MSCI (MSCI) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered strong results with operating revenues up 12.2% to $867.0 million, organic revenue growth of 12.2%, and adjusted EPS up 18.5% to $4.94; diluted EPS rose 19.6% to $4.69.

• Adjusted EBITDA margin reached 62.1%, with adjusted EBITDA up 13.5% to $538.5 million; operating margin improved to 56.2%.

• Record asset-based fee run rate, driven by ETF and non-ETF AUM growth; recurring net new sales and robust performance in Index and Analytics segments.

• AI-driven innovation, strategic acquisitions (including First Street), and new partnerships (UBS) are fueling product development and client solutions.

• Net income for Q2 2026 increased 12.6% to $342.0 million; retention rate improved to 95.3%.

Financial highlights

• Operating revenues increased 12.2% year-over-year; adjusted EPS grew 18.5%; adjusted EBITDA up 13.5% to $538.5 million; operating income up 14.6%.

• Free cash flow for Q2 was $326.4 million; guidance for 2026 raised to $1,485–$1,545 million.

• Repurchased $145–$147 million in shares at an average price of ~$557 per share; $149 million in dividends paid in Q2.

• Weighted average diluted shares outstanding decreased 5.9% year-over-year to 72.9 million.

• Total principal debt outstanding at $6.4 billion as of June 30, 2026.

Outlook and guidance

• Full-year 2026 operating expense guidance raised to $1,535–$1,575 million; adjusted EBITDA expense to $1,340–$1,370 million.

• Free cash flow guidance for 2026 is $1,485–$1,545 million; interest expense guidance increased to $282–$286 million.

• Guidance assumes closing of the First Street acquisition in Q3 2026.

• Management expects continued growth in recurring subscriptions and asset-based fees, supported by new product launches and acquisitions.

• Recurring net new sales in sustainability and climate expected to be roughly zero to slightly negative over the next two quarters.