CEO Confidence in Revenue Predictions Falls to Five-Year Low Amid AI Divide

In a striking revelation, the 2026 Global CEO Survey by PwC indicates that confidence among chief executives regarding their companies' revenue prospects has plunged to its lowest point in five years. Only 30% of CEOs expressed optimism about revenue growth in 2026, a drop from 38% in 2025 and 56% in 2022. This alarming trend points to the complexities executives are facing amid fluctuating technological advancements, rising geopolitical risks, and intensified cyber threats.

The survey, which gathered insights from 4,454 CEOs across 95 countries and territories, underscores the challenge many businesses encounter in transforming investments in artificial intelligence (AI) into consistent financial gains. A mere 12% of CEOs reported that AI has been profitable for both costs and revenues. Furthermore, while a third noted improvements in financial performance, an overwhelming 56% admitted to seeing no significant financial benefits thus far.

The Pressing Question: Are Companies Adapting Fast Enough?

The most pressing concern for CEOs remains whether they are evolving swiftly enough to keep pace with technological change, particularly regarding AI. A significant 42% of respondents designated this as their primary worry, overshadowing concerns about innovation capacity or long-term sustainability, both rated at 29%.

Interestingly, a noticeable gap between organizations piloting AI projects and those integrating these technologies on a larger scale has emerged. CEOs reporting revenue increases indicated they were two to three times more likely to have successfully integrated AI into their strategic decision-making, demand generation, and product offerings. Those businesses that have built solid AI foundations, including responsible AI frameworks and conducive tech environments, are witnessing three times the likelihood of achieving significant financial returns.

According to Mohamed Kande, the Global Chair of PwC, 2026 is poised to be a critical year for AI. He noted that a small number of firms are already translating AI into measurable financial profits, while many others struggle to move past initial pilot phases. This discrepancy in confidence and competitiveness is likely to widen for those who do not take decisive action.

External Risks Amplifying CEO Anxiety

The decline in CEO confidence is exacerbated by external risks, particularly from tariffs and cyber threats. A staggering 20% of CEOs worldwide indicated their organizations are highly or extremely exposed to potential financial losses due to tariffs in the coming year. This exposure varies significantly by region, with China reporting 28% and Mexico 35% of CEOs expressing high vulnerability.

Concerns regarding cyber risks have surged, with 31% labeling it a significant threat, up from 24% last year. In response to these concerns, 84% of CEOs plan to bolster their cybersecurity measures as a proactive approach to geopolitical risks.

Additional worries regarding macroeconomic volatility, technological disruption, and geopolitical tensions are also on the rise, highlighting a shifting landscape for CEO priorities.

The Call for Strategic Reinvention

Despite these challenges, there is a growing recognition among CEOs that reinvention is essential for sustained growth. Over 40% of respondents noted their companies have begun to explore new sectors within the last five years. Among those contemplating significant acquisitions, 44% expressed intentions to invest beyond their current sectors, with technology being identified as the most attractive adjacent field.

Looking ahead, more than half (51%) of CEOs plan to make international investments within the next year, with the United States remaining the top investment destination. Notably, interest in India has nearly doubled year-over-year, with 13% of CEOs listing it among their top three investment markets.

However, execution gaps persist, as only one in four CEOs reported their organizations embrace high-risk innovation projects and have established rigorous processes to mitigate underperforming initiatives.

Moreover, time constraints present an additional barrier, as CEOs indicate that 47% of their focus is dedicated to short-term issues, leaving only 16% for long-term strategic decision-making.

In conclusion, while the current climate poses significant challenges for CEOs, the imperative to adapt and innovate has never been more pressing. Companies that succeed will likely be those willing to make bold decisions and invest resolutely in critical capabilities that drive future growth.