European CFO pessimism reaches four-year high amid geopolitical risks

European chief financial officers (CFOs) are experiencing the highest levels of pessimism in four years, according to the Deloitte European CFO Survey Spring 2026. The study, conducted across 12 European countries, indicates that 48% of CFOs are less optimistic about their companies’ financial prospects than they were three months ago, a significant increase from 25% in autumn 2025.

Geopolitical risk has emerged as the primary concern, surpassing general economic uncertainty. Key drivers of this anxiety include potential energy shocks, the escalation of conflicts in the Middle East, and disruptions in the supply of critical materials. The survey notes that 42% of European companies reported that rising energy costs have negatively impacted profitability and investment decisions over the last two years, while 48% expect Middle East tensions to negatively affect margins and investments in the coming year.

While more than half of the surveyed CFOs anticipate revenue growth in the next year, many struggle to convert sales into increased profitability. Approximately 36% expect profit margins to decrease, and 42% of those anticipating revenue growth still expect flat or declining margins. Consequently, many companies are adopting more cautious investment strategies and utilizing scenario analysis to manage risks.