<p xmlns="http://www.w3.org/1999/xhtml"><i xmlns="http://www.w3.org/1999/xhtml">KeyBank survey finds...

<p xmlns="http://www.w3.org/1999/xhtml"><i xmlns="http://www.w3.org/1999/xhtml">KeyBank survey finds resilient businesses are widening the gap between company and economic confidence by investing in AI, talent and long-term growth</i></p><p xmlns="http://www.w3.org/1999/xhtml"><span xmlns="http://www.w3.org/1999/xhtml" class="legendSpanClass">CLEVELAND</span>, <span xmlns="http://www.w3.org/1999/xhtml" class="legendSpanClass">Aug. 11, 2026</span> /PRNewswire/ -- Middle market companies continue to invest despite growing economic uncertainty, according to the latest edition of KeyBank&#39;s Middle Market Sentiment Report. For the second consecutive survey, 77% of executives rate their company&#39;s financial outlook as excellent or very good, even as confidence in the broader U.S. economy remained relatively flat at 51%.</p>
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<p xmlns="http://www.w3.org/1999/xhtml">Rather than waiting for economic conditions to improve, companies continue investing in the capabilities they believe will drive long-term growth, including AI, workforce development, and M&amp;A. The findings reinforce a broader trend emerging across recent editions of the report: resilient companies are doubling down on investments they can control, even as macroeconomic uncertainty persists.</p><p xmlns="http://www.w3.org/1999/xhtml">&#34;The defining characteristic of today&#39;s middle market isn&#39;t simply confidence—it&#39;s resilience,&#34; said Ken Gavrity, President, Key Commercial Bank. &#34;They&#39;ve shown the ability to be dynamic in the face of fairly substantial macro shocks, and they trust their ability to allocate capital toward investments they believe will create long-term value, regardless of short-term volatility.&#34;</p><p xmlns="http://www.w3.org/1999/xhtml"><b xmlns="http://www.w3.org/1999/xhtml">Companies Continue Investing Through Uncertainty</b></p><p xmlns="http://www.w3.org/1999/xhtml">Confidence is translating into action. Companies with a positive business outlook are significantly more likely to seek additional capital to fund growth than their more cautious peers— a 26-point gap.  At the same time, reliance on private equity has moderated across recent editions of the report, no longer the top choice for capital investment.</p><p xmlns="http://www.w3.org/1999/xhtml">Rather than pursuing broad expansion, companies are increasingly directing capital toward investments that strengthen core capabilities and long-term competitiveness, with Manufacturing joining Technology as the most optimistic industry for growth.</p><p xmlns="http://www.w3.org/1999/xhtml"><b xmlns="http://www.w3.org/1999/xhtml">AI Is Moving from Experimentation to Execution</b></p><p xmlns="http://www.w3.org/1999/xhtml">The evolution of AI investment is one of the clearest examples of how middle market priorities have shifted.</p><p xmlns="http://www.w3.org/1999/xhtml"><b xmlns="http://www.w3.org/1999/xhtml">More than half (54%)</b> of middle market companies now identify AI and technology expansion as their top capital investment priority for 2026. Across recent editions of KeyBank&#39;s Middle Market Sentiment Report, AI has evolved from an emerging technology discussion centered on cybersecurity and <span xmlns="http://www.w3.org/1999/xhtml">fraud</span> prevention to a core business strategy focused on improving operations, productivity and decision-making.</p><p xmlns="http://www.w3.org/1999/xhtml"><b xmlns="http://www.w3.org/1999/xhtml">Technology and Talent Are Advancing Together</b></p><p xmlns="http://www.w3.org/1999/xhtml">Companies are investing in people alongside technology to maximize the value of AI.</p><p xmlns="http://www.w3.org/1999/xhtml">The report finds reskilling existing employees and hiring AI talent are becoming increasingly important workforce priorities, reflecting a growing recognition that technology investments deliver the greatest impact when paired with the right talent and capabilities.