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CEO Confidence in Revenue Forecasts Hits Five-Year Low

In a recent survey conducted by PwC, the confidence of CEOs regarding revenue growth prospects for the upcoming year has plummeted to its lowest level in five years, highlighting the challenges faced by business leaders in an unpredictable economic climate. Only 30% of the surveyed CEOs expressed optimism about revenue growth in 2026, compared to 38% in 2025 and a markedly higher 56% in 2022. These findings indicate that many companies have yet to effectively translate their investments in Artificial Intelligence (AI) into substantial financial returns.

The survey, which included responses from over 4,454 CEOs across 95 countries, underscores the increasing complexities and risks that business leaders must navigate, including rapid technological advancements, geopolitical instability, and cyber threats. As CEOs grapple with these challenges, the role of AI is becoming increasingly pivotal in determining business success amid rising competition.

The Role of AI in Business Growth

A pressing concern among CEOs is whether their organizations are adapting quickly enough to keep pace with technological changes, particularly in AI implementation. A striking 42% of participants identified this issue as their primary concern, overshadowing other worries such as innovation capabilities and medium- to long-term profitability, each at 29%. Despite the growing focus on AI, only 12% of CEOs reported that their investments in AI have led to both cost efficiencies and revenue enhancements.

The data reveals a further divide: while 33% of CEOs noted improvements in either costs or revenue due to AI, 56% have yet to see any significant financial benefits. This disparity points to a concerning trend among companies that are experimenting with AI compared to those that successfully integrate it across their operations.

Notably, companies that have established a robust AI foundation—characterized by responsible AI frameworks and integrated technological ecosystems—are three times more likely to report substantial financial improvements than those without such a foundation. Additionally, a separate analysis by PwC indicated that companies deploying AI extensively across products, services, and customer experiences achieved nearly four percentage points higher profit margins compared to their less engaged counterparts.

Mohamed Kande, the Global Chairman of PwC, emphasized the urgency of the situation: "2026 will be a pivotal year for AI. A select few organizations are already realizing measurable financial gains from AI, whereas many others are still struggling to move beyond pilot projects. This gap will increasingly reflect in terms of trust and competitiveness."

External Risks Impacting Confidence

As external risks proliferate, CEO confidence continues to wane. Globally, 20% of CEOs reported exposure to high or extreme risks of significant financial losses due to tariffs, with regional variances observed. Concerns around cybersecurity threats have surged, with 31% of CEOs viewing them as major risks—up from 24% last year and 21% two years prior. In response, a remarkable 84% indicated plans to augment cybersecurity measures as part of their broader strategy against geopolitical risks.

Concerns regarding macroeconomic fluctuations (31%), technological disruptions (24%), and geopolitical issues (23%) have also seen slight increases, while fears around inflation have decreased marginally from 27% to 25% in the past year.

The Need for Strategic Reinvention

Amidst these daunting forecasts, many CEOs recognize the need for strategic reinvention to foster growth. Over 40% of respondents indicated that their firms have begun competing in new sectors over the past five years. Among those planning major acquisitions, 44% intend to invest beyond their current industry, with the technology sector being viewed as the most attractive adjacent market.

More than half of the CEOs surveyed (51%) plan to pursue international investments in the coming year. The United States remains the most favored destination, identified by 35% of participants as one of their top three markets. Interest in India has also notably doubled compared to the previous year, with 13% of CEOs including it in their preferred locations.

However, execution gaps remain prevalent; only 25% of CEOs state their companies tolerate high risks associated with innovation projects or have defined processes to halt underperforming initiatives. Time constraints also hinder progress; CEOs report dedicating 47% of their time to issues with less than a one-year horizon, while only 16% focus on decisions extending beyond five years.

As Mohamed Kande notes, "In times of rapid change, the urge to slow down is understandable but carries its own risks. The value at stake in the global economy is soaring, and the window for harnessing it is closing rapidly. Companies that will thrive are those willing to make bold decisions and invest decisively in the capabilities that matter most."

For further insights and detailed results, visit PwC's Global CEO Survey.