Finance leaders project modest revenue and profit gains in 2026

Core Insights - Finance leaders expect modest gains in revenue and profit as they approach the end of 2025 [1] - Revenue is projected to grow by approximately 2% over the next 12 months, an increase from 1.5% in the previous quarter [2] - Profit growth is anticipated at about 0.8%, up from just 0.1% in the last quarter [2] Economic Outlook - There is a decline in optimism regarding the U.S. economy, with only 28% of respondents feeling optimistic, down from 34% in the third quarter [3] - In contrast, 41% of respondents expressed optimism about their own organizations' future [3] - 48% of respondents are optimistic about expansion plans in the next 12 months [3] Challenges and Concerns - The primary challenges cited by respondents include domestic economic conditions, inflation, and domestic political leadership, with the latter reaching its highest ranking since Q2 2021 [4] - Despite concerns, 75% of respondents reported that the longest federal government shutdown had only a minor impact on operations [5] Business Sentiment - There is a mixed sentiment among business executives, with some improvements in profit and revenue projections despite a slight decrease in overall economic optimism [6] - Concerns regarding tariffs have decreased, with 49% of respondents indicating moderate to significant uncertainty in business planning due to tariffs, unchanged from Q1 but down from 58% in the previous quarter [6] - The primary impact of tariffs is seen as increased consumer prices, which could adversely affect businesses, with 28% of respondents citing this concern, down from 30% in Q3 and 35% in Q2 [7]