Philippine chief executives are entering 2026 with guarded optimism, balancing expectations of growth with persistent cost pressures and an uncertain global outlook, according to the latest CEO survey from Ernst & Young (EY).
The EY CEO Outlook Survey Philippine Edition, released in March, found that more than half of Philippine CEOs remain upbeat about the domestic business environment and their industries.
That confidence reflects continued demand and familiarity with local market conditions, even as global headwinds weigh on sentiment.
“Philippine CEOs enter 2026 tempered yet optimistic, balancing solid growth expectations with rising cost pressures,” the report said.
The survey pointed to net optimism across several performance indicators. Revenue growth posted a net positive outlook of 46 percent, while competitive positioning stood at 42 percent and investment in existing operations at 36 percent.
Despite the positive signals, executives are taking a more measured approach to capital spending as they focus on strengthening their market position while improving cost efficiency.
Overall CEO confidence in the Philippines registered a score of 59, slightly lower than the 2025 reading, reflecting a more cautious tone among business leaders.
Even so, growth expectations remain relatively resilient. About 64 percent of CEOs anticipate improvements in revenue and productivity in 2026, while 54 percent expect profitability to increase. At the same time, some leaders foresee declines in revenue at 20 percent and profitability at 28 percent, highlighting uneven pressures across industries.
Cost pressures remain a central concern. The survey projected a net 42 percent increase in operating costs, driven by higher input prices, rising labor expenses, and ongoing supply chain disruptions.
Geopolitical tensions and shifting trade patterns are also influencing corporate strategy. Nearly 98 percent of CEOs said they adjusted their investment plans over the past year, accelerating, delaying or relocating projects to adapt to changing global conditions.
Executives are prioritizing technology to sustain growth. Investment in artificial intelligence and digital tools ranked as the top strategic priority, cited by 32 percent of Philippine CEOs, signaling a push toward productivity and competitiveness in an increasingly complex business environment.
