MSCI Inc. 3Q26: Stronger Net New Sales; Reinvesting for Growth

3Q showed strength as key KPIs accompanied a top-line beat. Total revenue beat MSe/Cons by 2%/1%, while net new recurring subscription sales of $55M came in 32%/30% ahead of MSe/Cons, an important rebound following the disappointing 2Q print. Net new sales grew >40% Y/Y as Index, Analytics and Private Assets showed strength, with several large wins. Retention was 95%, up 30 bps Y/Y and modestly ahead of estimates. Adj. EBITDA of $555M beat MSe/Cons by 4%/1% as strong operating leverage offset higher compensation and benefits. MSCI continues to reinvest AI-driven efficiency gains into organic growth initiatives rather than letting them flow through to margin expansion, likely limiting near- to medium-term margin expansion to 50 bps annually or less. Index revenue beat by 4%/2% with ~12% organic subscription run-rate growth and 97% retention; asset-based fees reached record levels with run rate approaching $1B;