MSCI Q2 Earnings: 12% Revenue Growth, Record Asset-Based Fees, and Raised Guidance
MSCI sits 23% above its 52-week low of $501.08.
Summary
MSCI reported Q2 2026 revenue of $867M (+12.2% YoY) and EPS of $4.69 (+19.6%), fueled by record asset-based fees. Full-year guidance was raised for both revenue-driven expenses and free cash flow, and the company announced a $120M acquisition of First Street.
Key Events · Earnings and Guidance · MSCI
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Q2 Revenue and EPS Beat
Operating revenues reached $867.0M, up 12.2% year-over-year, with organic growth matching that pace at 12.2%. Diluted EPS came in at $4.69, a 19.6% increase, while adjusted EPS rose 18.5% to $4.94.
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Asset-Based Fees Surge 26.6%
Asset-based fees hit $233.1M, driven by record ETF AUM linked to MSCI indexes. Period-end AUM reached $2.818 trillion, up from $2.025 trillion a year ago.
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Full-Year Guidance Raised
Operating expense guidance increased to $1,535-$1,575M (from $1,490-$1,530M) and adjusted EBITDA expense to $1,340-$1,370M, reflecting acquisition costs and higher incentive compensation. Free cash flow guidance was raised to $1,485-$1,545M.
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First Street Acquisition Announced
MSCI will acquire First Street Technology for $120M cash plus earn-outs, adding physical climate risk analytics to the Sustainability and Climate segment. The deal is expected to close in Q3 2026.
Analysis · MSCI · Trade & Services
A strong second quarter saw operating revenues climb 12.2% to $867 million, fueled by a 26.6% surge in asset-based fees from record ETF AUM. Diluted EPS rose 19.6% to $4.69. Full-year expense guidance was raised to account for acquisition costs and higher incentive compensation tied to outperformance, yet free cash flow guidance also moved higher. The $120 million acquisition of First Street adds physical climate risk analytics, broadening the Sustainability segment. With $1.6 billion remaining in buyback authorization and a 5.9% year-over-year reduction in share count, capital return remains aggressive. The results and guidance raise the bar for the second half, though higher expenses and interest costs bear watching.
At the time of this filing, MSCI was trading at $616.51 on NYSE in the Trade & Services sector, with a market capitalization of approximately $45.5B. The 52-week trading range was $501.08 to $644.77. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.