MSCI (MSCI) Third Quarter 2026 Financial Results Summary
QuoteReporter
MSCI Inc. (MSCI) Q3 2026: Revenue Growth Accelerates, Strong Buybacks — Positive Outlook
MSCI Inc. (NYSE: MSCI) reported its financial results for the third quarter of 2026, showcasing a robust performance that exceeded the previous year's results. Operating revenues reached $892.0 million, reflecting an increase of $98.6 million or +12.4% year-over-year. This growth was primarily driven by a 24.9% surge in asset-based fees and a 7.7% increase in recurring subscription revenues.
Key Financial Metrics:
- Operating Revenues: $892.0 million, up $98.6 million or +12.4% YoY
- Organic Operating Revenue Growth: 12.3%
- Recurring Subscription Revenues: Up 7.7%
- Asset-Based Fees: Up 24.9%
- Operating Margin: 56.3%
- Diluted EPS: $4.86, up 14.4%
- Adjusted EPS: $5.11, up 14.3%
- Net Income: $351.0 million, up 7.9%
- Adjusted EBITDA: $554.8 million, up 12.2%
- Free Cash Flow: $385.4 million, down 8.9%
Analyst View
This quarter is a positive outcome for shareholders, as MSCI not only achieved significant revenue growth but also demonstrated strong operational efficiency with an operating margin of 56.3% and an adjusted EBITDA margin of 62.2%. The increase in diluted EPS to $4.86 and adjusted EPS to $5.11 indicates effective cost management and profitability enhancement. The company's commitment to returning capital to shareholders is evident through the repurchase of 1,116,460 shares for $627.2 million at an average price of $561.81 per share, alongside $147.5 million in dividends paid during the quarter.
Capital Allocation and Guidance
MSCI's Board of Directors declared a cash dividend of $2.05 per share for the fourth quarter of 2026, payable on November 27, 2026. The company continues to maintain a strong balance sheet with cash and cash equivalents of $261.0 million and total debt of $6.8 billion. The total debt to adjusted EBITDA ratio stands at 3.2x, within the company's target range of 3.0x to 3.5x.
Forward Catalysts
Investors should keep an eye on MSCI's performance in the upcoming quarter, particularly in light of the strong momentum entering Q4. The company has indicated robust demand for both traditional and newer solutions, which could further enhance revenue growth. Additionally, the impact of the recent acquisition of First Street Technology, which focuses on climate risk data and analytics, may contribute positively to the Sustainability and Climate segment's performance.
In summary, MSCI's third-quarter results reflect a strong operational performance and strategic capital allocation, positioning the company well for continued growth in the upcoming quarters.
Note: All amounts in the following tables are in millions.
| Three Months Ended | Nine Months Ended | |||
|---|---|---|---|---|
| Sep. 30, 2026 | Sep. 30, 2025 | Sep. 30, 2026 | Sep. 30, 2025 | |
| Operating Revenues | $892.0 | $793.4 | $2,609.3 | $2,311.9 |
| Operating Expenses | ||||
| Cost of Revenues (excluding depreciation and amortization) | 152.2 | 132.5 | 443.9 | 407.0 |
| Selling and Marketing Expenses | 90.2 | 79.9 | 263.3 | 236.8 |
| Research and Development Expenses | 47.6 | 44.8 | 143.2 | 136.5 |
| General and Administrative Expenses | 48.2 | 41.8 | 163.4 | 137.2 |
| Amortization of Intangible Assets | 45.2 | 41.0 | 130.9 | 128.6 |
| Depreciation and Amortization of Property, Equipment and Leasehold Improvements | 6.5 | 5.8 | 18.6 | 15.9 |
| Total Operating Expenses | 389.9 | 345.8 | 1,163.2 | 1,062.0 |
| Operating Income | 502.1 | 447.6 | 1,446.1 | 1,249.9 |
| Interest Income | -2.9 | -5.1 | -8.2 | -11.9 |
| Interest Expense | 74.8 | 53.6 | 214.9 | 146.3 |
| Other Expense (Income), net | 2.3 | 2.6 | 5.4 | 10.1 |
| Other Expense (Income), net | 74.2 | 51.1 | 212.1 | 144.5 |
| Income Before Provision for Income Taxes | 427.9 | 396.5 | 1,234.6 | 1,105.4 |
| Provision for Income Taxes | 76.9 | 71.2 | 135.4 | 187.8 |
| Net Income | $351.0 | $325.3 | $1,099.2 | $917.6 |
| Earnings Per Share | ||||
| Basic | $4.87 | $4.26 | $15.11 | $11.89 |
| Diluted | $4.86 | $4.25 | $15.09 | $11.87 |
| Weighted Average Shares Outstanding Used in Computation of Earnings Per Share | ||||
| Basic | 72.1 | 76.5 | 72.7 | 77.2 |
| Diluted | 72.3 | 76.6 | 72.8 | 77.3 |
| ASSETS | As of Sep. 30, 2026 | As of Dec. 31, 2025 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $261.0 | $515.3 |
| Accounts receivable | 860.1 | 986.7 |
| Other current assets | 177.8 | 142.8 |
| Total current assets | 1,298.9 | 1,644.8 |
| Property, equipment and leasehold improvements, net | 99.1 | 87.3 |
| Right of use assets | 151.4 | 112.9 |
| Goodwill | 3,047.8 | 2,923.4 |
| Intangible assets, net | 899.1 | 832.5 |
| Other non-current assets | 99.0 | 101.6 |
| Total assets | $5,595.3 | $5,702.5 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) | ||
|---|---|---|
| Current liabilities: | ||
| Deferred revenue | $1,036.7 | $1,231.8 |
| Other current liabilities | 538.2 | 598.0 |
| Total current liabilities | 1,574.9 | 1,829.8 |
| Long-term debt | 6,716.9 | 6,202.3 |
| Long-term operating lease liabilities | 149.2 | 107.5 |
| Other non-current liabilities | 170.7 | 217.4 |
| Total liabilities | 8,611.7 | 8,357.0 |
| Total shareholders’ equity (deficit) | -3,016.4 | -2,654.5 |
| Total liabilities and shareholders’ equity (deficit) | $5,595.3 | $5,702.5 |
Disclaimer
The content on MarketsFN.com is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or trading guidance. All investments carry risk and past performance does not guarantee future results. You are solely responsible for your investment decisions and should conduct independent research and consult a qualified financial advisor before acting. MarketsFN.com and its authors are not liable for any losses or damages arising from the use of this information.
