A company that builds the yardsticks global investors use to measure markets, creating benchmarks like the MSCI World Index, risk platforms like BarraOne, and ESG ratings used by funds and banks worldwide. The name traces to a 1986 deal: Morgan Stanley bought the rights to Capital International's global indices, becoming Morgan Stanley Capital International, or MSCI. The brand began as a 1968 Capital Group project and spun off as its own company in 1998.
Q2 FY2026 revenue rose 12.2% to $867.0M as asset-based fees grew 26.6%
kept climbing, up 26.6% in the quarter. rose 12.2% to $867.0M and widened to 83.3% as ETF-linked grew, while rose 12.6% to $342.0M on a lower tax rate. The business is expanding on index demand, but sits at $6.4B against negative equity.
Key takeaways
rose 26.6% to $233.1M on higher in ETFs linked to , driving total operating revenues up 12.2% to $867.0M.
increased 17.5% to $511.0M, fueled by a 44.8% rise in average in linked ETFs and 11.6% growth in recurring subscriptions.
rose 12.6% to $342.0M as the fell to 18.0% from 19.6% due to US tax law changes and earnings mix.
Section summaries
Management's Discussion and Analysis
MSCI Q2 FY2026 revenue rose 12.2% to $867M, driven by 26.6% growth in asset-based fees and broad subscription gains.
⌄
Total operating revenues grew 12.2% to $867.0M, with surging 26.6% to $233.1M on higher in ETFs linked to MSCI equity indexes.
Total grew 12.0% to $3.48B with of 12.3%, and the company repurchased $544.3M in shares at a 2.83x .
rose 6.6% to $189.4M but its fell 5.0% as expenses rose 19.2% from higher IT and market data costs.
Operating expenses increased 9.2% to $379.5M, with G&A up 20.6% and non-compensation costs up 23.5% from IT and market data spending.
What changed
and ETF : Q1 FY2026 rose 26.6%; Q2 held at 26.6% with Index ETF AUM up 44.8%, so the pace held rather than fading toward the 17.2% FY2025 level.
Private Capital Solutions : the FY2025 10-K carried the critical audit matter flag with fair value near carrying; this 10-Q restates no material change to risk factors, so the trigger remains unresolved.
new subscription sales: FY2025 fell 27.5%; Q1 rose 8.6% and this quarter the is not separately disclosed, leaving the sales trend unupdated.
use: FY2025 authorized $3.0B and Q1 ended with debt at $6,403.8M; this quarter used $544.3M and fell to 2.83x from 2.97x, against negative .
BlackRock share rose to 10.8% at FY2025 disclosure; not updated this quarter, consistent with the 10-Q's restated risk factors.
What to watch
Q3 FY2026 and average ETF to see if the 26.6% growth holds or fades toward the 17.2% FY2025 level.
Private Capital Solutions trigger in the next filing given the carried-forward critical audit matter and fair value near carrying.
new recurring subscription sales after the 27.5% FY2025 drop and absence of disclosure this quarter.
Use of remaining $3.0B authorization and its impact on negative against $6,403.8M .
Index increased 17.5% to $511.0M, fueled by a 44.8% rise in average in linked ETFs and 11.6% growth in recurring subscriptions.
Analytics rose 6.6% to $189.4M, but fell 5.0% as expenses jumped 19.2% due to higher IT, market data costs, and a reduced favorable adjustment.
Total operating expenses increased 9.2% to $379.5M, with G&A up 20.6% and non-compensation costs up 23.5%, partly from higher IT and market data costs.
rose 12.6% to $342.0M; the fell to 18.0% from 19.6%, driven by US tax law changes and earnings mix.
Total grew 12.0% to $3.48B, with of 12.3%, and the company repurchased $544.3M in shares while maintaining a 2.83x .
Quantitative and Qualitative Disclosures About Market Risk
Foreign currency risk is the primary market risk, with 16% of revenue and 42% of expenses exposed, managed partly via forward contracts.
⌄
16% of H1 FY2026 revenues were exposed to foreign currency risk, primarily from clients billed in Euros (44%), British pounds (30%), and Japanese yen (20%).
, 27% of operating revenues, are sensitive to non-USD currency declines because roughly three-fifths of underlying fund assets are in non-USD securities.
Approximately 42% of H1 FY2026 operating expenses were denominated in foreign currencies, led by British pounds, Indian rupees, and Euros.
The company uses foreign currency , not designated as accounting hedges, to minimize income-statement volatility from currency remeasurement.
Total recognized foreign currency exchange losses narrowed to $2.7 million in H1 FY2026 from $4.5 million in H1 FY2025.
Various lawsuits, arbitrations, claims, government inquiries, requests for information, subpoenas, regulatory investigations, examinations, inspections and other legal or regulatory processes have been or may be instituted or asserted against the Company in the ordinary course o…
⌄
Various lawsuits, arbitrations, claims, government inquiries, requests for information, subpoenas, regulatory investigations, examinations, inspections and other legal or regulatory processes have been or may be instituted or asserted against the Company in the ordinary course of business. While the potential losses could be substantial, due to uncertainties surrounding the potential outcomes, management cannot currently reasonably estimate the possible loss or range of loss that may arise from these matters. Consequently, it is possible that MSCI’s business, operating results, financial condition or cash flows in a particular period could be materially affected by these matters. However, based on facts currently available, we believe that the disposition of matters that are currently pending or asserted will not, individually or in the aggregate, have a material effect on MSCI’s business, operating results, financial condition or cash flows.
For a discussion of the risk factors affecting the Company, see “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for fiscal year ended December 31, 2025. There have been no material changes to the risk factors and uncertainties known to the Company and disclos…
⌄
For a discussion of the risk factors affecting the Company, see “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for fiscal year ended December 31, 2025.
There have been no material changes to the risk factors and uncertainties known to the Company and disclosed in the Company’s Form 10-K for the fiscal year ended December 31, 2025, that, if they were to materialize or occur, would, individually or in the aggregate, have a material effect on MSCI’s business, operating results, financial condition or cash flows.