Global M&A activity expected to increase in 2026 after $4.9 trillion recovery, AI growth

Global merger and acquisition (M&A) activity is on track to maintain its rapid pace throughout 2026 following a notable 40 percent increase in 2025, resulting in deal values reaching a substantial $4.9 trillion. This surge marked the second-highest level ever recorded, reflecting an optimistic outlook for the year ahead. A survey encompassing 300 executives unveiled that 80 percent of respondents anticipate either maintaining or escalating their deal-making endeavors in 2026. This positive sentiment is underpinned by the stabilization of macroeconomic conditions and a significant accumulation of private equity and venture capital assets poised for divestment. Industry experts acknowledge that traditional growth models are approaching their limits, prompting the need for companies to reinvent themselves, with M&A emerging as a critical tool in this transformation.

Suzanne Kumar, executive vice president of Bain & Company’s global M&A and Divestitures practice, emphasized the potential for another robust year in M&A following the remarkable rebound witnessed last year. She underscored the urgency for companies to innovate and adapt to major technological disruptions, the transition to a post-globalization economy, and the shifting landscape of profit pools. M&A activities are positioned as pivotal in driving this reinvention in 2026.

Key drivers for M&A in 2026, as identified by Bain, include advancements in artificial intelligence (AI), robotics, and quantum computing. A notable trend is the increasing incorporation of AI components in approximately half of all technology sector deals, with non-tech companies also leveraging acquisitions to assimilate digital solutions. Moreover, geopolitical transformations and post-globalization shifts following the tariff shocks of 2025 are compelling firms to realign their global presence and minimize exposure to unfavorable markets through M&A and divestitures. Over 50 percent of surveyed companies are preparing assets for sale to streamline focus and capitalize on elevated market valuations.

The utilization of artificial intelligence throughout the deal cycle is expanding rapidly, with 45 percent of executives integrating AI tools in 2025, doubling the previous year’s adoption rate. One-third of dealmakers have systematically embedded AI into their operations, with more than half acknowledging its transformative impact on transaction execution. AI is leveraged for various purposes, including dynamic pipelines, enhanced intel, accelerated synergy realization, streamlined integration, and deeper stakeholder insights. Kumar highlighted the indispensable nature of AI in M&A, with early adopters gaining a substantial edge in dealmaking processes.

In 2026, companies are facing the challenge of high capital demand despite a vibrant market in the previous year. Bain outlines five core strategies for navigating this landscape, advocating for grounding M&A efforts in a new strategic paradigm, ensuring that major investments from 2025 deliver value, adopting a comprehensive view during due diligence, nurturing internal M&A capabilities, and refreshing strategic capital allocation plans. Sector-specific data showcases notable trends, such as a rise in banking M&A driven by modernization needs and favorable regulations, and record consolidation in the oil and gas industry to adapt to changing market dynamics.

The momentum of M&A activities in 2026 has already been evident with significant deals announced across sectors. In a transformative move, Netflix proposed an acquisition of Warner Bros. Discovery valued at nearly $83 billion to fortify its content library and consolidate its presence in the streaming market. The medical technology domain saw Boston Scientific agreeing to acquire Penumbra for around $14.5 billion, aiming to enhance their portfolio in vascular procedures. The software industry’s pivot toward AI was exemplified by Hg Capital’s $6.4 billion acquisition of OneStream, emphasizing the premiums paid for established enterprise platforms. The energy sector’s consolidation continued with Vistra Corp’s acquisition of Cogentrix Energy, reflecting the industry’s response to escalating power demands in the U.S.

PwC’s 2026 outlook aligns with Bain’s projections, estimating a capital requirement of $5 trillion to $8 trillion over the next five years for AI-enabled infrastructure. This era of “Giga-deals” is reshaping the strategies of sovereign wealth funds, with entities like Mubadala aiming for substantial AI-focused investments to solidify their position in the evolving tech landscape.