Good day, and welcome to the MSCI second quarter 2026 earnings conference call. This press release, along with an earnings presentation, are available on our website, msci.com, under the Investor Relations tab. You'll find a reconciliation of our non-GAAP measures to the equivalent GAAP measures in the appendix of the earnings presentation. Important information regarding our use of operating metrics such as run rate and retention rate are available in the earnings presentation.

In the second quarter, MSCI delivered very strong financial results along with an acceleration in run rate growth in both index and private assets, our two key engines of growth in the company. We also showed strength in recurring net new sales across client segments and geographies despite continued challenges in sustainability. Meanwhile, record ETF and non-ETF AUM balances in products linked to MSCI indices help us achieve our best ever asset-based fee run rate. MSCI is building momentum in the second half of 2026 with a strong pipeline of opportunities and exciting AI-fueled innovation.

MSCI's Q2 financial metrics included organic revenue growth of over 12%, adjusted EPS growth of nearly 19%, and adjusted EBITDA growth of 14%. Our Q2 operating metrics included total run rate growth of 12%, fueled by ABF run rate of $948 million, growing 25%. This reflected record AUM levels in both ETF and non-ETF products linked to MSCI indices, supported by another quarter of solid inflows of nearly $40 billion in ETF linked to MSCI indices. Turning back to our Q2 performance, MSCI achieved organic subscription run rate growth of over 8% with a retention rate of over 95%.

What went well
  • Organic revenue grew over 12% with adjusted EPS up nearly 19% and adjusted EBITDA up 14%; total run rate grew 12%
  • Asset-based fee run rate reached $948 million (up 25%) on record ETF and non-ETF AUM, with ~$40 billion of ETF inflows in the quarter and more than $1 trillion of ETF AUM growth over the trailing 15 months
  • Best quarter on record with hedge funds: 19% subscription run rate growth and nearly $15 million of recurring net new sales (up 75%), including three seven-figure index-analytics deals; index recurring net new sales up 41% and total index run rate up 17%
  • Private assets recurring net new sales grew 57%, PCS subscription run rate accelerated to over 16%, and MSCI announced a strategic UBS partnership to extend private-asset solutions into the wealth channel
  • Asset owners posted best-ever Q2 recurring net new sales of $8.4 million (up 43%); index retention rate exceeded 97%
What went wrong
  • Subscription sales fell a little short of expectations (Manav Patnaik of Barclays flagged the quarter's shortfall); management attributed softness to lumpiness and warned high-ticket new products will create more quarter-to-quarter variability
  • Sustainability remains under persistent pressure with cancels (particularly in the Americas) a significant headwind; management guided combined sustainability & climate recurring net new sales to roughly zero to slightly negative over the next two quarters
  • Asset-based fee basis points compressed meaningfully as AUM/inflows skewed toward lower-fee developed-markets-ex-US and all-country products (mix shift), plus lower BlackRock floors from Q1
  • Analytics subscription sales were soft (7% organic subscription run rate growth) and analytics margin came in softer than expected; management called it largely lumpiness/tough comps
  • Expense guidance was raised (First Street acquisition, higher performance stock comp/bonus accruals tied to AUM, higher D&A and interest expense from the acquisition and buybacks)

More on MSCI Inc.

Reported 2026-07-21 · figures from the MSCI Inc. Q2 2026 earnings call.

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