</p><p xmlns="http://www.w3.org/1999/xhtml"><b xmlns="http://www.w3.org/1999/xhtml">Long-Term Growth Plans Remain Intact</b></p><p xmlns="http://www.w3.org/1999/xhtml">While companies have become more measured in the timing of acquisitions, long-term growth ambitions remain intact. Buy-side M&amp;A activity is expected to strengthen throughout 2027 and 2028, particularly among technology companies, larger firms and organizations led by CFOs and CEOs with active acquisition strategies.</p><p xmlns="http://www.w3.org/1999/xhtml">Cybersecurity also remains a consistent investment priority regardless of business outlook, underscoring its role as foundational to future growth as AI adoption accelerates.</p><p xmlns="http://www.w3.org/1999/xhtml"><b xmlns="http://www.w3.org/1999/xhtml">Read the full <a xmlns="http://www.w3.org/1999/xhtml" href="https://edge.prnewswire.com/c/link/?t=0&amp;l=en&amp;o=4749095-1&amp;h=2106772572&amp;u=https%3A%2F%2Fwww.key.com%2Fbusinesses-institutions%2Fbusiness-expertise%2Farticles%2Fmmsr-what-leaders-trust.html&amp;a=Q2+2026+KeyBank+Middle+Market+Sentiment+Report" target="_blank" rel="nofollow">Q2 2026 KeyBank Middle Market Sentiment Report</a> for additional trend analysis, industry-specific findings and complete survey methodology.</b></p><p xmlns="http://www.w3.org/1999/xhtml"><b xmlns="http://www.w3.org/1999/xhtml">Key Findings</b></p><ul xmlns="http://www.w3.org/1999/xhtml" type="disc"><li xmlns="http://www.w3.org/1999/xhtml"><b xmlns="http://www.w3.org/1999/xhtml">77%</b> of middle market executives rated their company&#39;s financial outlook as excellent or very good for the second consecutive survey.</li><li xmlns="http://www.w3.org/1999/xhtml">Confidence in the U.S. economy declined from <b xmlns="http://www.w3.org/1999/xhtml">53% in Q2 2025 to 51%,</b> widening the confidence gap from <b xmlns="http://www.w3.org/1999/xhtml">19 percentage points to 26 percentage points</b>.</li><li xmlns="http://www.w3.org/1999/xhtml"><b xmlns="http://www.w3.org/1999/xhtml">54%</b> of companies identified AI and technology expansion as their top capital investment priority for 2026.</li><li xmlns="http://www.w3.org/1999/xhtml">Companies with a positive business outlook are significantly more likely to seek additional capital to fund growth than their more cautious peers— a 26-point gap. </li><li xmlns="http://www.w3.org/1999/xhtml">Long-term M&amp;A expectations remain strong throughout <b xmlns="http://www.w3.org/1999/xhtml">2027 and 2028</b>, particularly among larger and technology-focused companies.</li></ul><p xmlns="http://www.w3.org/1999/xhtml"><b xmlns="http://www.w3.org/1999/xhtml">About KeyCorp</b><br xmlns="http://www.w3.org/1999/xhtml"></br>KeyCorp&#39;s (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/KEY">KEY</a>) roots trace back more than 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation&#39;s largest bank-based financial services companies, with assets of approximately $191 billion at June 30, 2026.</p><p xmlns="http://www.w3.org/1999/xhtml">Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 950 branches and approximately 1,100 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit <a xmlns="http://www.w3.org/1999/xhtml" href="https://edge.prnewswire.com/c/link/?t=0&amp;l=en&amp;o=4749095-1&amp;h=2495032466&amp;u=https%3A%2F%2Fedge.prnewswire.com%2Fc%2Flink%2F%3Ft%3D0%26l%3Den%26o%3D4744323-1%26h%3D1626891147%26u%3Dhttps%253A%252F%252Fedge.prnewswire.com%252Fc%252Flink%252F%253Ft%253D0%2526l%253Den%2526o%253D4670345-1%2526h%253D2391782717%2526u%253Dhttps%25253A%25252F%25252Fwww.key.com%25252F%2526a%253Dhttps%25253A%25252F%25252Fwww.key.com%25252F%26a%3Dhttps%253A%252F%252Fwww.key.com%252F&amp;a=https%3A%2F%2Fwww.key.com%2F" target="_blank" rel="nofollow"><b xmlns="http://www.w3.org/1999/xhtml">https://www.key.com/</b></a>. KeyBank Member FDIC.</p><p xmlns="http://www.w3.org/1999/xhtml"><b xmlns="http://www.w3.org/1999/xhtml">Media Contact:<br xmlns="http://www.w3.org/1999/xhtml"></br></b><b xmlns="http://www.w3.org/1999/xhtml">Elana Ferrari<br xmlns="http://www.w3.org/1999/xhtml"></br></b><a xmlns="http://www.w3.org/1999/xhtml" href="mailto:Elana_ferrari@keybank.com" target="_blank" rel="nofollow"><b xmlns="http://www.w3.org/1999/xhtml">Elana_ferrari@keybank.com</b></a>        </p>



