The slight EPS miss is negligible given the guidance raise and strong Index fee momentum. Monitor the Q3 2026 close of the First Street acquisition and any impact on Sustainability & Climate segment growth. The raised free cash flow guidance supports continued buybacks and dividend growth.
Price Chart
Executive Summary
MSCI reported Q2 2026 adjusted EPS of $4.94, slightly below the $4.97 consensus (-0.6% miss), while revenue of $867.0M was in line with the $868.8M estimate. The miss is marginal and offset by strong operating metrics: 12.2% organic revenue growth, a record Index asset-based-fee run rate, and raised full-year guidance for operating cash flow and free cash flow. The First Street acquisition adds a bolt-on climate risk capability for $120M. Overall, a solid quarter with no material surprise — the stock should trade flat to slightly positive on the guidance raise and momentum in Index fees.
Key Financial Metrics
Key Facts
- Q2 2026 revenue $867.0M, +12.2% YoY (organic +12.2%)
- Adjusted EPS $4.94 vs consensus $4.97 (-0.6% miss)
- Index segment revenue $511.0M, +17.5% YoY; asset-based fees +26.6%
- Total Run Rate $3.48B, +12.0% YoY; organic recurring subscription Run Rate +8.1%
- Full-year guidance raised: operating cash flow to $1,655-$1,705M (from $1,640-$1,690M), free cash flow to $1,485-$1,545M (from $1,470-$1,530M)
- Announced $120M acquisition of First Street Technology (climate risk data), expected to close Q3 2026
- Operating margin expanded to 56.2% from 55.0%; Adjusted EBITDA margin 62.1% from 61.4%
- Diluted shares outstanding down 5.9% YoY to 72.9M; $1.6B remaining on buyback authorization
Financial Impact
Q2 revenue $867.0M, EPS $4.94; guidance raised for operating cash flow by $15M midpoint and free cash flow by $15M midpoint
Risk Factors
- Higher interest expense ($71.0M, +53.7% YoY) from increased debt levels
- Analytics segment EBITDA declined 5.0% YoY on higher expense growth
- Sustainability & Climate net new subscription sales down 62% YoY
- Integration risk from multiple small acquisitions (Compass, Vantager, PM Insights, First Street)
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001408198-26-000044 |
| Document: msci-20260721.htm | 0001408198-26-000044 |
| Document: 0001408198-26-000044-index-headers.html | 0001408198-26-000044 |
| Document: 0001408198-26-000044-index.html | 0001408198-26-000044 |
| Document: 0001408198-26-000044.txt | 0001408198-26-000044 |
| 8-K Data (Synthetic) | 0001408198-26-000044 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 4, 2026 28d ago | Insider Buy | $551.39 $544.60 | ▼ −1.23% | ▼ −0.11% | $535.95 (−2.80%) |
Aug 7, 2026 8w ago | 8-K | $563.08 $550.68 | ▼ −2.20% | ▼ −2.16% | $535.95 (−4.82%) |
Jul 21, 2026 10w ago | 8-K | $561.74 $571.03 | ▲ +1.65% | ▲ +2.88% | $535.95 (−4.59%) |
Jun 11, 2026 16w ago | Institutional Cluster | $594.31 $596.89 | ▼ −0.43% | ▼ −0.00% | $535.95 (+9.82%) |
Apr 21, 2026 23w ago | 8-K | $592.49 $592.94 | ▲ +0.08% | ▼ −1.01% | $535.95 (−9.54%) |
Mar 11, 2026 29w ago | DEFA14A | $546.55 $556.26 | ▲ +1.78% | ▲ +3.97% | $535.95 (−1.94%) |
US Market Status
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