72% of businesses prioritise profit stability in 2025, Coupa data reveals
New research from Coupa, the margin multiplier company, has revealed that 72% of financial decision-makers consider maintaining stable operating profit margins year-on-year to be an indicator of success.
The findings highlight that businesses are shifting their focus from revenue growth to “resilience economics”, driven by the anticipation of rising inflation, trade tariffs, and persistent supply chain disruptions in 2025.Despite near-certain economic challenges ahead, 2025 starts with cautious optimism as three quarters (75%) of businesses anticipate margin growth this year. Over half (56%) of finance decision-makers across France, Germany, the UK, and the US anticipate a 10% increase in margins in 2025, with a further 30% expecting growth exceeding 20%.
Identifying barriers to profitability
According to respondents, the top barriers to profitability in 2025 will be declining customer demand (50%), rising supply chain complexities (38%), competitive pressures (35%), and new and upcoming tariff increases (35%).
For those optimistic about 2025’s projected growth, the repercussions of underestimating these challenges could be severe. Even with available indicators to help businesses identify these barriers, 7% foresee margin declines, with a significant portion of these (41%) predicting substantial declines of over 10%.
Remaining the same requires effort
Despite it being a unanimous indicator of success, sustaining profit margins in 2025 remains a significant challenge, with just under one in five (19%) financial decision-makers expecting to maintain static profit margins to 2024. Yet, the findings suggest that retaining margins does not eliminate challenges or minimise effort needed throughout the year–rather, this means working just as hard to maintain stability and avoid falling behind.
“In the current economic climate, the emphasis has shifted from chasing hyper-growth to ensuring that businesses are staying above – or in some cases on – the line,” said João Paulo da Silva, regional president, EMEA and APAC at Coupa. “Today’s focus is on operational stability and efficiency, calling for a new era of resilience economics. Maintaining healthy margins requires significant cost-saving measures that aren’t immediately reflected in bottom-line growth. We know too well the costs of underestimating uncertainty, so for businesses looking to prioritise smarter investments and focus on efficiency, now is the time.”
Recalibrating for 2025’s uncertainties
The findings also shine a light on the strategies that decision-makers are already putting into place to minimise the direct impact of potential threats. Over half (59%) of businesses anticipate strategic investments in technology, such as artificial intelligence (AI), to be a significant driver in enabling data-driven decision-making, strengthening overall operations, and encouraging margin growth.
Paired with improved supply chain dynamics (54%) and expansion into high-growth regions or segments (46%), decision-makers are looking to strike a balance between resilience and sustainable growth, ensuring that they are staying ahead of uncertainty and ultimately meeting targets.
Survey Methodology
The Coupa survey was conducted by Sapio Research among 400 financial decision-makers from companies with £250m annual revenue or more, in December 2024, using an email invitation and an online survey. Fielded in the following markets: US, UK, France, and Germany.