MSCI Q1 2026 results beat expectations, primarily driven by improved execution, accelerated product innovation, and the widespread adoption of AI tools.

Key data: Index subscription run rate grew 27% YoY (hedge funds), Analytics revenue increased 10%+ YoY, and ETF net inflows exceeded $100 billion.

Business progress: New products launched in Q1 equaled the total for the full year 2025, AI-driven custom indices grew rapidly (relying on Foxbury + AI methodology), PCS benefited from demand for private credit transparency, and Climate won key clients such as the Bundesbank. Sustainability improved via market share gains, while AI enhanced data processing efficiency and reduced reliance on headcount.

Guidance & outlook: Management expects Q2 Analytics revenue growth to slow to mid-single digits (around 5%), but overall run rate growth remains healthy, and full-year confidence has increased.

Risk/highlight signals: Highlights: AI positioned as a long-term growth engine, with surging demand for custom indices and active ETFs; Risks: the Middle East conflict caused a temporary slowdown in Gulf region sales, and Sustainability recovery remains slow.