The economic landscape for chief financial officers in 2026 presents a familiar array of challenges, from geopolitical instability and persistent inflation to pricing pressures and uncertainty regarding consumer absorption of higher costs. Despite these headwinds, finance chiefs are demonstrating a notable adaptability, according to Stephen Philipson, U.S. Bank vice chair and head of wealth, corporate, commercial and institutional banking. He suggests that CFOs are now better equipped to manage a complex interplay of priorities, a sentiment echoed in recent industry findings.
A survey, conducted by U.S. Bank and encompassing 1,000 senior finance leaders from U.S. businesses with at least $100 million in annual revenue, highlights this balancing act. Geopolitical tension and war emerged as the top risk, cited by 35% of respondents, closely followed by high inflation at 34%. This report, notably, was finalized after the commencement of the Iran war, underscoring the immediate impact of global events on financial planning. While short-term optimism for the U.S. economy has waned, with only 36% expressing a positive outlook over the next 12 months, a more favorable view persists over a three-year horizon, with 58% remaining positive. This divergence reflects a broader C-suite dynamic where companies are simultaneously planning for expansion while carefully monitoring customer tolerance for increased prices.
The challenge of passing cost increases to customers is becoming more pronounced, with nearly half of finance leaders reporting increased difficulty. Nevertheless, companies anticipate passing on an average of 55% of cost increases, a rise from 50% in the preceding 12 months. Philipson notes that the sustainability of this approach hinges on the eventual moderation of current pressures, such as elevated oil prices. Should these elevated costs persist, the situation is likely to become significantly more challenging. This environment necessitates a nuanced approach to pricing, where maintaining margins can no longer rely solely on simply pushing all increases downstream.
Despite these complexities, CFOs are not retreating into a purely defensive stance. While cost-cutting remains the primary focus for 39% of finance leaders, revenue growth has surged in priority, climbing to the second spot at 31% after ranking seventh in mid-2024. This shift indicates what Philipson describes as an “and” mindset, rather than an “or” mindset, suggesting a dual pursuit of both efficiency and expansion. This forward-looking approach extends to dealmaking, with nearly half of respondents, 49%, indicating a likelihood of pursuing acquisitions within the next year. Concurrently, 71% have either delayed or scaled back at least one major investment project, though only 12% have canceled projects outright.
Philipson views this strategic agility as a testament to companies’ increased adaptability, honed through navigating successive shocks like the Covid-19 pandemic and various trade tariffs. Larger corporations, in particular, appear better positioned to absorb risk due to their scale, diversified operations, and access to sophisticated tools for hedging and supply chain flexibility. Artificial intelligence also represents a shifting focus, moving from experimental phases to a stage of accountability. Finance leaders are now tracking the return on investment for 41% of their AI initiatives, with 47% of these measured investments already yielding positive returns.
The overarching message from these trends is one of cautious yet determined progress. CFOs are acutely aware of the volatile landscape, yet they are unwilling to allow uncertainty to paralyze their strategic initiatives. As Philipson encapsulates, freezing in the face of volatility is not an option; continued adaptation and forward momentum are essential for navigating the contemporary business environment. This blend of prudence and ambition defines the current leadership in corporate finance.
