MSCI US S&P 500Russell 1000 Earnings call · transcribed from the recording
MSCI (MSCI) · Q3 2026 results and valuation
Share price: $661.53 · 2026-11-11
MSCI provides research-based data, analytics, and indexes to global investors, including asset managers, banks, and insurance companies. The company offers tools for portfolio construction, risk management, and the integration of sustainability and climate considerations. It operates globally, serving clients across the investment ecosystem. Source: 10-K annual report (2026-02-06)
Results Q3 2026 vs Q2 2026 · previous quarter · published 20 Oct 2026 and 21 Jul 2026
Net income up 2.6% on the previous quarter. Management sounded very upbeat, though noticeably less so answering analysts.
1 · Numbers
+2.6%
Net income vs Q2 2026
Outlook given
Net income 351.0M vs 342.0M
Revenue +2.9%
Why Against the same quarter last year (+7.9%), net income rose because the fourth quarter is typically the strongest sales quarter, and the client segment achieved a record quarter with asset owners, more than tripling recurring net news sales from a year earlier.
2 · How management spoke
Very upbeat
More upbeat than 94% of company calls
Answers to analysts: upbeat, but clearly less so than the script.
Similar to last call.
3 · What stood out
MSCI's new product contributions to new sales increased more than 50% compared to a year ago in the third quarter.
Valuation
Is MSCI undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 11.7% growth a year (3-year revenue growth), the model's fair value is $489.02 a share — the stock trades 35% above it. Today's price assumes 15.3% growth a year.
Current price
$661.53
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+15.3% for 10 yrs
Fair value / share
$489.02
Buy below
$366.76
Price vs fair value
Overvalued 35%
Price vs buy-below price
Overvalued 80%
Read between the lines
-
Figure
LTM recurring net new subscription sales increased by 26%.
Source quote
“And the momentum in the business is evident, with LTM recurring net new subscription sales up 26%.”
-
Figure
New product contributions to new sales increased more than 50% compared to a year ago in the third quarter.
Source quote
“In the third quarter here, that contribution to new sales from new products increased more than 50% compared to a year ago.”
-
Guidance
MSCI expects to be at the top end of its expense guidance ranges for 2026 due to top-line momentum and factors enhancing the franchise heading into 2027.
-
Key theme
Market growth in this activity will lead to these objects being managed more systematically at a greater scale with more customization.
Source quote
“The answer is absolutely yes, because the growth of this activity at market will entail these objects being managed more systematically at greater scale with greater level of customization.”
-
Guidance
MSCI maintained its full-year guidance and expressed confidence in the outlook because collections have been strong.
4 more
-
Key theme
MSCI reported historic net new sales in index, analytics, and private capital solutions plus a record quarter for asset-based fees in the third quarter.
Source quote
“In the third quarter, MSCI deliver strong financial and operating metrics, including historic net new sales in index, analytics, and private capital solutions plus another record quarter for asset-based fees.”
-
Key theme
At the client segment level, MSCI achieved a record quarter with asset owners, more than tripling MSCI's recurring net news sales from a year earlier, driven by demand for its total portfolio solutions and its integrated…
Source quote
“At the client segment level, MSCI achieved a record quarter with asset owners, more than tripling our recurring net news sales from a year earlier, driven by demand for our total portfolio solutions and our integrated risk and portfolio management analytics.”
-
Figure
Hedge funds are the highest growth client segment, making up more than 12 percent of the business.
Source quote
“So north of 12 percent hedge funds, we continue to see as our highest growth client segment.”
-
Figure
MSCI reported 32% growth with hedge funds within index and 15% growth in subscription run rate with banks and brokers.
Source quote
“Within index, we saw 32% growth with hedge funds. On the subscription run rate side, we saw 15% growth with banks and brokers.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 90% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“This reflects our ability to leverage AI to transform the company for the future, accelerate the pace of innovation, and drive faster growth.”
“Across client segments, we saw double-digit growth with non-asset manager segments and mid to high single-digit growth among asset managers.”
