Msci Stock Earnings Reports

MSCI reported a strong Q1 2026: organic revenue growth >13%, adjusted EPS nearly +14%, and adjusted EBITDA almost +19%. Key operating highlights included total run-rate growth ~13%, a record asset-based fee (ABF) run rate of $872M (+25%), recurring subscription run-rate growth of 9% driven by $39.6M of net new recurring subscription sales (+52%), and an overall retention rate of 95.4%. The firm completed three strategic bolt-on acquisitions (Compass Financial Technologies, VantageR, VantageR, and PM Insight), repurchased >$464M of stock YTD, and ended March with ~ $400M cash. Growth was broad-based across Index (subscription run-rate growth reaccelerated to ~10.7% with record Q1 recurring sales), Analytics (high single-digit run-rate growth, but Q2 revenue growth expected ~5% given implementation timing), and Private Capital Solutions (PCS) where recurring net new sales grew ~44% and subscription run-rate growth accelerated to ~16%. Hedge funds, traders and broker-dealers were standout client segments; APAC recorded its strongest-ever Q1 recurring sales. Management emphasized AI and data/technology as a core accelerator — embedding AI across product development, data collection, model building and client delivery (IndexAI Insights already in use). Near-term headwinds: Sustainability & Climate saw muted growth and some downgrades/cancels; Real Assets still faces property transaction headwinds. Guidance notes modest D&A increase due to acquisitions, unchanged full-year free cash flow outlook, Q2 tax rate expected 18–20%, and the company is trending toward the top half of its expense guidance range given strong ABF performance and assumed gradual market appreciation in H2. Management characterized the current momentum as driven by better execution, accelerated product launches, and rapid AI adoption, and expects continued opportunity from custom/non-market-cap indices, active ETFs, derivative licensing, and private asset transparency solutions.