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Good morning. Economic confidence among finance chiefs has taken a sharp hit.
Deloitte’s Q2 2025 CFO Signals report released this morning gauges the sentiment of 200 finance leaders in North America at companies with at least $1 billion in revenue. The CFO confidence score came in at 5.4, indicating medium confidence, compared to the Q1 reading was 6.4 — high confidence. That’s more than a 15% plunge in a short period of time.
The survey, conducted from June 4 to June 18, found growth expectations declined across every key operational metric. In fact, CFOs lowered projections for revenue, earnings, and capital investments. Fewer than a quarter (23%) of CFOs rate the North American economy as “good now.” In comparison, 50% of the finance chiefs offered the same optimistic response in the Q1 survey.
Just one in three CFOs believe now is a good time to take on more risk—the lowest reading since the third quarter of 2024—and well down from the 60% number in Q1. Meanwhile, 46% of CFOs surveyed say the U.S. capital market is undervalued, and 41% say it’s overvalued. More than half (53%) view debt financing as attractive, 41% for equity.
Uncertainty at the core
I asked Steve Gallucci, the global and U.S. leader of Deloitte’s CFO Program, whether tariff uncertainty was the main cause of decline in optimism. He emphasized that broader global uncertainty is the real driver.
“Anytime there’s uncertainty—whether it’s policy, geopolitics, the economy, or capital markets—CFOs become less bullish,” he explained. While tariffs are one contributing factor, Gallucci noted that the survey doesn’t single them out, and that the overall mood is shaped by a constellation of unpredictable forces.
He pointed to last year’s U.S. presidential election as an example: “There was a lot of uncertainty around the outcome, and CFO optimism dipped. Once the election was settled, optimism spiked. Now, new uncertainties around policy and the broader environment have taken hold, and sentiment has dropped again.”
Recalibrate and reset
CFOs cited the top external risk as the economy (53%). With growth expectations and revenue projections falling, how are CFOs responding? Gallucci described the current environment as a recalibration, not a retreat. Rather than pulling back, finance leaders are doubling down on fundamentals:
—Sharpening focus on growth drivers: CFOs are revisiting where growth can realistically come from, both organically and elsewhere.
—Managing controllable risks: Finance chiefs are prioritizing what they can influence—cost discipline, talent strategy, and technology-enabled initiatives.
—Staying active in M&A: Despite risk aversion, there’s ongoing interest in mergers and acquisitions, with some signs of increased IPO activity in the first half of the year.
Technology and cybersecurity remain top priorities
Gallucci highlighted the growing importance of technology investments—from disruptive innovations to generative AI. However, he noted CFOs are still moving cautiously on AI adoption.
As companies expand their tech platforms, cybersecurity remains a leading external concern (51%). “Cyber will always stay at the top of the CFO risk list,” Gallucci said, especially as businesses rely more on third-party providers and digital infrastructure.
Interconnected internal risks
CFOs cited a trio of top internal risks: talent availability (46%), lack of agility/resilience (46%), and cost management (45%)—as nearly equal in importance.
Gallucci explained that these risks are deeply interconnected. Disrupted supply chains and potential policy changes are driving scenario planning around cost management. Meanwhile, the talent challenge has shifted from hybrid work logistics to capability gaps: “Do I have the right skill set within my finance organization to support the future—one that will rely more on technology, automation, and AI?” he explained.
CFOs are focused on up-skilling, recruiting for new capabilities, and tapping into broader talent pools to ensure their teams are prepared for what’s next.
Deloitte’s Q2 CFO survey reveals a finance leadership community grappling with uncertainty; they’re actively working toward solutions to weather the storm of unknowns and position for future growth.
Sheryl Estrada
sheryl.estrada@fortune.com
This story was originally featured on Fortune.com
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