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MSCI Inc. (MSCI - Free Report) delivered first-quarter 2026 adjusted earnings of $4.55 per share, up 13.8% year over year and beat the Zacks Consensus Estimate by 3.41%. The reported quarter’s operating revenues came in at $850.8 million, up 14.1% year over year and beat the consensus mark by 2.01%.
Strength in asset-based fees, along with steady growth in recurring subscription revenues, powered the top line. Profitability also improved, with operating margin expanding to 53.7% and adjusted EBITDA margin rising to 59.3% in the quarter.
MSCI shares were up 3.75% at the time of writing the article. MSCI shares have dropped 1.1% year to date compared with the broader Zacks Finance sector’s return of 0.8%.
MSCI’s business momentum was also reflected in its recurring revenue indicators. Total Run Rate at March 31, 2026, was $3.36 billion, up 12.7% year over year, and the total retention rate for the first quarter was 95.4%, essentially steady with the prior-year period. Management pointed to strong sales execution and product momentum across client segments and product lines during the reported quarter. The company emphasized record asset-based-fee Run Rate and strong recurring sales activity, particularly within Index and Analytics.
Index remained the primary growth engine in the first quarter, with segment operating revenues of $496.3 million, up 17.7% year over year. Within the segment, asset-based fees totaled $224.5 million (up 26.6% year over year) while recurring subscription revenues were $254.2 million (up 9% year over year), highlighting a solid mix of usage-linked and subscription-driven revenue streams.
Analytics also posted a healthy quarter, with operating revenues increasing 10.3% to $190.0 million. Growth was supported by recurring subscription revenues of $183.2 million (up 7.9% year over year), while non-recurring revenues rose to $6.8 million (up 183.3% year over year), reflecting a stronger contribution from one-time sales versus the year-ago period.
Sustainability and Climate generated operating revenues of $91.9 million, up 8.6%, supported by recurring subscription revenues of $90.9 million (up 9.9% year over year). All Other – Private Assets contributed operating revenues of $72.6 million, up 7.9% year over year, with recurring subscription revenues of $71.9 million (up 7.6% year over year).
MSCI Expands Margins in Q1
Adjusted EBITDA rose 18.6% year over year to $504.7 million. The adjusted EBITDA margin improved to 59.3% from 57.1% a year ago.
Adjusted EBITDA expenses were $346.1 million, up 8.1% year over year, reflecting higher compensation and benefits costs due to higher headcount, as well as elevated severance costs. Total operating expenses increased 6.8% on a year-over-year basis to $393.9 million due to higher compensation costs from a 2.2% increase in headcount.
Operating income increased 21.2% year over year to $456.9 million, with operating margin improving to 53.7% from 50.6% in the year-ago quarter.
MSCI Highlights Cash Flow and Capital Returns
As of March 31, 2026, MSCI had $385.3 million in cash and cash equivalents compared with $515.3 million as of Dec. 31, 2025.
Total principal debt outstanding stood at $6.5 billion at March 31, 2026, with management noting a total debt-to-adjusted EBITDA ratio of 3.2x on a trailing 12-month basis, within its target range of 3.0x to 3.5x.
Cash generation remained solid. Net cash provided by operating activities was $306.8 million in the reported quarter, while free cash flow increased 3.4% year over year to $278.0 million, reflecting higher cash collections partly offset by higher cash expenses and interest expense.
Shareholder returns were a notable highlight. MSCI repurchased $464 million of stock in the first quarter and through April 20, 2026, totaling 835,591 shares at an average repurchase price of $555.61. The company also paid approximately $150 million in dividends during the quarter and declared a cash dividend of $2.05 per share for the second quarter of 2026, payable May 29, 2026.
MSCI Maintains 2026 Outlook
For 2026, MSCI maintained its guidance framework. The company continues to expect operating expenses of $1.490-$1.530 billion and adjusted EBITDA expenses of $1.305-$1.335 billion.
Interest expense is projected at $274-$280 million, while capital expenditures are expected to be $160-$170 million.
Net cash provided by operating activities is guided to $1.640-$1.690 billion, with free cash flow projected at $1.470-$1.530 billion.
Crown Castle, Equinix and Jones Lang LaSalle are set to report their first-quarter 2026 results on April 22, 29 and 30, respectively.
In terms of share price movement, Equinix shares have jumped 44.1% year to date, while Jones Lang LaSalle climbed 5.1%. Crown Castle’s shares have dropped 1.5% over the same timeframe.
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MSCI Q1 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Up
Key Takeaways
MSCI Inc. (MSCI - Free Report) delivered first-quarter 2026 adjusted earnings of $4.55 per share, up 13.8% year over year and beat the Zacks Consensus Estimate by 3.41%. The reported quarter’s operating revenues came in at $850.8 million, up 14.1% year over year and beat the consensus mark by 2.01%.
