JPMorgan Eyes 2026 M&A Boom: Europe Hiring Spree

JPMorgan Chase is strategically expanding its European dealmaking operations in anticipation of a robust merger and acquisition (M&A) market in 2026. The bank's co-head of global banking, Filippo Gori, indicated that hiring is underway across the region, supported by available capital ready for deployment. Client sentiment in Europe has been notably optimistic during early-year meetings, with particular confidence observed in Southern Europe due to improving economic growth.

Gori expressed enthusiasm for the projected M&A landscape, suggesting 2026 could be a standout year globally and within Europe. Key factors driving this optimism include easing interest rate pressures, tight credit spreads, and readily available financing, which are crucial for bridging valuation gaps between buyers and sellers. Despite a recent dip in JPMorgan's investment banking revenue, attributed partly to transactions shifting to 2026, Europe's deal volume reached approximately $903 billion last year, an increase from 2024 but still below pre-pandemic levels.

Active sectors for M&A are expected to include technology, energy, financial services, fintech, and infrastructure, with continued activity in the middle market. Deal flow is occurring in both directions, with European firms expanding into the US and American companies investing in Europe. However, potential disruptions from inflation, geopolitical tensions, and the evolving impact of artificial intelligence remain key considerations for the market.