Nine Months 2026 New York – October 20, 2026 – MSCI Inc. (“MSCI” or the “Company”) (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community, today announc
How this was made
The 30-second read
Why it matters
The earnings beat and robust subscription growth suggest continued demand for MSCI's index and analytics services, supporting a bullish stance.
Market read
MSCI's strong earnings could boost sentiment for the broader index and data‑provider space.
What to watch
Higher operating expenses and rising debt could temper upside if cost pressures persist.
MSCI Reports Financial Results for Third Quarter and Nine Months 2026
Third-quarter operating revenues grew 12.4%, led by 18.1% Index revenue growth and 24.9% growth in asset-based fees. Adjusted EBITDA rose 12.2%, although operating margin and adjusted EBITDA margin each declined slightly, while Analytics and All Other - Private Assets adjusted EBITDA fell.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third quarter 2026 operating revenuesGAAP | $892M | – | 12.4% |
| Third quarter 2026 organic operating revenue growthnon-GAAP | 12.3% | – | – |
| Third quarter 2026 recurring subscription revenuesGAAP | $623.6M | – | 7.7% |
| Third quarter 2026 asset-based feesGAAP | $246.6M | – | 24.9% |
| Third quarter 2026 non-recurring revenuesGAAP | $21.8M | – | 29.8% |
| Third quarter 2026 operating expensesGAAP | $389.9M | – | 12.8% |
| Third quarter 2026 operating incomeGAAP | $502.1M | – | 12.2% |
| Third quarter 2026 operating marginGAAP | 56.3% | – | – |
| Third quarter 2026 net incomeGAAP | $351M | – | 7.9% |
| Third quarter 2026 diluted EPSGAAP | $4.86 | – | 14.4% |
| Third quarter 2026 adjusted net incomenon-GAAP | $369M | – | – |
| Third quarter 2026 Adjusted EPSnon-GAAP | $5.11 | – | 14.3% |
| Third quarter 2026 Adjusted EBITDA expensesnon-GAAP | $337.2M | – | 12.8% |
| Third quarter 2026 Adjusted EBITDAnon-GAAP | $554.8M | – | 12.2% |
| Third quarter 2026 Adjusted EBITDA marginnon-GAAP | 62.2% | – | – |
| Third quarter 2026 effective tax rateGAAP | 18.0% | – | – |
| Third quarter 2026 other expense (income), netGAAP | $74.2M | – | 45.2% |
| Third quarter 2026 net cash provided by operating activitiesGAAP | $436.1M | – | (3.0)% |
| Third quarter 2026 Capexnon-GAAP | $50.7M | – | – |
| Third quarter 2026 free cash flownon-GAAP | $385.4M | – | (8.9)% |
| Third quarter 2026 Total Run Rateother | $3.57B | – | 12.1% |
| Third quarter 2026 organic recurring subscription Run Rate growthother | 8.7% | – | – |
| Third quarter 2026 Total Retention Rateother | 95.0% | – | – |
| Third quarter 2026 net new recurring subscription salesother | $54.8M | – | 41.2% |
| Third quarter 2026 total net salesother | $76.4M | – | 35.0% |
| Nine months 2026 operating revenuesGAAP | $2.61B | – | 12.9% |
| Nine months 2026 operating incomeGAAP | $1.45B | – | 15.7% |
| Nine months 2026 operating marginGAAP | 55.4% | – | – |
| Nine months 2026 net incomeGAAP | $1.10B | – | 19.8% |
| Nine months 2026 diluted EPSGAAP | $15.09 | – | 27.1% |
| Nine months 2026 Adjusted EPSnon-GAAP | $14.59 | – | 15.5% |
| Nine months 2026 Adjusted EBITDAnon-GAAP | $1.60B | – | 14.6% |
| Nine months 2026 Adjusted EBITDA marginnon-GAAP | 61.2% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| IndexThe $81.5 million increase was primarily driven by $49.1 million in higher asset-based fees and $27.0 million in higher recurring subscription revenues. | $532.6M | – | 18.1% |
| AnalyticsAnalytics Run Rate growth was primarily driven by growth in both Equity Analytics and Multi-Asset Class products and reflected growth across all regions. | $191M | – | 4.8% |
| Sustainability and ClimateRun Rate growth primarily reflects growth in Climate products with contributions primarily from Americas and EMEA, partially offset by cancellations. | $93.7M | – | 4.0% |
| All Other - Private AssetsRun Rate growth was primarily driven by Private Capital Solutions related to Total Plan Manager, Private Capital Transparency Data and Private Capital Intel products. | $74.7M | – | 6.7% |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Full-Year 2026 outlook
- Operating expenses$1,535 to $1,575 million
- Tax rate18.0% to 19.5%
- NoteAdjusted EBITDA Expense: $1,340 to $1,370 million
- NoteInterest Expense (including amortization of financing fees): $288 to $291 million
- NoteDepreciation & Amortization Expense: $195 to $205 million
- NoteCapital Expenditures: $160 to $170 million
- NoteNet Cash Provided by Operating Activities: $1,655 to $1,705 million
- NoteFree Cash Flow: $1,485 to $1,545 million
Capital returns
- Total share repurchases during the quarter were $552.3 million or 1.0 million shares at an average repurchase price of $562.92.
