MSCI

MSCI Inc. is viewed as heavily discounted, trading at a 22% discount to fair value with strong long-term growth prospects. Recurring revenue, high client retention, and secular tailwinds in private markets and passive vehicles underpin MSCI's robust investment thesis. Despite a slight Q2 2026 earnings miss and rising operating expenses, MSCI maintains solid EPS growth, a stable credit profile, and a growing dividend.

Li Lu's Himalaya Capital cut its Bank of America (NYSE:BAC | BAC Price Prediction) position by roughly 71% and redeployed the proceeds into the three companies that grade, index, and monitor the credit system itself.

MSCI (MSCI) delivered strong Q2 2026 profitability, with EPS up 19.6% YoY and operating margin expanding to 56.2%. Despite double-digit growth and a historically low PE ratio, I downgrade MSCI to 'hold' due to valuation concerns and reliance on market-driven Asset-Based Fees. ESG and other recurring revenue segments are growing only mid-single digits, with ESG notably weak and no recovery in sight.

MSCI Inc. retains my buy rating as Q2 2026 results confirm robust Index growth and new trading-related revenue streams. Index segment drives performance with 17% revenue growth, 26.6% asset-based fee growth, and a 77.8% adj. EBITDA margin. Trading ecosystem expansion delivers 15% subscription run-rate growth from traders and hedge funds, with meaningful seven-figure contracts secured.

MSCI Inc. (MSCI) Q2 2026 Earnings Call Transcript

MSCI tops Q2 earnings and revenue estimates as recurring subscriptions, asset-based fees, and ETF-linked AUM growth fuel stronger results and higher cash flow.

MSCI NYSE: MSCI reported strong second-quarter 2026 results, with management highlighting accelerating growth in its Index and Private Assets businesses, record asset-based fee run rate and a growing pipeline tied to new products and artificial intelligence initiatives.

Although the revenue and EPS for MSCI (MSCI) give a sense of how its business performed in the quarter ended June 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

MSCI (MSCI) came out with quarterly earnings of $4.94 per share, beating the Zacks Consensus Estimate of $4.9 per share. This compares to earnings of $4.17 per share a year ago.

NEW YORK--(BUSINESS WIRE)--MSCI Inc. (“MSCI” or the “Company”) (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community, today announced its financial results for the three months ended June 30, 2026 (“second quarter 2026”) and six months ended June 30, 2026 (“six months 2026”). Financial and Operational Highlights for Second Quarter 2026 (Note: Unless otherwise noted, percentage and other changes are relative to the three months ended.