MSCI shares rise 5% following third-quarter earnings beat

MSCI shares increased by 5% to $591.69 following the release of third-quarter financial results that exceeded analyst expectations. The company reported revenue of $892 million, representing a 12% increase year-over-year and surpassing the consensus estimate of approximately $888 million.

Adjusted earnings per share (EPS) rose 14.3% to $5.11, outperforming the modeled $5.02. Management attributed the growth to increased net-new sales across several categories, higher asset-based fees—which grew 24.9% year-over-year—and strength in the Asia-Pacific region. Recurring subscription revenue also saw a 7.7% increase.

While revenue and earnings grew, free cash flow declined 8.9% to $385.4 million, partly due to increased capital expenditures and higher cash interest payments. MSCI maintained its 2026 free cash flow forecast of $1.485 billion to $1.545 billion and narrowed its projected effective tax rate to a range of 18% to 19.5%. The company also raised its full-year interest expense outlook to between $288 million and $291 million.