economy
February 26, 2026
The global M&A boom is rolling into 2026 as AI sparks deal frenzy
Markets are betting that the global M&A surge has not yet finished, as Wall Street recovered its appetite for large-scale financings.
TL;DR
- Global M&A activity surged to a record $4.9 trillion in 2025, exceeding the previous high set in 2021.
- Deal-making accelerated due to central bank interest rate cuts, improved valuations, and increased spending on artificial intelligence.
- 80% of M&A executives expect deal activity to sustain or increase in 2026, citing improved macroeconomic conditions and assets awaiting exit.
- Scale and strategic growth are seen as primary drivers for deal decisions in 2026.
- Companies are reassessing portfolios due to geopolitical risks, economic fragmentation, and uneven global growth.
- The pool of capital available for M&A hit a 30-year low in 2025, forcing executives to focus on transactions with clear returns.
- Private capital is now central to deal-making, with private equity accounting for roughly 40% of global M&A activity.
- AI-related demand is fueling large-scale transactions, with mega-deals (>$5 billion) accounting for over 73% of the increase in deal value in 2025.
- Heavy capital spending in AI, particularly on data centers and infrastructure, could constrain M&A activity in the near term.
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