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

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

Here are more details from the earnings report -

-- MSCI ( 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 ( MSCI ) 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.