01—Abstract
Summary
Summary of the 10-Q filed July 21, 2026. Cited figures are marked; the original filing is the authoritative source.
MSCI Inc. reported a strong second quarter of 2026, with operating revenues of $867.0 milliona for the three months ended June 30, 2026, up 12.2% from $772.7 million a year earlier, and $1,717.8 million for the six months, up 13.1%.
Operating income rose to $487.5 million for the quarter and net income to $342.0 millionb, up 12.6%. Diluted EPS was $4.69 versus $3.92. Growth was led by the Index segment, where operating revenues rose 17.5% for the quarter and asset-based fees rose 26.6%, driven by higher average AUM in ETFs linked to MSCI equity indexes.
Total Run Rate reached $3,479.7 millionc, up 12.0%, and the consolidated Retention Rate was 95.3%. Profitability was affected by higher interest expense, which rose to $71.0 million for the quarter from $46.2 million as total debt increased to $6,425.0 million principal. Income tax expense for the six months was low at a 7.3% effective rate, reflecting an $88.0 million discrete tax benefit from an internal legal entity restructuring completed in the first quarter of 2026.
Cost growth was concentrated in non-compensation expenses, which rose 23.5% for the quarter, and general and administrative expenses, which rose 20.6%. Capital allocation remained active. The company repurchased $544.3 milliond of shares in the first half, paid $300.0 million in dividends, and had $1.6 billion of authorization remaining under its 2025 repurchase program.
It completed three acquisitions in the first half (Vantager, Compass and PM Insights) and agreed on June 24, 2026 to acquire First Street Technology for $120.0 million in cash at closing, expected to close in the third quarter of 2026. The Board declared a $2.05 quarterly dividend on July 20, 2026.
02—Key points
Key Highlights
- Operating revenues were $867.0 million for Q2 2026, up 12.2% from $772.7 million; six-month revenues were $1,717.8 million, up 13.1%.
- Net income was $342.0 million for Q2 2026 versus $303.7 million, and diluted EPS was $4.69 versus $3.92; six-month net income was $748.0 million, including an $88.0 million discrete tax benefit.
- Index segment asset-based fees rose 26.6% in Q2 2026, driven by higher average AUM in ETFs linked to MSCI equity indexes, which averaged $2,706 billion in the quarter.
- Total Run Rate reached $3,479.7 million as of June 30, 2026, up 12.0%, with recurring subscriptions up 7.8% and asset-based fees up 25.2%.
- Interest expense rose to $71.0 million in Q2 2026 from $46.2 million, reflecting higher debt levels; total debt principal was $6,425.0 million.
- Consolidated Retention Rate was 95.3% for Q2 2026, up from 94.4% a year earlier, and the Consolidated Leverage Ratio was 2.83:1.00 against a 4.25:1.00 maximum.
- The company repurchased $544.3 million of stock in the first half of 2026, paid $300.0 million in dividends, and has agreed to acquire First Street Technology for $120.0 million in cash at closing.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 21, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $867.00M$772.70M | +12.2% |
| R&D Expenses | $46.00M$44.10M | +4.3% |
| Operating Expenses | $379.50M$347.40M | +9.2% |
| Operating Income | $487.50M$425.30M | +14.6% |
| Net Income | $342.00M$303.70M | +12.6% |
| EPS (Basic) | $4.70$3.92 | +19.9% |
| EPS (Diluted) | $4.69$3.92 | +19.6% |
| Shares Outstanding (Basic) | 72.80M77.40M | −5.9% |
| Shares Outstanding (Diluted) | 72.90M77.50M | −5.9% |
05—Questions
Frequently Asked Questions
How did MSCI's revenue and profitability perform in the second quarter of 2026?
Operating revenues rose 12.2% to $867.0 million, and operating income increased to $487.5 million from $425.3 million. Net income was $342.0 million, up from $303.7 million, and diluted EPS was $4.69 compared with $3.92. Growth was driven mainly by Index asset-based fees and recurring subscriptions, partly offset by higher operating expenses and interest expense.
What drove the growth in the Index segment?
Index operating revenues increased 17.5% in the quarter to $511.0 million. Asset-based fees rose 26.6%, primarily from ETFs linked to MSCI equity indexes and non-ETF indexed funds, due mainly to higher average AUM partially offset by lower average basis point fees. Recurring subscriptions increased 11.6%, led by market cap-weighted Index products.
How did the lower effective tax rate affect results?
The effective tax rate for the six months ended June 30, 2026 was 7.3%, compared with 16.5% in 2025. The decrease was primarily driven by an $88.0 million discrete tax benefit from a multi-phased internal legal entity restructuring completed in the first quarter of 2026. The quarterly rate for Q2 2026 was 18.0%, down from 19.6%, mainly due to US tax law changes and the jurisdictional mix of earnings.
What is MSCI's capital allocation and leverage position?
In the first half of 2026, MSCI repurchased $544.3 million of stock and paid $300.0 million in dividends, with $1.6 billion of repurchase authorization remaining. Total debt principal was $6,425.0 million at June 30, 2026, and the Consolidated Leverage Ratio was 2.83:1.00 against a maximum of 4.25:1.00. The Board declared a quarterly dividend of $2.05 per share on July 20, 2026, payable August 28, 2026.
What acquisitions has MSCI made or agreed to make?
MSCI completed three acquisitions in the first half of 2026: Vantager (February 27), Compass Financial Technologies (March 2) and ApeVue, Inc. (PM Insights, April 6). Their aggregate purchase price was $95.5 million. On June 24, 2026, MSCI agreed to acquire First Street Technology for $120.0 million in cash at closing plus potential earn-out payments tied to revenue thresholds, with closing expected in the third quarter of 2026.
06—Continue