01—Abstract
Summary
Summary of the 10-Q filed October 20, 2026. Cited figures are marked; the original filing is the authoritative source.
MSCI Inc. reported third-quarter 2026 operating revenues of $892.0 milliona, up from $793.4 million a year earlier, and net income of $351.0 million versus $325.3 million.
For the nine months ended September 30, 2026, operating revenues were $2,609.8 millionb and net income was $1,099.0 million, which includes an $88.0 million discrete tax benefit from an internal legal entity restructuring in the first quarter. Diluted EPS was $4.86 for the quarter and $15.09 for the nine months. Asset-based fees drove much of the growth, with Index asset-based fees up 24.9% for the quarter, and total Run Rate reached $3,571.9 million, up 12.1%.
Adjusted EBITDA was $554.8 millionc for the quarter, up from $494.4 million, and $1,598.0 million for the nine months, up from $1,394.4 million. Interest expense rose to $74.8 million in the quarter from $53.6 million, reflecting higher debt levels. Total debt was $6,760.0 million principal at September 30, 2026, including $810.0 million of revolving loans, and the Consolidated Leverage Ratio was 2.90:1.00 against a maximum of 4.25:1.00.
Shareholders' equity was a deficit of $3,016.4 milliond, reflecting cumulative share repurchases and dividends. During the nine months, the company repurchased $1,135.8 million of common stock and paid $447.8 million in dividends, and $1.0 billion remained under its 2025 repurchase authorization.
During 2026 the company completed four acquisitions, including First Street Technology, Inc. on August 3, 2026, for a purchase price of $122.6 million net of cash acquired plus up to $130.0 million of contingent payments. The Board declared a quarterly dividend of $2.05 per share on October 19, 2026, payable November 27, 2026.
02—Key points
Key Highlights
- Operating revenues rose 12.4% to $892.0 million in Q3 2026 and 12.9% to $2,609.8 million for the nine months, driven by asset-based fees (up 24.9% in Q3) and recurring subscriptions.
- Total Run Rate grew 12.1% to $3,571.9 million as of September 30, 2026, with organic Run Rate growth of 12.0%.
- Net income was $351.0 million in Q3 2026 (up from $325.3 million) and $1,099.0 million for the nine months (up from $917.6 million), helped by an $88.0 million discrete tax benefit in Q1 2026.
- Interest expense increased 39.6% in Q3 to $74.8 million, and total other expense, net rose 45.2%, reflecting higher debt levels.
- Retention Rate was 95.0% for Q3 2026, with Sustainability and Climate falling to 91.0% from 93.6%.
- The company repurchased $1,135.8 million of stock and paid $447.8 million in dividends during the nine months, leaving $1.0 billion of repurchase authorization.
- Total debt principal reached $6,760.0 million, and the Consolidated Leverage Ratio of 2.90:1.00 remained below the 4.25:1.00 covenant maximum.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 20, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $892.00M$793.40M | +12.4% |
| R&D Expenses | $47.60M$44.80M | +6.3% |
| Operating Expenses | $389.90M$345.80M | +12.8% |
| Operating Income | $502.10M$447.60M | +12.2% |
| Net Income | $351.00M$325.30M | +7.9% |
| EPS (Basic) | $4.87$4.26 | +14.3% |
| EPS (Diluted) | $4.86$4.25 | +14.4% |
| Shares Outstanding (Basic) | 72.10M76.50M | −5.8% |
| Shares Outstanding (Diluted) | 72.30M76.60M | −5.6% |
05—Questions
Frequently Asked Questions
How did MSCI's revenue and profitability perform in the third quarter of 2026?
Operating revenues were $892.0 million, up from $793.4 million, and operating income was $502.1 million versus $447.6 million. Net income was $351.0 million, and diluted EPS was $4.86 compared with $4.25 a year earlier.
What drove the growth in operating revenues?
For the quarter, revenue increased $98.6 million, driven by $49.1 million in higher asset-based fees, $44.5 million in higher recurring subscription revenues and $5.0 million in higher non-recurring revenues. Index asset-based fees rose 24.9%, primarily from higher AUM in ETFs linked to MSCI equity indexes.
Why did interest expense and other expense increase?
The filing attributes the increase in total other expense, net, which rose 45.2% for the quarter, primarily to higher interest expense from higher debt levels. Long-term debt increased to $6,716.9 million from $6,202.3 million at year-end 2025, including $810.0 million of revolving loans.
How is MSCI returning capital to shareholders?
During the nine months, the company repurchased $1,135.8 million of common stock and paid $447.8 million in dividends. The Board declared a $2.05 quarterly dividend on October 19, 2026, payable November 27, 2026, and $1.0 billion remained under the 2025 Repurchase Program as of September 30, 2026.
What acquisitions did MSCI complete in 2026?
MSCI completed four acquisitions in 2026: Vantager, Compass, ApeVue (PM Insights) and First Street Technology. First Street, completed August 3, 2026, had an aggregate purchase price of $122.6 million net of cash acquired, plus up to $130.0 million of contingent payments tied to revenue thresholds.
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