MSCI Shares Rise 5% After Q3 Revenue and Adjusted EPS Beat Estimates

MSCI shares rose 5% to $591.69 at the Oct. 20 close, 4 p.m. ET (20:00 UTC), after the index and analytics provider posted third-quarter revenue and adjusted earnings per share above analyst estimates.

The stock gained $28.20 from the previous session. Revenue for the three months ended Sept. 30 increased 12.4% from a year earlier to $892 million. Adjusted earnings per share rose 14.3% to $5.11.

Free cash flow declined 8.9% to $385.4 million from $423.2 million a year earlier. MSCI defines the non-GAAP measure as net cash provided by operating activities less capital expenditures and capitalized software development costs. Net cash from operating activities fell 3% to $436.1 million, primarily as cash interest payments increased. Higher customer collections partly offset that decline.

MSCI’s capex measure, which combines capital expenditures with capitalized software development costs, rose to $50.7 million from $26.2 million. The company kept its 2026 free cash flow forecast at $1.485 billion to $1.545 billion.

The company raised its full-year interest expense outlook, including amortization of financing fees, to $288 million to $291 million from $282 million to $286 million. It narrowed its projected effective tax rate to 18% to 19.5%, compared with its earlier range of 18% to 20%.

MSCI provides indexes, data and analytics to investors. In the quarter, asset-based fees increased 24.9% year over year, while recurring subscription revenue rose 7.7%.