- In third quarter 2026 and through October 19, 2026, a total of $627.2 million or 1,116,460 shares were repurchased at an average repurchase price of $561.81.
- Approximately $147.5 million in dividends were paid to shareholders in third quarter 2026.
- On October 19, 2026, the MSCI Board of Directors declared a cash dividend of $2.05 per share for fourth quarter 2026, payable on November 27, 2026 to shareholders of record as of the close of trading on November 13, 2026.
- As of October 19, 2026, a total of approximately $0.9 billion remains available on the outstanding share repurchase authorization.
What drove it
- The $98.6 million increase in operating revenues reflected $49.1 million in higher asset-based fees, $44.5 million in higher recurring subscription revenues and $5.0 million in higher non-recurring revenues.
- Index revenue growth was supported by higher AUM in ETFs linked to MSCI equity indexes and non-ETF indexed funds linked to MSCI indexes.
- Index recurring subscription Run Rate growth was primarily driven by market cap-weighted and custom Index products.
- Total Run Rate growth included a $209.5 million increase in recurring subscription Run Rate and a $175.9 million increase in asset-based fees Run Rate.
- Third-quarter total net sales increased 35.0% to $76.4 million, while net new recurring subscription sales increased 41.2% to $54.8 million.
- First Street's financial results are reported within the Sustainability and Climate operating segment.
Concerns
- Third-quarter operating margin was 56.3%, compared to 56.4% in third quarter 2025, and Adjusted EBITDA margin was 62.2%, compared to 62.3%.
- Analytics adjusted EBITDA declined 4.9% to $85.7 million and its Adjusted EBITDA margin was 44.9%, compared to 49.4%.
- All Other - Private Assets adjusted EBITDA declined 4.6% to $18.5 million and its Adjusted EBITDA margin was 24.8%, compared to 27.6%.
- Sustainability and Climate total net sales were $(0.3) million, compared to $2.7 million, and its Retention Rate was 91.0%, compared to 93.6%.
- Other expense (income), net increased 45.2% to $74.2 million, primarily driven by higher interest expense as a result of higher debt levels.
- Free cash flow was down 8.9% to $385.4 million, primarily reflecting lower net cash provided by operating activities and higher Capex.
What to watch
- Index asset-based fees, which increased 24.9% to $246.6 million in third quarter 2026.
- Sustainability and Climate cancellations and its 91.0% Retention Rate.
- Analytics expenses, which increased 14.3% while Analytics revenue increased 4.8%.
- Interest expense guidance of $288 to $291 million, compared with prior guidance of $282 to $286 million.
- Execution against the Full-Year 2026 free cash flow guidance range of $1,485 to $1,545 million.
- The impact of the Compass, Vantager, PM Insights and First Street acquisitions, for which MSCI recognized $6.1 million of Adjusted EBITDA expenses and $1.9 million of intangible asset amortization expense during third quarter 2026.
Balance sheet and cash flow
- Cash and cash equivalents were $261.0 million as of September 30, 2026.
- Total principal amounts of debt outstanding as of September 30, 2026, were $6.8 billion.
- The total debt to net income ratio was 4.9x.
- The total debt to adjusted EBITDA ratio was 3.2x.
- Total shares outstanding as of September 30, 2026 were 71.7 million.
- Weighted average diluted shares outstanding were 72.3 million in third quarter 2026, down 5.6% year-over-year.
- Net cash provided by operating activities was $436.1 million for third quarter 2026 and $1,113.7 million for nine months 2026.
- Free cash flow was $385.4 million for third quarter 2026 and $989.8 million for nine months 2026.
- The aggregate purchase price for First Street was $122.6 million, net of cash acquired.
