MSCI (NYSE:MSCI) reported upbeat earnings for the second quarter on Tuesday.
The company posted quarterly earnings of $4.94 per share which beat the analyst consensus estimate of $4.93 per share. The company reported quarterly sales of $867.000 million which beat the analyst consensus estimate of $866.439 million.
“In the second quarter MSCI delivered strong financial results along with a record asset-based-fee run rate and accelerated run-rate growth in Index and Private Capital Solutions. We also achieved strength in recurring net-new sales across key client segments and geographies, including our best quarter ever with hedge funds and our best Q2 with asset owners,” said Henry A. Fernandez, Chairman and CEO of MSCI.
MSCI shares rose 1.2% to trade at $568.28 on Wednesday.
These analysts made changes to their price targets on MSCI following earnings announcement.
JP Morgan analyst Alexander Hess maintained the stock with an Overweight rating and lowered the price target from $742 to $700. Evercore ISI Group analyst David Motemeden maintained the stock with an Outperform rating and lowered the price target from $746 to $722. Considering buying MSCI stock? Here’s what analysts think:
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Po týdnech zvýšené volatility v sektoru umělé inteligence hledají investoři čím dál častěji příležitosti mimo nejpopulárnější technologické tituly. Analytici Goldman Sachs proto sestavili seznam společností, které mohou nabídnout atraktivní růst bez přímé závislosti na AI boomu. Mezi favority zařadili firmy těžící ze silných spotřebitelských výdajů, rozmachu cestovního ruchu, zábavního průmyslu či finančních služeb, ale také kvalitní společnosti, jejichž ocenění podle banky neodpovídá jejich fundamentům.
Goldman Sachs se zaměřil na akcie mimo sektor s umělou inteligencí poté, co s ním týdny zmítá volatilita. „Zatímco mnoho správců fondů si zachovalo býčí fundamentální pohled na komplex AI infrastruktury, nedávná volatilita ztížila držení tohoto názoru,“ napsali analytici Goldman Sachs v čele s Benem Sniderem po pátečním uzavření trhu. „Také naše rozhovory s investory se točily kolem výzvy najít investiční příležitosti, které nejsou spojeny s umělou inteligencí.“
Goldman Sachs se tak zaměřil na alternativní investiční témata, mezi nimiž jsou společnosti vázané na spotřebitelské výdaje a vysoce ziskové společnosti obchodované s výraznými slevami. V tabulce, kterou sestavila CNBC, najdete pět společností z obou těchto skupin:
Sázky na štědré výdaje spotřebitelů
Formula One Group Series, akcie vlastněné společností Liberty Media, odrážejí ekonomický zájem o komerční provoz mistrovství světa Formule 1 FIA. Morgan Stanley začátkem tohoto měsíce znovu označila Formuli 1 za nejlepší volbu s cílovou cenou 120 dolarů (což implikuje 21% nárůst oproti pondělnímu uzavření). Analytik Sean Differley označil tento sport za „nedostatečně monetizovaný“ a zdůraznil růstové příležitosti v USA a Číně. Podle údajů LSEG ji 11 ze 13 analytiků, kteří se zabývají Formulí 1, hodnotí doporučením nákup nebo silný nákup.
Live Nation se dostal mezi tipy Goldman Sachs, protože poptávka po živých akcích nadále roste. UBS ve zprávě zveřejněné v pondělí zvýšila cílovou cenu pro Live Nation na 208 dolarů, což naznačuje 15% růst. „Očekáváme, že poptávka po živých akcích zůstane celosvětově silná s dvojciferným růstem fanoušků,“ napsal analytik UBS Batya Levi.
U Walt Disney má 36 analytiků ze 40 doporučení „koupit“ s průměrnou cílovou cenou 129 USD, což naznačuje potenciální zhodnocení o 34 %. Příjmy z reklamy by mělo podpořit jak fotbalové mistrovství světa, tak vyšší výdaje na politické kampaně. Pokles příjmů z tradiční televizní distribuce se zmírňuje díky pomalejšímu odlivu předplatitelů placené televize a ziskovost streamovacích platforem se dále zlepšuje. Na druhou stranu investory znepokojuje konsolidace v tomto sektoru i dlouhodobé dopady AI.
Las Vegas Sands doporučuje 15 analytiků z 21 kupovat s průměrnou 12měsíční cílovou cenou 65,4 USD, což naznačuje potenciál růstu o 44 %. Investice společnosti Sands do neherních aktivit v Macau a Singapuru by měly podpořit návratnost vloženého kapitálu. Oživení cestovního ruchu vedlo k růstu návštěvnosti i příjmů z masového a VIP segmentu. A rozhodnutí Sands upřednostnit návrat kapitálu akcionářům namísto snahy o získání licence v New Yorku se projevilo navýšením programu zpětného odkupu akcií o 1,3 miliardy dolarů a zvýšením dividendy o 20 %.
U hotelového řetězce Marriott International v pátek Morgan Stanley zvýšila cenový cíl z 353 dolarů na 380 dolarů, což oproti pondělnímu uzavření obchodu znamená nárůst o přibližně 4 %. „Společnost Marriott za posledních 10 let transformovala své podnikání, zbavila se vlastněných nemovitostí, odkoupila časově sdílená aktiva a změnila manažerské smlouvy tak, aby byly variabilnější,“ napsal analytik Morgan Stanley Stephen Grambling. „Domníváme se, že tyto změny dramaticky snižují cykličnost, což by mělo vést k dalšímu přehodnocení ratingu.“
Zlevněné hvězdy
Výrobce zařízení pro sledování hladiny cukru v krvi Dexcom vstupuje do výsledkové sezony s potenciálem pozitivního překvapení, domnívá se Bloomberg. Silná adopce senzoru G7 15 Day, růst dodávek a možné získávání podílu na trhu vytvářejí prostor pro překonání odhadů i případné zvýšení výhledu. Z 27 analytiků, kteří akcii pokrývají, jich má 24 nákupní doporučení. Průměrná cílová cena 86 USD naznačuje růst o 15 %.
Akcie MSCI nabízejí podle Goldmanů silný růst zisků, když jejich návratnost v poslední době zaostávala a nyní se obchodují „s velkou slevou“. Jefferies ji začala sledovat s doporučením nákup a stanovila u ní cenový cíl 760 dolarů, což znamená téměř 22% růst oproti pondělnímu uzavření. Analytik Surinder Thind uvedl, že tento globální poskytovatel indexů je obzvláště atraktivní díky „silné konkurenční výhodě, rozšiřování klientské základny, rostoucí expozici na soukromé trhy, viditelně opakujícím se výnosům a omezenému riziku narušení umělé inteligence“.
U Visy má 48 analytiků, kteří tuto platební společnost pokrývá, 46 nákupní doporučení, přičemž průměrná cílová cena se pohybuje o 14 % nad současnou tržní cenou. Rozdělení platebního ekosystému Visy na samostatné služby by jí mohlo zvýšit výnosy na více než 15,4 miliardy dolarů do roku 2027 oproti 10,8 miliardám dolarů v roce 2025. Tyto služby by tak tvořily přibližně 31 % celkových tržeb společnosti. Přestože tato strategie může působit riskantně, mohla by tím rozšířit své postavení napříč alternativními platebními řešeními, jako jsou digitální peněženky, domácí platební schémata nebo převody z účtu na účet.
Stavební společnost Sterling Infrastructures pokrývá jen 8 analytiků, zato všichni u ní mají nákupní doporučení s průměrnou cílovou cenou 953 USD, což naznačuje růst o 37 %. Firma má ale zároveň velmi silnou divizi E-Infrastructure Solutions, která se zaměřuje na specializovanou infrastrukturní výstavbu pro kritická odvětví a která by si mohla zapsat raketový růst díky boomu AI infrastruktury. I přes pokles v posledních týdnech si tato akcie za letošní rok připsala již 118% růst. Hlavním omezením dalšího růstu nebudou zakázky ani poptávka, ale výrobní a realizační kapacity společnosti. Společnost zakončila první čtvrtletí roku 2026 s čistou hotovostí 224 milionů USD a nadále stabilně generuje silný cash flow.
Booking sleduje 41 analytiků, přičemž 39 z nich ho doporučuje nakupovat s průměrnou cílovou cenou 221 USD, která by mohla vynést dalších 24 %. Poptávka po cestování zůstává navzdory ekonomickým a geopolitickým výkyvům velmi odolná. Zároveň firma intenzivně investuje do AI, kterou chce využít při plánování cest, personalizaci nabídek i zákaznické podpoře, aby si udržela konkurenceschopnost v rychle se měnícím prostředí cestovního ruchu.
Pozitivní nálada vydržela po celou obchodní seanci. Obrat na čipovém sektoru udržel technologický NASDAQ výrazně v plusu. Přesto klasické technologie z magnificent 7 skončily v záporu (Amazon -0,98 %). To vše se dělo při stále rostoucí cenně ropy. Investoři sledují především čísla hospodaření a geopolitika šla mírně stranou.
Z čipového sektoru se dařilo především výrobci paměťových čipů Micron +12,04 %, Sandisk +14% či výrobce procesorů Intel +8,64 %.
Automobilový koncern General Motors po zveřejněných kvartálních výsledcích přidal + 4,87 %.
Obrat zažily jak cenné kovy (zlato +1,85 %) tak kryptoměny (Bitcoin +1,61 %). Z růstu kryptoměn těžily akcie burzy Coinbase +9,67 %.
Index Dow Jones +0,74 % na 52223,93 b.
S&P 500 +0,89 % na 7509,21 b.
Nasdaq Composite +1,29 % na 25837,21 b.
Index S&P 500 +0,89 % na 7509,21 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Informační technologie +2,3 % Nezbytná spotřeba -1 % Energie +1,2 % Komunikační služby -0,8 % Zdravotní péče +0,6 % Utility +0 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Sandisk Corp (SNDK) +14 % Danaher Corp (DHR) -11 % Western Digital Corp (WDC) +13 % MSCI (MSCI) -10 % Micron Technology (MU) +12 % Tyler Technologies (TYL) -5,7 % Teradyne (TER) +12 % Halliburton (HAL) -5,5 % Coherent Corp (COHR) +11 % Gartner (IT) -4,5 %
Jan Pazourek, Fio banka, a.s.
