MSCI (NYSE: MSCI) revenue rises 12.4% as adjusted EBITDA climbs

What happened

MSCI Inc. (NYSE: MSCI) reported third-quarter 2026 operating revenues of $892.0 million, up 12.4%, and adjusted EBITDA of $554.8 million, up 12.2%. Organic operating revenue growth was 12.3%, operating income was $502.1 million and diluted EPS was $4.86. Retention rate was 95.0%, and total Run Rate reached $3.57 billion, up 12.1%.

Index operating revenues were $532.6 million, up 18.1%. Analytics operating revenues were $191.0 million, up 4.8%. Sustainability and Climate operating revenues were $93.7 million, up 4.0%. All Other Private Assets operating revenues were $74.7 million, up 6.7%. MSCI also completed the acquisition of First Street Technology, Inc. on August 3, 2026 for $122.6 million, net of cash acquired.

The board declared a cash dividend of $2.05 per share for fourth quarter 2026. It is payable on November 27, 2026 to shareholders of record as of the close of trading on November 13, 2026. Full-year free cash flow guidance stayed at $1.49 billion to $1.55 billion.

Key numbers

Metric Latest Change Source
Operating revenues $892.0 million from $793.4 million, +12.4% SEC 8-K
Adjusted EBITDA $554.8 million from $494.4 million, +12.2% SEC 8-K
Diluted EPS $4.86 from $4.25, +14.4% SEC 8-K
Retention rate 95.0% from 94.7%, +0.3 percentage points SEC 8-K
Full-year 2026 free cash flow guidance $1.49 billion to $1.55 billion SEC 8-K

Read more: MSCI (MSCI) stock analysis and investment case

Why it matters

OptimistFi's case is that MSCI's value depends on indexes, data and analytics remaining embedded standards for global investors. This quarter strengthens that case because operating revenues increased by $98.6 million from $793.4 million a year earlier, and adjusted EBITDA increased by $60.4 million from $494.4 million. Weighted average diluted shares outstanding were 72.3 million, down 5.6% year over year.

Interest expense guidance rose to $288 million to $291 million from $282 million to $286 million. The main caveat in the filing is that other expense, net rose 45.2% to $74.2 million because interest expense was higher.

Free cash flow fell 8.9% to $385.4 million, and Analytics adjusted EBITDA slipped 4.9% to $85.7 million. Total debt outstanding was $6.8 billion, and the debt to adjusted EBITDA ratio was 3.2x.

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What's next

MSCI's senior management will review the third-quarter 2026 results on Tuesday, October 20, 2026 at 11:00 AM Eastern Time. The next test is whether fourth-quarter results keep revenue growth, retention and cash generation near this quarter's levels. If they do, the quarter will reinforce the case. If they do not, the higher interest burden becomes more important.

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Sources

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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.