Citizens today released its Q4 2026 Business Pulse survey, which found that U.S. small business owners and business decision-makers are entering the final months of the year with their strongest revenue outlook of 2026, higher planned spending on technology and AI, and steady hiring plans over the next three months.

The findings show how small businesses are planning for growth heading into Q4: many expect stronger sales, more are directing dollars toward technology and most are choosing to maintain or add staff rather than reduce headcount. Fifty-four percent of respondents expect revenue to increase over the next three months, the highest level recorded in 2026, up from 50% in Q3, 48% in Q2 and 43% in Q1. Technology spending is also rising, with 30% planning to increase spending in that area, including AI tools, up from 23% in Q3.

“Contrary to some headlines, we are not seeing AI fatigue. In fact, we may still be in the early innings of AI helping small businesses play bigger than their size,” said Mark Valentino, Head of Business Banking at Citizens. “A business owner who becomes a super user of this technology can compete like a much bigger company, and that’s showing up in hiring plans.”

AI is changing how small businesses use outside support. Among businesses using AI regularly across multiple functions, 94% have reduced or eliminated spending on at least one type of external service, most commonly marketing services (60%), data analysis or reporting (39%) and bookkeeping or accounting (38%). Those same companies are also more likely to plan staff increases, with 44% expecting to add full-time employees compared with 22% of businesses overall and 8% of businesses with no AI adoption plans.

AI use also tracks with broader business optimism. Seventy-four percent of businesses using AI regularly across multiple functions expect revenue to increase in the next quarter, compared with 54% overall. Those extensive AI users are also more confident in the economy, with 51% saying they are extremely or very confident, nearly double the 29% overall figure.

Methodology

The Citizens Q4 2026 Business Pulse Survey was fielded Sept. 1–17, 2026, among 500 business decision-makers, weighted by company size. Comparisons reference the Q3 survey (fielded June 1–18, 2026), Q2 survey (fielded March 3–18, 2026) and Q1 survey (fielded Nov. 1–18, 2025).

FAQs

What are takeaways Citizens’ Q4 2026 Business Pulse survey? Citizens’ Q4 2026 Business Pulse survey found that U.S. small businesses are entering the final months of 2026 with their strongest revenue outlook of the year, higher planned technology spending and steady hiring plans.

What does the Q4 survey say about small business technology spending? Thirty percent of businesses surveyed plan to increase technology spending in Q4, including AI, compared with 23% in Q3.

What does the Q4 survey show about AI adoption and business optimism? Businesses using AI regularly across multiple functions are more optimistic than the overall sample. Seventy-four percent of those businesses expect revenue to increase next quarter, compared with 54% overall, and 51% are extremely or very confident in the economy, compared with 29% overall.

Is AI replacing employees or outside vendors? Businesses regularly using AI across multiple areas are cutting spending on outside services: 94% say they’ve reduced external spending in at least one area. When it comes to hiring, though, they are not making cuts. In fact, 96% plan to maintain or grow their full-time workforce over the next three months.

What does the Q4 survey say about hiring? Hiring plans remain steady heading into Q4. Eighty-three percent of businesses plan to maintain or increase full-time headcount over the next three months, while 3% plan to decrease it.

Who was included in the Q4 survey? The Q4 survey was fielded Sept. 1–17, 2026, among 500 U.S. business decision-makers and weighted by company size.

About Citizens Financial Group, Inc.

Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $233.8 billion in assets as of June 30, 2026. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail, private banking, wealth management 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 3,000 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. Consumer Banking includes Citizens Private Bank and Private Wealth, which integrate banking services and wealth management solutions to serve high- and ultra-high-net-worth individuals and families, as well as investors, entrepreneurs and businesses. 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.

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