Analysing 1,080 listed companies across 19 sectors, the report finds that corporate balance sheets are strong heading into 2026, despite the gradual easing of fiscal and monetary policy support. Leverage has improved marginally, providing corporates with an average 8 per cent increase in debt headroom year-on-year, while liquidity buffers remain elevated, having risen by 6 per cent.

This financial resilience gives companies the capacity to invest, but capital deployment is becoming increasingly selective. Many sectors have yet to return to pre-pandemic capital expenditure levels, as higher return thresholds, persistent uncertainty and a continued focus on shareholder distributions — particularly share buybacks — temper broad-based investment recovery.

The macroeconomic backdrop remains supportive, with stable global growth expectations and improved country risk amid more predictable macroeconomic conditions, even as policy support fades. Corporates are prioritising disciplined financial policy and balance sheet resilience alongside growth ambitions.

Several themes will shape corporate decision-making in 2026:

• Working capital optimisation: An estimated USD 2.6 trillion is still tied up in working capital globally, representing a massive and low-risk source of internal funding. The cash conversion cycle remains a significant, underutilised source of value creation.

• AI and infrastructure investment: The accelerating adoption of artificial intelligence and investments in technology infrastructure, such as data centres, are driving financing needs and investment opportunities, while also placing increasing strain on power and grid infrastructure.

• China’s outbound momentum: China-based corporates with a global footprint are seeing improved profitability, with overseas exposure contributing positively to performance across nine sectors, despite ongoing geopolitical and structural challenges.

Shoaib Yaqub, Managing Director and Global Head of Capital Structure & Rating Advisory at Standard Chartered, said, “Despite starting 2026 with stronger balance sheets and greater financial flexibility, corporates are likely to remain disciplined around capital deployment. While the capacity to invest exists, decision-making is increasingly selective, with a clear focus on maintaining balance-sheet resilience, preserving or even increasing shareholder returns, and financial optionality alongside growth objectives.”

The CSRA Annual Insights 2026 underscores that as policy support continues to wane and risk dynamics evolve, the ability to prioritise investment decisions within a disciplined financial framework will remain a central theme for global corporates in the year ahead.