Executive Anxiety Surges As Geopolitical And Economic Shocks Reshape 2026 Outlook

Eighty-two percent of executives said the events of 2026 so far have made them more concerned about their businesses’ futures, a stark reversal from the optimism recorded in December 2025, according to Sentry’s 2026 C-Suite Stress Index: Midyear Report.

The insurer surveyed 625 U.S. executives at businesses with at least 10 employees in May 2026, following up on a December 2025 survey of 1,250 executives. At the end of last year, 54% of executives predicted their company would not only survive but thrive in 2026, with another 22% forecasting stability or growth. That confidence has since eroded, with 88% of executives now saying geopolitical events are unfolding so quickly that accurate risk management has become difficult, the report found.

Geopolitical And Economic Pressures Mount Together

International conflicts and geopolitical events have negatively affected 61% of U.S. organizations this year through both direct impacts, such as shipping delays, and indirect ones, like higher gas prices, according to the report. Those disruptions have pushed 98% of executives to say 2026 events have influenced their long-term planning and risk management, with 70% now planning in shorter intervals and 61% building more contingencies into their planning processes. Among companies with more than 1,000 employees, 55% are shortening planning horizons and 53% are increasing contingency planning, the report said.

Economic concerns have intensified alongside geopolitical ones rather than receding. Supply chain and logistics challenges remain the most commonly cited threat, cited by 62% of executives, up from 45% in December 2025. Tariffs and trade uncertainty rose to 52% from 39%, while economic pressures climbed 9 percentage points to 53% and labor shortages rose 11 points to 49%, according to the report.

Some relief may be on the horizon: 64% of executives expect the Supreme Court’s decision to invalidate tariffs imposed under the International Emergency Economic Powers Act to have a positive impact on operations, though 53% anticipate only a slight benefit. Retail and wholesale executives were more optimistic, with 73% expecting positive outcomes and 18% anticipating significant impacts.

Smaller businesses reported feeling the strain more acutely than larger ones. Ninety percent of executives at companies with 10 to 49 employees said they are more concerned about their business’s future following 2026 events, compared with 69% of executives at companies with more than 1,000 employees. Geopolitical events have had a negative impact on 65% of the smallest companies, with 21% reporting significant negative impacts, compared with just 8% of businesses with 50 to 249 employees, according to the report.

Ninety-five percent of leaders at the smallest firms said accurate risk management has become difficult amid fast-moving events.

Workforce Strain And Litigation Fears Grow

Labor shortages were cited as a top threat by 49% of executives, up from 38% in December 2025. In response, 87% of executives have asked employees to work longer hours or take fewer breaks over the past six months, up sharply from 51% at the end of 2025, the report found.

That approach carries consequences: 49% of executives reported increased errors or lower-quality work, 48% saw decreased employee satisfaction, 46% reported difficulty hiring, 40% saw higher turnover, and 32% experienced more employee injuries or workplace “close calls.”

Litigation concerns also intensified, with 74% of executives now worried about multimillion-dollar verdicts against companies in their industry, up 7 percentage points since December 2025, according to the report. Eighty-two percent said regulations affecting their business are changing too quickly to keep up with, raising compliance and litigation concerns.

Meanwhile, natural catastrophes were the only measured risk not cited at a higher rate than at the start of the year, with just 30% of executives naming it a top-five threat. Still, 52% fear the next severe weather event or catastrophe could end their business, a concern shared by 64% of retail and wholesale executives and 63% of manufacturers, the report said.

Obtain the full report here. &