M&A Activism Hits Fever Pitch, Poised to Define 2026

NEW YORK, NY – February 18, 2026 – A dramatic resurgence in merger-and-acquisition activism is reshaping corporate boardrooms, with shareholder demands for companies to sell themselves hitting a five-year high in 2025. The trend, driven by a confluence of favorable market conditions and evolving investor strategies, has set the stage for what many experts predict will be a defining year of high-stakes corporate maneuvering in 2026.

According to the newly released Shareholder Activism Annual Review 2026 by Diligent Market Intelligence, the number of U.S. companies facing activist pressure to pursue a sale or other strategic transaction surged by 29% from the previous year. More than 70 U.S.-based corporations were targeted with these “push-to-sell” demands, a figure nearly double that of 2021, signaling a clear pivot by activists back to a classic, high-impact playbook.

“The resurgence of M&A was long-awaited and driven by a more favorable market, regulatory and financing conditions, and marks a clear shift in activist priorities after several years where other forms dominated agendas,” said Josh Black, Editor-in-Chief at Diligent Market Intelligence. “Many expect M&A to surface as one of the defining themes of 2026 as momentum continues to build.”

This wave of deal-focused activism is not without its countercurrent. The report also notes that shareholder resistance to proposed mergers peaked in 2025, with activists targeting over 30 U.S. companies to block deals they argued failed to deliver sufficient value. This dual-front battle—pushing some companies to the altar while pulling others away—underscores the increasingly influential role investors are playing in dictating long-term corporate strategy.

The Return of the Deal-Making Playbook

The renewed focus on M&A marks a significant shift from recent years, where activists often prioritized operational improvements or governance changes. The acceleration was particularly notable in the second half of 2025, with data from multiple market-watchers, including Lazard and Barclays, confirming that M&A-related objectives constituted the highest proportion of activist campaigns in five years. This momentum was fueled by stabilizing financial markets, greater clarity on interest rate paths, and a backlog of potential deals.

Prominent activist firms have been at the forefront of this trend. Elliott Management, for example, reportedly deployed a record $19 billion in capital across its campaigns in 2025, including a high-profile engagement at BP that contributed to a change in leadership. More recently, in early 2026, the firm was revealed to have built a significant stake in the London Stock Exchange Group, signaling its intent to push for performance improvements. Elsewhere, campaigns like HoldCo Asset Management’s push for Texas-based bank Comerica to explore a sale exemplify the direct, transaction-focused approach now in vogue.

While activists are aggressively pushing for deals, their scrutiny doesn't end once a transaction is announced. The rise in opposition to announced M&A shows a more discerning and empowered investor base, willing to challenge management and boards on valuation and strategic rationale. This environment forces companies to not only justify their standalone strategy but also to prove that any proposed deal is the best possible path forward for shareholders.

A Diversified Arsenal: Pay, Proxies, and Short-Sellers

While M&A has reclaimed the spotlight, the report reveals a broader evolution in activist tactics, showcasing a more sophisticated and multi-pronged approach to influencing companies. One of the most effective entry points for activists in 2025 was executive compensation. According to Diligent, a quarter of the Russell 3000 companies that failed their advisory “say on pay” votes in 2024 subsequently faced activist campaigns in 2025. These campaigns frequently went beyond pay, escalating to demands for leadership changes. The most common demand was the removal of the CEO or a board member, a tactic that proved remarkably effective. In 2025, a record 32 CEOs resigned within a year of an activist campaign being launched, a 60% increase from the prior four-year average.

Simultaneously, the path to the boardroom has changed. Instead of costly and uncertain proxy fights, activists are increasingly securing board seats through negotiated settlements. These private agreements accounted for a staggering 89% of all board seats gained by activists in the U.S. in 2025, up from 84% in 2024. The universal proxy rule, which makes it easier for shareholders to vote for a mix of dissident and management nominees, is widely seen as a key factor encouraging companies to settle rather than risk a public battle. Consequently, board seats won through contested shareholder votes fell by 20%.

Another striking development is the surge in activist short-selling. Global short campaigns hit a multi-year high of 166 in 2025, a 55% jump from the previous year. These campaigns, which aim to profit from a company's stock price falling, have increasingly targeted the high-flying, AI-focused technology sector, raising questions about sky-high valuations and unproven business models. The U.S. remains the epicenter of this activity, accounting for over 70% of all short campaigns and seeing a wave of new players enter the field.

A Global Shift: Asia's Ascent and Europe's Pause

The geography of shareholder activism is also in flux. While overall activity in the U.S. market saw a slight 3% dip, the global stage was marked by significant regional shifts. Asia, in particular, has emerged as a burgeoning hotspot, hitting a five-year high with 246 companies targeted by public activist demands.

Japan is leading this charge, accounting for 56% of all activity in the region. A fundamental change in the relationship between investors and corporate boards is underway, driven by governance reforms and a growing investor willingness to challenge management publicly. Japanese shareholder proposals reached a record high for the fourth consecutive year in 2025, moving beyond traditional demands for higher dividends to more strategic calls for board changes and divestitures of unprofitable businesses.

In contrast, activism in Europe softened, with activity declining by roughly 7.5%. Despite the regional dip, the United Kingdom remained a hub for activists, attracting more than half of all European campaigns. The combination of relatively lower stock valuations and an activist-friendly legal framework continues to make UK-listed companies attractive targets for both domestic and international investors.

As corporations navigate 2026, they face a landscape where shareholder power is more pronounced and multifaceted than ever before. The expectation is that the M&A-driven campaigns will continue, fueled by a healthy dealmaking environment and activists flush with capital. Boards are now under year-round pressure to scrutinize their portfolios, justify their strategic plans, and engage proactively with an increasingly assertive and diverse group of shareholders.