This year, global mergers and acquisitions (M&A) dealmakers have powered through geopolitical tensions and trade policy uncertainty.

In Q1 2026, total deal value reached an estimated US$1.6 trillion, setting a new quarterly record and marking a 50.6% year-over-year (YoY) increase, according to new data released by capital markets research platform PitchBook. The number of transactions also climbed 18% YoY to an 13,877,  landing at the same record levels observed in Q4 2025 and underscoring the strength of the M&A market.

Energy leads M&A growth

In Q1 2026, investors’ priorities shifted towards the energy sector, which led M&A growth with value up 59.8% quarter-over-quarter (QoQ), followed by business-to-consumer (B2C) at 38.6%.

Energy also posted the most dramatic valuation expansion. The enterprise value multiple jumped from about 6.6 times annual earnings before interest, taxes, depreciation, and amortization, to 9 times those earnings, marking a 36.5% jump.

This indicates that investors were willing to pay significantly more for similar levels of profit, which suggests stronger confidence in the sector’s future growth, profitability, or attractiveness. This was driven largely by increased demand for infrastructure and energy-transition-related assets, PitchBook notes.

SpaceX’s xAI transaction drives IT M&A value

IT sector figures were strong as well, primary led by the xAI transaction, a US$250 billion related-party sale to SpaceX with clear shared ownership, which inflated the picture considerably. The transaction helped propel the sector to its highest quarterly value on record to an estimated US$409.5 billion.

SpaceX and xAI are two companies founded and led by Elon Musk. This transaction units aerospace capabilities with xAI’s AI and social media assets from X, creating a combined entity valued at US$1.3 trillion.

According to PitchBook, this strategic move is a precursor to SpaceX’s anticipated initial public offering (IPO). By merging with xAI before going public, SpaceX is transforming its investor narrative from “rocket developer and Internet provider” into “AI and space-infrastructure platform.”

Large transactions dominate financial services M&A

Financial services M&A meanwhile held steadily in Q1 2026 against the momentum seen at the end of 2025. Levels remained elevated relative to the sector’s historic figures despite a QoQ decline.

In Q1 2026, there were an estimated 976 deals worth a total value of US$170.2 billion in the financial services sector. These totals are over 30% above pre-pandemic averages despite declining 6.5% and 29.8% QoQ, respectively.

This year, financial services M&A activity continued shifting toward larger transactions. There were 23 financial services megadeals totaling US$108.9 billion in Q1 2026, compared with 19 totaling US$66.2 billion in Q1 2025.

Elevated megadeal activity reflects market participants’ push for scale and consolidation in an evolving sector, as well as continued appetite for bold M&A despite macroeconomic volatility, PitchBook says.

Asset managers turn to M&A to remain competitive

Asset managers were especially active in Q1 2026, turning to M&A to remain competitive. In March, Corebridge Financial acquired Equitable Holdings for US$22 billion to create a retirement, life insurance, wealth, and asset management platform with US$1.5 trillion in assets under management (AUM). The acquisition will expand the offerings available to customers, accelerate technological initiatives, and potentially deliver more than US$500 million in expense synergies by the end of 2028 through the elimination of redundant roles, vendors, and IT systems.

The combined company will also enhance origination and investment capabilities through Equitable’s active asset management subsidiary AllianceBernstein, with plans to shift over US$100 billion of Corebridge’s accounts to AllianceBernstein over time.

Another notable transaction in Q1 2026 was the acquisition of UK-based Schroders by US asset manager Nuveen. The deal, valued at US$13.5 billion, is set to expand the company’s geographic footprint and create an asset manager with a combined AUM of US$2.5 trillion.

Fintech M&A activity declines

Fintech M&A activity, meanwhile, continued to decline in Q1 2026, reaching 199 transactions in Q1 2026 and marking a 26% QoQ decline, according to CB Insights data.

Notable deals that quarter were concentrated in areas that saw outsized funding growth in 2025, particularly cryptocurrency, spend management, and business-to-business (B2B) technology.

In particular, Capital One completed its US$5.3 billion acquisition of Brex, following the spend management sector’s fourfold funding growth in 2024 and 2025; Fireblocks acquired Tres Finance in crypto accounting and tax reporting; and Mastercard announced a US$1.8 billion deal for BVNK in the crypto payment processor vertical, which was up 3.5-fold. The transaction is still pending regulatory approval.

Public listings also fell in Q1 2026, with only 11 companies going public compared to 24 in Q4 2025. Several high-profile IPOs, including Clear Street and Kraken, were postponed at the start of the year, citing unfavorable market conditions.

Notable IPOs in Q1 2026 included PayPay, a Japanese payments app; PicPay, a Brazilian digital bank; and BitGo, a crypto custody firm.

Featured image: Edited by Fintech News Switzerland, based on image by thanyakij-12 via Magnific