As we head into the final stretch of 2025, the markets are ending the year on a high note, but not without a fair share of uncertainty. We’re seeing strong equity performance even as inflation, regulation, and economic headwinds persist, not to mention the ongoing government shutdown. For finance leaders, this means walking a fine line: staying cost-conscious while continuing to invest in AI and digital innovation.
At DFIN, we’re seeing this shift firsthand as clients look for smarter ways to balance efficiency, agility, and growth. In Q3 2025, we saw software sales climb 10% year-over-year, now contributing to more than half our total business. Operational discipline drove adjusted EBITDA up nearly 15% compared to last year, with EBITDA margins expanding to 28.2%.
Market Performance and Economic Headwinds
It’s been quite a year for the markets. Global indexes hit record highs in 2025, thanks largely to a surge in mega-cap tech names. About 37% of U.S. market value is now concentrated in the largest tech "Magnificent Seven", which includes Nvidia, Microsoft, Amazon, Meta, Alphabet, Apple, and Tesla. Much of that growth has been fueled by excitement around AI and a more flexible Federal Reserve, which kicked off rate cuts in September and debating if and when to cut heading into early 2026.
Still, the picture isn’t entirely rosy. The inflation rate is hovering stubbornly above target at 3%, job growth has cooled, and real GDP is projected to land near 1.6% for the year. The result? A “new normal” where investor optimism runs high, but the underlying economy is showing signs of struggle.
Shifting CFO Sentiment and Priorities
CFO sentiment reflects that push and pull. While confidence in the U.S. economy ticked up slightly in Q3, optimism about individual company performance has dropped. According to our recent CFO Macrotrend Report, only 58% of CFOs rate their company’s performance as “excellent” this year, down from 92% last year.
Looking ahead, CFOs are shifting priorities for 2026 to managing AI and automation risk, bolstering cybersecurity, tackling evolving ESG and regulatory demands, and mitigating lingering inflation pressures. M&A appetite has dropped sharply too with fewer than 40% of CFOs planning to pursue deals next year, down from 75% a year ago. With higher rates and tighter regulations, external growth has taken a back seat to optimizing what’s already in place.
The Dual‑Pronged Strategy: Play Defense and Offense
In response, finance teams are pursuing a balance between cost control and innovation. On the defensive side, most CFOs are tightening budgets—61% of finance leaders are reshaping workflows and budgets to stay ahead of shifting tariffs and trade regulations. At the same time, many are shoring up their infrastructure: 76% are expanding cybersecurity investments, while 39% are also investing more in ESG reporting capabilities.
But it’s not all about cutting back. On offense, companies are leaning into transformation. Nearly 40% of finance teams now have dedicated AI budgets, and 65% of CFOs plan to boost AI spending even further in 2026, particularly in areas like forecasting, risk analysis, and data management. This strategic focus is already redefining the CFO role, shifting it from compliance oversight to a driver of business growth.
In this environment of rapid change and heightened scrutiny, solutions like ActiveDisclosure empower finance teams to stay ahead. By streamlining financial and ESG reporting, enhancing data transparency, and supporting collaboration, ActiveDisclosure helps leaders respond quickly to market shifts and regulatory updates. As CFOs balance innovation with risk management, leveraging platforms like ActiveDisclosure ensures they have the clarity and agility needed to drive growth and confidently navigate the challenges of 2026.
What’s Next?
As 2025 winds down, finance leaders are navigating the tension between innovation and restraint. The AI boom offers unprecedented potential, but it also brings new layers of risk and scrutiny. Success in 2026 will require not just optimism—but clear data, sharper insight, and the ability to pivot quickly.
