#USA #revenue growth #CEO Survey #Davos #PwC

Falling Confidence Among Business Leaders

The latest PwC Global CEO Survey 2026 reveals a dramatic decline in optimism among business leaders regarding revenue growth prospects. With only 30% of CEOs expressing confidence for the year ahead, this figure marks the lowest point in five years, a stark decrease from 38% in 2025 and 56% in 2022. The survey showcases the growing complexity of the operational environment, where rapid technological advancements, geopolitical uncertainty, and escalating cyber threats intertwine, impeding firms' abilities to convert investments into stable financial returns.

A Deepening Divide

One pivotal concern from the survey highlights the deepening gap between firms effectively leveraging artificial intelligence (AI) and those struggling to integrate it into their operations. 42% of CEOs prioritize this technological transformation, indicating that hesitation to adapt may directly impact financial viability. Despite widespread experimentation with AI, only 12% of leaders report financial benefits in the form of cost savings or revenue increases.

Interestingly, companies that have successfully embedded AI within their frameworks demonstrate significantly better performance. This success correlates with firms that possess strong foundational elements, such as responsible AI governance and robust technological infrastructures, allowing comprehensive integration. Notably, businesses that apply AI across various segments are achieving profit margins nearly four percentage points higher than those that do not engage AI extensively.

Navigating External Pressures

The survey also emphasizes that external pressures are inhibiting growth prospects. A substantial 20% of CEOs identified international tariffs as a significant financial risk, particularly high in regions like China's mainland (28%) and Mexico (35%). Additionally, the growing concern over cyber risks is palpable; 31% of executives recognized cyber threats as a primary concern, revealing a marked increase from 24% last year.

As these risks escalate, a staggering 84% of CEOs are proactively enhancing cybersecurity measures in their firms. Concerns about macroeconomic volatility and technological disruptions have intensified, reflecting the ongoing challenges faced by business leaders in an unpredictable global climate.

Embracing Reinvention

Despite these challenges, there is a notable shift among CEOs toward recognizing the necessity of innovation and reinvention. Over 42% report that their companies have begun competing in new sectors over the past five years. For those contemplating major acquisitions, 44% indicate plans to invest beyond their current industry, with technology emerging as the most attractive adjacent sector.

As CEOs set their sights on international investments, the United States remains the preferred destination, with 35% ranking it among their top three markets, while interest in India has nearly doubled year-over-year. Despite optimism surrounding international expansion, execution gaps persist. Only 25% of CEOs feel their organizations can tolerate high risk in innovation initiatives, indicating a cautious approach to new business ventures.