Index provider MSCI announced Tuesday that it is increasing its full-year operating expense forecast, a move that sent the company’s stock sliding more than 7% even though its quarterly financial results came in ahead of what analysts had predicted.
The company attributed the higher cost outlook to expenses related to acquisitions, greater employee incentive payouts, and increased spending on investments. MSCI also noted that strong business performance was itself contributing to rising costs, with assets under management tied to MSCI indexes surpassing the figures used in its previous guidance — a development that also pushed asset-based fees higher.
Key figures from the company’s earnings report include the following:
MSCI revised its 2026 operating expense guidance upward to a range of $1.54 billion to $1.58 billion, compared to the previous range of $1.49 billion to $1.53 billion.
Asset-based fees from the company’s index segment climbed 26.6% to $233.1 million during the quarter that ended June 30, compared to the same period a year ago.
Total operating expenses grew 9.2% to $379.5 million, fueled by higher costs in technology, market data, professional services, and employee compensation. Interest expenses also jumped nearly 48% due to increased debt levels.
For the second quarter, MSCI reported adjusted net income of $360 million, or $4.94 per share — essentially matching the analyst consensus estimate of $359.4 million, or $4.94 per share.
The company’s stock market indexes are used as benchmarks for trillions of dollars in assets held by investment funds, pension plans, and asset managers as they make investment decisions.
