US mergers and acquisitions activity recorded a sharp rise in deal value during early 2026, with megadeals returning as companies focused on scale-building and AI-driven capability acquisition. Transactions above $100 million rose 224 percent year-over-year in value during February 2026, though volume declined 9 percent as buyers concentrated on fewer, larger deals, according to EY-Parthenon's monthly M&A activity report.
Technology led all sectors with deal value surging 540 percent year-over-year, as acquirers targeted assets in AI computing, autonomous mobility, fintech infrastructure, and semiconductor innovation. Wealth and asset management posted a 726 percent increase in deal value, driven by two megadeals, as firms sought diversified revenue streams and private markets exposure. Life sciences saw renewed momentum with a 153 percent rise in deal value, while banking and capital markets deal volume grew 200 percent.
Private equity activity increased 9 percent from the prior month, with continued interest in public-to-private transactions. PE sponsors are using take-private structures to pursue long-term value creation away from the constraints of public market reporting cycles.
EY-Parthenon economists project US GDP growth of 2.1 percent for 2026, with the Federal Reserve expected to hold rates through mid-year as inflation remains above its 2 percent target.
Source: EY-Parthenon -- https://www.ey.com/en_us/insights/mergers-acquisitions/m-and-a-activity-report