Chief Financial Officers (CFOs) across major U.S. businesses are grappling with escalating geopolitical tensions and persistent inflation, according to a new survey. The U.S. Bank CFO Insight Report, which polled 1,000 senior finance leaders at companies with annual revenues exceeding $100 million, found that 35% of respondents rank geopolitical instability as their top risk, closely followed by inflation at 34%.
Balancing Act: Growth Amid Uncertainty
Despite these challenges, CFOs are not retreating into defensive postures. Cost-cutting remains the highest priority for 39% of respondents, but revenue growth has surged to 31%, jumping from seventh place in mid-2024. Stephen Philipson, U.S. Bank vice chair and head of wealth, corporate, commercial and institutional banking, noted that companies are adopting an ‘and’ mindset—pursuing growth while managing risks. 'You can’t freeze and be paralyzed by volatility,' Philipson stated. 'You need to keep moving forward and adapt.'
'The longer [oil prices] stay elevated, the more challenging it’s going to be.' — Stephen Philipson, U.S. Bank Vice Chair
Pricing Pressures and Strategic Investments
Nearly half of CFOs reported difficulty passing rising costs onto customers, yet companies plan to pass through 55% of cost increases, up from 50% over the past year. This approach may only sustain if inflationary pressures, including elevated oil prices, subside. Meanwhile, 49% of CFOs are likely to pursue acquisitions in the next 12 months, despite 71% delaying or scaling back major investments.
Artificial intelligence (AI) is also transitioning from experimentation to accountability, with 41% of CFOs tracking ROI on AI investments. Of those, 47% are generating positive returns. This shift reflects a broader trend of adaptability in the face of economic shocks, tariffs, and the lingering effects of the pandemic.