MSCI shares fall as company raises expense forecast

(Corrects paragraph 1 ‌to say ​revenue ​was better than expected, not results)

July 21 (Reuters) - MSCI raised its full-year operating expense forecast ‌on Tuesday, citing acquisition-related costs, higher employee incentives ⁠and increased investment spending, sending the index provider's shares ‌down more than 7% despite ‌better-than-expected quarterly revenue.

The company said strong business momentum was also driving costs higher, with assets under ​management linked to MSCI indexes exceeding assumptions in its prior guidance and lifting asset-based fees.

Here ⁠are more details from the earnings report -

• MSCI lifted its 2026 ​operating expense guidance to $1.54 billion-$1.58 billion from $1.49 billion-$1.53 billion.

• Asset-based fees from MSCI's index segment ​rose 26.6% to $233.1 million in ‌the quarter ended June 30 from a year earlier.

• Operating expenses increased 9.2% ⁠to $379.5 million, driven by higher technology, market data, professional services and compensation costs, while interest expense rose nearly ⁠48% due to higher debt levels.

• The data and analytics ​provider reported adjusted net income for the second quarter of $360 million, or $4.94 per share, in line with analyst estimate of $359.4 ‌million, or $4.94 per share.

• The company's stock market indices serve as benchmarks for ‌trillions of dollars in assets held by investment ⁠funds, pension plans and ‌asset managers to ​guide investment decisions.

(Reporting by Atharva Singh in Bengaluru; Editing by Vijay Kishore and Tasim ‌Zahid)

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