U.S. middle market sustains double-digit growth while AI fuels a shift toward productivity

Latest National Center for the Middle Market survey finds companies growing through technology investments rather than workforce expansion 

COLUMBUS, OHIO — America’s middle market continues to perform strongly despite ongoing economic uncertainty, with companies sustaining double-digit revenue growth while becoming more restrained in hiring, according to the latest Middle Market Indicator (MMI) from the National Center for the Middle Market (NCMM). 

The report shows year-over-year revenue growth remained strong at 11% even as employment growth moderated to 7.2%, its lowest post-pandemic level. The widening gap between revenue and employment growth suggests many middle market companies are shifting from labor-driven growth to productivity-driven growth, supported by investments in technology, workforce upskilling and process improvements. 

“Even amid concerns about inflation and rising costs, middle market companies continue to demonstrate remarkable resilience,” said Doug Farren, executive director of NCMM. “Rather than simply adding headcount, companies are investing strategically to improve productivity and strengthen operations.” 

Artificial intelligence is playing a central role in that strategy. Nine out of ten middle market companies now report using AI, with many describing their capabilities as established or advanced. Organizations cite measurable financial returns alongside operational improvements such as cost savings, better decision-making and greater automation. 

While enthusiasm for AI continues to grow, executives remain mindful of its challenges. More than four out of five companies report concerns related to AI adoption, including data privacy and security, implementation costs, data quality and maintaining workforce capabilities. Nearly one-third of executives rank digitalization and technology advancement among their top business risks. 

Despite these concerns, middle market confidence remains resilient. Companies continue to report stable confidence in the global, national and local economies while demonstrating a growing willingness to invest in expansion. Businesses are pursuing growth through new products and services, new markets, additional locations and increased use of debt financing to support strategic investments. 

Additional findings from the latest MMI include: 

• Revenue remains historically strong. Eighty-two percent of companies reported year-over-year revenue growth, with nearly half achieving double-digit gains. 
• Hiring has become more measured. While 52% of companies continue to add employees, workforce expansion has moderated from the elevated pace seen following the pandemic. At the same time, only 6% of businesses report declining employment. 
• Investment momentum continues to build. AI remains the leading investment priority, complemented by investments in automation, process improvement and workforce development. 
• Growth expectations remain positive. Seven in ten companies expect revenue growth over the next 12 months, while 59% anticipate increasing employment through mid-2027. 

The findings reinforce the middle market’s continued role as one of the strongest-performing segments of the U.S. economy. Although companies face ongoing challenges including rising costs, economic uncertainty and rapidly evolving technology, executives remain optimistic about future performance and continue investing for long-term growth. 

To download the full report, visit https://www.middlemarketcenter.org. 

About the Middle Market Indicator (MMI) 

The MMI, which was first launched in 2012, surveys 1,000 CEOs, CFOs, and other C-suite executives of America’s middle market companies on key indicators of past and future performance in revenue, employment, and allocation of cash. The survey also reports middle market company confidence in the global, U.S., and local economies and identifies key business challenge areas. The survey was designed to accurately reflect the nearly 200,000 U.S. businesses with revenues between $10 million and $1 billion, the lower and upper limits of middle market annual revenue. The survey is designed and managed by the National Center for the Middle Market. The most recent survey reflected in this report was fielded in June 2026.  

About the National Center for the Middle Market (NCMM)

The National Center for the Middle Market is a research center housed at The Ohio State University Fisher College of Business exists for a single purpose: to ensure that the vitality and robustness of middle market companies are fully realized as fundamental to our nation’s economic outlook and prosperity. The center is the leading source of knowledge, leadership and innovative research on the middle market economy, providing critical data analysis and insights for companies, policymakers and other key stakeholders. The NCMM is fully committed to dynamically creating new knowledge, providing programs that drive value for middle market companies and offering a well-informed outlook on the health and future of the middle market via the Middle Market Indicator. The NCMM and its Middle Market Indicator are generously funded by Chubb, Visa and Wells Fargo. 

About The Ohio State University Max M. Fisher College of Business

The Ohio State University Max M. Fisher College of Business provides tomorrow’s business leaders with the foundation needed to succeed in business today. Fisher students experience an academically rigorous learning environment, led by world-class faculty, which fosters their development as principled leaders who possess an entrepreneurial spirit, global awareness and a commitment to social responsibility. Organizations from around the globe thrive under the leadership of Fisher alumni, who positively impact their communities and the world.