Key Takeaways MSCI beat Q2 earnings and revenue estimates. MSCI's Index revenues increased 17.5% year over year. MSCI raised its 2026 expense and cash flow guidance. MSCI (MSCI - Free Report) reported second-quarter 2026 adjusted earnings of $4.94 per share, up 18.5% year over year. The figure beat the Zacks Consensus Estimate by 0.82%.
Revenues increased 12.2% year over year to $867 million and surpassed the consensus mark by 0.90%. Growth reflected higher recurring subscription revenues and asset-based fees. The retention rate improved to 95.3%, while period-end AUM in ETFs linked to MSCI equity indexes reached $2.818 trillion.
Recurring subscription revenues rose 9% year over year to $613.4 million. Asset-based fees advanced 26.6% to $233.1 million, benefiting from higher AUM in ETFs and non-ETF indexed funds linked to MSCI indexes. Non-recurring revenues declined 20.5% to $20.5 million.
MSCI’s Top-Line DetailsIn second-quarter 2026, Index revenues of $511 million increased 17.5% year over year. Recurring subscriptions and asset-based fees rose 11.6% and 26.6% on a year-over-year basis, respectively. Non-recurring revenues slipped 1.3% year over year. Organically, Index’s operating revenue growth was 17.5%.
The segment’s adjusted EBITDA rose 20.5% to $397.8 million, and its margin expanded to 77.8% from 75.9%. Index run rate reached $2.027 billion, up 17.4%, supported by market-cap-weighted and custom index products across client segments and regions.
Analytics’ operating revenues of $189.4 million increased 6.6% year over year, aided by growth in Equity Analytics and Multi-Asset Class products. Recurring subscription revenues jumped 9.5% and non-recurring revenues decreased 55.7% on a year-over-year basis. Organically, Analytics’ operating revenue growth was 7%. However, adjusted EBITDA fell 5% to $88 million as expenses grew faster than revenues. The segment’s margin contracted to 46.5% from 52.1%.
Sustainability and Climate revenues rose 3.4% to $91.9 million, while adjusted EBITDA increased 12.3%. While recurring subscriptions increased 4% year over year, non-recurring revenues declined 26.3% on a year-over-year basis. Organically, Sustainability and Climate operating revenue growth was 3%. The segment’s adjusted EBITDA rose 12.3% to $35.6 million, and its margin expanded to 38.7% from 35.6%.
All Other – Private Assets operating revenues, which primarily comprise the Real Assets operating segment and the Private Capital Solutions, were $74.7 million, up 4.9% year over year. Organic operating revenue growth for All Other – Private Assets was 4.4%. However, adjusted EBITDA fell 14.1% to $17.1 million. The segment’s margin contracted to 22.9% from 28%.
MSCI's Sales Trends Highlight Index StrengthNew recurring subscription sales increased 1.9% year over year to $76.6 million. Subscription cancellations declined 7.3%, helping net new recurring subscription sales grow 8.4% to $47.5 million. Total net sales decreased 1.4% because of weaker non-recurring activity.
Index net new recurring subscription sales surged 40.5% to $28.1 million. All Other – Private Assets also delivered a 57.5% increase. These gains were partly offset by declines in Analytics and Sustainability and Climate, where net new recurring subscription sales fell 24.3% and 62%, respectively.
MSCI’s Q2 Operating DetailsTotal operating expenses increased 9.2% year over year to $379.5 million. The rise reflected higher information technology, market data, professional fees, occupancy and compensation costs. Expenses also included amounts related to the Compass, Vantager and PM Insights acquisitions.
Operating income grew 14.6% to $487.5 million. The operating margin improved 120 basis points to 56.2%, while adjusted EBITDA advanced 13.5% to $538.5 million. The adjusted EBITDA margin widened 70 basis points to 62.1%, reflecting revenue growth that outpaced adjusted costs.
MSCI’s Balance Sheet & Cash FlowAs of June 30, 2026, cash and cash equivalents stood at $356.4 million, while total principal debt was $6.4 billion. The debt-to-adjusted EBITDA ratio was 3.1 times.
Net cash provided by operating activities increased 10.3% year over year to $370.8 million. Free cash flow rose 8.2% to $326.4 million.
MSCI repurchased $145 million of shares during the quarter and paid about $149.2 million in dividends.
MSCI Updates Full-Year 2026 GuidanceMSCI raised its full-year operating expense outlook to $1.535-$1.575 billion from $1.490-$1.530 billion. Adjusted EBITDA expense guidance increased to $1.340-$1.370 billion from $1.305-$1.335 billion, reflecting acquisitions, stronger index-linked AUM and additional growth investments.
The company now expects net cash provided by operating activities of $1.655-$1.705 billion and free cash flow of $1.485-$1.545 billion. Interest expense is projected to be between $282 million and $286 million, while capital expenditures are anticipated to be in the range of $160-$170 million.
Zacks Rank & Stocks to ConsiderAlerus Financial shares have gained 11.6% year to date. Alerus Financial is scheduled to release second-quarter 2026 results on July 29.
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Axos Financial shares have plunged 27% year to date. Axos Financial is scheduled to release fourth-quarter fiscal 2026 results on July 30.
MSCI (MSCI - Free Report) 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. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +0.82%. A quarter ago, it was expected that this maker of software tools to help portfolio managers make investment decisions would post earnings of $4.4 per share when it actually produced earnings of $4.55, delivering a surprise of +3.41%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
MSCI, which belongs to the Zacks Financial - Investment Management industry, posted revenues of $867 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.90%. This compares to year-ago revenues of $772.68 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
MSCI shares have added about 9% since the beginning of the year versus the S&P 500's gain of 8.7%.
What's Next for MSCI?While MSCI has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for MSCI was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $5.13 on $882.29 million in revenues for the coming quarter and $19.85 on $3.51 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Management is currently in the top 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, T. Rowe Price (TROW - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on July 31.
This financial services firm is expected to post quarterly earnings of $2.52 per share in its upcoming report, which represents a year-over-year change of +12.5%. The consensus EPS estimate for the quarter has been revised 5.2% higher over the last 30 days to the current level.
T. Rowe Price's revenues are expected to be $1.92 billion, up 11.6% from the year-ago quarter.
For the quarter ended June 2026, MSCI (MSCI - Free Report) reported revenue of $867 million, up 12.2% over the same period last year. EPS came in at $4.94, compared to $4.17 in the year-ago quarter.
The reported revenue represents a surprise of +0.9% over the Zacks Consensus Estimate of $859.3 million. With the consensus EPS estimate being $4.90, the EPS surprise was +0.82%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how MSCI performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Period-End AUM in ETFs linked to MSCI equity indexes: $2.82 billion versus $2.82 billion estimated by three analysts on average.Index Run Rate - Recurring subscriptions: $1.08 billion versus the three-analyst average estimate of $1.08 billion.All Other - Private Assets Run Rate: $302.6 million compared to the $301.9 million average estimate based on three analysts.Index Retention Rate: 97.5% versus 96.3% estimated by three analysts on average.Operating Revenues- Sustainability and Climate: $91.9 million versus the three-analyst average estimate of $92.62 million. The reported number represents a year-over-year change of +3.4%.Operating Revenues- Asset-based fees - Total: $233.1 million compared to the $231.63 million average estimate based on three analysts. The reported number represents a change of +26.6% year over year.Operating Revenues- Analytics: $189.4 million versus the three-analyst average estimate of $186.93 million. The reported number represents a year-over-year change of +6.6%.Operating Revenues- All Other - Private Assets: $74.7 million versus $74.78 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +4.9% change.Operating Revenues- Index: $511 million compared to the $507.93 million average estimate based on three analysts. The reported number represents a change of +17.5% year over year.Operating Revenues- Index- Non-recurring: $14.9 million compared to the $16.33 million average estimate based on three analysts. The reported number represents a change of -1.4% year over year.Operating Revenues- Index- Asset-based fees: $233.1 million versus $231.63 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +26.6% change.Operating Revenues- Index- Recurring subscriptions: $263 million versus $259.97 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +11.6% change.View all Key Company Metrics for MSCI here>>>
Shares of MSCI have returned +7.6% over the past month versus the Zacks S&P 500 composite's -0.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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.
Analysts on Wall Street project that MSCI (MSCI - Free Report) will announce quarterly earnings of $4.89 per share in its forthcoming report, representing an increase of 17.3% year over year. Revenues are projected to reach $858.34 million, increasing 11.1% from the same quarter last year.
The consensus EPS estimate for the quarter has undergone an upward revision of 1.9% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
With that in mind, let's delve into the average projections of some MSCI metrics that are commonly tracked and projected by analysts on Wall Street.
The collective assessment of analysts points to an estimated 'Operating Revenues- Sustainability and Climate' of $92.65 million. The estimate indicates a year-over-year change of +4.2%.
It is projected by analysts that the 'Operating Revenues- Asset-based fees - Total' will reach $229.99 million. The estimate points to a change of +25% from the year-ago quarter.
The consensus among analysts is that 'Operating Revenues- Analytics' will reach $186.93 million. The estimate indicates a year-over-year change of +5.2%.
Analysts expect 'Operating Revenues- All Other - Private Assets' to come in at $74.79 million. The estimate points to a change of +5% from the year-ago quarter.
According to the collective judgment of analysts, 'Period-End AUM in ETFs linked to MSCI equity indexes' should come in at $2.78 billion. Compared to the current estimate, the company reported $2.02 billion in the same quarter of the previous year.
Analysts forecast 'Index Run Rate - Recurring subscriptions' to reach $1.08 billion. Compared to the current estimate, the company reported $968.71 million in the same quarter of the previous year.
Analysts' assessment points toward 'All Other - Private Assets Run Rate' reaching $302.00 million. The estimate compares to the year-ago value of $280.31 million.
Analysts predict that the 'Index Retention Rate' will reach 96.3%. The estimate is in contrast to the year-ago figure of 96.0%.
The consensus estimate for 'Sustainability and Climate Run Rate' stands at $378.76 million. Compared to the present estimate, the company reported $369.76 million in the same quarter last year.
The combined assessment of analysts suggests that 'Total Run Rate - Total recurring subscriptions' will likely reach $2.54 billion. Compared to the current estimate, the company reported $2.35 billion in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Analytics Retention Rate' should arrive at 93.9%. Compared to the present estimate, the company reported 93.7% in the same quarter last year.
The average prediction of analysts places 'Sustainability and Climate Retention Rate' at 93.1%. The estimate compares to the year-ago value of 93.8%.
