MSCI Inc. reported strong financial results for the second quarter and six months ended June 30, 2026, driven by broad-based growth across its business segments. The company delivered record asset-based fee run rates and accelerating subscription momentum, resulting in an adjusted EPS that exceeded analyst expectations.

Second Quarter 2026 Financial Highlights

The following table summarizes key consolidated financial metrics for the second quarter and six months ended June 30, 2026, compared to the same periods in 2025.

Adjusted EPS of $4.94 beat the analyst consensus estimate of $4.93. Quarterly sales of $867.0 million surpassed the analyst consensus estimate of $866.439 million.

"In the second quarter MSCI delivered strong financial results along with a record asset-based-fee run rate and accelerated run-rate growth in Index and Private Capital Solutions. We also achieved strength in recurring net-new sales across key client segments and geographies, including our best quarter ever with hedge funds and our best Q2 with asset owners," said Henry A. Fernandez, Chairman and CEO of MSCI.

Revenue and Run Rate Performance

Second quarter operating revenues of $867.0 million, up 12.2%, reflected a $94.3 million increase driven by $50.6 million in higher recurring subscription revenues and $49.0 million in higher asset-based fees, partially offset by $5.3 million in lower non-recurring revenues. Recurring subscription revenues rose 9.0%, while asset-based fees surged 26.6%.

Total Run Rate at June 30, 2026 reached $3,479.7 million, up 12.0%, with organic recurring subscription Run Rate growth of 8.1%. Asset-based fees Run Rate increased by $190.9 million and recurring subscription Run Rate increased by $182.1 million. The Retention Rate in second quarter 2026 was 95.3%, compared to 94.4% in second quarter 2025.

Segment Performance

The following table presents key revenue and profitability metrics by segment for the three months ended June 30, 2026.

Index operating revenues rose 17.5%, driven by $49.0 million in higher asset-based fees and $27.3 million in higher recurring subscription revenues. Index Run Rate as of June 30, 2026 was $2.0 billion, up 17.4%, with organic recurring subscription Run Rate growth of 11.1%.

Analytics operating revenues grew 6.6%, with organic operating revenue growth of 7.0%. Analytics Run Rate was $773.3 million, up 5.8%, with organic recurring subscription Run Rate growth of 6.6%.

Sustainability and Climate operating revenues increased 3.4%, with organic operating revenue growth of 3.0%. Run Rate was $376.8 million, up 1.9%, with organic recurring subscription Run Rate growth of 3.2%.

All Other – Private Assets operating revenues rose 4.9%, with organic operating revenue growth of 4.4%. Run Rate was $302.6 million, up 8.0%, driven primarily by Private Capital Solutions products, with organic recurring subscription Run Rate growth of 8.3%.

Expenses, Operating Income, and Cash Flow

Total operating expenses were $379.5 million, up 9.2%. Adjusted EBITDA expenses were $328.5 million, up 10.1%, reflecting higher non-compensation and compensation costs. During second quarter 2026, the company recognized $3.2 million of Adjusted EBITDA expenses and $1.7 million of intangible asset amortization expense related to the Compass, Vantager, and PM Insights acquisitions.

The effective tax rate decreased to 18.0% in second quarter 2026 from 19.6% in second quarter 2025, primarily driven by US tax law changes and the jurisdictional mix of earnings. Other expense (income), net was $70.2 million, up 47.8%, primarily driven by higher interest expense from higher debt levels.

Capex was $44.4 million, and net cash provided by operating activities increased 10.3% to $370.8 million. Free cash flow for second quarter 2026 was up 8.2% to $326.4 million. As of June 30, 2026, cash and cash equivalents were $356.4 million, and total principal amounts of debt outstanding were $6.4 billion.

Capital Allocation and First Street Acquisition

Approximately $149.2 million in dividends were paid to shareholders in second quarter 2026. On July 20, 2026, the MSCI Board of Directors declared a cash dividend of $2.05 per share for third quarter 2026, payable on August 28, 2026 to shareholders of record as of the close of trading on August 14, 2026. Total share repurchases during the quarter were $145.0 million or 0.3 million shares at an average repurchase price of $557.34. As of July 20, 2026, approximately $1.6 billion remains available on the outstanding share repurchase authorization.

On June 24, 2026, MSCI entered into a definitive agreement to acquire First Street Technology, Inc., a provider of physics-based physical climate risk data and analytics, for a cash payment of $120.0 million at closing, subject to customary closing adjustments, together with the potential for additional cash payments contingent upon specified revenue thresholds. The transaction is expected to close in the third quarter of 2026, subject to regulatory approvals and other customary closing conditions.

Updated Full-Year 2026 Guidance

MSCI updated its Full-Year 2026 guidance, reflecting the impact of recent acquisitions including First Street and strong topline momentum.

MSCI Inc. and UBS Group AG have announced a strategic partnership aimed at advancing transparency across private markets. The collaboration combines MSCI’s independent data, analytics, and models with UBS’s alternatives expertise and global client insights to address industry challenges such as fragmented data and limited transparency. By leveraging their respective capabilities, the companies aim to further expand MSCI’s AI-powered platform, which integrates tools, data, and analytics across private markets and alternative asset classes.

Platform Capabilities

The partnership seeks to create a more connected and standardized experience across the full private markets investment lifecycle. The platform brings together several key capabilities within a single ecosystem:

The platform streamlines data management and drives transparency by bridging private and public markets. Automated data processing and independent performance data from MSCI provide investors with more timely and consistent insights across portfolios. Additionally, the collaboration fosters a private markets ecosystem that connects General Partners (GPs) with institutional and private wealth investors.

Strategic Collaboration

Informed by the Limited Partner (LP), Wealth Management, and Asset Management perspectives from UBS, the partnership enables investors to access insights more efficiently and evaluate opportunities with greater confidence. As the world’s largest truly global wealth manager and a leading asset manager, UBS will serve as an early adopter of the platform. The bank will collaborate with MSCI to advocate for broader market adoption and standardization across private markets.

Leadership Commentary

Henry Fernandez, Chairman and CEO of MSCI, emphasized the strategic importance of the partnership. "MSCI has long been committed to bringing independence, transparency and innovation to global investors," he stated. "As private markets become an increasingly important part of the investment landscape, investors are looking for the insights, rigor and accessibility that they have come to expect in public markets. By combining MSCI and UBS’s respective strengths, we aim to help build the infrastructure that can shape the future of private markets investing."

Sergio P. Ermotti, Group Chief Executive Officer of UBS, highlighted the shared ambition of the two firms. "This partnership builds on our long-standing relationship with MSCI and our shared ambition to increase transparency in private markets," said Ermotti. "As a leading LP, our Unified Global Alternatives business brings extensive industry insights and a deep understanding of clients’ evolving needs. Through our collaboration with MSCI, our goal is to help to shape the next generation of private markets portfolio management solutions and transform the decision-making process for clients across public and private markets."

About the Partners

UBS manages $6.9 trillion of invested assets as per the first quarter 2026. Its Unified Global Alternatives (UGA) business, created in 2025, combines manager selection franchises from Asset Management and Global Wealth Management. With over $340 billion in combined invested assets, UGA is one of the leading limited partners globally, offering customized solutions across hedge funds, private equity, private credit, real estate, and infrastructure.