MSCI recently released its 10-Q report for the quarter ended June 30, 2026. The company says it provides research-based data, analytics and indexes, with five operating segments organized into three reportable segments: Index, Analytics, and Sustainability and Climate, plus All Other – Private Assets. Its products are used across indexed investment products, risk management, sustainability analysis and private assets workflows, and MSCI said it served about 6,800 clients in more than 100 countries as of June 30, 2026.
In Item 2, Management’s Discussion and Analysis, MSCI said total operating revenues rose 12.2% year over year in the second quarter to $867.0 million from $772.7 million, and 13.1% in the first six months to $1.718 billion from $1.519 billion. The quarterly increase came from $50.6 million more recurring subscription revenue and $49.0 million more asset-based fees, partly offset by a $5.3 million decline in non-recurring revenue; for the first half, recurring subscriptions rose $98.3 million, asset-based fees rose $96.1 million and non-recurring revenue increased $4.9 million.
By segment, second-quarter Index revenue increased 17.5% to $511.0 million, with recurring subscriptions up 11.6% to $263.0 million and asset-based fees up 26.6% to $233.1 million. Analytics revenue increased 6.6% to $189.4 million, Sustainability and Climate rose 3.4% to $91.9 million, and All Other – Private Assets increased 4.9% to $74.7 million.
Operating expenses rose 9.2% in the quarter to $379.5 million and 8.0% in the first half to $773.4 million. Cost of revenues increased 8.9% to $149.9 million in the quarter, selling and marketing rose 11.8% to $87.4 million, research and development increased 4.3% to $46.0 million, and general and administrative jumped 20.6% to $46.2 million. MSCI attributed the higher cost of revenues mainly to market data, information technology and professional fees, while selling and marketing, R&D and G&A were driven largely by higher headcount-related compensation costs.
Compensation and benefits expense increased 5.6% in the quarter to $229.0 million, while non-compensation expenses climbed 23.5% to $100.5 million. MSCI said it had 6,327 employees at June 30, 2026, up from 6,208 a year earlier, and 71% were located in emerging market centers, compared with 70% a year earlier.
Total other expense, net rose to $70.2 million from $47.5 million in the quarter, mainly because interest expense increased to $71.0 million from $46.2 million. For the first six months, other expense, net increased to $137.9 million from $93.4 million. MSCI said the higher interest expense reflected higher debt levels.
The effective tax rate was 18.0% in the second quarter, down from 19.6% a year earlier. For the first half, the rate fell to 7.3% from 16.5%, reflecting an $88.0 million discrete tax benefit tied to a multi-phased internal legal entity restructuring completed in the first quarter of 2026. Today the company's shares have moved -10.45% to a price of $559.78. If you want to know more, read the company's complete 10-Q report here.
