--- title: "MSCI-Linked ETF AUM Tops $2.8 Trillion, but Investors Still Sold the Stock" type: "News" locale: "en" url: "https://longbridge.com/en/news/293484958.md" description: "MSCI Inc. reported strong Q2 earnings, with adjusted EPS of $4.94 beating estimates and revenue up 12.2% to $867 million. Record AUM in MSCI-linked ETFs exceeded $2.8 trillion, driving a 25% increase in asset-based fees. Despite these positive financial results and raised full-year outlooks for cash flow, MSCI shares dropped 10% as investors sold the stock." datetime: "2026-07-22T13:58:54.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293484958.md) - [en](https://longbridge.com/en/news/293484958.md) - [zh-HK](https://longbridge.com/zh-HK/news/293484958.md) --- # MSCI-Linked ETF AUM Tops $2.8 Trillion, but Investors Still Sold the Stock **MSCI Inc.** (NYSE:MSCI) reported strong second-quarter earnings on Tuesday, with adjusted EPS of $4.94, slightly above the $4.93 analyst estimate. Operating revenue increased 12.2% year over year (Y/Y) to $867 million, exceeding expectations of $866.4 million. Revenue was driven by organic growth, with recurring subscription revenue rising 9% Y/Y and asset-based fees increasing 26.6% Y/Y. On Tuesday, MSCI stock lost 10%, closing at $561.74 despite record inflows in MSCI-linked ETFs. ## Earnings Snapshot Organic revenue grew above 12% Y/Y, and adjusted EBITDA grew 14% Y/Y in the quarter. Organic recurring subscription run rate growth was 8.1%, while retention improved to 95.3% from 94.4% a year ago, supported by strong demand across asset managers, hedge funds, and banking clients. The Analytics segment posted 7% organic subscription run-rate growth, supported by strong demand for factor content, factor solutions, and multi-asset portfolio offerings. The company continues to focus on AI-driven product innovation and expanding its private assets offerings, including a new partnership with UBS to strengthen wealth management solutions. ## Key Metrics Total run-rate growth reached 12% Y/Y, supported by a 25% Y/Y increase in asset-based fee run rate, driven by record ETF and non-ETF assets under management. Asset-based fee (ABF) run rate reached a record $948 million, up 25% year over year (Y/Y), driven by record AUM in ETF and non-ETF products tracking MSCI indexes. The second quarter ETF inflows totaled nearly $40 billion, lifting MSCI-linked ETF AUM above $2.8 trillion. ## Buyback & Dividend MSCI repurchased $147.2 million worth of shares, or 264,043 shares, through July 20, 2026, at an average price of $557.66. The company also returned approximately $149.2 million to shareholders through dividends in the second quarter and declared a third-quarter cash dividend of $2.05 per share. ## Outlook Management remains optimistic, supported by a strong sales pipeline and continued investments in AI and sustainability-focused solutions. MSCI raised its full-year 2026 expense outlook, reflecting recent acquisitions, including First Street, stronger AUM growth in MSCI-linked products, higher incentive compensation, and additional investments to support future growth. The company raised its operating cash flow forecast to $1.655 billion–$1.705 billion and free cash flow outlook to $1.485 billion–$1.545 billion, up from prior ranges of $1.640 billion–$1.690 billion and $1.470 billion–$1.530 billion, respectively. **MSCI Price Action:** MSCI shares were down 0.17% at $560.79 at the time of publication on Wednesday, according to Benzinga Pro data. **Read Also: Crude Oil Surges 2%; 3M Shares Gain After Q2 Results** _Photo via Shutterstock_ ### Related Stocks - [MSCI.US](https://longbridge.com/en/quote/MSCI.US.md) - [UBS.US](https://longbridge.com/en/quote/UBS.US.md) - [MMM.US](https://longbridge.com/en/quote/MMM.US.md) ## Related News & Research - [MSCI (NYSE:MSCI) Announces Quarterly Earnings Results](https://longbridge.com/en/news/293333954.md) - [MSCI Q2 revenue slightly beats; FY operating expense outlook lifted](https://longbridge.com/en/news/293330430.md) - [MSCI: Q2 2026 delivered robust revenue and EPS growth, with raised guidance and a key acquisition pending](https://longbridge.com/en/news/293328912.md) - [MSCI Inc. Warns Existing Risk Factors Could Still Significantly Impact Future Operations and Financial Performance](https://longbridge.com/en/news/293429620.md) - [MSCI declares R$ 0.16 per unit distribution for Q3 2026, payable Sept. 3](https://longbridge.com/en/news/293489100.md)