<p xmlns="http://www.w3.org/1999/xhtml" id="PURL"><img xmlns="http://www.w3.org/1999/xhtml" title="Cision" width="12" height="12" alt="Cision" src="https://edge.prnewswire.com/c/img/favicon.png?sn=CL22812&amp;sd=2026-08-11"></img> View original content to download multimedia:<a xmlns="http://www.w3.org/1999/xhtml" id="PRNURL" rel="nofollow" href="https://www.prnewswire.com/news-releases/middle-market-confidence-holds-near-record-highs-as-companies-continue-investing-through-economic-uncertainty-302848391.html" target="_blank">https://www.prnewswire.com/news-releases/middle-market-confidence-holds-near-record-highs-as-companies-continue-investing-through-economic-uncertainty-302848391.html</a></p><p xmlns="http://www.w3.org/1999/xhtml">SOURCE KeyBank</p>

Middle Market Confidence Holds Near Record Highs as Companies Continue Investing Through Economic Uncertainty

KeyBank Survey Signals AI Spending Fueled by Resilience in Middle Market

<section class="insight" data-version="1">
  <section data-block="information">
    <h3>Information</h3>
    <p>&lt;p xmlns=&quot;http://www.w3.org/1999/xhtml&quot;&gt;&lt;i xmlns=&quot;http://www.w3.org/1999/xhtml&quot;&gt;KeyBank survey finds...</p>
  </section>

  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>KeyBank&#039;s Q2 2026 Middle Market Sentiment Report shows 77% of executives view their outlook as excellent or very good, while economy confidence sits at 51%. Firms are prioritizing AI, talent development, and targeted M&amp;A despite macro uncertainty, signaling stronger demand for KeyBanc&#039;s financing and advisory services. Long-term growth plans remain intact, with M&amp;A activity expected to strengthen in 2027–2028 and cybersecurity prioritized.</p>
  </section>

  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>77% of middle-market execs rate outlook as excellent or very good. Economy confidence at 51%.</li><li>54% identify AI/tech expansion as top 2026 investment priority.</li><li>Long-term M&amp;A expectations remain strong for 2027-2028.</li><li>AI is moving from experimentation to execution; cybersecurity remains foundational.</li></ul>
  </section>

  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>KeyCorp (KEY)</strong>: Parent company of KeyBank; potential beneficiaries from higher mid-market lending and advisory activity.</li><li><strong>KeyBank National Association (NA)</strong>: Operating subsidiary; tied to KEY&#039;s franchise and related fee income streams.</li></ul>
  </section>

