CFO Survey: Seeking growth in volatile times

What a difference a year makes. Just 12 months ago, many CFOs were riding a wave of post-pandemic optimism — confident in the recovery, bullish on growth, and investing accordingly. But amid rising geopolitical tensions, persistent inflation, and global economic uncertainty, that mood has shifted. The momentum that once powered extensive hiring and rapid expansion has cooled. In its place: a more measured mindset focused on flexibility and resilience.

Yet even in this environment, finance leaders aren’t standing still. They’re adjusting their game plans and, where conditions are right, leaning in to pursue smart, strategic growth.

The inclination to move forward, even in an unpredictable environment, is largely driven by AI, says Navneet Govil, SoftBank’s executive managing partner and CFO. “The emergence of the AI revolution is driving productivity gains and expediting product development cycles,” Govil says. “When there is uncertainty, that’s exactly when you want to seize the opportunity and leverage technologies, like AI, that will help you get ahead.”

Here’s what the data from our annual CFO survey, conducted in May 2025, reveals about the outlook and priorities of today’s global finance leaders.

After several years of growing confidence, CFOs are sounding a more cautious note. More than half (55%) say they’re less optimistic about the state of the global economy than they were a year ago — more than triple the 15% who said the same last year. Only 19% reported feeling more optimistic this year, a sharp drop from 51% in 2024. (The survey was fielded in May, before equity markets surged to new heights after a sharp drop in April.)  

Diverging outlooks in the United States and Europe 

The road ahead is foggy. A majority (57%) expect continued economic volatility in the next 12 months, and 30% are bracing for a mild recession.

The regional breakdown is particularly telling. In the U.S., economic anxiety is highest: 67% of CFOs feel less optimistic and 48% predict a mild recession. By contrast, European CFOs have the highest levels of economic confidence, with 40% saying they feel more optimistic — or more than double the global rate.

Trade policies and geopolitics are top concerns

Unsurprisingly, the biggest drivers behind this sharp shift in sentiment are trade tensions. A majority of CFOs (58%) cite trade policy and tariffs as the No. 1 factor that could have a major impact on their company’s performance in 2025, closely followed by market volatility (51%), and geopolitical issues (46%). 

Ryan Davies, a finance professor at Babson College, says that what makes the current climate particularly challenging is that a lot of change is happening all at once. “Unlike traditional economic downturns, you don’t really know where the disruption is going to come from,” he says. “It might be one of your customers that has a problem with one of their customers. Or it could be a regulatory change that affects how you do business, a customer boycott, or risks to commodities like electricity prices.”

Even as economic concerns mount, CFOs are not retreating into full defensive mode. In fact, many are actively preparing to play offense, as they seek to build resilience in their companies. CFOs at 60% of companies say they are planning to raise capital in the next 12 months — through equity, debt, or both. That’s a 10-percentage point jump from last year, when overall sentiment was considerably more upbeat.

“Companies in the portfolio are raising cash not because they need to, but because they see an opportunity to grow and scale their businesses,” Govil says. “This is a moment when they can tap the markets because of strong institutional investor interest in their business models.” 

M&A expected to remain strong 

M&A appetite also remains surprisingly strong: 60% expect deal activity in their sector to rise over the next 12 months, and 23% plan to increase their own pace of acquisitions. Just 4% anticipate making fewer acquisitions.

This reflects a belief that turbulent markets can create outsized opportunities, especially for companies with strong balance sheets or access to capital. Strategic acquisitions can deliver long-term value by accelerating product development, entering new markets, or acquiring key talent and technology.

“The most successful companies are searching for those opportunities to reshape or change the market,” says Michael Hitt, professor emeritus of management at Texas A&M University Mays Business School. “Firms that are standing still or pulling back can lose.”

Smart risk-taking beats blind caution

Still, finance leaders must strike a careful balance between offense and defense. Michael Roberto, a management professor at Bryant University, says that instead of becoming “Dr. No” — rejecting every project that seems risky — CFOs can adjust their lens to consider how investments might be structured differently. “For M&A, this could be a series of smaller bets, instead of one giant one,” says Roberto. “You invest, then learn and assess conditions before deploying more.”

R&D and innovation remain priority investments

Beyond acquisitions, many CFOs are also betting on innovation. Half say their companies will increase R&D spending in the year ahead, positioning themselves for long-term competitiveness even amid short-term headwinds. The smartest CFOs, in other words, aren’t simply riding out the storm. They’re plotting their next move.

Explore the full survey results, segmented by region, sector, and stage, on Sōzō Pulse.