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      An index of corporate financial performance

      Global corporate financial performance saw a slight uptick this quarter, likely driven primarily by incremental gains from shifting trade dynamics across key regions. With all sectors reporting higher scores, the data reveals a notable decline in the number of zombie companies worldwide.


      Keep abreast of financial performance with our latest data driven insights (3Q25 insights).

      Discover which jurisdictions are performing among the best. Assess financial performance across sectors. Identify distressed companies. Compare your company’s financial performance against tens of thousands of public companies around the world. KPMG’s Financial Performance Index (FPI) is designed to be one of the clearest indices of corporate financial performance.

      For investors, financiers, regulators and governments, the KPMG FPI seeks to provide insights into the relative strength and health of key markets and sectors. With millions of data points going back to 2017, these long-term trends can help you spot signs of improvement or impending distress.

      Updated quarterly, this webpage allows you to interact with the data to analyze shifts, trends and related opportunities. You will also find key highlights from the most recent quarter and a spotlight on fast-moving industry sectors.

      • Heightened trade frictions between the US and China—stemming from imposed import duties and export controls—continue to amplify global trade instability. This turbulence is disrupting supply chains and contributing to a deceleration in export momentum, particularly across Asia, where the temporary boost from early stockpiling is now fading.
      • Global economy continues to demonstrate resilience, underpinned by sustained investment in AI. Despite prevailing geopolitical tensions and policy uncertainty, technology driven transformation is emerging as a key catalyst for growth, reinforcing its strategic role in enhancing productivity and unlocking long-term value across industries.
      • Global FPI climbed to 90.6 in the 3Q25, marking an improvement from 89.2 in the previous quarter. However, several economies continue to exhibit signs of financial stress. Notably, Canada (75.1), Australia (77.2), Argentina (79.5), Romania (82.6), Malaysia (82.8), Bangladesh (83.0), and Sweden (83.4) all reported FPI scores below the 85-point threshold. These figures underscore persistent vulnerabilities and potential economic fragilities within these markets, despite the broader global uptick.
      • Oceania and North America led regional improvements in Q3 2025, with FPI scores rising by 4.5 points to 78.0 and 3.4 points to 88.6, respectively. Europe and Asia also posted modest gains of 1.3 points each, reaching 89.5 and 91.4. South America saw a marginal uptick of 0.1 points to 91.5, while Africa was the only region to record a decline, slipping 0.1 points to 91.8.
      • Sector-level FPI scores rebounded strongly in 3Q25, particularly among industries previously under stress. Biotechnology rose to 91.2, Raw Materials and Natural Resources to 89.0, Healthcare to 91.8 and Energy to 90.96. Overall, all 24 sectors tracked posted gains, marking a sharp reversal from the broad-based declines seen in 2Q25.
      • The number of zombie companies—those with an FPI of zero for more than three consecutive quarters—declined from 1,213 in Q2 to 1,184 in Q3. These firms represented approximately 3.3 percent of the total companies analyzed, indicating a slight easing in prolonged financial distress.

      • Global economic headwinds, fueled by geopolitical tensions and policy uncertainty, are creating a challenging environment for businesses. Elevated debt levels, persistent inflation, and ongoing geopolitical instability pose significant downside risks to the global outlook, potentially impacting corporate earnings and valuations.
      • Global structural reforms and the increasing adoption of AI offer glimmers of hope for medium-term economic recovery, the KPMG FPI data reveals a tangible weakening of corporate fundamentals and increasing financial stress across sectors.
      • FPI scores dipped to 89.2 in 2Q25, down from 89.4 in the previous quarter. Several economies including Canada (64.6), Australia (72.0), Romania (72.8), Malaysia (78.5), Thailand (79.9), Sweden (80.3) and Hong Kong (SAR) (83.7) registered FPI scores below 85, highlighting increased financial vulnerability in these markets.
      • At a regional level, modest improvements were experienced by North America (up 2.7 points to 85.2) and Oceania (up 2.68oints to 73.4). However, all other regions experienced declines with Asia (down 1.1 points to 90.4), South America (down 1.1 points to 91.) and Africa (down 1.1 points to 91.9) registering the most significant drops, followed by Europe (down 0.9 points to 88.2).
      • Sector-specific FPI data reveals further vulnerabilities. Raw Materials and Natural Resources, Biotechnology, and Energy all recorded scores below 90, indicating heightened financial stress in these sectors. The decline was broad-based, however, with 18 out of 24 sectors experiencing a decline in their FPI score in 2Q25, a contrast to the previous quarter’s stability.
      • There was also a decrease in the number of zombie companies (those that scored an FPI of zero for more than three quarters), with numbers decreasing from 1,339 in 1Q25 to 1,213 in 2Q25. Zombie companies accounted for approximately 3.4 percent of the total companies analyzed in the quarter.

