MSCI Q3 2026 operating revenue rises 12.4% to $892 million

MSCI Inc. (NYSE: MSCI) reported third-quarter 2026 operating revenues of $892.0 million, a 12.4% increase from the prior year period. The company stated that organic operating revenue growth reached 12.3% for the three months ended September 30, 2026.

Asset-based fees drove a significant portion of the revenue increase, rising 24.9%. Recurring subscription revenues increased 7.7% company-wide. MSCI noted that the growth in asset-based fees was primarily linked to higher assets under management in exchange-traded funds and non-ETF indexed funds tied to its indexes.

The company posted diluted earnings per share of $4.86, up 14.4%, and adjusted earnings per share of $5.11, up 14.3%. Net income for the quarter was $351.0 million, representing a 7.9% increase over the third quarter of 2025. Operating income reached $502.1 million, resulting in an operating margin of 56.3%. Adjusted EBITDA totaled $554.8 million, yielding an adjusted EBITDA margin of 62.2%.

Henry A. Fernandez, Chairman and CEO of MSCI, attributed the results to record net-new sales in Analytics and Private Capital Solutions, as well as best-ever third-quarter recurring net-new sales in Index. Fernandez highlighted strong performance with asset owners and in the Asia-Pacific region, stating that the company entered the fourth quarter with solid momentum and robust demand for both traditional and newer solutions.

Total Run Rate at September 30, 2026, stood at $3,571.9 million, up 12.1% year-over-year. The Index segment Run Rate increased to $2.1 billion, up 16.5%, driven by a $175.9 million rise in asset-based fees Run Rate and a $118.9 million rise in recurring subscription Run Rate. Organic recurring subscription Run Rate growth for the Index segment was 11.7%. The company’s overall Retention Rate for the third quarter was 95.0%, compared to 94.7% in the same period of 2025.

Operating expenses for the quarter were $389.9 million, up 12.8%. The increase was primarily due to higher information technology costs, professional fees, and market data costs, along with higher compensation and benefits costs driven by incentive compensation and salaries. MSCI recognized $6.1 million in Adjusted EBITDA expenses related to acquisitions including Compass, Vantager, PM Insights, and First Street.

The company repurchased a total of $627.2 million worth of shares during the third quarter of 2026 and through October 19, 2026, at an average price of $561.81 per share. MSCI declared a cash dividend of $2.05 per share for the fourth quarter of 2026, with approximately $147.5 million in dividends paid to shareholders during the third quarter.

As of September 30, 2026, MSCI employed 6,259 people, a 0.1% increase from the prior year. The effective tax rate for the quarter was 18.0%, up from 17.9% in the third quarter of 2025.