Q1 2026 Market Signals: What the Data Tells Us

Boards are entering Q1 with mixed signals. Our research team synthesised the data points most relevant to strategic planning conversations.

Labour markets are normalising

Wage growth has moderated in professional services, easing margin pressure for talent-heavy firms. However, specialist skills in AI, cybersecurity, and supply chain remain scarce.

Capital is selective, not absent

Private equity dry powder remains elevated, but due diligence cycles have lengthened. Acquirers prioritise recurring revenue, customer concentration risk, and technology debt.

Sector watchlist

Healthcare services — consolidation accelerating as regulatory complexity favours scale players.

Industrial technology — aftermarket and services revenue streams outperforming equipment sales.

Financial services — embedded finance and B2B payments seeing strongest growth.

Implications for strategy

1. M&A: Sellers should prepare 6+ months early with clean data rooms
2. Pricing: Value-based models outperform cost-plus in inflationary environments
3. Investment: Technology spend shifting from experimentation to core modernisation

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James Okonkwo publishes data-driven industry analysis for Media HQ.