View all Key Company Metrics for MSCI here>>>
Over the past month, MSCI shares have recorded returns of +4.2% versus the Zacks S&P 500 composite's +0.5% change. Based on its Zacks Rank #2 (Buy), MSCI will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Wall Street expects a year-over-year increase in earnings on higher revenues when MSCI (MSCI - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 21. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis maker of software tools to help portfolio managers make investment decisions is expected to post quarterly earnings of $4.89 per share in its upcoming report, which represents a year-over-year change of +17.3%.
Revenues are expected to be $856.06 million, up 10.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.94% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for MSCI?For MSCI, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.83%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that MSCI will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that MSCI would post earnings of $4.4 per share when it actually produced earnings of $4.55, delivering a surprise of +3.41%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
MSCI appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
One of our most popular services, Zacks Premium offers daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All are useful tools to find what stocks to buy, what to sell, and what are today's hottest industries.
It also includes the Focus List, a long-term portfolio of top stocks that have all the elements to beat the market.
Breaking Down the Zacks Focus ListIf you could get access to a curated list of stocks to kickstart your investment portfolio, wouldn't you jump at the chance to take a peek?
Enter the Zacks Focus List. It's a portfolio made up of 50 stocks that are set to beat the market over the next 12 months; each company selected serves as a foundation for long-term investors looking to create an individual portfolio.
One thing that makes the Focus List even more advantageous is that each pick comes with a full Zacks Analyst Report. This helps explain why each stock was selected and why we believe it's a good pick for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates are expectations of growth and profitability, and are determined by brokerage analysts. Together with company management, these analysts examine every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Earnings estimate revisions are very important, since investors also need to take into consideration what a company will earn in the future.
The stocks that receive positive changes to earnings estimates are more likely to receive even more upward changes in the future. Take this example: if an analyst raised their estimates last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions to make it easier to build a winning portfolio.
Four primary factors make up the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each is given a raw score that's recalculated every night and compiled into the Rank, and with this data, stocks are then classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Since stock prices respond to revisions, it can be very profitable to buy stocks with rising earnings estimates. By buying Focus List stocks, then, you're likely getting into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: MSCI (MSCI - Free Report) MSCI Inc. provides investment decision support tools, including indexes; portfolio construction and risk management products and services; Environmental, Social and Governance (ESG) research and ratings; and real estate research, reporting and benchmarking offerings.
On October 10, 2018, MSCI was added to the Focus List at $166.96 per share. Shares have increased 271.48% to $620.23 since then, and the company is a #2 (Buy) on the Zacks Rank.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.22 to $19.84. MSCI boasts an average earnings surprise of 1.7%.
Moreover, analysts are expecting MSCI's earnings to grow 14.8% for the current fiscal year.
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Key Takeaways MSCI and UBS will develop AI-powered tools for private markets research, due diligence and portfolios. The partnership targets fragmented data and limited transparency across major private asset classes. MSCI's run rate rose 12.7% to $3.36 billion, while Private Assets run rate increased 8.4%. MSCI (MSCI - Free Report) is strengthening its private markets platform through a strategic partnership with UBS (UBS - Free Report) , expanding its artificial intelligence (AI)-powered capabilities for institutional investors. Under the collaboration, MSCI will combine its private assets data, analytics and AI technologies with UBS' alternatives expertise to develop more transparent, standardized and scalable private markets solutions. UBS will become an early adopter of MSCI's AI-powered private markets platform, helping enhance investment research, due diligence and portfolio management across private equity, private credit, real estate and infrastructure.
The partnership is expected to improve access to high-quality private markets intelligence while addressing one of the industry's biggest challenges, limited transparency and fragmented data. The integration of AI-powered analytics into institutional investment workflows is expected to help investors make faster, more informed investment decisions while supporting broader institutional adoption of private assets globally. The collaboration also strengthens MSCI's growing ecosystem of AI-enabled investment solutions and reinforces its position as a leading provider of private markets data and analytics.
MSCI Strengthens AI-Powered Private Markets PlatformMSCI shares have gained 5.2% year to date, modestly outperforming the broader Finance sector's return of 4.6%. The stock has benefited from resilient subscription growth, expanding AI capabilities and continued innovation across private markets and investment analytics.
The UBS partnership builds on MSCI's broader strategy of expanding AI across its private markets platform. During the first quarter of 2026, the company enhanced its Private Capital Solutions portfolio with AI-enabled products, including daily private valuation indices, private equity and private credit benchmarks, AI-powered capabilities within Private Capital Intel and AI connectors compatible with leading large language models to simplify private fund research and due diligence. The company achieved nearly 44% recurring net new sales growth in Private Capital Solutions in the first quarter of 2026, with high retention rates across client segments.
MSCI strengthened its AI capabilities through the acquisitions of Vantager, an AI-native private markets due diligence platform, Compass Financial Technologies and PM Insights, expanding its offerings in AI-driven due diligence, index customization, private market pricing and portfolio analytics.
These initiatives are translating into stronger business momentum. In the first quarter of 2026, recurring subscription run rate grew 8.9% reported and 8.2% organically, while recurring subscription revenues increased 8.6%. Recurring net new subscription sales were $39.6 million, up 52%, marking the best first quarter since 2022.
The company also reported a record asset-based fee run rate, while its Private Assets run rate grew 8.4% year over year, supported by rising demand for Private Capital Transparency Data, Total Plan Manager and Private Capital Intel solutions.
MSCI Offers Solid Financial OutlookMSCI's expanding AI-powered private markets platform, growing institutional adoption and strengthening strategic partnerships are expected to support the company's top-line growth.
For 2026, MSCI expects operating expenses of $1.490-$1.530 billion and adjusted EBITDA expenses of $1.305-$1.335 billion.
The Zacks Consensus Estimate for second-quarter 2026 revenues is pegged at $851.32 million, indicating continued year-over-year growth of 10.18%.
The consensus mark for second-quarter 2026 earnings is pegged at $4.82 per share, unchanged over the past 30 days. The figure implies a year-over-year increase of 15.59%.
MSCI's Zacks Rank & Other Stocks to ConsiderCurrently, MSCI carries a Zacks Rank #2 (Buy).
Macro Bank (BMA - Free Report) and Evercore
((EVR - Free Report) are some other top-ranked stocks that investors can consider in the broader Zacks Finance sector. Macro Bank and Evercore sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
BMA shares have declined 0.4% in the year-to-date period. The long-term earnings growth rate for Macro Bank is pegged at 30.04%.
EVR shares have declined 0.2% in the year-to-date period. The long-term earnings growth rate for Evercore is pegged at 26.03%.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider MSCI (MSCI - Free Report) . This company, which is in the Zacks Financial - Investment Management industry, shows potential for another earnings beat.
This maker of software tools to help portfolio managers make investment decisions has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 2.14%.
For the most recent quarter, MSCI was expected to post earnings of $4.4 per share, but it reported $4.55 per share instead, representing a surprise of 3.41%. For the previous quarter, the consensus estimate was $4.62 per share, while it actually produced $4.66 per share, a surprise of 0.87%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for MSCI. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
MSCI has an Earnings ESP of +2.40% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on July 21, 2026.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Asijské akcie rostly, podpořené růstem technologických akcií uprostřed optimismu před vstupem SK Hynix na burzu v USA. Index MSCI Asia Pacific přidává 1 %, přičemž mezi hlavní tahouny indexu patří akcie Samsung a SK Hynix.
SK Hynix získá 26,5 mld. USD při ceně 149 USD na americký depozitní certifikát (ADR). Veřejná nabídka byla dle FT až sedminásobně přeupsána, přičemž více než 500 investičních společností projevilo zájem o nákup.
Také se objevily zprávy, že se CEO Samsungu Jay Lee chce v USA setkat s Jensenem Huangem z Nvidie, aby projednal investiční plány Nvidie v jihozápadní oblasti Jižní Koreje.
Obchodování na Tchaj-wanu bylo pozastaveno kvůli blížícímu se tajfunu.
Japonský Nikkei 225 +1,2 % na 68557,73 b.
Hongkongský Hang Seng +1,12 % na 24298,95 b.
Čínský Shanghai Composite -0,36 % na 4022,1953 b.
Jihokorejský Kospi +2,52 % na 7475,94 b.
Australský S&P/ASX 200 +0,5 % na 8806 b.
NEW YORK--(BUSINESS WIRE)--MSCI Inc. (NYSE: MSCI) and UBS Group AG are announcing a strategic partnership aimed at advancing transparency across private markets. The partnership combines MSCI's capabilities in independent data, analytics and models with UBS's leading alternatives expertise and global client insights. Together, the companies will work to further expand MSCI's AI-powered platform designed to address longstanding industry challenges in private markets, such as fragmented data and.
NEW YORK--(BUSINESS WIRE)--MSCI Inc. (“MSCI” or the “Company”) (NYSE: MSCI) today announced that it will host a conference call, as previously scheduled, to review second quarter 2026 financial results on Tuesday, July 21, 2026, at 11:00 a.m. Eastern Time. The results for second quarter 2026 will be released pre-market on the same day. A copy of the earnings release and other related materials and a live webcast will be available on the events and presentation section of MSCI's Investor Relatio.
MSCI Inc. (MSCI) Discusses Strategic Priorities and Innovation in Private Assets Business June 25, 2026 9:30 AM EDT
Company Participants
Jeremy Ulan - Head of Investor Relations & Treasurer
Luke Flemmer - Head of Private Assets
Conference Call Participants
Alex Kramm - UBS Investment Bank, Research Division
Presentation
Jeremy Ulan
Head of Investor Relations & Treasurer
Good morning, everyone. I'm excited to welcome you to today's discussion about our Private Asset business. I'm Jeremy Ulan, Head of Investor Relations and Treasurer here.
Before we jump in, I just want to read our usual disclaimer. Today's discussion may contain forward-looking statements. These statements are based on current expectations, involve risks and uncertainties, and our actual results may differ materially from what we discuss. Please review our filings with the SEC for more details. Also, you'll see on the website that we posted a presentation. It is not something we're going to walk through, but it is supplemental, and you can review it at your own pace.
Jumping in here, I'm pleased to be joined today by Luke Flemmer, our Head of Private Assets, as well as Alex Kramm from UBS, who, I think, everyone knows. He will help us moderate the discussion today.
So let me now pass the microphone to Alex.
Question-and-Answer Session
Alex Kramm
UBS Investment Bank, Research Division
The virtual microphone, I guess. All right. Well, thanks for having me, everyone. Luke, thanks for doing this. Maybe just given that a lot of people probably don't know you that well, haven't met you, why don't we just start there? You joined MSCI 18 months ago, but you've had an interesting career before that. So can you just give us some more detail about you, your background and why you were excited to join MSCI in that particular role that you have now?
