MSCI Inc. (MSCI) is a leading global provider of investment decision-support tools and services for the investment community. The company operates across Index, Analytics, Sustainability and Climate, and Private Assets, highlights Ben Reynolds, editor of Sure Dividend Growth.
It’s best known for benchmark indexes such as the MSCI ACWI and MSCI Emerging Markets Index. MSCI has a market capitalization of more than $44 billion.
On April 21, MSCI reported first-quarter results for the period ended March 31. Operating revenue increased 14% to $851 million, supported by broad-based growth across its recurring subscription businesses, strong demand for index-linked products, and higher revenue from analytics and private assets solutions.
Growth was widespread, with revenue increasing 18% in Index, 10% in Analytics, 9% in Sustainability and Climate, and 8% in Private Assets. Adjusted earnings per share rose 14% to $4.55, reflecting both revenue growth and disciplined expense management.
MSCI reiterated its 2026 outlook, forecasting operating cash flow of $1.64 billion to $1.69 billion and free cash flow of $1.47 billion to $1.53 billion. We forecast record EPS of $19.62 for the year.
MSCI’s safety profile is supported by its dominant competitive position, strong brand, and subscription-driven business model. Nearly all revenue is derived from mission-critical recurring subscriptions, providing excellent visibility and resilience during economic downturns. The dividend remains well covered, with a payout ratio of approximately 42% of expected 2026 earnings.
The company has delivered annualized EPS growth of 19.4% over the last five years and 22.9% over the last nine years. We believe MSCI can continue growing earnings at roughly 12% annually through continued passive adoption, expanding demand for customized indexing and analytics solutions, growth in private markets and sustainability offerings, and ongoing share repurchases.
Recommended Action: Buy MSCI.