Analysis
MSCI reported third-quarter operating revenues of $892.0 million, up 12.4%, with organic operating revenue growth of 12.3%. The growth was concentrated in Index, where revenues rose 18.1% to $532.6 million. Consolidated asset-based fees increased 24.9% to $246.6 million, while recurring subscription revenues increased 7.7% to $623.6 million. Total Run Rate reached $3,571.9 million, up 12.1%, and the Total Retention Rate improved to 95.0% from 94.7%.
Index was the main operating driver. Its revenue increase reflected $49.1 million in higher asset-based fees and $27.0 million in higher recurring subscription revenues. Index Run Rate increased 16.5% to $2,082.7 million, supported by higher AUM in ETFs and non-ETF indexed funds linked to MSCI indexes, as well as growth in market cap-weighted and custom Index products. Analytics, Sustainability and Climate, and All Other - Private Assets posted revenue growth of 4.8%, 4.0%, and 6.7%, respectively.
Profit growth broadly followed revenue, but margin performance diverged by segment. Consolidated operating income increased 12.2% to $502.1 million and Adjusted EBITDA increased 12.2% to $554.8 million. However, operating margin declined to 56.3% from 56.4% and Adjusted EBITDA margin declined to 62.2% from 62.3%. Analytics Adjusted EBITDA fell 4.9% and All Other - Private Assets Adjusted EBITDA fell 4.6%, as expenses grew faster than revenue in both businesses. Sustainability and Climate improved its Adjusted EBITDA margin to 40.8% from 38.6%, but posted negative total net sales of $(0.3) million and a 91.0% Retention Rate.
Cash generation softened in the quarter. Net cash provided by operating activities decreased 3.0% to $436.1 million, primarily reflecting higher cash paid for interest, while Capex was $50.7 million compared with $26.2 million. Consequently, free cash flow declined 8.9% to $385.4 million. The company repurchased $552.3 million of shares during the quarter and paid approximately $147.5 million in dividends. Cash and cash equivalents were $261.0 million, while total principal debt outstanding was $6.8 billion and total debt to adjusted EBITDA was 3.2x.
Full-Year 2026 operating expense, Adjusted EBITDA expense, depreciation and amortization expense, capital expenditures, operating cash flow, and free cash flow guidance were unchanged. The company raised its interest expense guidance to $288 to $291 million from $282 to $286 million and narrowed the top end of its effective tax rate guidance to 19.5% from 20.0%. The fourth-quarter setup therefore centers on sustained Index asset-based fee growth, conversion of strong sales into recurring revenue, expense discipline in Analytics and Private Assets, and the effect of higher interest expense on net income and cash flow.
Management, verbatim
In the third quarter MSCI delivered strong financial and operating metrics, including our best-ever recurring net-new sales in Analytics and Private Capital Solutions, our best-ever Q3 recurring net-new sales in Index, and another record quarter for asset-based fees. Among client segments and regions, we achieved our best-ever quarter both with asset owners and in Asia-Pacific,
Henry A. Fernandez, Chairman and CEO of MSCI
Thanks to these results, we entered Q4 with solid momentum and strong client engagement across our franchise. Notably, we have seen robust demand for both our traditional and newer solutions. All of this shows that MSCI is expanding our foundational, mission-critical role in global investing even as we transform our business for today’s AI-first world,
Henry A. Fernandez, Chairman and CEO of MSCI
Not in the filing
stated, not guessed- Gross margin for third quarter 2026 and nine months 2026
- Revenue guidance for Full-Year 2026
- Gross margin guidance for Full-Year 2026
- Prior-quarter comparisons for reported third-quarter metrics
- A separately provided previous earnings release outlook for comparison with reported results
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
MSCI released its Q3 2026 financial results via an SEC Form 8‑K, detailing revenue, earnings, margins, and share repurchase activity.
Ticker impact
MSCI Inc. disclosed its Q3 2026 earnings, reporting 12.4% revenue growth and 14.4% EPS increase.
likely upward pressure as investors price in better-than-expected results
Revenue and EPS both rose double‑digits YoY, margins remained strong, and the company announced a sizable share repurchase, all of which support a bullish outlook.
Market effects
Highlights strength in the financial data and analytics sector, potentially lifting peers.
Positive for U.S. large‑cap equities, especially index and analytics providers.
Reinforces demand for index‑linked products worldwide.
Counterpoint
If the market had already priced in strong growth, the rally could be muted.
Key entities
- ExecutiveHenry A. Fernandez
Chairman and CEO of MSCI who commented on the results.
