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MSCI Reports Strong Q1 2026 Financial Growth

MSCI said first-quarter 2026 operating revenue rose 14.1% to $850.8 million from $745.8 million a year earlier, with organic operating revenue up 13.3%.

Operating income increased 21.2% to $456.9 million, lifting operating margin to 53.7% from 50.6%. Net income climbed 40.7% to $406.0 million, while diluted earnings per share jumped 49.1% to $5.53 from $3.71. Adjusted EPS rose 13.8% to $4.55.

Adjusted EBITDA increased 18.6% to $504.7 million, and the margin widened to 59.3% from 57.1%. Total operating expenses rose 6.8% to $393.9 million.

Recurring subscription revenue grew 8.6% to $600.2 million, while asset-based fees climbed 26.6% to $224.5 million. Non-recurring revenue increased to $20.1 million from $15.8 million.

MSCI’s total run rate reached $3.357 billion, up 12.7% from a year earlier. Recurring subscription run rate grew $203.3 million, and asset-based fee run rate increased $174.8 million. Organic recurring subscription run rate growth was 8.2%, and retention was 95.4%, up from 95.3%.

By segment, index revenue rose 17.7% to $496.3 million, with asset-based fees up 26.6% to $224.5 million and recurring subscriptions up 9.0% to $254.2 million. Index adjusted EBITDA increased 20.4% to $375.2 million, and margin improved to 75.6% from 73.9%. Index run rate rose 16.8% to $1.9 billion.

Analytics revenue increased 10.3% to $190.0 million, with recurring subscriptions up 7.9% to $183.2 million. Adjusted EBITDA rose 8.9% to $82.8 million, though margin slipped to 43.6% from 44.2%. Analytics run rate grew 7.9% to $763.4 million.

Sustainability and climate revenue rose 8.6% to $91.9 million, with recurring subscriptions up 9.9% to $90.9 million. Adjusted EBITDA jumped 38.7% to $33.0 million, and margin expanded to 35.9% from 28.2%. Run rate increased 6.6% to $375.7 million.

All other private assets revenue increased 7.9% to $72.6 million. Adjusted EBITDA fell 3.5% to $13.7 million, and margin narrowed to 18.9% from 21.1%. Run rate rose 8.4% to $296.4 million.

Cash and cash equivalents stood at $385.3 million at March 31. Debt outstanding was $6.5 billion. Net cash provided by operating activities rose 1.7% to $306.8 million, and free cash flow increased 3.4% to $278.0 million.

MSCI repurchased $464 million of stock in the quarter and through April 20, equal to 835,591 shares at an average price of $555.61. Dividends paid totaled about $150.1 million, and the board declared a second-quarter dividend of $2.05 per share. The market has reacted to these announcements by moving the company's shares 0.69% to a price of $534.68. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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