According to a PwC report, the annual global value of mergers and acquisitions (M&A) is projected to reach $4 trillion in 2026, marking the strongest year since 2021 when deal values exceeded $5 trillion [1]. This surge is primarily attributed to larger megadeals, with transactions above $5 billion contributing almost half of the total global deal value so far this year [1]. PwC expects a 40% year-on-year rise in deal values from megadeals in 2026 if the current pace continues [1].
Brian Levy, global deals industries leader at PwC US, stated, "2026 is the year M&A supersized," highlighting that artificial intelligence (AI) is propelling megadeals, redirecting capital, and reshuffling sector winners and losers [1]. AI is intensifying the K-shaped M&A market, forcing dealmakers to radically rethink deal strategies [1].
Despite the robust activity in megadeals, mid-market dealmakers face significant hurdles, including geopolitical uncertainty, valuation gaps, slowing growth, higher inflation and interest rates, and a persistent private equity exit backlog [1]. If global M&A value reaches $4 trillion by the end of 2026, it will represent at least a 13% year-on-year increase from 2025, and transactions above $5 billion now account for 48% of global deal value, up from 39% in 2025 and 26% in 2024 [1].
Notable AI-related M&A deals this year include SpaceX's formal agreement to acquire AI startup Cursor for $60 billion, aiming to bolster its competitive position against Anthropic and OpenAI [1]. Salesforce (CRM) is purchasing AI customer service platform Fin for $3.6 billion to enhance its agentic offering amid concerns about AI's impact on its business model [1]. Qualcomm (QCOM) is reportedly in talks to acquire Modular, an AI chip firm, in a deal valued at about $4 billion [1]. PwC also noted that AI could eventually make private markets more liquid by facilitating asset evaluation and trading, with deal processes increasingly relying on both AI-enabled insights and human judgement [1].
CONCLUSION
The global M&A market is experiencing a significant upswing in 2026, fueled by large AI-driven deals and a shift in sector dynamics. While megadeals dominate, mid-market activity remains challenged by macroeconomic and geopolitical factors. The market outlook is positive, with AI expected to further transform dealmaking and asset liquidity.