U.S. small and middle market businesses are entering 2026 with a positive outlook, according to new survey data released by Citizens. The Citizens Q1 2026 Business Pulse survey found that 68% of middle market companies—those with annual revenues above $5 million—express confidence in the economy as the year begins.
The survey also indicates that 86% of these middle market firms expect their revenue to rise over the next three months. For smaller businesses, defined as those earning between $500,000 and $4.9 million annually, 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.”
In response to expected increases in revenue, many small businesses plan to boost spending. Sixty percent of surveyed businesses intend to invest more capital this quarter to improve efficiency and drive further growth. Among those planning new investments, 64% will use or apply for a credit card during Q1, while 47% aim to request an increase in their credit limit.
Talent remains a key area of focus for small businesses; 41% plan to hire more staff this quarter. Less than 3% expect to reduce full-time employees during this period.
“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 findings come from an online survey conducted by Citizens in November 2025 among 500 principals—including owners, founders, partners, CEOs, and presidents—of U.S.-based companies with up to 1,000 employees.
