MSCI (NYSE: MSCI) Exceeds Expectations in Q3 2026 Earnings Report

• MSCI (NYSE: MSCI) surpassed third-quarter 2026 earnings estimates with an adjusted EPS of $5.11 and revenue of $892 million.
• Growth was driven by a 12.4% rise in revenue and a 14.3% increase in adjusted EPS year-over-year, supported by recurring subscriptions and asset-based fees.
• The company saw its retention rate improve to 95%, though free cash flow decreased by 8.9% to $385.40 million.

MSCI (NYSE: MSCI) reported third-quarter 2026 earnings before the market opened on October 20. The company provides indexes and data that investors use to track markets and build investment products. Adjusted earnings were $5.11 per share, above the $5.03 estimate in the initial figures.

Revenue reached $892 million, compared with an estimate of approximately $888 million. Revenue rose 12.4% from a year earlier, while adjusted earnings per share increased 14.3%, as highlighted by Zacks. Earnings per share show how much profit a company reports for each share.

Recurring subscriptions and asset-based fees helped drive growth. These increased 7.7% and 24.9%, respectively, as highlighted by Zacks. Asset-based fees rise or fall with the value of assets linked to MSCI products. Index revenue climbed 18.1%, and assets in ETFs linked to MSCI equity indexes reached $2.91 trillion.

Net new recurring subscription sales rose 41.2%, while MSCI’s retention rate improved to 95% from 94.7%, as highlighted by Zacks. Free cash flow fell 8.9% to $385.40 million. Free cash flow is the cash left after a company pays for its operations and capital spending.