       

      • 2025 started with an increase in overall FPI scores from 88.2 in 4Q24 to 89.4 in 1Q25 (up by 1.2 points).
      • All regions experienced a mixed trend in FPI scores in 1Q25. Oceania witnessed the most significant increase from 67.5 in 4Q24 to 70.9 in 1Q25.
      • From a national standpoint, most countries, excluding a few in Europe and Asia, demonstrated an increase in FPI scores in 1Q25. However, even among the countries experiencing a decline in FPI scores, the index remained within the positive range of 83 to 94 points.
      • Canada, Hong Kong (SAR) and Bangladesh displayed predominantly positive momentum, showcasing robust growth of 26.5, 11.3 and 9.6 percent respectively from the previous quarter. Taiwan led the global ranking with an FPI score of 97.9, followed closely by Saudi Arabia with an FPI score of 96.5.
      • Across sectors, 1Q25 saw broad-based FPI improvement. The Raw Materials and Natural Resources sector experienced the largest gains, surging 5.4 points to 82.4. Utilities and Biotechnology also saw notable improvements, rising to 94.0 and 86.9 respectively. Except for Raw Materials and Natural Resources and Biotechnology, all sectors achieved FPI scores above 90, signaling robust financial health.
      • There was also an increase in the number of zombie companies (those that score an FPI of zero for more than three quarters), with the numbers rising from 1,308 in 4Q24 to 1,339 in 1Q25. Zombie companies accounted for approximately 3.6 percent of the total companies analyzed in the quarter.

      What is the KPMG FPI?

      The KPMG FPI distills a range of market and financial performance indicators into a single index covering nearly 40,000 public companies around the world.

      The index scores companies on a scale of zero to 100, with zero indicating serious distress and 100 being best performing.

      Since many companies tend to perform well for most of their lifespans, there is a natural bias towards a higher quartile score. As such, around 80 percent of the companies in our index score between 85 and 99.

      As the KPMG FPI is a logit model, a drop below the average for a specific company can very quickly lead to an index score of zero.

      When exploring this data, therefore, readers should consider:`

      • The absolute score (zero to 100)
      • Comparisons across geographies
      • Comparisons across sectors
      • Relative performance against peers
      • Trends over time
      • Macro events which are driving trends and
      • Expected macro events which may affect future scores.

      Read more about our methodology.

      Want to see your company’s score?

      To understand your company’s current index score, or to uncover deeper insights into specific markets or segments, contact your local KPMG member firm. KPMG’s global organization of professionals have the data, sector and geographic experience to help you understand your score and tie it back to your business needs. Whether it is benchmarking, identifying targets, comparing sectors, or looking for trends over time, KPMG professionals can connect you to the information you need to capitalize on your opportunities. That is our business. Please contact us at fpi@kpmg.com to find out more.

      Global performance

      The global corporate financial performance index rose to 90.6 in Q3 2025, up 1.4 points from the previous quarter. This improvement reflects continued strength in the global economy, driven by robust AI investments and resilient consumer spending, underpinned by rising household wealth. However, looming import duty-driven inflationary pressures pose a potential headwind to future growth.

      Looking ahead, the FPI team projects a modest pullback in the next quarter. A combination of slowing global growth, heightened policy uncertainty, and geopolitical shifts is weighing on sentiment. While some risks have moderated, persistent market volatility and fragmented policy responses continue to cloud the financial outlook.

      Sector performance

      All 24 sectors recorded gains in 3Q25, with the Biotechnology sector leading FPI growth, climbing from 87.3 to 91.2. This surge was fueled by sustained global investment momentum, driven by innovation-centric R&D and strong commercial viability. Despite rising techno-nationalist policies and geopolitical challenges, the sector continued to attract capital, underscoring its strategic importance across healthcare, energy, and industrial domains.

      Equity Real Estate Investment Trusts (REITs) posted the weakest FPI growth in Q3 2025, inching up marginally from 94.6 to 94.7. This tepid performance reflects cautious investor sentiment amid persistent structural headwinds. Broader macroeconomic signals indicate a deceleration in real estate investment activity, with limited traction across property-linked sectors—reinforcing the sector’s restrained outlook.

      Regional performance

      Oceania and North America saw moderate FPI gains, rising by 4.5 points to 78.0 and 3.4 points to 88.6, respectively. Most regions registered positive momentum, with Europe and Asia each advancing by 1.3 points to 89.5 and 91.4, while South America edged up slightly by 0.1 points to 91.5. Africa was the only region to record a decline, slipping marginally by 0.1 points to 91.8, signaling a divergence in regional investment trends.