NEW YORK--(BUSINESS WIRE)--MSCI Inc. (“MSCI” or the “Company”) (NYSE: MSCI) will host a Q&A webinar to provide updates on MSCI’s Private Assets business, including strategic priorities, recent product innovation and AI-enabled capabilities. The webinar will include Luke Flemmer, Head of Private Assets and Jeremy Ulan, Head of Investor Relations and Treasurer, and will be moderated by Alex Kramm, Managing Director and Senior Equity Research Analyst at UBS.
The virtual event will be available as a webcast and replay on June 25, 2026 at 9:30 AM Eastern Time, accessible from the events and presentations section of MSCI’s Investor Relations homepage, https://ir.msci.com/events-and-presentations.
About MSCI Inc.
MSCI Inc. (NYSE: MSCI) strengthens global markets by connecting participants across the financial ecosystem with a common language. Our research-based data, analytics and indexes, supported by advanced technology, set standards for global investors and help our clients understand risks and opportunities so they can make better decisions and unlock innovation. We serve asset managers and owners, private-market sponsors and investors, hedge funds, wealth managers, banks, insurers and corporates. To learn more, please visit www.msci.com. MSCI#IR
NEW YORK--(BUSINESS WIRE)--MSCI released the results of the MSCI 2026 Market Classification Review.
Key takeaways from this year's review include:
Reclassification of Bulgaria from Standalone to Frontier Market status Assessment of shareholder transparency and coordinated trading concerns in the Indonesian and Turkish equity markets, acknowledging the announced steps undertaken by both markets to address these matters and noting the continued potential for future consultations on the appropriate treatment of these markets if credible progress is not observed Acknowledgement of the removal of floor prices in Bangladesh, with a caution that any reintroduction could prompt a consultation on reclassification from Frontier to Standalone Market status Ongoing monitoring of the implementation of measures aimed at improving the accessibility of the Korean equity market for international institutional investors Reminder on the reclassification of Greece from Emerging to Developed Market status at the May 2027 Index Review “The MSCI Market Classification Framework determines whether a market is developed, emerging, or frontier based on the accessibility and investability that international institutional investors actually experience,” said Raman Aylur Subramanian, Head of Market Classification and Taxonomies. “Index inclusion and market classification are not static judgments. They must be continuously assessed against market changes and the experience of international institutional investors. When market access or experiences worsen, our framework requires us to respond decisively. And when market accessibility and investability improve in a meaningful and sustained way, markets can progress through the classification framework, as seen with Bulgaria and Greece.”
More information related to the MSCI 2026 Market Classification Review, including the results of the 2026 MSCI Global Market Accessibility Review, can be viewed at: www.msci.com/market-classification.
Results of the Consultation on the Classification of Bulgaria
MSCI announced its decision to reclassify Bulgaria from Standalone Market status to Frontier Market status. The reclassification proposal was originally launched for consultation in 2024, after enough Bulgarian securities met the Size and Liquidity Requirements for Frontier Markets. The decision was subsequently deferred following feedback from international institutional investors, who cited limited market liquidity and the timing of the euro adoption.
Since then, conditions have materially improved. Market participants agreed that liquidity on the Bulgarian Stock Exchange (BSE) has improved meaningfully, supported by a higher number of securities meeting the Frontier Market Size and Liquidity Requirements and rising turnover. No significant operational challenges were identified following Bulgaria's transition to the euro, which was completed on January 1, 2026, when BSE's trading and post-trading infrastructure transitioned fully to euro denomination. Bulgaria had previously migrated to the European Central Bank's TARGET2-Securities (T2S) platform in September 2023, and following euro adoption, all settlements now occur in euros.
The reclassification will be implemented in one step across all standard, custom and derived MSCI Indexes, coinciding with the May 2027 Index Review. MSCI will share additional details on the implementation process in due course.
The accessibility report for Bulgaria is now reflected in the MSCI 2026 Global Market Accessibility Review report available at https://www.msci.com/market-classification.
Shareholder Transparency and Coordinated Trading Concerns
International institutional investors frequently raise concerns with MSCI when they experience persistent opacity in shareholding structures and suspect coordinated trading behavior. Both concerns materially limit investors' ability to assess true free float and to rely on observed market prices for portfolio construction and index replication, and they relate directly to the Information Flow and Market Infrastructure pillars of the MSCI Market Accessibility framework.
For Indonesia, market participants raised profound investability concerns stemming from these issues. MSCI acknowledges the recent transparency reforms announced by Otoritas Jasa Keuangan (OJK), PT Bursa Efek Indonesia (IDX), and PT Kustodian Sentral Efek Indonesia (KSEI), including enhanced disclosure of shareholders with ownership above 1%, more granular investor classification, the introduction of a High Shareholding Concentration (HSC) framework, and a roadmap to raise the minimum free float requirement to 15%. While these announcements represent a step in the right direction, what matters for international institutional investors is the consistent implementation and sustained effect of these measures across the market. MSCI will continue to assess their scope, consistency and sustained effectiveness in the context of free float determination and broader investability assessments. Should sufficient progress not be evident by the time of the November 2026 MSCI Index Review, MSCI will consider a range of options for the appropriate treatment for the Indonesia market, potentially including a consultation on the reclassification of Indonesia from Emerging Markets to Frontier Markets.
For Turkey, international institutional investors have highlighted recurring instances of possible coordinated trading behavior involving fund holdings closely affiliated with certain smaller, listed companies, with the effect of artificially inflating free float estimates. MSCI acknowledges the decision issued by the Capital Markets Board of Turkey (SPK), which recently introduced a framework for excluding fund-held stakes from the exchange’s free float calculations where the underlying beneficial ownership belongs to parties already excluded from free float. Nevertheless, market participants want to see the impact of these adjusted calculations in practice. Additionally, international investors have communicated that they seek further progress, including granular and timely disclosure of beneficial ownership, robust surveillance and enforcement against coordinated trading behavior, and a transparent, rules-based framework for the identification and treatment of securities exhibiting structurally distorted free float. If sufficient tangible and credible progress is not evident in the Turkey market by the time of the November 2026 MSCI Index Review, MSCI may launch a consultation on the appropriate treatment for Turkey and its eligible securities.
MSCI continues to welcome feedback on shareholder transparency and trading behavior in these markets.
Removal of Floor Prices in Bangladesh
Floor prices have now been removed from all affected securities in the Bangladesh equity market. MSCI welcomes this development. Floor prices severely hinder a market's accessibility, distorting price discovery and impairing the ability of international institutional investors to enter and exit positions at fair value, and their removal is an important step toward restoring the investability of the market.
MSCI cautions that the reintroduction of floor prices on any listed securities would once again severely impair the accessibility of the Bangladesh equity market. Should floor prices be reimposed, MSCI may launch a consultation on a potential reclassification of Bangladesh from Frontier Market status to Standalone Market status. MSCI continues to welcome feedback on the accessibility of the Bangladesh equity market.
Market Accessibility of Korea
From 2008 to 2014, MSCI consulted with global market participants on the potential reclassification of Korea from Emerging Market status to Developed Market status. Market participants identified the limited convertibility of the Korean won in the offshore currency market as a key barrier to reclassification. Other accessibility issues highlighted at the time included the rigidity of the investor ID system, the restrictions on in-kind transfers and off-exchange transactions, and the limited availability of investment instruments stemming from restrictions on the use of exchange data for the creation of financial products.
MSCI acknowledges the measures announced by Korean market authorities to address these long-standing concerns. However, investors have communicated that the underlying issues have not been fully resolved. The Korean won is not deliverable offshore. Even more concerning, onshore liquidity during the extended FX trading hours remains largely insufficient to support tight execution at standards comparable to those observed in developed markets, constraining FX operational flexibility for index replicators and others. International institutional investors will need to be convinced that this trading of the won in overnight markets in Korea will eventually provide large, deep and consistent pools of liquidity and tight bid/ask spreads that are comparable to day trading hours for other developed market currencies in the world. Operational adoption of omnibus accounts and in-kind transfers remains limited. Following the lifting of the short-selling ban, market participants continue to face significant operational burdens under the reinstated compliance regime. In addition, early pre-settlement funding requirements remain a burden for market participants.
MSCI will continue to monitor implementation and engage with market participants and Korean authorities. As a reminder, potential reclassification consultations require that all issues have been addressed, reforms have been fully implemented, and market participants have had ample time to thoroughly evaluate the sustained effectiveness of the changes.
Market Classification of Greece
On March 31, 2026, MSCI announced its decision to reclassify Greece from Emerging Market status to Developed Market status, following a consultation launched on January 26, 2026. The majority of consultation participants favored the proposed reclassification, recognizing that Greece's market infrastructure has converged with Developed European standards and meets the criteria for MSCI Developed Markets.
The reclassification will be implemented in one step across all standard, custom and derived MSCI Indexes, coinciding with the May 2027 Index Review. Once reclassified, Greece will be incorporated into the Developed Europe single market index construction process, and existing constituent rules will be applied to minimize turnover at the time of the reclassification.
-Ends-
About MSCI
MSCI (NYSE: MSCI Inc.) strengthens global markets by connecting participants across the financial ecosystem with a common language. Our research-based data, analytics and indexes, supported by advanced technology, set standards for global investors and help our clients understand risks and opportunities so they can make better decisions and unlock innovation. We serve asset managers and owners, private-market sponsors and investors, hedge funds, wealth managers, banks, insurers and corporates. To learn more, please visit www.msci.com.
The process for submitting a formal index complaint can be found on the index regulation page of MSCI’s website at: https://www.msci.com/index-regulation.
NEW YORK--(BUSINESS WIRE)--MSCI Inc. (NYSE: MSCI) is enhancing its global physical climate risk capabilities with the acquisition of First Street, a leading provider of physics-based climate risk data and analytics for every property in the world.
Investors, financial institutions and companies are demanding physical climate risk insights embedded directly into investment and risk workflows to inform critical financial decision making, as climate-related physical risks accelerate globally. First Street’s own research shows that companies have become more than 6.5 times as likely to issue profit warnings following extreme weather events in the past two decades.i
The integration of First Street’s data and tools into MSCI’s extensive climate and geospatial solutions will enable quantified assessments of financially relevant physical climate risk at any geographic coordinate and across more than 2 billion structures worldwide.ii
These additional capabilities can help institutions meet rising regulatory and reporting requirements while supporting physical risk management and adaptation and resilience planning.
