M&A deals worth $10 billion or more hit a record high in the first quarter of 2026, with 12 “mega-deals” completed, the highest number for any quarter since 2008, according to WTW.
WTW’s Quarterly Deal Performance Monitor (QDPM) found that the higher proportion of deals exceeding $10 billion also drove the value of completed deals in the first quarter of 2026 to $438 billion, a five-year high and a 155% increase from the same period in 2025.
In Q1 2026, 56 large deals (valued over $1 billion) were completed, slightly higher than the previous quarter and up from 40 in Q1 2025.
Jana Mercereau, Head of European M&A Advisory at WTW, commented: “Large deals are back. Well-capitalized dealmakers are returning to the market with renewed confidence, taking advantage of improved M&A conditions to pursue large strategic transactions to expand operational scale, close capability gaps and secure critical AI-enabled technology.”
WTW reports that European dealmakers led the M&A market in Q1 2026 with strong performance.
Based on share price performance, European buyers outperformed non-M&A companies by 6.0 percentage points, completing 40 transactions. UK acquirers have mirrored this trend, achieving similarly positive results.
In comparison, Asia-Pacific buyers completed 49 transactions during the quarter, lagging the regional index by -3.4 percentage points. Chinese buyers maintained momentum with 21 transactions, extending a post-2024 recovery in deal activity from record lows.
North American acquirers also underperformed the benchmark, at -5.4 percentage points, despite closing 117 deals in Q1 2026.
This compares to -16.1 percentage points in Q4 2025, which saw 96 transactions, indicating a slight improvement in deal activity.
Mercereau concluded: “Pent-up demand, a favorable regulatory environment and healthy balance sheets have reawakened animal spirits, driving deal values near all-time highs.
“However, the length and scale of the conflict in the Middle East could dampen deal momentum, with corporate executives likely to extend timelines and deepen due diligence.
“Board confidence remains strong, at least for now, as dealmakers have normalized rising geopolitical risks and appear determined to defy the odds and stick with strategic deals.”
