MSCI (NYSE:MSCI) Announces Earnings Results

MSCI (NYSE:MSCI) announced its earnings results on Tuesday. The technology company reported $4.94 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.99 by ($0.05), FiscalAI reports. The company had revenue of $867.00 million for the quarter, compared to the consensus estimate of $870.71 million. MSCI had a net margin of 40.74% and a negative return on equity of 55.19%. The firm’s revenue was up 12.2% compared to the same quarter last year. During the same period last year, the business posted $4.17 EPS.

Here are the key takeaways from MSCI’s conference call:

• MSCI reported strong Q2 results, with organic revenue growth of over 12%, adjusted EPS growth of nearly 19%, and adjusted EBITDA growth of 14%. Management also highlighted record asset-based fee run rate and strong share repurchases during the quarter.
• Index and private assets accelerated, with index subscription run rate growth above 11% and private capital subscription run rate growth above 16%. Management said both businesses are key growth engines and still early in their expansion.
• Hedge fund demand was a standout, with index subscription run rate growth of 15% in the broader traders/hedge funds category and 19% among hedge funds specifically. MSCI said this reflects growing demand for custom indexes, index analytics, and the trading/liquidity ecosystem around its benchmark franchise.
• Sustainability remains challenged, with continued client budget pressure and cancellations, especially in the Americas. Management expects recurring net new sales in the combined sustainability and climate segment to be roughly flat to slightly negative over the next two quarters.
• MSCI emphasized an AI-driven product and acquisition strategy, including more than 1,000 clients already using Index AI Insights and the planned acquisition of First Street to expand physical climate risk analytics. The company said AI is helping speed product development, customization, and monetization across the platform.

MSCI Price Performance

Shares of NYSE:MSCI opened at $570.00 on Thursday. The business’s 50-day moving average is $597.23 and its 200 day moving average is $577.01. MSCI has a 1 year low of $501.08 and a 1 year high of $644.77. The firm has a market capitalization of $41.50 billion, a P/E ratio of 31.18, a P/E/G ratio of 2.03 and a beta of 1.24.

MSCI Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 14th will be given a dividend of $2.05 per share. This represents a $8.20 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Friday, August 14th. MSCI’s dividend payout ratio is currently 46.83%.

MSCI News Roundup

Here are the key news stories impacting MSCI this week:

• Positive Sentiment: MSCI reported higher revenue and earnings year over year, with Q2 revenue up 12.2% and adjusted EPS up 18.5%, supported by stronger recurring subscriptions, asset-based fees, and ETF-linked AUM growth. Article Title
• Positive Sentiment: The company also highlighted record ETF-linked assets under management and continued growth in index-related business, which supports long-term fee revenue. Article Title
• Neutral Sentiment: MSCI declared a quarterly dividend of $2.05 per share, reinforcing the company’s cash-generation profile.
• Neutral Sentiment: Several analysts and reports still point to upside in the stock over the longer term, with recent price targets clustering well above current levels. Article Title
• Negative Sentiment: Despite the earnings beat, investors sold the stock after MSCI raised its 2026 expense outlook, including operating expense, adjusted EBITDA expense, interest expense, and depreciation guidance, which raised concerns about margin pressure. Article Title
• Negative Sentiment: Coverage from multiple outlets noted that the Q2 report missed some expectations on key lines and that the higher cost forecast overshadowed otherwise strong operating trends. Article Title
• Negative Sentiment: Some analysts have since trimmed forecasts after the report, suggesting sentiment may stay cautious until investors see that margins can hold up despite higher spending. Article Title

Insiders Place Their Bets

In other MSCI news, insider Alvise J. Munari sold 10,000 shares of the firm’s stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $592.04, for a total value of $5,920,400.00. Following the completion of the sale, the insider owned 23,548 shares of the company’s stock, valued at approximately $13,941,357.92. This trade represents a 29.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 3.76% of the company’s stock.

Hedge Funds Weigh In On MSCI

Hedge funds and other institutional investors have recently modified their holdings of the stock. Empowered Funds LLC lifted its stake in shares of MSCI by 7.6% during the first quarter. Empowered Funds LLC now owns 2,003 shares of the technology company’s stock worth $1,133,000 after buying an additional 142 shares during the period. Woodline Partners LP raised its stake in MSCI by 39.0% in the 1st quarter. Woodline Partners LP now owns 6,585 shares of the technology company’s stock worth $3,724,000 after acquiring an additional 1,846 shares during the last quarter. Sivia Capital Partners LLC raised its stake in MSCI by 20.9% in the 2nd quarter. Sivia Capital Partners LLC now owns 1,052 shares of the technology company’s stock worth $607,000 after acquiring an additional 182 shares during the last quarter. Treasurer of the State of North Carolina lifted its position in MSCI by 1.0% during the 2nd quarter. Treasurer of the State of North Carolina now owns 35,130 shares of the technology company’s stock worth $20,261,000 after acquiring an additional 344 shares during the period. Finally, Osterweis Capital Management Inc. acquired a new stake in MSCI during the 2nd quarter worth about $88,000. 89.97% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on the company. Rothschild & Co Redburn set a $690.00 price objective on MSCI in a research report on Thursday, June 18th. Bank of America boosted their target price on shares of MSCI from $715.00 to $730.00 and gave the stock a “buy” rating in a report on Friday, July 10th. Weiss Ratings raised shares of MSCI from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, July 16th. UBS Group set a $615.00 price target on shares of MSCI in a report on Wednesday. Finally, Morgan Stanley reaffirmed an “overweight” rating and issued a $700.00 price objective on shares of MSCI in a research report on Tuesday. One analyst has rated the stock with a Strong Buy rating and eleven have assigned a Buy rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Buy” and an average target price of $709.50.

About MSCI

MSCI Inc is a global provider of investment decision support tools and services for the financial industry. The company is best known for its family of market indexes, which are widely used as benchmarks by asset managers and as the basis for exchange-traded funds and other passive products. In addition to index construction and licensing, MSCI offers portfolio analytics, risk models, factor and performance attribution tools, and a suite of data and technology solutions designed to support portfolio management and trading.

Beyond traditional indexing and risk analytics, MSCI has expanded into environmental, social and governance (ESG) research and ratings, offering data, scores and screening tools that help investors integrate sustainability considerations into investment processes.