Amid “Mixed Bag”, Stable Q3’25 Industrial Performance Expected with Pockets of Strength; Cautious Optimism Continues to Build for a Stronger, More Broad-based Growth Setup in 2026
- Investor sentiment and perceived executive tone build on last quarter’s rebound, reflecting cautious optimism but with less outright bullishness amid continued uncertainties
- Following generally better-than-expected Q2’25 earnings and subsequent consensus raises, 57% expect companies to report Q3’25 earnings In Line with analyst estimates
- Similarly, investors widely anticipate companies will Maintain annual guidance, with notably fewer expecting revenue and EPS guides to be Lowered
- Growth/Demand overtakes Tariffs as the leading topic for upcoming earnings calls, though interest in the latter remains high; relatedly, those seeking commentary on Costs/Inflation triples QoQ
- 58% now anticipate YoY industrial organic growth with only 16% expecting it to be lower; further, those citing Economic Slowdown as a concern is notably lower
- Investors are prioritizing Growth over Margins, 64% to 36%, a big swing from the prior two quarters that saw roughly two-thirds favoring profit protection
- Reinvestment jumps ahead of Debt Paydown as the top preferred use of cash, rising to 64% from 46%, the highest level since Dec. ‘24
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HARTFORD, Conn.–(BUSINESS WIRE)–#2026Forecast–Corbin Advisors, a strategic investor relations and communications advisory firm with a track record of supporting our publicly traded clients in creating sustained shareholder value, today released its quarterly Industrial Sentiment Survey®. The survey, part of Corbin Advisors’ Inside The Buy-Side® flagship research publication, was conducted from September 12th to October 9th, 2025, and is based on responses from 30 institutional investors and sell-side analysts globally who actively cover the Industrial Sector. Participating asset managers collectively oversee ~$850 billion in equity assets with ~$118 billion invested in Industrials.
Following last quarter’s survey, which found a rebound in sentiment and investor bullishness back near levels seen at the start of the year, the Voice of Investor® captured this quarter reveals sustained optimism around secular tailwinds and potential for a cyclical turnaround. However, outright optimism is curbed by continued uncertainty.
Indeed, 54% of investors characterize sentiment as Bullish or Neutral to Bullish, little changed QoQ, but with outright Bullish views more than halved. Similarly, 61% describe executive tone as Neutral to Bullish, the most upbeat since Q1’24, but with none in the outright Bullish camp, down from 9% last quarter.
“Industrial investor sentiment is at an interesting point heading into Q3 earnings season, as companies navigate stable near-term results and pockets of strength, but also continued uncertainties relating to the macro, consumer, and tariff impacts – and now emerging economic headwinds from the U.S. government shutdown, which is playing out real time and will likely impact Q4’25 results,” said Rebecca Corbin, Founder and CEO of Corbin Advisors. “Secular growth themes remain intact with AI, data centers, and Aerospace & Defense dominating mindshare while OBBBA and a more conducive interest rate environment are noted tailwinds, further supporting views of a potentially strong setup in 2026. In that vein, captured this quarter is a mindset shift toward growth with fewer concerns around an economic downturn, more optimism for industrial organic growth momentum as we exit 2025, and a hankering for reinvestment over the more defensive favorite for the past two quarters, debt paydown. As companies look ahead, balancing communicating a clear strategy to gain share through investment in growth with disciplined expense management while building in a hedge to address continued uncertainties and reign in expectations will be best positioned to capture investor confidence…and capital.”
After a generally better-than-expected Q2’25 performance and subsequent elevated analyst expectations, 57%, anticipate Q3’25 earnings to be In Line with consensus, up from 45% QoQ. Similarly, investors increasingly expect companies to Maintain annual guides, with notably fewer expecting EPS and Revenue outlooks to be Lowered relative to last quarter’s survey.
Looking ahead, 58% anticipate YoY industrial organic growth in 2025 with only 16% expecting it to be lower; further, those citing Economic Slowdown as a concern saw a notable decrease QoQ.
Against this backdrop, investors are prioritizing growth over margins, 64% to 36%, a big swing from the prior two quarters that saw roughly two-thirds favoring margins and marking the highest reading for growth since December 2024.
“My sentiment is mixed and cautiously optimistic for 2026. The money has followed where the growth is, so it has all been somehow related to AI data centers and/or aerospace and defense. The beginning of a rate cut cycle along with the effects from OBBBA should start to come through in 2026. The setup should be better for next year,” commented a portfolio manager whose firm has over $3 billion invested across the Industrial sector.
Curbing exuberance, 59% expect peak tariff impacts to be felt within the next six months, while another third expect landfall within 12 months. Separately, 68% observed evidence of pull-forward demand in 1H’25, and while views are mixed on whether it will have a negative impact on future financial performance, a slight majority, 53%, believe this outcome is likely.
Growth/Demand jumps ahead of Tariffs as the leading topic to address on upcoming earnings calls, though interest in the latter remains high; relatedly, those seeking commentary on Costs/Inflation triples QoQ.
Reflecting the renewed focus on growth observed in our survey, Reinvestment jumps ahead of Debt Paydown as the preferred cash use for the first time in three surveys, rising to 64% from 46%. Meanwhile, interest in Share Buybacks holds strong near last quarter’s 5-year high despite some level of valuation concerns. Support for M&A increases slightly to 21% from 16%, while preferences for Dry Powder and Dividend Growth both recede QoQ.
Regarding sub-sector views, Defense remains the most favored industry, though Water closes the gap with an influx of bulls. Conversely, investors flip net-bearish on Agriculture, while Machinery and Building Products also see upticks in bearish sentiment and views toward Autos and Non-resi Construction remain deeply negative.
About Corbin Advisors
Corbin Advisors is a strategic investor relations and communications advisory firm with a track record of supporting our publicly traded clients in creating sustained shareholder value. Our approach leverages decades of Voice of Investor® (VOI) research and data-driven insights; capital markets expertise and deep best practice knowledge; and a proven playbook and passion for client outperformance. We are a trusted advisor and partner to boards of directors, executive leaders, and investor relations professionals, serving a broad range of companies globally across sectors, sizes, and situations. Through defining the standard of excellence and challenging conventional thinking, we enable our clients to boldly differentiate their equity brand, maximize valuation, and build more durable franchises.
Corbin Advisors. Outperformance Built on Trust®.
To learn more about us and our impact, visit CorbinAdvisors.com.
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