Canada CEO Outlook

Acclimated to uncertainty, Canadian CEOs refuse to stand still despite volatile markets.

In brief

• Despite geopolitical and macroeconomic uncertainty, Canadian CEOs’ appetite for M&A climbed from 46% to 62% since the start of the year.
•  Some 80% of leaders are also ramping up their focus on AI investments, even as evolving regulation continues to create complexity.
• The ability to make investments is driven by tightening execution and prioritizing productivity.
• This willingness to move forward despite continued market volatility is a strong indicator that Canadian organizations are moving beyond resilience to the next phase of growth.

In this nonlinear, accelerated, volatile and interconnected (NAVI) landscape, CEOs who connect strategy, transactions and transformation through an integrated approach will be strongly positioned to channel that confidence into sustainable momentum.

Clarity may be illusive, but Canadian CEOs are forging ahead anyway. Our latest EY-Parthenon CEO Outlook Survey polled 1,200 leaders around the world — including Canada — in March and April 2026. The numbers show that while CEO confidence is moderate, it’s holding strong as leaders here adapt to this new operating environment and look for opportunities layered within disruption.

CEOs rethink volatility to laser-focus on growing, strengthening and improving the business

Large-scale disruptive forces continue to shape CEOs’ decisions. Canadian leaders say three key drivers are most likely to influence decisions over the next 12 months:

1. Geopolitical tensions, instability and conflicts
2. Macroeconomic volatility
3. Talent shortages and the workforce capability gap

But CEOs in Canada have begun to think differently about these forces. They increasingly view mega trends as structural shifts that will affect operations well into the future. These CEOs understand business is now functioning in a NAVI world that brings challenges but also opportunities. And they remain determined to invest in the business, drive growth and build progress.

Canadian CEOs show growing interest in M&A, AI investments and other steps forward despite uncertainty

In Canada, 62% of CEOs now say they intend to pursue M&A opportunities, up from 46% heading into January 2026. Still, the type of transactions they’ll pursue is changing. Leaders are less focused on opportunistic gains and more interested in transactions capable of fuelling disciplined, long-term growth. For example, 76% of CEOs say they’ll prioritize disciplined growth. 

That momentum extends to AI and other emerging tech investments. Among CEOs, 30% say AI regulation increases compliance requirements and operational complexity. Regardless, they’re taking action: 80% of CEOs say planned AI investments are up over 2025.

They’re balancing their AI investments to:

1. Uplift quality (27%)
2. Improve incremental cost-out (25%)
3. Transform costs (25%)
4. Evolve business models (23%)

It’s important to note that leaders are more likely to be optimistic about investment plans and technology than they were just a few months ago:

As CEOs embrace this NAVI working world, challenges are becoming chances for progress

Linking strategy, transactions and transformation with an ecosystem approach can help businesses make the most of today’s reality. To move in this direction, Canadian CEOs can start by asking three key questions now:

1. Tighten financial discipline: prioritize high-return investments, cut inefficiencies and protect funding for long-term growth.
2. Build resilience to geopolitical shocks: diversify supply chains, stress-test scenarios and embed political risk into decision-making.
3. Continuously assess transaction opportunities — from those designed to optimize portfolios and free up capital through noncore sales and spinoffs, to strategic acquisitions to prudently grow the organization

Reimagine strategy to address real-world challenges in Canada and beyond

Deep functional and sector expertise. Innovative AI-powered technology. Investor mindset. We connect all three as we work with CEOs, boards, private equity and governments.

At EY-Parthenon, we design, develop and deliver integrated solutions, helping you manage complexity and achieve strategic objectives. Our professionals provide outside-in insights, bringing together deep industry knowledge with forward-looking perspectives on sector convergence and future opportunities. Combined with our innovative data analytics and tech capabilities, we can help address your toughest strategic issues.

This is how we help shape your future with confidence.