Canadian CEOs are showing a shift in confidence, prioritizing their companies over the broader economy. KPMG’s CEO Outlook 2026 survey reveals that company confidence now leads economic confidence by 15 percentage points, a reversal from three years ago. Despite global uncertainties, including trade shifts, geopolitical tensions, and economic instability, 60% of CEOs expect annual earnings growth of at least 2.5%. Additionally, 91% plan to increase headcount, and 89% are considering acquisitions, with investments flowing into technology, workforce, and resilience.
The survey highlights a strategic pivot toward internal growth. CEOs are focusing on capabilities they can control, such as AI integration, regulatory compliance, and cybersecurity. While 81% identify AI as a top investment priority, allocating an average of 15.7% of their budgets to it, they also recognize the need for resilience in the face of overlapping pressures like supply-chain disruptions and geopolitical instability.
Growth plans are adapting to uncertainty. Although 91% of CEOs expect headcount growth, the proportion expecting rapid expansion has dropped significantly. Similarly, high-impact M&A appetite has fallen, while moderate-impact transactions are rising. This approach reflects a balance between ambition and flexibility, ensuring companies can navigate disruptions while maintaining growth momentum.
The survey underscores a broader trend: Canadian CEOs are looking inward to shape outcomes, investing in areas where they can exert control. By focusing on AI, workforce readiness, and cybersecurity, they aim to build resilience and adapt to an unpredictable global landscape.