First Street provides multi-hazard models that incorporate climate signals and are validated against observed events to assess current and future physical risk exposure, asset damage and business interruption.
Powered by proprietary data on building characteristics, infrastructure dependencies and site-level adaptation, these models translate physical hazards into measurable financial impact estimates. The interactive platform delivers these insights through visualizations and on-demand, customizable analytics for individual properties, companies and portfolios within one unified AI-enabled workflow.
As extreme weather and geopolitical disruption are making asset location a critical factor in evaluating investment risk and opportunity, the ability of banks, insurance companies, asset managers, asset owners and companies to analyze and act upon location-based risks could be a key determinant of future success. This trend is reflected in major European central banks’ use of MSCI data to enable them to better identify climate risks across their loan books.
The acquisition further strengthens MSCI’s long-established leadership in climate investment tools and research, building on decades of expertise in geospatial intelligence, climate scenario analysis and transition finance to deliver greater transparency, innovation and scalability.
Richard Mattison, Head of Sustainability and Climate at MSCI, said: “The financial consequences of where assets are located have come into sharp focus due to the recent geopolitical turmoil, supply chain disruption and the growing impact of climate hazards. In response, investors, lenders and insurers are increasingly looking for more in-depth and actionable analysis of the physical risk held in the footprint of a company’s operations and investments.
“The integration of First Street data into MSCI’s existing geospatial capabilities will enable clients to be better informed about their changing risk exposures and translate that directly into financial decision-making.”
Matthew Eby, Founder and CEO at First Street, said: “First Street was built on the simple conviction that every financial decision should account for a changing climate. We built the Climate Risk Financial Modeling (CRFM) category to turn that conviction into reality. Joining MSCI puts our property-level science in front of the world’s leading investors, lenders and insurers and turns climate risk from a disclosure exercise into a daily input for how capital is priced and allocated.”
The transaction consideration includes a cash payment of $120 million at closing (subject to customary closing adjustments), with the potential for additional cash payments during the first two years following closing if certain revenue thresholds are achieved. The transaction is expected to close in the third quarter of 2026, subject to regulatory approvals and customary closing conditions. Following closing, First Street's financial results will be reported within MSCI's Sustainability and Climate segment.
About MSCI
MSCI Inc. (NYSE: MSCI) strengthens global markets by connecting participants across the financial ecosystem with a common language. Our research-based data, analytics and indexes, supported by advanced technology, set standards for global investors and help our clients understand risks and opportunities so they can make better decisions and unlock innovation. We serve asset managers and owners, private-market sponsors and investors, hedge funds, wealth managers, banks, insurers and corporates. To learn more, please visit www.msci.com. #IR
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or performance and involve risks that may cause actual results or performance to differ materially, and you should not place undue reliance on them. Risks that could affect results or performance are in MSCI’s Annual Report on Form 10-K for the most recent fiscal year ended on December 31 that is filed with the SEC. MSCI does not undertake to update any forward-looking statements. No information herein constitutes investment advice or should be relied on as such. MSCI grants no right or license to use its products or services without an appropriate license. MSCI MAKES NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE WITH RESPECT TO THE INFORMATION HEREIN AND DISCLAIMS ALL LIABILITY TO THE MAXIMUM EXTENT PERMITTED BY LAW.
i The New Cost of Doing Business, 16 Risk Assessment, by First Street, March 2026.
ii Since September 2025.
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MSCI warned of transparency issues with Indonesia's market, just months after a previous caution had sent the country's stocks tumbling.
The index provider said opaque shareholding structures and signs of coordinated trading activity have undermined the ability of international investors to accurately assess company free floats and rely on market prices. The Jakarta Composite Index erased early gains on Friday, and has lost almost 30% year-to-date.
MSCI flagged initial concerns about Indonesia in a January report that said the country might be downgraded from emerging-market status. In its annual Global Market Accessibility Review released Thursday, MSCI downgraded Indonesia's Information Flow assessment, citing persistent issues around ownership transparency and price formation. Turkey was cut on the same measure for similar reasons.
Investors have been raising concerns about sharp moves in some smaller-cap Indonesian stocks and concentrated ownership structures. The report comes as the rupiah sits at a record low versus the dollar, with questions about the country's fiscal health rampant and trouble with capital outflows. Bank Indonesia raised rates in a surprise move last week.
"Accessibility concerns have arisen from ongoing opacity in shareholding structures and indications of coordinated trading behavior that undermines proper price formation," MSCI said in its report.
The global financial services firm added that such issues "materially limit international institutional investors' ability to assess true free float and to rely on observed market prices for portfolio construction and index replication."
Issues raised included limited transparency of shareholding structures and indications of coordinated trading that undermined proper pricing, MSCI said.
The questions in our inbox have gotten louder lately. Are we reliving 1999? Has the tech rally reached the dangerous ‘Euphoria’ bubble stage we first discussed in our 2026 Outlook? And is the recent surge in initial public offerings (IPOs)— led by SpaceX on Friday— diluting existing holders just as valuations were already drawing scrutiny?
We understand the concern. With the Iran war keeping energy prices elevated and interest rates stubbornly high, this is not a risk-free environment for growth assets…as the recent volatility in the Nasdaq demonstrates. But despite those potential headwinds, we remain overweight US technology in our portfolios. Here’s why.
This Isn’t 1999 — At Least Not Yet, According to Valuation
In the late 1990s, technology stocks were priced for perfection, on top of fundamentals that were anything but perfect. Today, the picture looks materially different to us on two key dimensions: valuation and earnings quality. Chart 1 below tells the story clearly: the MSCI USA Information Technology Index currently trades around 23x forward earnings, versus 40x at the peak of the dot-com bubble. This current valuation represents only a ~10% valuation premium to the S&P 500, despite much stronger revenue and earnings growth for tech. Critically, profit margins have moved in the opposite direction — over 26% today versus 13% in 1999. You’re paying a lot less in 2026 for better businesses.
Yes, tech valuations are sensitive to rising interest rates — higher rates compress the multiples warranted for long-duration growth assets, all else remaining equal. If the Iran conflict continues driving energy-related inflation and forces rates higher still, valuation headwinds are real. We’re watching this closely. But last week’s softer-than-expected core CPI print — which suggests underlying inflation ex-energy may be better behaved than feared — provides some reassurance that the rate picture isn’t uniformly bleak. Given the soft unit labor costs discussed in last week’s Weekly View, we believe that the core inflation story is more moderate than feared.
Source: LSEG, IBES, MSCI, RiverFront; data weekly, as of 06.11.2026. Chart shown for illustrative purposes only. Past performance is no indication of future results.
The #1 ‘Tell’ for When to Leave the Party is Cash Flow— No Warning Signal Here Yet, In Our View If valuation is the warning light on the dashboard, free cash flow is the engine itself. In our view, the single most important early warning signal for when an equity bubble may burst is the divergence between reported earnings before interest and taxes (EBIT) and free cash flow — when reported profits race well ahead of actual cash generation, it’s a sign that hype is outrunning fundamentals.
Source: LSEG Datastream, RiverFront. Data monthly as of June 11, 2026. Chart shown for illustrative purposes only. Past performance is no indication of future results.
Look at the left panel of the cash flow chart (Chart 2, right). Towards the end of the 1995–2001 ‘Tech Mania’ phase, EBIT (blue line) continued to climb sharply while free cash flow (green line) lagged — the classic signature of deteriorating earnings quality. Now look at the right panel: today, free cash flow is running above EBIT across the US technology sector — approaching $1 trillion on an annualized basis, x times 2000’s tally — and continues to do so consistently. That is the opposite of a bubble signal. It tells us that tech’s reported earnings are being validated by actual cash coming in the door. Until that relationship inverts, we believe the fundamentals support staying invested in mega-cap, high cash flow tech shares.
On the IPO Supply Question: We Believe US Indices Can Handle It A word on the equity supply concern: we’re less worried than some. The US equity market is the deepest, most liquid stock market in the world; we expect it to be able to absorb supply shocks without structural damage. With $77 trillion in the broad Russell 3000 and $65T in the more widely followed S&P 500, SpaceX’s expected $75B issuance represents a small fraction of the market’s capitalization… especially when considering ~$8T of liquidity sitting in money markets. And while IPO issuance is heating up, from a historical perspective it is less extreme – roughly 100 expected IPOs this year compares to 250 in 2021 and 400 in 1999, according to Goldman Sachs. Furthermore, Goldman expects buybacks and M&A to more than offset new equity supply in the US this year.
The Nasdaq overlay chart below is instructive — if history rhymes, the current AI-era tech bull market (orange line) may still have significant runway ahead before reaching a 1999-style apex (blue line). But “significant runway” doesn’t mean “straight up.” Regular pullbacks — like the -5% drawdown day in the Nasdaq on June 5— are healthy. They bleed off excessive optimism before it becomes euphoria. Instead of the price chart, watch the cash flow chart. The day free cash flow begins to meaningfully trail EBIT across the technology sector — the way it did in 1999 and 2000 — is the day to start considering underweight tech. That signal will matter more to us than any individual valuation multiple or macro headline. But for now, that signal is not flashing. The party continues — and we intend to stay for a while.
Source: LSEG Datastream, RiverFront. Data daily as of June 11, 2026. Chart shown for illustrative purposes only. Past performance is no indication of future results.
Risk Discussion: All investments in securities, including the strategies discussed above, include a risk of loss of principal (invested amount) and any profits that have not been realized. Markets fluctuate substantially over time, and have experienced increased volatility in recent years due to global and domestic economic events. Performance of any investment is not guaranteed. In a rising interest rate environment, the value of fixed-income securities generally declines. Diversification does not guarantee a profit or protect against a loss. Investments in international and emerging markets securities include exposure to risks such as currency fluctuations, foreign taxes and regulations, and the potential for illiquid markets and political instability. Please see the end of this publication for more disclosures.
Authored by Chris Konstantinos
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Important Disclosure Information The comments above refer generally to financial markets and not RiverFront portfolios or any related performance. Opinions expressed are current as of the date shown and are subject to change. Past performance is not indicative of future results and diversification does not ensure a profit or protect against loss. All investments carry some level of risk, including loss of principal. An investment cannot be made directly in an index.
Information or data shown or used in this material was received from sources believed to be reliable, but accuracy is not guaranteed.
