M&A Market Roars Back to Life: 2026 Poised for Major Deal Surge as Confidence Returns
The mergers and acquisitions (M&A) engine, after a period of cautious idling, is revving up for a powerful run in 2026. A flurry of high-profile deals in January—including Netflix's updated $82.7 billion bid for Warner Bros. Discovery and Global Payments' $24.25 billion acquisition of Worldpay—has set a confident tone for the year ahead, signaling a potential return to pre-pandemic dealmaking fervor.
This renewed momentum is backed by a notable shift in executive sentiment, according to a trio of recent surveys from Deloitte, EY, and Bain & Company. After navigating a prolonged period of economic crosscurrents, corporate and private equity leaders are displaying a more pragmatic optimism, ready to deploy capital for strategic growth even in the absence of perfect conditions.
A Tale of Two Markets
Deloitte's survey of 1,500 executives frames the current environment as "a tale of two markets." While confidence has rebounded, expectations are tempered. "Dealmakers have regained their footing, executing well-developed strategies in a mixed economic climate," noted Adam Reilly, Deloitte's national managing partner for M&A. The data reveals a nuanced picture: 90% of corporate leaders foresee more deals in 2026, yet significantly fewer anticipate a dramatic surge in volume compared to late 2024.
The greatest challenge cited is uncertain market conditions, highlighting a landscape where optimism is balanced with vigilance. Reilly points to an emerging "two-market" dynamic, where a potential surge in larger, transformative deals could be complemented by steady activity in the small to mid-market segment, each serving different strategic goals.
U.S. CEOs Take the Lead
The bullishness is particularly pronounced among American executives. EY's latest CEO Outlook Survey found 62% of U.S. chiefs plan to actively pursue M&A in the next year, a sharp increase from 35% in September 2025 and well above the global average of 53%. "U.S. CEOs are pivoting from defense to offense," said Mitch Berlin of EY-Parthenon. "They're leveraging deals to acquire critical technology, talent, and scale to drive transformation, rather than waiting for an ideal moment."
This strategic intent is heavily influenced by the global landscape, with 85% of leaders reporting recent changes to investment plans due to geopolitical and trade policy shifts.
AI Becomes a Deal-Making Power Tool
Bain's annual report, which notes global M&A value jumped 40% to $4.9 trillion in 2025, identifies artificial intelligence as a rapidly accelerating force. Adoption of AI in the deal cycle more than doubled last year, with one in three dealmakers now using it systematically. "AI is quickly becoming indispensable to M&A," stated Suzanne Kumar of Bain's global M&A practice. "Early adopters are gaining a concrete advantage in sourcing, due diligence, and integration, creating value across the entire process."
However, a significant hurdle remains: capital allocation. Despite robust activity, the proportion of corporate capital directed to M&A hit a 30-year low in 2025, as companies prioritized internal reinvestment. This elevated competition for funding is raising the bar for deals, making disciplined strategy and clear value creation more critical than ever.
Reader Reactions:
"Finally, some positive momentum! This is exactly what the market needs to break out of its cautious shell. Companies sitting on cash need to put it to work for growth and innovation." – David Chen, Portfolio Manager at Horizon Capital.
"Let's not get carried away by survey hype. 'Pragmatic optimism' is consultant-speak for 'we're still scared but feel pressure to do something.' Most of this is just financial engineering that does little for the real economy or workers." – Maya Rodriguez, Economic Policy Analyst at the Institute for Sustainable Growth. "These mega-deals often lead to job cuts, reduced competition, and higher prices for consumers. The focus should be on organic investment, not just shuffling assets on a spreadsheet."
"The AI angle is the real story here. It's not just about deal volume; it's about fundamentally changing how deals are identified, evaluated, and integrated. Firms that lag in adopting these tools will be at a severe disadvantage." – Arjun Patel, Managing Director at TechBridge Advisors.
This analysis is based on reporting and survey data first published by TheStreet on February 2, 2026.