Corporate confidence is near its highest level since the Covid pandemic, according to Fidelity International’s 2026 Analyst Survey.
The firm gathered insight from 122 equities and fixed income analysts in early March. The analysts had collectively attended 20,000 company meetings globally.
The adoption of artificial intelligence (AI) and the related ‘once in a generation’ investment boom were among the main drivers of this confidence, the researchers found.
Returns on capital and dividend payouts are widely expected to improve, with more than half of all the analysts surveyed forecasting dividends to rise.
Fidelity noted that while the benefits of AI have initially been concentrated in tech companies, investment by the likes of Microsoft, Meta, and Google in AI is not only a driver of stockmarket valuations.
While a ‘K-shaped’ recovery has been evident so far, companies expect some of the money from the AI boom to spread into the wider economy over time.
Main Street continues to feel cost pressure, but the ‘wall of capital’ will eventually trickle down to people such as the builders and electricians who are constructing the new factories and data centres, the report stated.
See also: Markets whipsaw as Trump reveals peace talks with Iran
When that happens, the beneficiaries will widen out, with higher living standards emerging and a better breadth of stockmarket returns, Fidelity said.
The global economy is not out of the woods yet though, as elevated raw material costs and slowing wage growth put pressure on consumers, creating downside risks. The ongoing war in the Middle East is exacerbating this.
Niamh Brodie-Machura, CIO, equities at Fidelity International, said: “Our global analyst team’s company-level insights show this is not just a narrow technology rally.
“AI investment is cascading through power and industrial supply chains, extending the cycle beyond the largest tech platforms.
“The investment backdrop is supportive, but it is becoming more selective. Companies with pricing power, strong balance sheets and exposure to AI are positioned differently from those reliant on stretched consumers.
“Against a more volatile geopolitical backdrop, the survey’s overall message remains that AI investment is reshaping the corporate cycle,” she continued.
“The breadth of spending across infrastructure and supply chains suggests that the impact extends beyond technology giants.
“However, the interaction of prices, politics and wage dynamics means the benefits are not yet evenly distributed, reinforcing signs of a K-shaped global economy.”
