Global mergers and acquisitions are on track for a strong rebound, with annual deal value projected to reach $4 trillion in 2026, according to a new report from PwC. If realised, that would mark the market’s strongest performance since 2021.
Mega Deals Are Reclaiming The Market
PwC attributes the rebound largely to a surge in transactions valued at more than $5 billion. So far this year, those mega deals have accounted for nearly half of global deal value, up from 39% in 2025 and 26% in 2024.
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The firm expects the value of these transactions to grow by 40% annually through 2026 if current momentum continues.
“2026 is the year of super-sized mergers and acquisitions,” said Brian Levy, leader of PwC US’ global deals sector. He added that artificial intelligence is accelerating mega deals, reshaping capital flows and changing the competitive landscape across industries.
AI Emerges As A Key Acquisition Driver
According to PwC, companies are increasingly pursuing acquisitions to strengthen their artificial intelligence capabilities.
Recent transactions illustrate that trend. SpaceX has completed a $60 billion acquisition of the AI startup Cursor, while Salesforce has agreed to acquire the AI-powered customer service platform Fin for $3.6 billion. Qualcomm is also reportedly in discussions to acquire Modular in a deal that could value the AI chip company at around $4 billion.
Mid-Market Buyers Face A More Difficult Climate
While the largest transactions continue to gain momentum, PwC said many mid-market investors remain constrained by geopolitical uncertainty, valuation gaps, slower economic growth, higher inflation, elevated interest rates and a backlog of private capital exits.
Those factors continue to weigh on smaller and mid-sized transactions, even as larger companies pursue strategic acquisitions.
Private Markets May Become More Liquid
PwC also said artificial intelligence has the potential to improve liquidity in private markets by making asset evaluation and deal negotiations more efficient.
If global M&A activity reaches $4 trillion in 2026, it would represent an increase of at least 13% from 2025 and the second-highest annual deal value since 2021.
