Valley National Bank has published its second annual Middle-Market Commercial and Industrial (C&I) Survey, titled “Entering 2026 With Momentum.” The survey gathered responses from 500 commercial businesses within the bank’s service area, focusing on their financial performance in 2025 and expectations for the coming year.
According to the survey, middle-market C&I businesses reported strong financial results for 2025. However, they are facing increasing external and operational challenges as they move into 2026. These include concerns about cash-flow timing, rising costs, and uncertainty in the global environment.
The data shows that difficulties managing inflation and interest rates have become more prominent. Fifty-seven percent of respondents identified these issues as significant, an increase from 45% previously. Additionally, concerns about geopolitical tensions and trade policies rose to 52%, up from 41%.
“Middle-market businesses help drive the U.S. economy and the positive results in this survey indicate that many are entering 2026 in strong and stable positions,” said Gino Martocci, president of commercial banking at Valley Bank. “To maintain this momentum, leaders should focus on the basics, be selective in what they prioritize and those who focus on a few core areas and remain vigilant and adaptable, will achieve greater success in an evolving landscape.”
Respondents highlighted six main priorities for their organizations going into 2026. Despite high ambition levels among these companies, there are still gaps between goals and execution. Thirty percent of participants indicated ongoing difficulties with hiring staff, while 17% cited problems retaining top employees.
The survey also found that only 39% of respondents use fraud mitigation services even though 68% recognize a need for stronger protection against fraud. Data security was included among top priorities by just over half—57%—of those surveyed.
“Fraud protection is not optional, it is foundational,” Martocci said. “Simple safeguards, real-time alerts, and clearly defined response protocols can dramatically reduce financial loss and business disruption.”
Another finding was that only 22% of businesses rely on their banker as a trusted advisor when making major financial decisions. Valley Bank noted that building a strong advisory relationship could improve working capital management as well as provide better insight into payment flows and risk exposure.
The survey was conducted in December 2025 among decision makers at U.S.-based companies with annual revenues between $5 million and $249 million.
