Commercial Businesses Enter 2026 with Momentum but Face Uncertainty
Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Positive)
Tags
Key Terms
c&ifinancial
C&I stands for commercial and industrial, typically describing loans, financing or banking services provided to businesses rather than individual consumers. Investors watch C&I activity because it shows how much banks and lenders are exposed to business demand and credit risk—similar to measuring how many business customers a supplier serves versus retail shoppers—so changes in C&I lending can signal shifts in economic activity and a lender’s revenue and risk profile.
ai and machine learningtechnical
AI and machine learning are computer technologies that let software learn patterns from data and make decisions or predictions without following step-by-step instructions. For investors, they matter because these tools can lower costs, speed up processes, create new products, or reveal risks—similar to giving a business a faster, self-improving assistant that can boost profit potential or expose competitive advantage and operational risk.
data analyticstechnical
Data analytics is the process of examining large amounts of information to uncover patterns, trends, and insights. It helps investors make better decisions by turning complex data into clear, useful knowledge, much like how a detective finds clues to solve a mystery. This approach enables smarter planning and risk management in financial activities.
business intelligencetechnical
Business intelligence is the practice of collecting and turning a company’s raw data—like sales, costs, customer habits and market trends—into clear, visual insights that help leaders spot patterns and make decisions. For investors it matters because these insights act like a company’s dashboard: they reveal whether management is improving performance, finding growth opportunities or facing risks, which can affect future profits and the stock’s value.
fraud mitigation servicesfinancial
Services that help companies detect, prevent and respond to theft, scams or false claims against their finances or customers, using tools like monitoring software, identity checks, investigations and recovery processes. For investors, they matter because effective fraud mitigation acts like a security system for a business—reducing direct financial losses, protecting reputation, lowering legal and regulatory risk, and stabilizing future cash flow and profitability.
working capitalfinancial
Working capital is the money a business has available to cover its daily expenses, like paying bills and buying supplies. It’s like the cash in your wallet that helps you handle everyday costs; having enough ensures the business can operate smoothly without running into money shortages.
Valley Bank’s 2nd Annual Middle-Market C&I Survey Highlights Strong Performance in a Shifting Environment
MORRISTOWN, N.J.--(BUSINESS WIRE)--
Valley National Bank, a subsidiary of Valley National Bancorp (NASDAQ: VLY), today released findings from its second annual Middle-Market C&I Survey: Entering 2026 With Momentum. The survey of 500 commercial businesses across Valley’s footprint reveals that middle-market Commercial and Industrial (C&I) businesses reported strong 2025 financial performance but face mounting external and operating pressures heading into the new year. While remaining optimistic about 2026, businesses are adapting to evolving dynamics such as cash‑flow timing, cost pressures, and a more uncertain global environment.
Compared to 2025, respondents reported significant gains:
92% rate their cash flow as good or very good, up from 79%.
Productivity rose from 85% to 95%, as more companies reported operating more efficiently across their core functions.
Profitability climbed from 79% to 89%, reflecting improved financial results across the middle‑market segment.
These improvements signal that many businesses are stable and are in solid position to weather any challenges. However, difficulty managing inflation and interest rates rose to 57% (up from 45%), while 52% expressed concerns about geopolitical tensions and trade policies (up from 41%).
“Middle-market businesses help drive the U.S. economy and the positive results in this survey indicate that many are entering 2026 in strong and stable positions,” said Gino Martocci, President of Commercial Banking, Valley Bank. “To maintain this momentum, leaders should focus on the basics, be selective in what they prioritize and those who focus on a few core areas and remain vigilant and adaptable, will achieve greater success in an evolving landscape.”
Successful execution requires focus and the survey respondents identified six priorities that will comprise their core initiatives for 2026:
Financial and operational efficiency
Customer retention and loyalty
Pricing strategy and cost efficiency
AI and machine learning adoption
Data analytics and business intelligence
Pricing strategy and cost efficiencies
While ambition is high, execution gaps remain. Only:
40% report effective cash-flow management
39% are confident in budgeting and forecasting
37% feel effective in cost control
36% report strong profit-margin management
35% are successfully integrating financial technology
30% believe they are optimizing working capital
In addition, 30% say hiring remains difficult and 17% report challenges retaining top employees.
The survey also revealed that only 39% of respondents use fraud mitigation services, despite 68% acknowledging a need for stronger fraud protection. Just 57% included data security among their top priorities.
“Fraud protection is not optional, it is foundational,” said Martocci. “Simple safeguards, real-time alerts, and clearly defined response protocols can dramatically reduce financial loss and business disruption.”
Not leveraging an advisory relationship with a banker is another missed opportunity for businesses. Only 22% of respondents use their banker as a trusted advisor for major financial decisions. A strong relationship can help improve working capital management and provide insight into payment flows and risk exposure.
The survey was conducted in December 2025 with 500 middle-market business financial decision makers. To qualify, respondents had to be responsible for or play a leading role in financial decisions at a U.S. company with annual revenue between $5 million and $249 million.
About Valley
As the principal subsidiary of Valley National Bancorp (NASDAQ: VLY), Valley National Bank is a regional financial institution with approximately $64 billion in assets. Founded in 1927, Valley has more than 200 offices nationwide and serves individuals, families, and businesses across New Jersey, New York, Florida, Alabama, California, and Illinois. Valley delivers a full range of consumer, commercial, and wealth management solutions designed to support everything from homeownership and business growth to long-term financial planning. Big enough to support complex financial needs and small enough to stay deeply connected, Valley is grounded in a relationship-led approach focused on understanding people first. That same relationship-led approach guides Valley’s commitment to community investment and responsible corporate citizenship. To learn more, visit www.valley.com or call the Valley Customer Care Center at 800-522-4100.
