Middle Market Steps Up Strategic Investment in People and Tech
Middle market companies are entering 2026 with heightened confidence and a clear focus on strategic investment priorities, according to the 2025 Capital One Middle Market Strategic Investments Report. Surveying more than 1,000 U.S. middle market financial decisionmakers, the research shows firms are not just weathering economic headwinds—they’re investing to grow, innovate and compete in a dynamic operating environment.
U.S. middle market companies see strong growth opportunities in 2026, with 89% of decisionmakers expressing confidence that their businesses will grow in the next 12 months, while 73% say that the external environment presents more opportunities than challenges for their businesses.
Leading indicators point to broad momentum: 71% reported improved revenue year-over-year, with 69% noting higher sales and 67% citing stronger consumer demand compared with a year ago. A significant majority of leaders feel there are more opportunities than challenges in the current landscape, even as inflation and market volatility remain top concerns.
Investment priorities span growth drivers and risk mitigation. Nearly half of respondents plan to deploy capital toward cybersecurity and risk management, while similar percentages prioritize growth via sales, marketing, and customer experience. Other common areas of capital deployment include cash flow optimization and R&D.
Tech and talent strategies dominate plans. Middle market leaders are channeling investments into AI (66%), IT infrastructure and cloud (53%), and data & analytics (47%), with AI seen as a major source of anticipated ROI. Most firms are actively investing in AI, often to enhance internal operations, productivity, and business insights, supported by strong leadership backing.
Talent development is another top focus, as firms seek to retain performers and close technical skills gaps through formal training and upskilling programs. Respondents prioritized investment in employee development alongside tech initiatives—a reflection of the evolving competitive landscape.