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Chartered Financial Analyst is a professional designation given by the CFA Institute (formerly AIMR) that measures the competence and integrity of financial analysts. Candidates are required to pass three levels of exams covering areas such as accounting, economics, ethics, money management and security analysis. Four years of investment/financial career experience are required before one can become a CFA charterholder. Enrollees in the program must hold a bachelor’s degree.
All charts shown for illustrative purposes only. Technical analysis is based on the study of historical price movements and past trend patterns. There are no assurances that movements or trends can or will be duplicated in the future.
Stocks represent partial ownership of a corporation. If the corporation does well, its value increases, and investors share in the appreciation. However, if it goes bankrupt, or performs poorly, investors can lose their entire initial investment (i.e., the stock price can go to zero). Bonds represent a loan made by an investor to a corporation or government. As such, the investor gets a guaranteed interest rate for a specific period of time and expects to get their original investment back at the end of that time period, along with the interest earned. Investment risk is repayment of the principal (amount invested). In the event of a bankruptcy or other corporate disruption, bonds are senior to stocks. Investors should be aware of these differences prior to investing.
In general, the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa). This effect is usually more pronounced for longer-term securities). Fixed income securities also carry inflation risk, liquidity risk, call risk and credit and default risks for both issuers and counterparties. Lower-quality fixed income securities involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Foreign investments involve greater risks than U.S. investments, and can decline significantly in response to adverse issuer, political, regulatory, market, and economic risks. Any fixed-income security sold or redeemed prior to maturity may be subject to loss.
Technology and Internet-related stocks, especially of smaller, less-seasoned companies, tend to be more volatile than the overall market.
Artificial intelligence, or AI, refers to the simulation of human intelligence by software-coded heuristics. Nowadays this code is prevalent in everything from cloudbased, enterprise applications to consumer apps and even embedded firmware.
Index Definitions: Standard & Poor’s (S&P) 500 Index measures the performance of 500 large cap stocks, which together represent about 80% of the total US equities market.
The Institutional Brokers’ Estimate System (IBES) is a database used by brokers and active investors to access the estimates made by stock analysts regarding the future earnings of publicly traded American companies.
The MSCI USA Information Technology Index is designed to capture the large and mid cap segments of the US equity universe. All securities in the index are classified in the Information Technology sector as per the Global Industry Classification Standard (GICS®).
The Russell 3000 Index is a market-capitalization-weighted index tracking the 3,000 largest publicly traded U.S. companies, representing approximately 98% of the investable U.S. equity market.
Definitions: Earnings before interest and taxes (EBIT) is a company’s operating profit without interest expenses and income taxes.
The term cash flow refers to the net amount of cash and cash equivalents being transferred in and out of a company. Cash received represents inflows, while money spent represents outflows.
Price-Earnings Ratio (P/E Ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings.
Inflation is a gradual loss of purchasing power, reflected in a broad rise in prices for goods and services over time.
When referring to being “overweight” or “underweight” relative to a market or asset class, RiverFront is referring to our current portfolios’ weightings compared to the composite benchmarks for each portfolio. Asset class weighting discussion refers to our Advantage portfolios.
Mega cap is a designation for the largest companies in the investment universe as measured by market capitalization. While the exact thresholds change with market conditions, mega cap generally refers to companies with a market capitalization above $200 billion.
RiverFront Investment Group, LLC (“RiverFront”), is a registered investment adviser with the Securities and Exchange Commission. Registration as an investment adviser does not imply any level of skill or expertise. Any discussion of specific securities is provided for informational purposes only and should not be deemed as investment advice or a recommendation to buy or sell any individual security mentioned. RiverFront is affiliated with Robert W. Baird & Co. Incorporated (“Baird”), member FINRA/SIPC, from its minority ownership interest in RiverFront. RiverFront is owned primarily by its employees through RiverFront Investment Holding Group, LLC, the holding company for RiverFront. Baird Financial Corporation (BFC) is a minority owner of RiverFront Investment Holding Group, LLC and therefore an indirect owner of RiverFront. BFC is the parent company of Robert W. Baird & Co. Incorporated, a registered broker/dealer and investment adviser.
MSCI (MSCI - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for MSCI basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For MSCI, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for MSCIFor the fiscal year ending December 2026, this maker of software tools to help portfolio managers make investment decisions is expected to earn $19.62 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for MSCI. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.9%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of MSCI to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
NEW YORK--(BUSINESS WIRE)--MSCI Inc. (“MSCI” or the “Company”) (NYSE: MSCI) published an investor presentation for investors and analysts on its Investor Relations homepage, ir.msci.com, on Monday, June 15, 2026. The Company’s management may use this presentation during meetings with investors and analysts.
About MSCI Inc.
MSCI Inc. (NYSE: MSCI) strengthens global markets by connecting participants across the financial ecosystem with a common language. Our research-based data, analytics and indexes, supported by advanced technology, set standards for global investors and help our clients understand risks and opportunities so they can make better decisions and unlock innovation. We serve asset managers and owners, private-market sponsors and investors, hedge funds, wealth managers, banks, insurers and corporates.
MSCI (MSCI - Free Report) came out with quarterly earnings of $4.55 per share, beating the Zacks Consensus Estimate of $4.4 per share. This compares to earnings of $4 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +3.50%. A quarter ago, it was expected that this maker of software tools to help portfolio managers make investment decisions would post earnings of $4.62 per share when it actually produced earnings of $4.66, delivering a surprise of +0.87%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
MSCI, which belongs to the Zacks Financial - Investment Management industry, posted revenues of $850.8 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.98%. This compares to year-ago revenues of $745.83 million. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
MSCI shares have lost about 1.2% since the beginning of the year versus the S&P 500's gain of 3.9%.
What's Next for MSCI?While MSCI has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for MSCI was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.81 on $853.01 million in revenues for the coming quarter and $19.39 on $3.46 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - Investment Management is currently in the bottom 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Blue Owl Capital Inc. (OWL - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on April 30.
This company is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of +11.8%. The consensus EPS estimate for the quarter has been revised 2.6% lower over the last 30 days to the current level.
Blue Owl Capital Inc.'s revenues are expected to be $698.56 million, up 12.6% from the year-ago quarter.
For the quarter ended March 2026, MSCI (MSCI - Free Report) reported revenue of $850.8 million, up 14.1% over the same period last year. EPS came in at $4.55, compared to $4.00 in the year-ago quarter.
The reported revenue represents a surprise of +1.98% over the Zacks Consensus Estimate of $834.3 million. With the consensus EPS estimate being $4.40, the EPS surprise was +3.5%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how MSCI performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Period-End AUM in ETFs linked to MSCI equity indexes: $2.4 billion versus $2.41 billion estimated by three analysts on average.Index Run Rate - Recurring subscriptions: $1.05 billion versus the three-analyst average estimate of $1.04 billion.All Other - Private Assets Run Rate: $296.4 million versus the three-analyst average estimate of $297.95 million.Index Retention Rate: 96.9% compared to the 96.5% average estimate based on three analysts.Operating Revenues- Index- Recurring subscriptions: $254.2 million compared to the $254.12 million average estimate based on three analysts. The reported number represents a change of +8.9% year over year.Operating Revenues- Asset-based fees - Total: $224.5 million versus $217.46 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +26.5% change.Operating Revenues- Index- Non-recurring: $17.6 million versus $11.85 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +60% change.Operating Revenues- All Other - Private Assets: $72.6 million versus the three-analyst average estimate of $73.86 million. The reported number represents a year-over-year change of +7.9%.Operating Revenues- Sustainability and Climate: $91.9 million compared to the $94.77 million average estimate based on three analysts. The reported number represents a change of +8.6% year over year.Operating Revenues- Analytics: $190 million versus the three-analyst average estimate of $187.15 million. The reported number represents a year-over-year change of +10.4%.Operating Revenues- Index- Asset-based fees: $224.5 million versus $217.46 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +26.5% change.Operating Revenues- Non-recurring - Total: $26.1 million versus the two-analyst average estimate of $17.71 million. The reported number represents a year-over-year change of +65.5%.View all Key Company Metrics for MSCI here>>>
Shares of MSCI have returned +2.8% over the past month versus the Zacks S&P 500 composite's +9.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Key Takeaways MSCI Q1 non-GAAP EPS of $4.55 and revenues of $850.8M beat estimates. Index-led segment revenue to $496.3M with asset-based fees of $224.5M, up 26.6%. MSCI repurchased $464M stock, paid ~$150M dividends. MSCI Inc. (MSCI - Free Report) delivered first-quarter 2026 adjusted earnings of $4.55 per share, up 13.8% year over year and beat the Zacks Consensus Estimate by 3.41%. The reported quarter’s operating revenues came in at $850.8 million, up 14.1% year over year and beat the consensus mark by 2.01%.
Strength in asset-based fees, along with steady growth in recurring subscription revenues, powered the top line. Profitability also improved, with operating margin expanding to 53.7% and adjusted EBITDA margin rising to 59.3% in the quarter.
MSCI shares were up 3.75% at the time of writing the article. MSCI shares have dropped 1.1% year to date compared with the broader Zacks Finance sector’s return of 0.8%.
MSCI Shows Broad-Based Growth Across SegmentsMSCI’s business momentum was also reflected in its recurring revenue indicators. Total Run Rate at March 31, 2026, was $3.36 billion, up 12.7% year over year, and the total retention rate for the first quarter was 95.4%, essentially steady with the prior-year period. Management pointed to strong sales execution and product momentum across client segments and product lines during the reported quarter. The company emphasized record asset-based-fee Run Rate and strong recurring sales activity, particularly within Index and Analytics.
Index remained the primary growth engine in the first quarter, with segment operating revenues of $496.3 million, up 17.7% year over year. Within the segment, asset-based fees totaled $224.5 million (up 26.6% year over year) while recurring subscription revenues were $254.2 million (up 9% year over year), highlighting a solid mix of usage-linked and subscription-driven revenue streams.
Analytics also posted a healthy quarter, with operating revenues increasing 10.3% to $190.0 million. Growth was supported by recurring subscription revenues of $183.2 million (up 7.9% year over year), while non-recurring revenues rose to $6.8 million (up 183.3% year over year), reflecting a stronger contribution from one-time sales versus the year-ago period.
Sustainability and Climate generated operating revenues of $91.9 million, up 8.6%, supported by recurring subscription revenues of $90.9 million (up 9.9% year over year). All Other – Private Assets contributed operating revenues of $72.6 million, up 7.9% year over year, with recurring subscription revenues of $71.9 million (up 7.6% year over year).
