Teneologo

While predictions of economic improvement in the coming year from corporate and financial decision makers are down slightly from last year’s numbers, the overall outlook is still strongly positive, according to a new survey from Teneo.

“Where is the World Going in 2026 and Beyond?” gathers the views of more than 350 global public company CEOs and 400 institutional investors to get a picture of how they see the business landscape developing over 2026—and over the next decade.

The study finds that more than seven in 10 (73 percent) of the CEOs surveyed, as well as more than eight in 10 (82 percent) institutional investors, think that economic conditions will take an upturn in 2026. Those numbers are down from 77 percent for CEOs and 86 percent for investors in last year’s survey.

It also says that 83 percent of CEOs at mid-cap companies (those with a capitalization between $2 billion and $10 billion) think things are looking up, as opposed to those at large-cap companies (capitalization over $10 billion), where only 51 percent expect improvement.

Optimism about mergers and acquisitions followed the same path as expectations regarding the overall economic environment. Almost three quarters of CEOs (72 percent) expect to see increased M&A activity in 2026, as do 76 percent of investors. The most favorable sectors on the M&A front are the healthcare and resources industries.

That does not mean that mergers and acquisitions do not face hurdles this year. Respondents across the board cited high capital costs as the biggest potential roadblock.

Teneo's “Where is the World Going in 2026 and Beyond?” survey gathers the views of more than 350 global public company CEOs and 400 institutional investors to get a picture of how they see the business landscape developing over 2026—and over the next decade.

Teneo’s report also looks at the shifting state of globalization. Despite the jockeying for position from regions around the world, the U.S. remains the most attractive investment opportunity, with 89 percent of surveyed CEOs viewing it positively. APAC comes in second at 82 percent.

APAC’s two biggest players, China and India, appear set to change places in the global order. More than four in 10 (41 percent) of CEOs said that China is “extremely important” in determining current business strategies, while only 33 percent said the same for India. However, when the time frame shifts to “Over Next 10 Years,” China makes a modest rise to 44 percent, with India making a big leap to 47 percent.

“One of India’s competitive advantages has been in digital, for example, across IT services and call centers,” said Teneo co-president, political risk advisory Kevin Kajiwara.

The digital world’s power is also reflected in the growing importance and shifting expectations for artificial intelligence, with 68 percent of CEOs saying that they plan to increase their AI spending in 2026. An even greater number (84 percent) of CEOs and investors add that “AI is meaningfully helping companies mitigate and navigate through disruption.”

However, there is a difference of opinion about long it will take for new AI initiatives to result in positive ROI. Slightly less than half of investors (47 percent) and mid-cap CEOs (48 percent) think that those initiatives will take more than six months to generate a positive economic return. That number spikes to 84 percent for high-cap CEOs.

Survey respondents also do not seem to be buying the line that AI will decimate the workforce. Two-thirds (67 percent) of surveyed CEOs say that AI is increasing entry-level headcount and 58 percent think it will also increase senior leadership roles.

Teneo’s survey was conducted between Oct. 14 and Nov. 10, 2025.

O'Dwyer's reports on surveys from leading business consultancies, PR agencies, trade groups, marketing associations, etc. If you'd like to have your study featured on O'Dwyer's, please feel free to reach out to publisher John O'Dwyer at [email protected].