CEOs are expressing increasing confidence and displaying resilience as they navigate a rapidly shifting geopolitical landscape, according to the latest EY CEO Outlook, with ongoing volatility acting as a catalyst to rethink supply chains, business models, markets and investment priorities.
The research, which involved more than 1200 CEOs globally, including 40 senior CEOs here in Ireland, found that while global economic sentiment remains muted, with almost six in ten (57%) of global CEOs expecting geopolitical and economic uncertainty to last well beyond a year, Irish CEOs are notably more confident in their own performance.
Six in ten (60%) Irish CEOs expect profitability over the next year, while sentiment in relation to revenue growth is also positive. This confidence stems from a pragmatic but proactive approach to strategy, with leaders increasingly prioritising AI and automation, business model transformation and capability-building through M&A.
Particularly notable is the focus from Irish CEOs on regionalisation, with 77% saying that producing and sourcing closer to home has become a long-term strategy. Seven in ten (70%) CEOs have placed regionalisation at the core of their strategy, across operations, supply chains, research and technology.
While Irish CEOs remain confident, the survey also provides some cautionary signals, as they are facing a complex mix of financial and operational pressures. Notably, nearly eight in ten (78%) cited optimism around input costs, up from 48% in May. However, the cost of energy was cited as an area of particular concern, with 50% of leaders saying it is directly affecting operational performance.
Regulatory complexity is another challenge, with a third citing competing regulations as a barrier to change. Talent constraints are another key area of concern, with confidence in the ability to attract and retain talent declining sharply from 55% in the previous research to just 35%. The drop is most pronounced in high-demand sectors, particularly those requiring digital and technical skills.
Globally, most CEOs anticipate that prolonged uncertainty will persist, with 57% of CEOs expecting uncertainty to last beyond a year. Despite this, the survey’s CEO Confidence Index – which measures sentiment across strategy, operations, and investment- stands at 83, up seven points since May.
Helena O’Dwyer, Partner and Head of Strategy at EY-Parthenon Ireland, said: “Our latest CEO survey finds that, in spite of the ongoing global geopolitical and economic headwinds, CEOs are expressing confidence in their organisation’s future and their ability to lead through uncertainty.
Following a period earlier this year when many firms adopted a ‘wait and see’ approach, we are now seeing a shift toward action. Nearly six in ten Irish CEOs say they plan to increase investment in portfolio transformation and strategic M&A over the next 12 months. What stands out from our conversations with clients is a clear focus on divesting assets that are no longer delivering value, simplifying operations, and sharpening core capabilities.
As geopolitical change reshapes global trade flows, regionalisation is emerging as a cornerstone of strategy. Interestingly, CEOs view this shift to regionalisation and localisation not as a temporary adjustment, but as a long-term strategic move, with leaders reconfiguring supply chains and operations to stay closer to customers and reduce global exposure.”
Building for performance and resilience
Irish CEOs are backing their confidence with action. Beyond those accelerating transformations (58% are planning to reshape their business this year), a further 40% plan to maintain current investment levels, signalling a sustained commitment to reshaping business portfolios. Funding strategies are measured; many are turning to debt or divesting non-core assets, while internal growth continues to be a key driver.
Mergers, acquisitions and partnerships remain central to CEO strategy, with 98% signalling intent to pursue deals in the year ahead. Many CEOs are targeting companies that offer practical gains, such as new technology, skilled talent or access to untapped markets. Innovation is a strong motivator, with 38% acquiring to bring fresh ideas into their organisations. Integration planning and risk-sharing through joint ventures are increasingly seen as tools to accelerate transformation and build long-term resilience.
External pressures are shaping these strategies. 30% of Irish CEOs expect tariffs to weaken financial performance, prompting leaders to reconfigure supply chains, invest in automation, and adjust pricing models. The data suggests CEOs are no longer treating tariffs as isolated risks, but as part of a broader pattern of volatility, driving a shift toward more flexible and resilient operating models.
Amid this uncertainty, Ireland continues to stand out as a preferred investment destination. Nearly half of Irish CEOs rank it among their top three priorities for capital allocation over the next year, ahead of the United States and the United Kingdom. Stability, infrastructure, and access to skilled talent are cited as key enablers, reinforcing Ireland’s role as a resilient base for growth.
Carol Murphy, EY Ireland Partner and Head of Markets, said: “Irish CEOs are focusing transformation on targeted actions that deliver results and build long-term resilience. Their priorities are clear: secure critical supply chains, allocate capital where it delivers long-term value, and double down on technology that drives measurable performance, including embedding automation and AI.
We’re seeing a clear pivot toward strategic investment: whether through targeted transformation, capability-building deals, or regionalisation strategies that bring operations closer to customers. Our data shows that nearly all CEOs plan to pursue M&A or partnerships in the year ahead, and the focus is firmly on practical gains: technology, talent, and market access. This is not about chasing scale, it’s about building resilience.”