MSCI · MSCI Inc.

MSCI Inc. delivered robust Q1 2026 results with operating revenues reaching $850.8 million, a 14.1% increase from $745.8 million in the prior year, driven by a balanced $47.6 million rise in recurring subscription revenues and $47.1 million in asset-based fees, plus $10.3 million from non-recurring sources. Organic revenue growth of 13.3% underscores core business strength. Operating expenses rose 6.8% to $393.9 million, but efficiency gains expanded the operating margin to 53.7% from 50.6%, with Adjusted EBITDA margin improving to 59.3%. Net income surged 40.7% to $406.0 million, boosted by a $88 million discrete tax benefit from legal entity restructuring that lowered the effective tax rate to -4.3%. Diluted EPS jumped 49.1% to $5.53. Segment performance was strong: Index revenues up 17.7% to $496.3 million on 26.6% asset-based fee growth and record run rate; Analytics up 10.3%; Sustainability and Climate up 8.6%; Private Assets up 7.9%. Retention held steady at 95.4%, with organic recurring subscription run rate growth of 8.2%. CEO Henry A. Fernandez highlighted record asset-based-fee run rate, best Q1 recurring sales since 2022 in Index and Analytics, and sales momentum across regions, products, and clients, fueled by AI innovation. Balance sheet shows $385.3 million cash and $6.5 billion debt, with debt to adjusted EBITDA at 3.2x within target. Capital allocation included $464 million share repurchases and $150.1 million dividends, with Q2 dividend of $2.05/share declared. Full-year 2026 guidance remains unchanged, signaling confidence amid macroeconomic uncertainties.