Key facts
- MSCI raised its 2026 operating expense guidance to $1.54 billion-$1.58 billion from $1.49 billion-$1.53 billion.
- Asset-based fees from MSCI's index segment rose 26.6% to $233.1 million in the second quarter.
- Operating expenses increased 9.2% to $379.5 million.
- The company reported adjusted net income for the second quarter of $360 million, or $4.94 per share.
- MSCI's shares fell more than 7%.
MSCI Inc. saw its shares decline by more than 7% on Tuesday after the company announced an increase in its full-year operating expense forecast. This adjustment was attributed to acquisition-related costs, higher employee incentives, and increased investment spending, despite the company reporting better-than-expected quarterly results.
MSCI lifted its 2026 operating expense guidance to a range of $1.54 billion to $1.58 billion, up from the previous forecast of $1.49 billion to $1.53 billion. The company noted that strong business momentum is also contributing to higher costs, with assets under management linked to MSCI indexes surpassing prior guidance assumptions, which in turn boosted asset-based fees.
In the second quarter ended June 30, asset-based fees from MSCI's index segment grew by 26.6% year-over-year to $233.1 million. Overall operating expenses rose by 9.2% to $379.5 million, driven by increased spending on technology, market data, professional services, and compensation. Interest expenses also saw a significant jump of nearly 48% due to higher debt levels.
The data and analytics provider reported adjusted net income for the second quarter of $360 million, or $4.94 per share, which was in line with the analyst estimate of $359.4 million, or $4.94 per share. MSCI's stock market indices are widely used as benchmarks for trillions of dollars in assets by investment funds, pension plans, and asset managers.