What’s put CEO confidence at 5 year low

CEO confidence in revenue growth has fallen to its lowest point in five years as leaders confront uneven returns from artificial intelligence, rising geopolitical risk and intensifying cyber threats, according to a new survey.

PwC’s 29th Global CEO Survey found that three in ten CEOs say they are confident about revenue growth over the next 12 months, down from 38 per cent in 2025 and 56 per cent in 2022. The findings suggest that many companies have yet to turn recent investment into steady financial gains as they navigate rapid technological change, geopolitical uncertainty and economic pressure.  

AI has become a fault line for growth and profitability. Two in five (42 per cent of CEOs) say their top concern is whether they are transforming fast enough to keep up with technology, including AI, ahead of worries about innovation capability or long-term viability, both 29 per cent. Despite widespread pilots, only 12 per cent of CEOs reported that AI has delivered both cost and revenue benefits. Overall, 33 per cent say they have seen gains in either cost or revenue, while 56 per cent report no significant financial benefit so far.

PwC said the divide reflects differences in scale and foundations. CEOs reporting gains on both cost and revenue are two to three times more likely to have embedded AI across products and services, demand generation and strategic decision‑making. Those with strong foundations, such as responsible AI frameworks and technology environments that enable enterprise-wide integration, are three times more likely to see meaningful returns.

Separate PwC analysis indicated companies that apply AI widely to products, services and customer experiences achieved nearly four percentage points higher profit margins than peers that did not.

“2026 is shaping up as a decisive year for AI,” said Mohamed Kande, PwC’s global chairman. “A small group of companies are already turning AI into measurable financial returns, while many others are still struggling to move beyond pilots. That gap is starting to show up in confidence and competitiveness, and it will widen quickly for those that don’t act.”

Confidence has also been dented by external risks. One in five CEOs globally, 20 per cent, say their organization is highly or extremely exposed to significant financial loss from tariffs in the next year, although exposure varies by region, from 6 per cent in the Middle East to 28 per cent in the Chinese Mainland and 35 per cent in Mexico.

Among U.S. CEOs, one in five (22 per cent) reported high exposure. Concern about cyber risk has risen to 31 per cent from 24 per cent last year and 21 per cent two years ago, with 84 per cent planning to strengthen enterprise-wide cybersecurity as part of their response to geopolitical risk. Concerns about macroeconomic volatility, 31 per cent, technology disruption, 24 per cent, and geopolitics, 23 per cent, have edged higher, while concern about inflation eased to 25 per cent from 27 per cent.

Many CEOs are pushing reinvention to drive growth. Two in five (42 per cent) said their company has started competing in new sectors over the past five years. Among those planning major acquisitions, 44 per cent expect to invest outside their current industry, with technology the top adjacent sector. Half (51 per cent) plan international investments in the year ahead. The United States remains the top destination, with 35 per cent ranking it among their top three markets. The United Kingdom and Germany, both 13 per cent, and the Chinese Mainland, 11 per cent, also feature. Interest in India nearly doubled year over year, with 13 per cent placing it among their top three.

Execution remains a challenge. Only one in four CEOs said their organization tolerates high risk in innovation projects, has disciplined processes to stop underperforming initiatives, or operates a defined innovation centre or corporate venturing function. Time is another constraint: CEOs report spending 47 per cent of their time on issues with a horizon of less than one year, compared with 16 per cent on decisions looking more than five years ahead.

“In periods of rapid change, the instinct to slow down is understandable, but it’s also risky. The value at stake across the global economy is increasing, and the window to capture it is narrowing. The companies that succeed will be those willing to make bold decisions and invest with conviction in the capabilities that matter most,” Kande said.

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