  <section data-block="category">
    <h3>Industry News</h3>
    <p>Category: Industry News. The piece highlights macro trends in mid-market AI investment and M&amp;A activity that influence demand for KEY&#039;s corporate banking and advisory services.</p>
  </section>

  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>Rising AI/tech capex among middle-market clients may boost KeyBanc advisory fees.</li><li>Expectation of 2027–2028 buy-side M&amp;A growth could lift underwriting revenue.</li><li>Cybersecurity investment remains a steady tailwind for treasury and cash-management services.</li><li>Macro uncertainty persists, but resilience supports deposit growth and lower risk.</li></ul>
  </section>

  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>77% of middle-market executives rated their company&#039;s outlook as excellent or very good (Q2 2026).</li><li>Economy confidence declined to 51%, down from 53% in Q2 2025.</li><li>54% identified AI/technology expansion as their top capital investment priority for 2026.</li><li>Long-term M&amp;A expectations remain strong for 2027 and 2028.</li><li>KeyCorp assets were approximately $191 billion as of June 30, 2026.</li></ul>
  </section>

  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>Over the next 12–24 months, KEY could benefit from stronger middle-market lending and advisory demand as AI investments accelerate.</p>
  </section>
</section>


<article>
  <section>
    <h2>KeyBank Middle Market Sentiment Report Signals Resilience as Companies Invest Through Uncertainty</h2>
    <p>CLEVELAND, Aug. 11, 2026 — KeyCorp’s KeyBank Middle Market Sentiment Report shows mid-market confidence remains near record highs even as macro uncertainty persists. For the second consecutive survey, <strong>77%</strong> of executives rate their company’s financial outlook as excellent or very good, while confidence in the U.S. economy stands at <strong>51%</strong>. This dynamic underscores a shift from waiting for conditions to improving capabilities through focused investment.</p>
  </section>

  <section>
    <h3>Key Findings at a Glance</h3>
    <ul>
      <li><strong>77%</strong> of middle market executives rated their company’s financial outlook as excellent or very good for the second consecutive survey.</li>
      <li>Confidence in the U.S. economy declined from <strong>53%</strong> in Q2 2025 to <strong>51%</strong>, widening the confidence gap from <strong>19 percentage points</strong> to <strong>26 percentage points</strong>.</li>
      <li><strong>54%</strong> of companies identified AI and technology expansion as their top capital investment priority for <strong>2026</strong>.</li>
      <li>Companies with a positive business outlook are significantly more likely to seek additional capital to fund growth—a <strong>26-point gap</strong>.</li>
      <li>Long-term buy-side M&A expectations remain strong throughout <strong>2027 and 2028</strong>, particularly among technology-focused and larger firms.</li>
    </ul>
  </section>

  <section>
    <h3>Investing Through Uncertainty: AI, Talent and Long-Term Growth</h3>
    <p>Rather than waiting for better conditions, middle market companies are directing capital toward capabilities that drive long-term growth, including AI, workforce development, and M&A activity. The findings reinforce a broader trend: resilient companies are doubling down on investments they can control amid persistent macroeconomic volatility.</p>
    <p>“The defining characteristic of today&#39;s middle market isn&#39;t simply confidence—it&#39;s resilience,” said Ken Gavrity, President, Key Commercial Bank. “They&#39;ve shown the ability to be dynamic in the face of fairly substantial macro shocks, and they trust their ability to allocate capital toward investments they believe will create long-term value, regardless of short-term volatility.”</p>
  </section>

  <section>
    <h3>AI Adoption: From Experimentation to Execution</h3>
    <p><strong>AI Is Moving from Experimentation to Execution</strong> — The evolution of AI investment is one of the clearest examples of how middle market priorities have shifted. <strong>More than half (54%)</strong> of middle market companies now identify AI and technology expansion as their top capital investment priority for <strong>2026</strong>. Across recent editions of KeyBank&#39;s Middle Market Sentiment Report, AI has evolved from an emerging technology discussion centered on cybersecurity and fraud prevention to a core business strategy focused on improving operations, productivity and decision-making.</p>
    <p>Technology and talent are advancing together, with reskilling existing employees and hiring AI talent becoming increasingly important workforce priorities. This reflects a growing recognition that technology investments deliver the greatest impact when paired with the right talent and capabilities.</p>
  </section>

