The CEO Outlook research found that 82% of chief executives surveyed felt very or somewhat optimistic about the business landscape over the next 12 months, up from 67% in September 2024, when the survey was last conducted.

Over three-quarters ( 78%) of UK chief executives in the survey reported feeling optimistic about revenue growth.

Additionally, almost half ( 45%) of business leaders reported that they are intending to prioritise improving customer engagement and retention in the next 12 months.

Almost a fifth ( 19%) of leaders said they need to increase the speed of transformation, while 18% said they need to improve transformation outcomes through greater collaboration across functions and the c-suite. Almost a quarter ( 24%) reported that cost and return on investment (ROI) is influencing their organisation’s approach to digital transformation initiatives.

Almost all respondents ( 99%) said they expect to ‘actively’ pursue transaction initiatives over the next 12 months. Of these, 62% said they will look at mergers and acquisitions (M&A) – up from 40% in September 2024. A further 62% cited joint ventures or strategic alliances, and 45% said they will consider divestments, spin-offs or initial public offerings (IPOs).

Silvia Rindone, UK&I managing partner for strategy and transactions, EY, said: “Our latest CEO Outlook reflects a resilient and forward-thinking mindset among UK chief executives.

"However, with nearly a quarter citing cost and ROI as key factors in shaping their digital transformation strategies, it’s clear that businesses are seeking a balance between innovation and sustainable growth. The coming year will be crucial for organisations to refine their transformation approach and unlock long-term value."

The survey is of 100 UK chief executives, part of a global survey with a sample size of 1,200. Chief executives surveyed work in the following sectors: consumer and health; financial services; industrial and energy; infrastructure and TMT. 

Over three-quarters of respondents ( 78%) are CEOs of publicly listed companies.