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Chief Financial Officers plan bigger investments in mergers and acquisitions and capital projects in 2027, according to Gartner. The finding is based on a survey of 150 finance leaders at organisations with at least USD $250 million in annual revenue.
The research points to a shift in capital allocation as finance chiefs grow more confident about the broader economy but less optimistic about organic growth. Half of respondents said they have a revenue-impacting acquisition in their planning horizon, up from 32% a year earlier.
At the same time, 69% expect capital expenditure to rise in 2027, compared with 56% in the previous survey. The results suggest CFOs are placing greater emphasis on investments they can influence more directly as they look for ways to expand.
That shift comes alongside weaker expectations for underlying revenue growth. The survey found that 53% of CFOs view the external environment as favourable, up from 39% a year ago, while only 43% expect organic revenue growth above 5%, down from 67%.
Vaughan Archer, Senior Director Analyst at Gartner, said the contrast reflects a more cautious view of demand conditions.
"Fifty-three percent of CFOs view the external environment as favorable, up from 39% a year ago, yet only 43% expect organic revenue growth above 5%, down from 67%.
"A healthier economy does not automatically translate into stronger customer demand or sales volumes, particularly while customer preferences shift and pricing power is constrained," Archer said.
Growth levers
The survey indicates that acquisitions and capital spending are taking a larger role in financial planning as executives search for growth beyond core operations. For many finance leaders, that means directing funds towards areas where returns may be less dependent on broad-based sales expansion.
"CFOs are building capital plans around the growth levers they can control more directly," Archer said.
"With organic growth expectations weakening, acquisitions and capital expenditure are taking on greater importance in their plans for 2027," he added.
Margin pressure
The research also found that finance leaders are making these plans while still dealing with cost pressure. Direct labour and other input costs are expected to rise, even as many organisations may have limited room to pass those increases on through higher prices.
That combination presents a challenge for finance teams trying to preserve profitability while funding expansion. Increased spending on deals and capital projects may offer a route to growth, but it also heightens the importance of trade-offs in budgeting decisions.
Archer said those choices will become more deliberate as companies try to balance investment with financial discipline.
"The challenge for CFOs will be to protect the investments most likely to drive future growth without allowing rising costs to undermine financial performance," Archer said.
"That will require more deliberate choices about where to invest, where to optimize and where to pull back," he said.
The findings offer a snapshot of how larger companies are preparing their budgets as they move into 2027. Rather than relying on stronger customer demand alone, many finance leaders appear to be putting more weight on acquisitions and internal investment as tools for expansion, even as margin pressures remain.
The survey covered CFOs and senior finance leaders at organisations generating at least USD $250 million in annual revenue, with responses gathered over a one-month period. Half said they had a revenue-impacting acquisition in view, while more than two-thirds expected capital expenditure to increase.