US M&A activity insights: June 2026

Sector highlights

M&A activity from April through June registered a significant growth in deal value compared with a year earlier across most of these sectors:
 

Technology

M&A momentum remained strong, with deal value doubling YoY and volume rising 29%, reflecting sustained appetite for AI, software and digital infrastructure assets. M&A activity reflected a focus on platform consolidation to unlock scale benefits, expand market reach and enhance competitive positioning. Buyers prioritized AI model development, coding and automation capabilities alongside connectivity and compute-enabling platforms that strengthen ecosystem positioning.

Across industries, non-tech companies are increasingly buying technology assets to accelerate AI adoption, modernize operations and build capabilities that would take too long to develop organically.

Power and utilities

The sector registered a significant surge in deal value, increasing by 341%, with volume rising 50%, reflecting strong investor appetite for utilities, grid modernization and power infrastructure tied to electrification demand. Activity pointed to growing convergence between power generation and AI infrastructure, with capital targeting assets that expand scale and support long-term contracted cash flows. Buyers focused on scaled utility platforms, renewable generation portfolios and next-generation baseload technologies.

Aerospace and defense, mobility

Dealmaking accelerated sharply, with deal value up 1,562% and volume increasing 169%, indicating a major step-up in strategic repositioning. Activity reflected demand for next-generation mobility and defense-adjacent technologies, including advanced batteries and aerospace applications. Buyers focused on portfolio separation and simplified ownership structures to unlock operational focus, capital flexibility and shareholder value.

Life sciences

M&A strengthened sharply, with deal value up 183% and volume rising 80%, driven by strategic appetite for pipeline depth, late-stage assets and platform capabilities. Activity pointed to broader portfolio diversification, with capital deployed toward high-growth therapeutic areas, research tools and scalable manufacturing platforms. Buyers focused on precision oncology, immunology, cell therapy and next-generation biologics technologies, prioritizing assets with near-term launch potential and stronger long-term growth visibility.

Media and entertainment 

Despite deal values remaining steady, M&A volume increased 50% YoY, reflecting a broader pickup in dealmaking led by mid-market transactions, with megadeals also contributing. Activity pointed to continued interest in combining physical-experience-led assets with digital monetization and cross-selling opportunities. Buyers focused on integrated entertainment ecosystems, premium leisure assets and recurring revenue models.

Looking ahead

As the M&A market moves into the second half of 2026, the backdrop points to a measured but active deal environment. Sixty percent of global dealmakers expect M&A and financing activity to increase over the next six months, while 29% anticipate working on transformative transactions exceeding US$10 billion in the second half of 2026 (SS&C survey).¹

While confidence continues to improve, activity remains concentrated around high-conviction opportunities, with organizations becoming increasingly selective in how and where they deploy capital.

The risk environment, however, is continuing to be increasingly complex. The recent collapse of the interim US-Iran ceasefire has renewed uncertainty around Middle East stability and global energy markets. Further escalation around the Strait of Hormuz could raise commodity price volatility and affect financing conditions, particularly for transactions with significant energy or supply chain exposure.

Recent market behavior suggests geopolitical shocks are more likely to delay transactions than derail them. AI-led capability acquisition, portfolio reshaping, carve-outs of noncore assets and sector consolidation are expected to remain key deal themes, even as the broader recovery stays uneven and megadeals account for a disproportionate share of activity.

In this environment, activity is likely to concentrate around opportunities with a strong strategic rationale and a clear path to returns. Successful acquirers will be those that pair strategic clarity with disciplined execution and the ability to translate deals into measurable business value. As organizations pursue increasingly targeted and transformational transactions, effective integration planning, capability adoption and a sustained focus on value realization will become critical differentiators.