Cutting costs remains finance leaders’ top priority, but growth has moved sharply higher on the agenda, according to the latest U.S. Bank CFO Insights Report.
Thirty-nine percent ranked cost cutting as their top priority (up from 33% in mid-2024). Revenue growth rose from seventh to second (31%). In addition, 30% said contributing to business-wide digital transformation is a top priority.
Deal appetite is up, with nearly half (49%) saying they are more likely to make acquisitions in the next 12 months than the last year, with bolt-on acquisitions are the most likely deal type. A bolt-on acquisition typically are a larger company acquiring a smaller firm that offers complementary services, products or geographical advantages.
Feelings about the economy in the near-term have cooled, according to the survey. Thirty-six percent reported a positive 12-month outlook for the U.S. economy, down from 42% in mid-2024. The longer-term view, however, is more optimistic, with 58% reporting a positive three-year outlook. Finance leaders at larger organizations are more upbeat than those at smaller firms. More than half (57%) of those at companies generating more than $5 billion in annual revenue say they feel positive about the U.S. economy over the next 12 months, compared with just 24% at companies with revenue from $100 million to $249.9 million.
“CFOs are managing through real cross-currents right now, with elevated geopolitical and inflation concerns,” said Stephen Philipson, U.S. Bank vice chair and head of Wealth, Corporate, Commercial and Institutional Banking. “It’s no surprise that those pressures are weighing on near-term sentiment. But on the ground, in investment and business activity, we’re seeing more confidence. Leaders are still pursuing growth while maintaining cost discipline and sharpening risk management.”
A few other key report findings include return on investment for artificial intelligence and cost pressures.
According to the survey, CFOs track ROI on 41% of AI investments on average, and where measured, 47% generate a positive return. Cost pressures persist and finance leaders said that passing them along is getting harder. Forty-nine percent said it’s increasingly challenging to pass cost pressures to customers, yet businesses plan to pass through 55% of cost increases on average, up from 50% in the past 12 months.
