July 21 (Reuters) – MSCI raised its full-year operating expense forecast on Tuesday, citing acquisition-related costs, higher employee incentives and increased investment spending, sending the index provider’s shares down more than 7% despite better-than-expected quarterly results.
The company said strong business momentum was also driving costs higher, with assets under management linked to MSCI indexes exceeding assumptions in its prior guidance and lifting asset-based fees.
Here are more details from the earnings report –
• MSCI lifted its 2026 operating expense guidance to $1.54 billion-$1.58 billion from $1.49 billion-$1.53 billion.
• Asset-based fees from MSCI’s index segment rose 26.6% to $233.1 million in the quarter ended June 30 from a year earlier.
• Operating expenses increased 9.2% to $379.5 million, driven by higher technology, market data, professional services and compensation costs, while interest expense rose nearly 48% due to higher debt levels.
• The data and analytics provider reported adjusted net income for the second quarter of $360 million, or $4.94 per share, in line with analyst estimate of $359.4 million, or $4.94 per share.
• The company’s stock market indices serve as benchmarks for trillions of dollars in assets held by investment funds, pension plans and asset managers to guide investment decisions.
(Reporting by Atharva Singh in Bengaluru; Editing by Vijay Kishore and Tasim Zahid)