“Despite the ongoing retention pressures in sustainability and climate, we entered Q4 with solid momentum and a strong client engagement across the whole MSCI franchise.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 892.0M | 867.0M | +2.9% | 793.4M | +12.4% |
| Operating income | 502.1M | 487.5M | +3.0% | 447.6M | +12.2% |
| Net income | 351.0M | 342.0M | +2.6% | 325.3M | +7.9% |
| EPS | 4.86 | 4.69 | +3.6% | 4.25 | +14.4% |
| P/E today 33.9 | 28.5 | 30.6 | −2.1 | 36.0 | −7.5 |
Topics
Most discussed now
- New These are areas where AI is dramatically enhancing productivity and efficiency, and that is what's enabling us to take down...
- Since MSCI's IPO 19 years ago, MSCI has demonstrated a strong and consistent track record of execution.
- MSCI has seen pretty steady momentum with asset managers.
- It allows it to invest more, which is going to fuel more top line growth, with the same inherent operating...
Faded since Q2 2026
- Fading MSCI also showed strength in recurring net new sales across client segments and geographies despite continued challenges in sustainability.
- Fading All told, MSCI mores than tripled its index recurring net new sales with hedge funds from a year earlier, reaching...
- Fading Among asset managers, MSCI posted 6% organic subscription run rate growth, along with 9% recurring net new sales growth.
- Fading AI is enabling MSCI to move even faster in building new products, enhancing MSCI's existing solutions, and strengthening its foundational...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
MSCI reported operating revenues of $892.0 million for the third quarter of 2026, representing a 12.4% increase compared to the $793.4 million reported in the third quarter of 2025.
- Director or officer change · SEC 8-K
MSCI Inc. appointed Andrew C. Wiechmann as interim principal accounting officer and Kristine Johnson as interim Global Controller, effective August 10, 2026, following the departure of the Global Controller.
- Results of operations · SEC 8-K
MSCI reported operating revenues of $867.0 million for the second quarter of 2026, representing a 12.2% increase compared to the $772.7 million reported in the same period of 2025.
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
MSCI reported operating revenues of $850.8 million for the first quarter of 2026, representing a 14.1% increase compared to the $745.8 million reported in the first quarter of 2025.
- Director or officer change · SEC 8-K
C. Jack Read announced his resignation as Global Controller and Chief Accounting Officer, effective August 9, 2026, to pursue another opportunity.
- Material agreement · SEC 8-K
MSCI and BlackRock amended their Master Index License Agreement on January 27, 2026, extending the term until March 31, 2035, with revised license fees starting January 1, 2026.
- Results of operations · SEC 8-K
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-24.
Cash & runway
Cash & equivalents
$261.0M
2026-09-30
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: -5.8% YoY, -1.0% QoQ.
| Quarter | Shares |
|---|---|
| Q1 2025 | 77.6M |
| Q2 2025 | 77.4M |
| Q3 2025 | 76.5M |
| Q1 2026 | 73.3M |
| Q2 2026 | 72.8M |
| Q3 2026 | 72.1M |
Shares outstanding: 71.5M (2026-10-13)
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 51 filings; 50 filings parsed.
Sold by insiders
11.8K shares
$6.9M · 6 transactions
Bought by insiders
28.8K shares
$15.5M · 32 transactions
Net direction
net buying
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
-
fourth quarter
sustainability and climate reporting segment recurring net new sales
Source quote
“We expect the sustainability and climate reporting segment to have recurring net new sales that are roughly flat to slightly positive in the fourth quarter.”
-
2026
top end of expense guidance ranges
Source quote
“Given these items, which enhance the franchise heading into 2027, and the strong top-line momentum this year, we expect to be at the top end of our expense guidance ranges for 2026.”
-
this year
acquisitions expected to add roughly $20 million of additional expenses
Source quote
“To provide more color on the elevated expense items in 2026, acquisitions are expected to add roughly $20 million of additional expenses this year.”
-
next year
growth across key growth engines for the firm
Source quote
“And I think we're seeing good momentum not only into the fourth quarter, but heading into next year across those key growth engines for the firm.”
-
next several quarters
expansion of the portfolio ecosystems
Source quote
“So this is all driving this continued growth of the portfolio ecosystems and is offering us, frankly, a very, very positive environment for the next several quarters to continue this expansion.”