Strength in asset-based fees, along with steady growth in recurring subscription revenues, powered the top line. Profitability also improved, with operating margin expanding to 53.7% and adjusted EBITDA margin rising to 59.3% in the quarter.
MSCI shares were up 3.75% at the time of writing the article. MSCI shares have dropped 1.1% year to date compared with the broader Zacks Finance sector’s return of 0.8%.
MSCI Inc Price
MSCI Inc price | MSCI Inc Quote
MSCI Shows Broad-Based Growth Across Segments
MSCI’s business momentum was also reflected in its recurring revenue indicators. Total Run Rate at March 31, 2026, was $3.36 billion, up 12.7% year over year, and the total retention rate for the first quarter was 95.4%, essentially steady with the prior-year period. Management pointed to strong sales execution and product momentum across client segments and product lines during the reported quarter. The company emphasized record asset-based-fee Run Rate and strong recurring sales activity, particularly within Index and Analytics.
Index remained the primary growth engine in the first quarter, with segment operating revenues of $496.3 million, up 17.7% year over year. Within the segment, asset-based fees totaled $224.5 million (up 26.6% year over year) while recurring subscription revenues were $254.2 million (up 9% year over year), highlighting a solid mix of usage-linked and subscription-driven revenue streams.
Analytics also posted a healthy quarter, with operating revenues increasing 10.3% to $190.0 million. Growth was supported by recurring subscription revenues of $183.2 million (up 7.9% year over year), while non-recurring revenues rose to $6.8 million (up 183.3% year over year), reflecting a stronger contribution from one-time sales versus the year-ago period.
Sustainability and Climate generated operating revenues of $91.9 million, up 8.6%, supported by recurring subscription revenues of $90.9 million (up 9.9% year over year). All Other – Private Assets contributed operating revenues of $72.6 million, up 7.9% year over year, with recurring subscription revenues of $71.9 million (up 7.6% year over year).
MSCI Expands Margins in Q1
Adjusted EBITDA rose 18.6% year over year to $504.7 million. The adjusted EBITDA margin improved to 59.3% from 57.1% a year ago.
Adjusted EBITDA expenses were $346.1 million, up 8.1% year over year, reflecting higher compensation and benefits costs due to higher headcount, as well as elevated severance costs. Total operating expenses increased 6.8% on a year-over-year basis to $393.9 million due to higher compensation costs from a 2.2% increase in headcount.
Operating income increased 21.2% year over year to $456.9 million, with operating margin improving to 53.7% from 50.6% in the year-ago quarter.
MSCI Highlights Cash Flow and Capital Returns
As of March 31, 2026, MSCI had $385.3 million in cash and cash equivalents compared with $515.3 million as of Dec. 31, 2025.
Total principal debt outstanding stood at $6.5 billion at March 31, 2026, with management noting a total debt-to-adjusted EBITDA ratio of 3.2x on a trailing 12-month basis, within its target range of 3.0x to 3.5x.
Cash generation remained solid. Net cash provided by operating activities was $306.8 million in the reported quarter, while free cash flow increased 3.4% year over year to $278.0 million, reflecting higher cash collections partly offset by higher cash expenses and interest expense.
Shareholder returns were a notable highlight. MSCI repurchased $464 million of stock in the first quarter and through April 20, 2026, totaling 835,591 shares at an average repurchase price of $555.61. The company also paid approximately $150 million in dividends during the quarter and declared a cash dividend of $2.05 per share for the second quarter of 2026, payable May 29, 2026.
MSCI Maintains 2026 Outlook
For 2026, MSCI maintained its guidance framework. The company continues to expect operating expenses of $1.490-$1.530 billion and adjusted EBITDA expenses of $1.305-$1.335 billion.
Interest expense is projected at $274-$280 million, while capital expenditures are expected to be $160-$170 million.
Net cash provided by operating activities is guided to $1.640-$1.690 billion, with free cash flow projected at $1.470-$1.530 billion.
Zacks Rank & Stocks to Consider
MSCI currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Financial sector are Crown Castle (CCI - Free Report) , Equinix (EQIX - Free Report) , and Jones Lang LaSalle (JLL - Free Report) . Each stock currently has a Zack Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Crown Castle, Equinix and Jones Lang LaSalle are set to report their first-quarter 2026 results on April 22, 29 and 30, respectively.
In terms of share price movement, Equinix shares have jumped 44.1% year to date, while Jones Lang LaSalle climbed 5.1%. Crown Castle’s shares have dropped 1.5% over the same timeframe.