MSCI (MSCI) Q1 2026 earnings summary

Executive summary

• Operating revenues rose 14.1% year-over-year to $850.8 million, with organic growth of 13.3% and strong recurring and asset-based fee growth.

• Net income increased 40.7% to $406.0 million, reflecting higher revenues and an $88.0 million discrete tax benefit from a legal entity restructuring.

• Adjusted EPS grew 13.8% to $4.55; diluted EPS rose 49.1% to $5.53.

• Achieved record Q1 recurring net new subscription sales of $39.6 million and record equity ETF AUM of $2.4 trillion linked to indexes.

• Strategic acquisitions of Vantager, Compass Financial Technologies, and PM Insights expanded capabilities in AI, private markets, and multi-asset indexing.

Financial highlights

• Recurring subscription revenues increased 8.6% to $600.2 million; asset-based fees surged 26.6% to $224.5 million.

• Adjusted EBITDA was $504.7 million, up 18.6%, with a margin of 59.3%.

• Operating income rose 21.2% to $456.9 million; operating margin expanded to 53.7%.

• Free cash flow was $278 million; net cash from operating activities $307 million.

• Equity ETFs linked to indexes captured $103 billion in inflows, representing 35% of all equity index-linked ETF flows.

Outlook and guidance

• Full-year 2026 guidance: operating expenses $1,490–$1,530 million; adjusted EBITDA expenses $1,305–$1,335 million.

• Effective tax rate projected at 18%–20%; interest expense expected at $274–$280 million.

• Free cash flow outlook for the full year remains unchanged at $1,470–$1,530 million.

• Analytics segment revenue growth expected to be about 5% year-over-year in Q2 2026.

• Guidance is subject to macroeconomic and capital market uncertainties, as well as risks outlined in SEC filings.