01/07/2026

Citizens Q1 2026 Business Pulse: SMBs Confident and Poised for Growth

PROVIDENCE, RI – U.S. business owners are entering 2026 with renewed optimism and a clear focus on growth, according to a new survey of small and middle market companies released today by Citizens.

The Citizens Q1 2026 Business Pulse survey shows that 68% of middle market businesses (revenue above $5 million annually) report confidence in the economy, signaling a promising outlook for investment in the first quarter of the year.

Eighty-six percent of those companies expect their revenue to increase in the next three months. Among smaller businesses (revenue $500,000–$4.9 million), 64% anticipate revenue growth in the first quarter.

“Small business owners are navigating structural headwinds and finding solid footing in the process,” said Mark Valentino, Head of Business Banking at Citizens. “Even in the face of challenging conditions, our clients continue to demonstrate remarkable creativity, resilience and determination. The surge in optimism suggests the entrepreneurial engine is not just surviving, it’s accelerating.”

Small businesses are gearing up to put their increased revenue to work with higher spending. Sixty percent of businesses surveyed are planning to deploy more capital this quarter to enhance efficiency and further increase revenue. Of those deploying new revenue, 64% intend to use or apply for a credit card in Q1, and 47% plan to request a credit limit increase.

Small businesses cite talent as a major focus with 41% planning to increase headcount this quarter. In the first quarter of 2026, fewer than 3% of small businesses plan to decrease full-time staff.

This steady confidence and bullish approach to spending positions small businesses for robust growth in 2026.

“Small and medium-sized businesses have adjusted to a new normal,” Valentino added. “Talent is a concern and so is inflation pressure, but we believe that strong partnerships with purpose can help owners take advantages of opportunities.”

The Citizens Q1 2026 Business Pulse was conducted in November 2025 and findings are drawn from an online survey of 500 principals (owner, founder, partner, CEO, president, etc.) of U.S.-based businesses with up to 1,000 employees.

About Citizens Financial Group, Inc.
Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $222.7 billion in assets as of September 30, 2025. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. Citizens helps its customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas and solutions. In Consumer Banking, Citizens provides an integrated experience that includes mobile and online banking, a full-service customer contact center and the convenience of approximately 3,100 ATMs and approximately 1,000 branches in 14 states and the District of Columbia. Consumer Banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. In Commercial Banking, Citizens offers a broad complement of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities. More information is available at www.citizensbank.com or visit us on X, LinkedIn or Facebook.