MSCI (MSCI) Q3 2026 Earnings Report

The call was strongly positive overall. MSCI reported double-digit revenue, EBITDA, EPS, run-rate, asset-based fee, and recurring sales momentum; record or best-ever performance in several product lines; broad growth across regions and client segments; and continued progress in AI-enabled innovation and strategic expansion. The main negatives were ongoing Sustainability and Climate retention and sales pressure, modest Real Assets growth, higher 2026 expenses and interest costs, persistent asset-manager industry pressures, and the absence of a targeted margin expansion. These lowlights were outweighed by the breadth and strength of the company's operating performance.

For 2026, MSCI expects to be at the top end of its expense guidance ranges; acquisitions are expected to add roughly $20 million of additional expenses, incremental performance stock options are expected to add roughly $15 million to $20 million of noncash expenses, and severance is expected to be roughly $10 million to $15 million higher than originally planned. The company increased its interest expense guidance, narrowed its full-year tax rate guidance to 18% to 19.5%, and maintained its free cash flow guidance. For the fourth quarter, Sustainability and Climate recurring net new sales are expected to be roughly flat to slightly positive. MSCI also expects AI to lower the growth rate of EBITDA expenses for running the existing business from mid- to high single digits to the low single digits and eventually to negative growth, while Henry Fernandez said there would be no margin expansion as the company reinvests savings.