CEO confidence in revenue growth sinks to five-year low, PwC finds

CEO confidence in revenue growth has fallen to a 5-year low, according to PwC’s 2026 Global CEO Survey, highlighting growing pressure from artificial intelligence, geopolitical risks and cyber threats.

The results of the survey were shared by PwC Cyprus, providing insight into how global trends are expected to shape local business sentiment.

CEO confidence in their company’s revenue outlook has slipped to its weakest point in 5 years, with only 3-in-10 CEOs, or 30 per cent, saying they are confident about revenue growth over the next 12 months.

This compares with 38 per cent in 2025 and 56 per cent in 2022, reflecting mounting challenges in converting investment, particularly in AI, into reliable financial returns.

The findings come from PwC’s 29th Global CEO Survey, which gathered responses from 4,454 CEOs across 95 countries and territories.

The results for Cyprus are set to be presented during a special event on March 9, 2026.

A central theme of the survey is the growing divide between companies that are successfully scaling AI and those still struggling to extract value.

Only 1-in-8 CEOs, or 12 per cent, reported that AI has delivered both cost and revenue benefits.

A further 33 per cent reported gains in either cost or revenue, while 56 per cent said they have seen no significant financial benefit from AI so far.

The survey highlights artificial intelligence as a defining fault line for growth and profitability.

Forty-two per cent of CEOs identified the question of whether they are transforming fast enough, including in relation to AI, as their top concern.

This was well ahead of worries about innovation capability and medium- to long-term viability, both cited by 29 per cent.

Companies reporting both cost and revenue gains from AI were found to be 2 to 3 times more likely to have embedded AI extensively across products and services, demand generation and strategic decision-making.

Strong AI foundations, such as Responsible AI frameworks and technology environments that support enterprise-wide integration, also proved critical.

CEOs whose organisations had put these foundations in place were 3 times more likely to report meaningful financial returns.

Separate PwC analysis showed that companies applying AI widely across products, services and customer experiences achieved nearly 4 percentage points higher profit margins than those that did not.

CEO confidence has also weakened amid rising exposure to external risks.

Tariffs emerged as a growing concern, with 20 per cent of CEOs globally saying their organisation is highly or extremely exposed to the risk of significant financial loss from tariffs over the next 12 months.

Exposure varied sharply by region, ranging from 6 per cent in the Middle East to 28 per cent in the Chinese Mainland and 35 per cent in Mexico.

Among US CEOs, 22 per cent reported high exposure.

At the same time, cyber risk has climbed rapidly up the agenda.

Thirty-one per cent of CEOs now describe it as a major threat, up from 24 per cent last year and 21 per cent 2 years ago.

In response, 84 per cent said they plan to strengthen enterprise-wide cybersecurity as part of their response to geopolitical risk.

Concerns around macroeconomic volatility also rose, cited by 31 per cent of CEOs.

Worries about technology disruption increased to 24 per cent, while concerns linked to geopolitics rose to 23 per cent.

Concern about inflation eased slightly, slipping from 27 per cent last year to 25 per cent.

Despite the subdued outlook, many CEOs see reinvention as essential for future growth.

More than 4 in 10, or 42 per cent, said their company has begun competing in new sectors over the past 5 years.

Among CEOs planning major acquisitions, 44 per cent expect to invest outside their current industry.

Technology was identified as the most attractive adjacent sector.

International expansion remains firmly on the agenda.

Fifty-one per cent of CEOs plan to make international investments in the year ahead.

The United States continues to be the top destination, with 35 per cent ranking it among their top 3 markets.

The UK and Germany, both at 13 per cent, and the Chinese Mainland, at 10 per cent, also ranked highly.

Interest in India has nearly doubled year-on-year, with 13 per cent of CEOs planning international investment placing it among their top 3 destinations.

However, the survey points to persistent execution gaps. Only 1 in 4 CEOs said their organisation tolerates high risk in innovation projects.

The same share said their company has disciplined processes to halt underperforming initiatives or operates a defined innovation centre or corporate venturing function.

Time pressure is another limiting factor. CEOs reported spending 47 per cent of their time on issues with a horizon of less than 1 year.

This compares with just 16 per cent focused on decisions looking more than 5 years ahead.

“The value at stake across the global economy is increasing, and the window to capture it is narrowing,” Mohamed Kande said.

“The companies that succeed will be those willing to make bold decisions and invest with conviction in the capabilities that matter most,” he added.

PwC carried out the survey between September 30, 2025 and November 10, 2025.

Global and regional figures were weighted in proportion to country nominal GDP to ensure broad representation across major regions.

Industry and country-level results were based on unweighted data from the full sample.