MSCI Expands Margins in Q1Adjusted EBITDA rose 18.6% year over year to $504.7 million. The adjusted EBITDA margin improved to 59.3% from 57.1% a year ago.
Adjusted EBITDA expenses were $346.1 million, up 8.1% year over year, reflecting higher compensation and benefits costs due to higher headcount, as well as elevated severance costs. Total operating expenses increased 6.8% on a year-over-year basis to $393.9 million due to higher compensation costs from a 2.2% increase in headcount.
Operating income increased 21.2% year over year to $456.9 million, with operating margin improving to 53.7% from 50.6% in the year-ago quarter.
MSCI Highlights Cash Flow and Capital ReturnsAs of March 31, 2026, MSCI had $385.3 million in cash and cash equivalents compared with $515.3 million as of Dec. 31, 2025.
Total principal debt outstanding stood at $6.5 billion at March 31, 2026, with management noting a total debt-to-adjusted EBITDA ratio of 3.2x on a trailing 12-month basis, within its target range of 3.0x to 3.5x.
Cash generation remained solid. Net cash provided by operating activities was $306.8 million in the reported quarter, while free cash flow increased 3.4% year over year to $278.0 million, reflecting higher cash collections partly offset by higher cash expenses and interest expense.
Shareholder returns were a notable highlight. MSCI repurchased $464 million of stock in the first quarter and through April 20, 2026, totaling 835,591 shares at an average repurchase price of $555.61. The company also paid approximately $150 million in dividends during the quarter and declared a cash dividend of $2.05 per share for the second quarter of 2026, payable May 29, 2026.
MSCI Maintains 2026 OutlookFor 2026, MSCI maintained its guidance framework. The company continues to expect operating expenses of $1.490-$1.530 billion and adjusted EBITDA expenses of $1.305-$1.335 billion.
Interest expense is projected at $274-$280 million, while capital expenditures are expected to be $160-$170 million.
Net cash provided by operating activities is guided to $1.640-$1.690 billion, with free cash flow projected at $1.470-$1.530 billion.
Zacks Rank & Stocks to ConsiderMSCI currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Financial sector are Crown Castle (CCI - Free Report) , Equinix (EQIX - Free Report) , and Jones Lang LaSalle (JLL - Free Report) . Each stock currently has a Zack Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Crown Castle, Equinix and Jones Lang LaSalle are set to report their first-quarter 2026 results on April 22, 29 and 30, respectively.
In terms of share price movement, Equinix shares have jumped 44.1% year to date, while Jones Lang LaSalle climbed 5.1%. Crown Castle’s shares have dropped 1.5% over the same timeframe.
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
The Zacks Premium service makes this easier. It features daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All of these can help you quickly identify what stocks to buy, what to sell, and what are today's hottest industries.
Also included in Zacks Premium is the Focus List. This is a long-term portfolio of top stocks that have all the traits to beat the market.
Breaking Down the Zacks Focus ListIf you could get access to a curated list of stocks to kickstart your investment portfolio, wouldn't you jump at the chance to take a peek?
Enter the Zacks Focus List. It's a portfolio made up of 50 stocks that are set to beat the market over the next 12 months; each company selected serves as a foundation for long-term investors looking to create an individual portfolio.
One thing that makes the Focus List even more advantageous is that each pick comes with a full Zacks Analyst Report. This helps explain why each stock was selected and why we believe it's a good pick for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Brokerage analysts are in charge of determining a company's growth and profitability expectations, or earnings estimates. These analysts work together with company management to evaluate all factors that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
What a company will earn down the road also needs to be taken into consideration, and this is why earnings estimate revisions are so important.
When a stock receives upward earnings estimate revisions, it will likely get even more positive changes in the future. For instance, if an analyst raised their earnings outlook last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions to make it easier to build a winning portfolio.
There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each one of these features is then given a raw score that's recalculated every night and compiled into the Rank. Using this data, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Since stock prices respond to revisions, it can be very profitable to buy stocks with rising earnings estimates. By buying Focus List stocks, then, you're likely getting into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: MSCI (MSCI - Free Report) MSCI Inc. provides investment decision support tools, including indexes; portfolio construction and risk management products and services; Environmental, Social and Governance (ESG) research and ratings; and real estate research, reporting and benchmarking offerings.
MSCI, a #3 (Hold) stock, was added to the Focus List on October 10, 2018 at $166.96 per share. Since then, shares have increased 258.18% to $598.01.
For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.11 to $19.55. MSCI boasts an average earnings surprise of 1.7%.
Additionally, MSCI's earnings are expected to grow 13.1% for the current fiscal year.
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Morningstar’s Investing Insights podcast recently spotlighted four S&P 500 stocks that have already declared dividend increases of 10% or more, effectively locking in their place on next year’s Dividend Growers screen, which requires companies to grow dividends at least 10% annually.
The host’s framing was simple: “Dividends are paid out from earnings. So companies that are able to increase their dividends at a high ongoing rate are quality companies with growing earnings.” Defensive investors also like the category because dividend growers tend to strike a balance between the dividend income high-yielders offer and the earnings growth driven by earnings reinvestment that lower-yielding companies tend to provide.
Here are four Dividend Growers that have already declared 10% dividend increases for next year:
NextEra Energy NextEra Energy (NYSE:NEE | NEE Price Prediction) is the largest U.S. utility by market cap at ~$202.4 billion, operating Florida Power & Light and a renewables development arm with a ~33 GW backlog. Management guides to roughly 10% annual dividend growth through 2026, with the Q1 2026 quarterly payout stepping up to $0.6232 from $0.5665. Shares are up 50.7% over the past year. Q1 adjusted EPS rose 10% YoY to $1.09.
Snap-on Snap-on (NYSE:SNA), the Kenosha-based professional tools maker, raised its quarterly dividend to $2.44 from $2.14, clearing the 10% bar. Q1 2026 revenue of $1.207 billion beat consensus by 2.48%, and the board authorized a $500 million repurchase. CEO Nick Pinchuk cited “robust sales growth with customers in critical industries” despite tariff and FX turbulence.
MSCI MSCI (NYSE:MSCI) lifted its quarterly dividend to $2.05 from $1.80, a 13.9% step-up. The index provider posted Q1 2026 revenue of $850.8 million, up 14.1% YoY, with ETF AUM linked to MSCI indexes at $2.4 trillion and operating margin expanding to 53.7%.
Motorola Solutions Motorola Solutions (NYSE:MSI) bumped its quarterly dividend to $1.21 from $1.09, extending a streak of double-digit raises. The mission-critical communications leader closed 2025 with a record $15.7 billion backlog and guides to ~$12.7 billion in 2026 revenue with non-GAAP EPS of $16.70 to $16.85.
Two Exit Stories Worth Watching Zoetis (NYSE:ZTS) announced only a 6% dividend increase, raising its quarterly payout to $0.53 from $0.50. Unless the animal-health company announces a second increase this year, which is unlikely based on historical patterns, it will likely drop off the screen.
NextEra qualifies this cycle, but management’s 6% annual dividend growth guidance from year-end 2026 through 2028 signals a probable exit the following year. Investors monitoring dividend growth as a quality proxy should keep an eye on that step-down, since the screen rewards consistency above the 10% line.
LONDON--(BUSINESS WIRE)--MSCI Inc. (NYSE:MSCI), a leading provider of critical decision support tools and services for the global investment community, will announce the results of the May 2026 Index Review for the MSCI Equity Indexes - including the MSCI Global Standard, MSCI Global Small Cap and MSCI Micro Cap Indexes, the MSCI Global Value and Growth Indexes, the MSCI Frontier Markets, and MSCI Frontier Markets Small Cap Indexes, the MSCI US Equity Indexes, the MSCI US REIT Index, the MSCI C.
LONDON--(BUSINESS WIRE)--MSCI Inc. (NYSE:MSCI), a leading provider of critical decision support tools and services for the global investment community, announced the results of the May 2026 Index Review for the MSCI Equity Indexes. All changes will be implemented as of the close of May 29, 2026. Highlights include: MSCI Global Standard Indexes: Forty-nine securities will be added to and 101 securities will be deleted from the MSCI ACWI Index. The three largest additions to the MSCI World Index.
A month has gone by since the last earnings report for MSCI (MSCI - Free Report) . Shares have lost about 4.3% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is MSCI due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for MSCI Inc before we dive into how investors and analysts have reacted as of late.
MSCI Q1 Earnings Beat Estimates, Revenues Rise Y/YMSCI delivered first-quarter 2026 adjusted earnings of $4.55 per share, up 13.8% year over year and beat the Zacks Consensus Estimate by 3.41%. The reported quarter’s operating revenues came in at $850.8 million, up 14.1% year over year and beat the consensus mark by 2.01%.
Strength in asset-based fees, along with steady growth in recurring subscription revenues, powered the top line. Profitability also improved, with operating margin expanding to 53.7% and adjusted EBITDA margin rising to 59.3% in the quarter.
MSCI Shows Broad-Based Growth Across SegmentsMSCI’s business momentum was also reflected in its recurring revenue indicators. Total Run Rate at March 31, 2026, was $3.36 billion, up 12.7% year over year, and the total retention rate for the first quarter was 95.4%, essentially steady with the prior-year period. Management pointed to strong sales execution and product momentum across client segments and product lines during the reported quarter. The company emphasized record asset-based-fee Run Rate and strong recurring sales activity, particularly within Index and Analytics.
Index remained the primary growth engine in the first quarter, with segment operating revenues of $496.3 million, up 17.7% year over year. Within the segment, asset-based fees totaled $224.5 million (up 26.6% year over year) while recurring subscription revenues were $254.2 million (up 9% year over year), highlighting a solid mix of usage-linked and subscription-driven revenue streams.
Analytics also posted a healthy quarter, with operating revenues increasing 10.3% to $190.0 million. Growth was supported by recurring subscription revenues of $183.2 million (up 7.9% year over year), while non-recurring revenues rose to $6.8 million (up 183.3% year over year), reflecting a stronger contribution from one-time sales versus the year-ago period.
Sustainability and Climate generated operating revenues of $91.9 million, up 8.6%, supported by recurring subscription revenues of $90.9 million (up 9.9% year over year). All Other – Private Assets contributed operating revenues of $72.6 million, up 7.9% year over year, with recurring subscription revenues of $71.9 million (up 7.6% year over year).