  <section>
    <h3>Long-Term Growth and Acquisition Strategy</h3>
    <p>Long-term growth ambitions remain intact even as companies adopt a more measured approach to timing acquisitions. Buy-side M&A activity is expected to strengthen throughout <strong>2027 and 2028</strong>, particularly among technology companies, larger firms and organizations led by CFOs and CEOs with active acquisition strategies. Cybersecurity also remains a consistent investment priority, underscoring its role as foundational to future growth as AI adoption accelerates.</p>
  </section>

  <section>
    <h3>Read the Full Report</h3>
    <p>Read the full <strong>Q2 2026 KeyBank Middle Market Sentiment Report</strong> for additional trend analysis, industry-specific findings and complete survey methodology. <a href="https://edge.prnewswire.com/c/link/?t=0&amp;l=en&amp;o=4749095-1&amp;h=2106772572&amp;u=https%3A%2F%2Fwww.key.com%2Fbusinesses-institutions%2Fbusiness-expertise%2Farticles%2Fmmsr-what-leaders-trust.html&amp;a=Q2+2026+KeyBank+Middle+Market+Sentiment+Report" target="_blank" rel="nofollow">Read the full report here</a>.</p>
  </section>

  <section>
    <h3>Key Findings at a Glance — Summary</h3>
    <ul>
      <li><strong>77%</strong> of middle market executives rated their company&#39;s financial outlook as excellent or very good for the second consecutive survey.</li>
      <li>Confidence in the U.S. economy declined from <strong>53%</strong> in Q2 2025 to <strong>51%</strong>, widening the confidence gap from <strong>19 percentage points</strong> to <strong>26 percentage points</strong>.</li>
      <li><strong>54%</strong> of companies identified AI and technology expansion as their top capital investment priority for <strong>2026</strong>.</li>
      <li>Companies with a positive business outlook are significantly more likely to seek additional capital to fund growth—a <strong>26-point gap</strong>.</li>
      <li>Long-term M&A expectations remain strong throughout <strong>2027 and 2028</strong>, particularly among larger and technology-focused companies.</li>
    </ul>
  </section>

  <section>
    <h3>About KeyCorp and the KEY Ticker</h3>
    <p>KeyCorp&#39;s (NYSE: <strong>KEY</strong>) roots trace back more than 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation&#39;s largest bank-based financial services companies, with assets of approximately <strong>$191 billion</strong> at <strong>June 30, 2026</strong>.</p>
    <p>Key provides deposit, lending, cash management, and investment services to individuals and businesses in <strong>15 states</strong> under the name KeyBank National Association through a network of approximately <strong>950</strong> branches and approximately <strong>1,100 ATMs</strong>. Key also provides a broad range of corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies across the United States under the KeyBanc Capital Markets banner.</p>
    <p>For investors, the ticker <strong>KEY</strong> represents KeyCorp on the New York Stock Exchange (NYSE).</p>
  </section>
</article>

KeyBank's Q2 2026 Middle Market Sentiment Report shows 77% of executives view their outlook as excellent or very good, while economy confidence sits at 51%. Firms are prioritizing AI, talent development, and targeted M&A despite macro uncertainty, signaling stronger demand for KeyBanc's financing and advisory services. Long-term growth plans remain intact, with M&A activity expected to strengthen in 2027–2028 and cybersecurity prioritized.

News insight

Middle Market Confidence Holds Near Record Highs as Companies Continue Investing Through Economic Uncertainty

AI summary

Sentiment rationale

Key facts

Industry News