      Sector performance across regions

      the second quarter of 2025, different regions experienced varying performance in their sectors. Here is a breakdown of the regional comparisons:

      • Africa: Sectors showed mixed performances, with strong results from Trading Companies and Distributors (97.1), Healthcare (96.8) and Technology and Telecommunication (95.2), up by 2.4, 1.7 and 1.3 points respectively. Energy (88.9) sector faced the steepest decline by 1.3 points as it regionally continues to face significant challenges, with pricing pressures and infrastructure delays compounded by political transition and structural inefficiencies. While recent reforms and improved power availability offer short-term relief, the system remains fragile, and long-term stability will depend on attracting private investment and accelerating deep-rooted sectoral restructuring.
      • Asia: All sectors experienced gains this quarter except Equity Real Estate Investment Trusts (REITs) which dropped by 0.3 points to 94.5 points. Strong results from Infrastructure and Real Estate (89.0) and Transportation and Logistics (95.0) led FPI growth. Equity Real Estate Investment Trusts (REITs) faced headwinds as elevated interest rates continued to weigh on funding costs.
      • Europe: Most sectors in Europe experienced an upturn this quarter, with Chemicals (93.3) and Life Sciences Tools and Services (87.3) experiencing notable gains of 2.6 and 2.0 points respectively. Conversely, Raw Materials and Natural Resources (88.1) and Agriculture and Husbandry (98.3) showed a decline, falling by 2.1 and 0.8 points. The Raw Materials and Natural Resources sector in Europe faced headwinds amid subdued industrial activity and persistent macroeconomic uncertainty. Steel consumption, a key proxy for resource demand, continued its downward trajectory, reflecting broader structural challenges across manufacturing and construction.
      • North America: Most sectors in North America experienced an upturn this quarter. Biotechnology, Pharmaceuticals and Raw Materials and Natural Resources posted strong FPI gains, reaching 88.9, 87.9 and 86.8 respectively. Industrial Conglomerates saw the steepest decline, with FPI scores plunging 7.9 points to 87.6, driven by weakening global trade dynamics and escalating uncertainty around import duties. The administration’s fragmented trade architecture, coupled with rising sector specific trade levies and unresolved tensions with strategic partners, has intensified supply chain disruption and weighed heavily on industrial throughput.
      • Oceania: The region’s Chemicals sector recorded the most substantial improvement in FPI scores, rising to 83.6. The Life Sciences Tools and Services industry also saw a notable increase, reaching a score of 81.5. In contrast, the Pharmaceuticals segment experienced a sharp decline (dropping to 76.4).
      • South America: Travel and Hospitality (90.4) and Chemicals (80.3) sectors saw improvements, while Manufacturing (91.7) and Business Services (92.5) plummeted. Business Services weakened amid tightening financial conditions and softening external demand, while persistent labor informality and subdued formal employment further constrained productivity.

      Zombies

      Zombies are companies close to default, scoring zero on the KPMG FPI for three or more consecutive quarters.

      In the most recent quarter, the number of zombies decreased by 2.4 percent to 1,184. The Raw Materials and Natural Resources sectors, as well as the Technology and Telecommunication sectors, contributed the highest share of zombies with around 13.8 and 13.3 percent respectively, followed by the Biotechnology sector with around 12.1 percent.

      Country and territory performance: Quarter-over-quarter biggest gainers and losers

      An analysis of the KPMG FPI country data shows that, quarter-over-quarter, the largest gains in KPMG FPI scores were experienced by companies headquartered in Canada (up 10.5 points to 75.1), Romania (up 9.8 points to 82.6), Thailand (up 6.0 points to 85.9) and Australia (up 5.2 points to 77.2).

      Quarter-over-quarter declines were observed in Argentina (down 7.2 points to 79.5), Belgium (down 4.7 points to 91.4) and Philippines (down 1.9 points to 85.1).

      Distressed jurisdictions

      Given the natural bias for the KPMG FPI to score well-performing companies at high levels (typically between 85 and 99), this index provides a significant opportunity to spot distressed companies that fall outside of the normal range.

      KPMG FPI is an index that combines traditional market performance indicators together with company, jurisdictions and industry specific financial performance indicators into a single index number. This allows KPMG FPI to identify why markets are behaving in a particular way and support those findings with data-backed insights into what is causing the movement. It has also been proven to identify insights earlier than traditional market indicators.

      In 3Q25, the KPMG FPI found 1,184 companies with a KPMG FPI score of zero. The largest concentrations of zero-indexed companies were headquartered in the US (413), Canada (222), Australia (89) and Hong Kong (SAR) (82).

      Please visit the Zombie section to find out more about significant underperforming companies.

      Methodology

      The KPMG Financial Performance Index measures the financial health of individual companies. Based on an initial pool of more than 40,000 companies globally, the KPMG FPI identifies those companies, sectors, regions, and jurisdictions that are performing well and those that are underperforming. A higher score on the KPMG FPI represents strong performance.

      The KPMG FPI model draws from the Logit Probability to Financial Default model (developed by John Campbell, Jens Hilscher and Jan Szilagyi), which is based on eight explanatory variables encompassing financial and market variables, to assess the overall financial health of a company. The KPMG FPI is based on raw data from S&P Capital IQ database.

      We release our insights publicly every quarter. However, the model can be run on any given day to reflect live market changes, so please reach out to your local KPMG member firm, or contact us at fpi@kpmg.com if you would like additional information.

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