MSCI Inc. (NYSE:MSCI) delivered double-digit third-quarter revenue growth, led by strong Index performance and higher asset-based fees, while companywide margins remained broadly stable and management entered the fourth quarter with solid momentum.
Revenue Growth Stays Strong
Third-quarter operating revenue rose 12.4% to $892.0 million, topping the $885.749 million analyst consensus estimate.
The quarterly organic revenue increased 12.3%.
Recurring subscription revenue grew 7.7%, and asset-based fees jumped 24.9%.
Margins Hold Nearly Flat
The quarterly operating income increased 12.2% to $502.1 million. The margin remained flat at 56.3%.
The quarterly adjusted EBITDA rose 12.2% to $554.8 million. The margin remained firm at 62.2%.
Index Leads Segment Growth
The Index segment remained the strongest contributor, with revenue rising 18.1% to $532.6 million.
Asset-based fees, which are reported within the Index segment, increased 24.9%, while recurring subscription revenue grew 11.1%.
Index adjusted EBITDA climbed 17.8%, though margin edged down to 77.4% from 77.6%.
Analytics revenue rose 4.8% to $191 million, but adjusted EBITDA fell 4.9% and margin declined to 44.9% from 49.4%, reflecting faster expense growth.
Sustainability and Climate revenue increased 4% to $93.7 million, while adjusted EBITDA rose 10.1% and margin improved to 40.8% from 38.6%.
Private Assets revenue grew 6.7% to $74.7 million, but adjusted EBITDA fell 4.6% and margin narrowed to 24.8% from 27.6%.
Executive Commentary
MSCI Chairman and CEO Henry Fernandez said the company delivered strong third-quarter financial and operating performance, including record recurring net-new sales in Analytics and Private Capital Solutions, its strongest third-quarter recurring net-new sales in Index and another record quarter for asset-based fees.
Fernandez also highlighted record performance among asset-owner clients and in Asia-Pacific. He said those results gave MSCI solid momentum entering the fourth quarter, supported by strong client engagement and demand across both established and newer solutions as the company expands its role in global investing and develops its business for an AI-focused environment.
MSCI Maintains 2026 Outlook
MSCI kept its full-year operating expense, adjusted EBITDA expense, capex, operating cash flow and free cash flow guidance unchanged.
It expects operating expense of $1.535 to $1.575 billion, adjusted EBITDA expense of $1.340 to $1.370 billion.
The company expects operating cash flow of $1.655 to $1.705 billion and free cash flow of $1.485 to $1.545 billion.
It raised its interest-expense outlook to $288 million-$291 million.
MSCI Stock Price Activity: MSCI shares are trading higher by 4.61% at $589.47 at the time of publication on Tuesday, according to Benzinga Pro data.
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