MSCI revenues climb 14% as asset-based fees surge in Q1

MSCI (NYSE:MSCI), a pivotal provider of indices and portfolio construction tools for global institutional investors, reported a strong start to 2026, driven by an expansion in its subscription base and a significant surge in market-linked fees.

For the first quarter ended March 31, 2026, the New York-based company reported operating revenues of $850.8 million, representing a 14.1% increase over the prior year.

Growth remained robust on an organic basis at 13.3%.

The results were bolstered by the company's core recurring subscription revenues, which rose 8.6%, while asset-based fees—linked to the market value of investment products tracking MSCI indices—jumped 26.6%.

Profitability remained a highlight of the report, with MSCI achieving an operating margin of 53.7% and an adjusted EBITDA margin of 59.3%.

Diluted earnings per share (EPS) saw a dramatic climb of 49.1% to $5.53, though this figure was likely impacted by specific tax or accounting items.

Adjusted EPS, which provides a clearer view of ongoing operations, rose a steady 13.8% to $4.55.

Operational health also signaled continued stability, with a high retention rate of 95.4% and an organic recurring subscription Run Rate growth of 8.2%.

MSCI also moved aggressively on capital returns.

From the start of the year through April 20, 2026, the firm repurchased approximately 835,591 shares for $464 million.

Furthermore, after paying out $150 million in dividends during the first quarter, the Board of Directors declared a cash dividend of $2.05 per share for the second quarter of 2026.