IR Monitor – 04 February 2026

In this week’s newsletter:

• FTI Consulting on corporate affairs in a world without narrative slack. Investors are quicker off the mark than ever and increasingly treat public statements as commitments 
• Companies are laying off workers because of AI’s future potential not its current performance, warns the Harvard Business Review. This risks investor scepticism
• IR trends report for 2026 – Erika Gebhardt reports from the IR Society
• Excuses, excuses? Over 40% of profit warnings issued by FTSE-listed firms last year cited changes in UK government policies & a rapidly shifting geopolitical backdrop
• European IPO market starts 2026 at record pace, reports the Financial Times
• And finally … what is a decimal place between friends?

This week’s news

Corporate affairs in a world without narrative slack – FTI Consulting

Reputation management is becoming increasingly complex, according to a recent report from FTI’s Ant Moore. The growing influence of social media and AI has enabled investors to scrutinise corporate communications in real time and use advanced tools to assess the alignment between stated commitments and actual performance. This alignment is increasingly viewed as a core pillar of investor trust. As the tools of scrutiny improve, there is diminishing room for divergence between where a company says it is headed and the path it must take to maintain credibility and avoid investor backlash. Corporate affairs teams must therefore strike a careful balance between engaging on strategic priorities such as technology, AI and sustainability, and setting ambitions that can be credibly delivered.

Company lay-offs reflect AI’s potential not its performance

While generative AI may already be driving layoffs and slower hiring, a recent survey by The Harvard Business Review suggests the reason is more nuanced. Many companies are reducing headcount or hiring in anticipation of AI’s future impact, rather than on the present evidence of productivity gains. Most executives report difficulty quantifying the economic value of generative AI, and only a small minority attribute workforce reductions to actual AI deployment. The flurry of AI-related job losses are, for now, largely anticipatory, but there may be long-term consequences for companies that announce job reductions due to AI without fully knowing its impact on their workforce. Framing cost-cutting as AI-driven may attract short-term market attention, but risks employee disengagement with AI tools, reputational damage and investor scepticism if the AI benefits fail to materialise at scale.

IR trends report for 2026

The IR Society’s IR Trends Report 2026, highlights a shift towards more targeted, self-directed investor engagement models. This reflects the growing challenge of managing consensus amid more junior sell-side coverage and frequent analyst rotation. In response, IR teams are investing more in their own roadshows, perception studies and CRM-driven targeting and feedback, while placing greater emphasis on investor events such as product- or innovation-led sessions, shorter thematic webinars outside reporting cycles and refreshed CMD formats. Results communications are also evolving, with increased use of virtual or pre-recorded presentations to sharpen messaging and focus Q&A, alongside post-results roundtables to support consensus management. Despite constrained budgets and resources, the report highlights the rising importance of strategic investor targeting, stronger internal stakeholder alignment and the expanding use of AI tools across IR communications.

Over 40% of profit warnings cite changes in UK government policies

Rising geopolitical tensions and domestic policy shifts featured in a record share of UK profit warnings last year, according to EY, marking the highest proportion seen in more than 25 years. This marks a significant shift from 2024, when only a minority of warnings referenced policy factors. Jo Robinson, EY-Parthenon Partner and UK & Ireland Financial Restructuring Leader, told Bloomberg that higher employer national insurance, ongoing tariff concerns and the autumn budget all squeezed margins. She also noted the specific strain faced by the construction sector amidst “a series of building safety regulation changes.” By sector, software and IT services recorded the most warnings, while retailers faced particular strain as rising labour costs hit already thin margins. Yet, there remains scope for optimism. The number of profit warnings are falling and fell to 240 in 2025, marking a four-year low, though with Robinson cautioning “that figure is still 17% of all UK listed businesses … consistent with a period of economic shock.”

European IPO market starts 2026 at record pace – Financial Times

The European IPO market is staging a comeback, having started 2026 with unusually positive momentum. Ammunition supplier Czechoslovak Group impressed on its Amsterdam debut, raising €3.8 billion, and, according to the FT, has helped reset confidence across the region. The five flotations from January alone have raised a quarter of the amount achieved from the entirety of 2025, with Deutsche Bank’s Tom Swerling describing the momentum as a catalyst to “restore momentum.” Interestingly, this past month is not being viewed as a blip, with Clara Comellini of UBS observing the “robust pipeline of deals” that are emerging and Jefferies’ Luca Erpici noting “the improving quality and scale of potential IPO candidates.” Despite this positivity, caution still abounds. BNP Paribas e.g. will continue to be “structured, careful and cautious in terms of building a transaction.”

And finally … what is a decimal place between friends?

It’s becoming more common for FTSE100 listed companies to report growth in whole percentages rather than to one decimal place, writes Dwight Burden at FTI Consulting. At first glance, the change looks insignificant; but in practice, it can hide meaningful differences. A headline figure of 5% could sit anywhere between 4.5% and 5.4%, masking an (almost) full point of variation. Rounding can flatten softening momentum, hide meaningful revenue moves and neatly convert high single-digit growth (9.5%) into a headline-grabbing 10%. For investors making decisions off trading statements and quarterly updates, that loss of precision matters. Companies may have operational reasons for simplifying headlines, but it must be questioned whether this approach dilutes transparency. While disclosure is partially about publishing numbers, it’s more importantly about how accurately those numbers reflect reality.