Latest news with #CFOsignals
Yahoo
09-07-2025
- Business
- Yahoo
CFOs shift strategies as economic uncertainty dims growth outlook
Good morning. Economic confidence among finance chiefs has taken a sharp hit. Deloitte's Q2 2025 CFO Signals report, released this morning, gauges the sentiment of 200 finance leaders in North America at companies with at least $1 billion in revenue. The CFO confidence score came in at 5.4, indicating medium confidence, compared to the Q1 reading was 6.4—high confidence. The survey, conducted from June 4 to June 18, found growth expectations declined across every key operational metric. In fact, CFOs lowered projections for revenue, earnings, and capital investments. Fewer than a quarter (23%) of CFOs rate the North American economy as 'good now.' In comparison, 50% of the finance chiefs offered the same optimistic response in the Q1 survey. Just one in three CFOs believe now is a good time to take on more risk—the lowest reading since the third quarter of 2024—and well down from the 60% number in Q1. Meanwhile, 46% of CFOs surveyed say the U.S. capital market is undervalued, and 41% say it's overvalued. More than half (53%) view debt financing as attractive, 41% for equity. I asked Steve Gallucci, the global and U.S. leader of Deloitte's CFO Program, whether tariff uncertainty was the main cause of decline in optimism. He emphasized that broader global uncertainty is the real driver. 'Anytime there's uncertainty—whether it's policy, geopolitics, the economy, or capital markets—CFOs become less bullish,' he explained. While tariffs are one contributing factor, Gallucci noted that the survey doesn't single them out, and that the overall mood is shaped by a constellation of unpredictable forces. He pointed to last year's U.S. presidential election as an example: 'There was a lot of uncertainty around the outcome, and CFO optimism dipped. Once the election was settled, optimism spiked. Now, new uncertainties around policy and the broader environment have taken hold, and sentiment has dropped again.' CFOs cited the top external risk as the economy (53%). With growth expectations and revenue projections falling, how are CFOs responding? Gallucci described the current environment as a recalibration, not a retreat. Rather than pulling back, finance leaders are doubling down on fundamentals: —Sharpening focus on growth drivers: CFOs are revisiting where growth can realistically come from, both organically and elsewhere. —Managing controllable risks: Finance chiefs are prioritizing what they can influence—cost discipline, talent strategy, and technology-enabled initiatives. —Staying active in M&A: Despite risk aversion, there's ongoing interest in mergers and acquisitions, with some signs of increased IPO activity in the first half of the year. Gallucci highlighted the growing importance of technology investments—from disruptive innovations to generative AI. However, he noted CFOs are still moving cautiously on AI adoption. As companies expand their tech platforms, cybersecurity remains a leading external concern (51%). 'Cyber will always stay at the top of the CFO risk list,' Gallucci said, especially as businesses rely more on third-party providers and digital infrastructure. CFOs cited a trio of top internal risks: talent availability (46%), lack of agility/resilience (46%), and cost management (45%)—as nearly equal in importance. Gallucci explained that these risks are deeply interconnected. Disrupted supply chains and potential policy changes are driving scenario planning around cost management. Meanwhile, the talent challenge has shifted from hybrid work logistics to capability gaps: 'Do I have the right skill set within my finance organization to support the future—one that will rely more on technology, automation, and AI?' he explained. CFOs are focused on upskilling, recruiting for new capabilities, and tapping into broader talent pools to ensure their teams are prepared for what's next. Deloitte's Q2 CFO survey reveals a finance leadership community grappling with uncertainty. They're actively working toward solutions to weather the storm of unknowns and position the company for future growth. Sheryl This story was originally featured on
Yahoo
08-07-2025
- Business
- Yahoo
Media Alert: Deloitte CFO Signals™: CFO Confidence, Risk Appetite and Forecasts in Q2 2025
NEW YORK, July 8, 2025 /PRNewswire/ -- What: Deloitte's "Q2 2025 CFO Signals Report" (longitudinal data) Who: Steve Gallucci, National leader of Deloitte's CFO Program When: July 8 at 6 a.m. EST Where: Details: Deloitte's latest CFO Signals™ report — a quarterly gauge of the sentiment of North America's top finance leaders — shows a marked decline in optimism across a number of fronts. Released July 8, the Q2 2025 survey dashboard highlights increased caution among CFOs likely driven by ongoing economic headwinds and geopolitical uncertainty. Highlights from the report: CFO sentiment dropped considerably. The CFO confidence score came in at 5.4, indicating medium confidence. The Q1 reading was 6.4 — high confidence. Growth expectations declined across every key operational metric. Notably, CFOs lowered projections for revenue, earnings and capital investments. Just 23% of CFOs rate the North American economy as "good now." By comparison, 50% of the finance chiefs offered the same response in the Q1 survey. The survey revealed CFOs are getting more risk averse. Only 1 in 3 CFOs believe now is a good time to take on more risk. That's the lowest reading since 3Q24 — and well down from the 60% number in Q1. Top external risks: the economy (53%), cybersecurity (51%) and interest rates (43%). Top internal risks: talent availability (46%), lack of agility/resilience (46%) and cost management (45%). CFOs are split on U.S. capital market valuations: 46% say it's undervalued, 41% say it's overvalued. Sentiment around financing remains mixed: 53% view debt financing as attractive, 41% for equity. Why it matters:This quarterly report is a barometer of CFO sentiment and forward-looking strategies. In an environment demanding both caution and clarity, Deloitte's CFO Signals offers insight into how the stewards of corporate strategy are thinking, investing, and planning for what's next. About DeloitteDeloitte provides industry-leading audit, consulting, tax and advisory services to many of the world's most admired brands, including nearly 90% of the Fortune 500® and more than 8,500 U.S.-based private companies. At Deloitte, we strive to live our purpose of making an impact that matters for our people, clients, and communities. We bring together distinct talents, technologies, disciplines, and an ecosystem of alliances to help tackle today's most complex business challenges and drive long-term progress. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Bringing 180 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte's approximately 460,000 people worldwide connect for impact at Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the "Deloitte" name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see to learn more about our global network of member firms. View original content to download multimedia: SOURCE Deloitte Sign in to access your portfolio