MSCI Expands Margins in Q1Adjusted EBITDA rose 18.6% year over year to $504.7 million. The adjusted EBITDA margin improved to 59.3% from 57.1% a year ago.
Adjusted EBITDA expenses were $346.1 million, up 8.1% year over year, reflecting higher compensation and benefits costs due to higher headcount, as well as elevated severance costs. Total operating expenses increased 6.8% on a year-over-year basis to $393.9 million due to higher compensation costs from a 2.2% increase in headcount.
Operating income increased 21.2% year over year to $456.9 million, with operating margin improving to 53.7% from 50.6% in the year-ago quarter.
MSCI Highlights Cash Flow and Capital ReturnsAs of March 31, 2026, MSCI had $385.3 million in cash and cash equivalents compared with $515.3 million as of Dec. 31, 2025.
Total principal debt outstanding stood at $6.5 billion at March 31, 2026, with management noting a total debt-to-adjusted EBITDA ratio of 3.2x on a trailing 12-month basis, within its target range of 3.0x to 3.5x.
Cash generation remained solid. Net cash provided by operating activities was $306.8 million in the reported quarter, while free cash flow increased 3.4% year over year to $278.0 million, reflecting higher cash collections partly offset by higher cash expenses and interest expense.
Shareholder returns were a notable highlight. MSCI repurchased $464 million of stock in the first quarter and through April 20, 2026, totaling 835,591 shares at an average repurchase price of $555.61. The company also paid approximately $150 million in dividends during the quarter and declared a cash dividend of $2.05 per share for the second quarter of 2026, payable May 29, 2026.
MSCI Maintains 2026 OutlookFor 2026, MSCI maintained its guidance framework. The company continues to expect operating expenses of $1.490-$1.530 billion and adjusted EBITDA expenses of $1.305-$1.335 billion.
Interest expense is projected at $274-$280 million, while capital expenditures are expected to be $160-$170 million.
Net cash provided by operating activities is guided to $1.640-$1.690 billion, with free cash flow projected at $1.470-$1.530 billion.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.
VGM ScoresCurrently, MSCI has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a score of F on the value side, putting it in the lowest quintile for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Interestingly, MSCI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerMSCI is part of the Zacks Financial - Investment Management industry. Over the past month, Cohen & Steers Inc (CNS - Free Report) , a stock from the same industry, has gained 4.8%. The company reported its results for the quarter ended March 2026 more than a month ago.
Cohen & Steers reported revenues of $145.64 million in the last reported quarter, representing a year-over-year change of +8.3%. EPS of $0.79 for the same period compares with $0.75 a year ago.
For the current quarter, Cohen & Steers is expected to post break-even earnings per share, indicating a change of 0% from the year-ago quarter. The Zacks Consensus Estimate has changed 0% over the last 30 days.
Cohen & Steers has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
NEW YORK--(BUSINESS WIRE)--MSCI Inc. (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community, announced today that it will release the results of the MSCI 2026 Global Market Accessibility Review on June 18, 2026, and the results of the MSCI 2026 Annual Market Classification Review on June 23, 2026. Both announcements will be made available shortly after 10:30 p.m. Central European Summer Time (CEST) on www.msci.com/market-classificati.
Some investors are embracing the financial sector ahead of what they deem as an even more euphoric stretch of a new roaring 20s, whereas others believe a recession is imminent.
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
The Zacks Premium service makes this easier. It features daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All of these can help you quickly identify what stocks to buy, what to sell, and what are today's hottest industries.
It also includes the Focus List, a long-term portfolio of top stocks that have all the elements to beat the market.
Breaking Down the Zacks Focus ListIf you could get access to a curated list of stocks to kickstart your investment portfolio, wouldn't you jump at the chance to take a peek?
That's what the Zacks Focus List, a portfolio of 50 stocks, offers investors. Not only does it serve as a starting point for long-term investors, but all stocks included in the list are poised to outperform the market over the next 12 months.
Additionally, each selection is accompanied by a full Zacks Analyst Report, something that makes the Focus List even more valuable. The report explains in detail why each stock was picked and why we believe it's good for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates are expectations of growth and profitability, and are determined by brokerage analysts. Together with company management, these analysts examine every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Investors also need to look at what a company will earn down the road. This is why earnings estimate revisions are so important.
Stocks that receive upward earnings estimate revisions are more likely to receive even more upward changes in the future. For example, if an analyst raised their estimates last month, they're more likely to do it again this month, and other analysts are likely to do the same.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions to make it easier to build a winning portfolio.
There are four main factors behind the Zacks Rank: Agreement, Magnitude, Upside, and Surprise. Each one of these features is then given a raw score that's recalculated every night and compiled into the Rank. Using this data, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell."
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Since stock prices respond to revisions, it can be very profitable to buy stocks with rising earnings estimates. By buying Focus List stocks, then, you're likely getting into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: MSCI (MSCI - Free Report) MSCI Inc. provides investment decision support tools, including indexes; portfolio construction and risk management products and services; Environmental, Social and Governance (ESG) research and ratings; and real estate research, reporting and benchmarking offerings.
MSCI, a #3 (Hold) stock, was added to the Focus List on October 10, 2018 at $166.96 per share. Since then, shares have increased 278.16% to $631.38.
Six analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.18 to $19.62. MSCI boasts an average earnings surprise of 1.7%.
Additionally, MSCI's earnings are expected to grow 13.5% for the current fiscal year.
Reveal Winning StocksUnlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >>
NEW YORK--(BUSINESS WIRE)--MSCI Inc. (NYSE: MSCI) appointed Kashi Kakarla as Chief Technology Officer and Head of Product Engineering, effective June 22. He will report to Henry Fernandez, Chairman and Chief Executive Officer, and will serve on MSCI's Management Committee. Kakarla joins from Intuit, where he spent 17 years building and transforming products and platforms serving millions of customers worldwide. Most recently, he led technology and engineering for the Intuit Small Business Platf.
MSCI Inc. is positioned to benefit from accelerating ETF AUM growth, with strong recurring revenues and robust operating leverage. MSCI delivered 14.1% YoY revenue growth in Q1 2026, with 95.4% retention and double-digit adjusted EPS growth, validating its high-quality, scalable model. Trading at a forward P/E of 28.1, MSCI offers a 17% discount to fair value and a potential 25% upside through June 2027 if growth projections are met.
Baron Focused Growth Fund (BFGIX - Free Report) is an actively managed mutual fund that seeks long-term capital appreciation by investing primarily in small and mid-cap growth companies. Managed by Ronald Baron and David Baron, the fund employs a high-conviction, non-diversified strategy, typically holding a relatively small number of stocks compared with many diversified growth funds.
The fund has delivered strong long-term results. As of April 2026, BFGIX generated a 10-year annualized return of 20.51%, significantly outperforming both the Russell 2500 Growth Index and the broader Russell 3000 Index. Five-year annualized returns were 10.23%, while one-year returns soared to 27.65%, reflecting the fund’s ability to benefit from successful stock selection and long-term growth trends.
A distinguishing feature of BFGIX is its concentrated portfolio. The fund typically owns around 20 to 35 holdings, allowing successful investments to have a meaningful impact on performance. As of March 2026, major positions included private aerospace company SpaceX, along with holdings in Tesla, MSCI, Hyatt Hotels, Spotify and Interactive Brokers. The top 10 holdings currently account for nearly half of total assets.
A key driver of BFGIX’s strong recent performance has been the substantial appreciation in the estimated valuations of its private investments, particularly SpaceX and, thus, indirectly, xAI, which was taken over by SpaceX. These holdings have benefited from growing investor enthusiasm surrounding artificial intelligence, space technology and innovation-driven businesses.
The strategy focuses on businesses that management believes possess durable competitive advantages, strong leadership and significant growth opportunities. While this approach has contributed to impressive long-term returns, it also increases portfolio risk. A concentrated structure means performance can be heavily influenced by a limited number of investments, leading to periods of higher volatility than more diversified funds.
BFGIX currently carries a Zacks Mutual Fund Rank #2 (Buy) within the Mid-Cap Growth category, reflecting its strong risk-adjusted performance over time. For investors evaluating actively managed growth funds, BFGIX stands out for its concentrated portfolio, substantial exposure to innovative companies and long-term record of outperforming key benchmarks, though its focused nature may not suit all risk profiles.
However, being an actively managed fund, its expense ratio is slightly on the higher side at 1.05, and its entry point is expensive at a minimum initial investment of $1,000,000.
Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Want key mutual fund info delivered straight to your inbox?Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
The Zacks Premium service makes this easier. It features daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All of these can help you quickly identify what stocks to buy, what to sell, and what are today's hottest industries.
The service also includes the Focus List, which is a long-term portfolio of top stocks that boast a winning, market-beating combination of growth and momentum qualities.
Breaking Down the Zacks Focus ListIf you could get access to a curated list of stocks to kickstart your investment portfolio, wouldn't you jump at the chance to take a peek?
That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.
Additionally, each selection is accompanied by a full Zacks Analyst Report, something that makes the Focus List even more valuable. The report explains in detail why each stock was picked and why we believe it's good for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Brokerage analysts are in charge of determining a company's growth and profitability expectations, or earnings estimates. These analysts work together with company management to evaluate all factors that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
Earnings estimate revisions are very important, since investors also need to take into consideration what a company will earn in the future.
When a stock receives upward earnings estimate revisions, it will likely get even more positive changes in the future. For instance, if an analyst raised their earnings outlook last month, they'll probably do so again this month, and other analysts will follow.
Harnessing the power of earnings estimate revisions is where the Zacks Rank comes in. The Zacks Rank, which is a unique, proprietary stock-rating model, employs earnings estimate revisions to make it easier to build a winning portfolio.
The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise. Each one is given a raw score, which is recalculated every night and compiled into the Rank. Then, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell," using this data.
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: MSCI (MSCI - Free Report) MSCI Inc. provides investment decision support tools, including indexes; portfolio construction and risk management products and services; Environmental, Social and Governance (ESG) research and ratings; and real estate research, reporting and benchmarking offerings.
On October 10, 2018, MSCI was added to the Focus List at $166.96 per share. Shares have increased 255.96% to $594.31 since then, and the company is a #3 (Hold) on the Zacks Rank.
Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.19 to $19.62. MSCI also boasts an average earnings surprise of 1.7%.
Additionally, MSCI's earnings are expected to grow 13.5% for the current fiscal year.
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