CEOs are expressing increasing confidence and displaying resilience as they navigate a rapidly shifting geopolitical landscape, according to the latest EY CEO Outlook, with ongoing volatility acting as a catalyst to rethink supply chains, business models, markets and investment priorities.

The research, which involved more than 1200 CEOs globally, including 40 senior CEOs here in Ireland, found that while global economic sentiment remains muted, with almost six in ten (57%) of global CEOs expecting geopolitical and economic uncertainty to last well beyond a year, Irish CEOs are notably more confident in their own performance.

Six in ten (60%) Irish CEOs expect profitability over the next year, while sentiment in relation to revenue growth is also positive. This confidence stems from a pragmatic but proactive approach to strategy, with leaders increasingly prioritising AI and automation, business model transformation and capability-building through M&A.

Particularly notable is the focus from Irish CEOs on regionalisation, with 77% saying that producing and sourcing closer to home has become a long-term strategy. Seven in ten (70%) CEOs have placed regionalisation at the core of their strategy, across operations, supply chains, research and technology.

While Irish CEOs remain confident, the survey also provides some cautionary signals, as they are facing a complex mix of financial and operational pressures. Notably, nearly eight in ten (78%) cited optimism around input costs, up from 48% in May. However, the cost of energy was cited as an area of particular concern, with 50% of leaders saying it is directly affecting operational performance.

Regulatory complexity is another challenge, with a third citing competing regulations as a barrier to change. Talent constraints are another key area of concern, with confidence in the ability to attract and retain talent declining sharply from 55% in the previous research to just 35%. The drop is most pronounced in high-demand sectors, particularly those requiring digital and technical skills.

Globally, most CEOs anticipate that prolonged uncertainty will persist, with 57% of CEOs expecting uncertainty to last beyond a year. Despite this, the survey's CEO Confidence Index - which measures sentiment across strategy, operations, and investment- stands at 83, up seven points since May.

Helena O'Dwyer, Partner and Head of Strategy at EY-Parthenon Ireland, said: "Our latest CEO survey finds that, in spite of the ongoing global geopolitical and economic headwinds, CEOs are expressing confidence in their organisation's future and their ability to lead through uncertainty.

Following a period earlier this year when many firms adopted a 'wait and see' approach, we are now seeing a shift toward action. Nearly six in ten Irish CEOs say they plan to increase investment in portfolio transformation and strategic M&A over the next 12 months. What stands out from our conversations with clients is a clear focus on divesting assets that are no longer delivering value, simplifying operations, and sharpening core capabilities.

As geopolitical change reshapes global trade flows, regionalisation is emerging as a cornerstone of strategy. Interestingly, CEOs view this shift to regionalisation and localisation not as a temporary adjustment, but as a long-term strategic move, with leaders reconfiguring supply chains and operations to stay closer to customers and reduce global exposure."

Building for performance and resilience

Irish CEOs are backing their confidence with action. Beyond those accelerating transformations (58% are planning to reshape their business this year), a further 40% plan to maintain current investment levels, signalling a sustained commitment to reshaping business portfolios. Funding strategies are measured; many are turning to debt or divesting non-core assets, while internal growth continues to be a key driver.

Mergers, acquisitions and partnerships remain central to CEO strategy, with 98% ...