Top MSP Insights for 2026
1.
MSP Growth Outlook Still Positive, Despite Familiar Headwinds
MSPs are entering 2026 with confidence in their ability to grow — even as economic volatility, high labor costs, and disruptive technologies continue to reshape the channel. While 2025 growth projections were more aggressive than this year, 55% of MSPs are still projecting double-digit growth in 2026.
To reach their goals, many MSPs will be actively investing in their growth instead of focusing on cost-containment: the number of MSPs expecting to grow via new client acquisition rose 10% this year (vs. 2025); nearly a third of MSPs (especially top performers) are planning to increase hiring; and 87% of MSPS are very or somewhat optimistic about the channel’s future growth potential.
2.
Customer Success is Becoming a Core Driver of MSP Revenue Strategy
More than half of MSPs (60%) now operate a formal Customer Success program designed to align technology guidance with client business goals. MSPs with these programs tend to see lower churn, and top earners typically run more robust Customer Success initiatives. However, many programs still fall short, particularly in onboarding, strategic advisory, long-term planning, and clearly demonstrating business value — areas where strong operators consistently excel.
Although many MSPs are still early in their Customer Success maturity, they’re increasingly recognizing its potential impact on revenue. Growing existing client accounts rose from fourth to second place on the list of top growth drivers. In addition, two of MSPs’ top 2026 priorities include improving the client experience and becoming more strategic partners — underscoring Customer Success’s growing role as a competitive differentiator.
Top Customer Success
Priorities for 2026
3.
Top Performers Use AI to Enhance Internal Efficiency — Not Replace Their Workforce
AI adoption is accelerating aggressively in the channel: most MSPs have mapped out an AI strategy, and many expect AI to be heavily embedded in service delivery in the near future. More startlingly, 43% of MSPs say it already has or will fully replace roles in their business.
High-revenue earners, however, are taking a more restrained approach: they’re less likely to have a formal AI roadmap, less likely to say AI will replace employees, and more likely to leverage AI for streamlining internal operations. And their pragmatism is paying off, since they tend to report gaining more positive outcomes from AI than their peers.
Their restraint may reflect the challenges of AI adoption. High costs, complexity, security concerns, and accuracy issues are creating implementation hurdles for MSPs — which may explain why nearly a quarter are relying on vendor-embedded AI vs. building their own custom solutions. No matter how it's being leveraged, AI delivers the most value when applied through thoughtful experimentation that complements existing processes and teams (rather than replacing them).
4.
Talent Constraints May Stunt Growth — But Retention May Matter as Much as Recruitment
Nearly half of MSPs plan to slow, freeze, or outsource hiring in 2026, likely reflecting concerns about rising labor costs and a softening economy. However, about a third expect to increase headcount — especially high performers, who are more likely to feel limited staffing will impact their ability to acquire clients. Salespeople are the top hiring priority for the year ahead, highlighting the belief that dedicated sales staff are critical to achieving growth targets.
MSPs that track more business metrics and client outcomes are also more likely to be hiring, showing that strong reporting helps MSPs confidently justify headcount. However, executives often have a rosier view of client satisfaction, customer retention, and internal AI adoption compared to frontline teams — a misalignment that can delay hiring, increase burnout, and degrade the client experience. Since increased employee retention efforts are linked to lower client churn, investing in existing teams may protect and grow revenue as (or more) effectively than adding new hires.
5.
Cybersecurity Matures; Compliance Emerges as the Channel’s Next Big Revenue Opportunity
Cybersecurity took the top spot this year for most common service offered (increasing a few percentage points from last year). It’s also the top offering MSPs plan to expand in 2026 — illustrating its shift from advanced add-on to core service.
As security becomes table stakes, compliance is emerging as an under-monetized growth lever. While compliance makes up less than 25% of most MSPs’ revenue today, those placing more importance on it over the next few years report higher revenue, ARPU, recurring revenue, and growth rates. High-performing MSPs are also more likely to offer compliance services. While there are real hurdles to selling compliance (complexity, labor costs, liability, and client education), MSPs that invest in it now are positioning themselves for outsized growth in the future.
6.
QBRs Are a Critical Opportunity to Prove Business Value — or Lose Clients
Quarterly Business Reviews (QBRs) remain a key touch point for strengthening client relationships and demonstrating value. Top performers, who have more effective QBRs, tend to meet more frequently with clients (monthly vs. quarterly) and can clearly tie their work to business outcomes.
However, our findings challenge some prevailing assumptions about QBR best practices. For example, high-churn MSPs often spend the most time preparing for QBRs and tend to have more executive attendance at their QBRs — indicating that effort and leadership presence don’t guarantee positive outcomes. Top performers are also more likely to share more operational metrics with customers, countering the belief that clients only want high-level summaries. MSPs should ensure their level of effort matches the high-stakes opportunity QBRs present to earn client trust — or expose potential weaknesses.
7.
MSPs Face Pricing and Competition Pressures — But Internal Strategy May Be Limiting Growth
The growth hurdles MSPs expect to face in 2026 are familiar: budget pressure, pricing pushback, and intensifying competition top this year’s list again. While these concerns are valid amid increasing costs and technical complexity, they may also reflect gaps in how MSPs articulate differentiation and value. Top performers tend to demonstrate business impact more effectively — which may explain why they’re less likely to say pricing increases affect customer satisfaction.
Some high performers also report higher client churn than average, suggesting they’re comfortable losing bad-fit customers that don’t fit into their business model. Before MSPs assume market conditions are hindering growth, they should assess if their service delivery strategy and ability to identify poor-fit clients are clear, consistent, and operationally sound.
What Sets Top-Performing MSPs Apart:
Technical Excellence, Human-Centered Delivery
Top revenue performers consistently achieve higher recurring revenue, ARPU, and CSAT scores. A unique blend of behaviors form the foundation of their success: their broad technical expertise and data rigor are balanced by their human-centered approach to strategic service delivery.
