MSCI Q2 revenue slightly beats; FY operating expense outlook lifted

Overview

• Investment analytics provider's Q2 revenue rose 12%, slightly beating analyst expectations

• Adjusted EPS for Q2 matched consensus; recurring subscription and asset-based fees grew

• Company repurchased $147 mln in shares and agreed to acquire First Street Technology

Outlook

• MSCI raises 2026 operating expense guidance to $1.535-$1.575 bln from $1.49-$1.53 bln

• Company increases 2026 adjusted EBITDA expense outlook to $1.34-$1.37 bln from $1.305-$1.335 bln

• MSCI cites higher AUM and recent acquisitions as drivers of increased expense guidance

Result Drivers

• ASSET-BASED FEES - Higher asset-based fees driven by record ETF and non-ETF AUM linked to MSCI indexes

• RECURRING SUBSCRIPTION GROWTH - Recurring subscription revenue rose across client segments and regions, led by market cap-weighted and custom Index products

• PRODUCT LAUNCHES AND AI INNOVATION - Accelerated product launches and AI-driven enhancements contributed to momentum

Company press release: ID:nBw75zkLza

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the professional information services peer group is "buy"

• Wall Street's median 12-month price target for MSCI Inc is $710.00, about 13.6% above its July 20 closing price of $625.11

• The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 27 three months ago

Reuters Recommended Reads

• July 21 - London Stock Exchange to launch round-the-clock trading next year

• July 21 - Switzerland's Julius Baer H1 net profit more than doubles, helped by high client activity

• July 20 - Five years on: How the cancelled Aon-WTW mega-merger changed the broking landscape

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)