New York, October 8th / PRNewswire / -- A new report released by Cornerstone Research shows that despite a year-on-year decline, bankruptcy filings by large corporations remained at historically high levels during the second half of 2025 to the first half of 2026.

This report, titled "Trends in Large Corporate Bankruptcy and Financial Difficulties: Mid-2026 Update," indicates that in the 12 months up to June 30, 2026, there were 100 applications for large corporate bankruptcy. This number is lower than the 117 cases in the previous 12-month period, but it represents a 22% increase compared to the average of 82 cases per year from 2005 to 2025.

Cornerstone Research, co-author of the report, Matt Osborn stated: "The high rate of bankruptcies among large enterprises remains persistent, reflecting the ongoing challenges faced by companies that rely on debt financing in the broader economic environment. Data indicates that high interest rates, regulatory uncertainties, as well as the constantly changing demands and competitive landscapes within certain industries, are still the most frequently cited factors driving these large-scale bankruptcies."

Main findings

• Large-scale bankruptcies remain at a high level. During this period, a total of 28 companies filed for bankruptcy, and the assets disclosed by them exceeded $1 billion, which is higher than the historical average of 23 cases per year.
• Changes in consumer preferences are causing financial pressure. In 73% of the 11 major bankruptcy cases involving Chapter, changes in consumer behavior, competitive pressures, or declining demand were cited as contributing factors.
• Regulatory and policy challenges have intensified competitive pressures. 65% of large-scale bankruptcy filings mentioned pressures related to regulation, legislation, or trade policies, including the impact of tariffs and industry-specific compliance requirements.
• Texas has surpassed Delaware to become the primary location for bankruptcy filings. The Southern Texas District Court handles 32% of bankruptcy filings for large corporations, which is higher than Delaware's 20% and also exceeds Texas' historical average of 13%.

Driving factors of financial distress

The report analyzed the initial statements of 26 major bankruptcy cases involving Chapter and found that multiple operational and macroeconomic pressures continue to affect large corporations.

Companies applying for bankruptcy mentioned that changes in consumer preferences and competitive disruptions have brought pressure, such as the disruption of cable television services, competition among streaming platforms, and shifts in demand after the pandemic. They also cited regulatory and policy challenges, including trade tariffs and changes in healthcare funding.

High interest rates put pressure on companies that hold floating-rate debt and those with refinancing needs. At the same time, persistent inflation remains a common headwind, affecting input costs and customer purchasing power.

Industry activities remain concentrated.

Manufacturing, services, as well as finance, insurance, and real estate industries accounted for 64% of all bankruptcy filings by large enterprises during that period.

Manufacturing companies account for nearly one-third of all major bankruptcy cases, with plastic and packaging firms being particularly affected by fluctuations in demand and inventory adjustments after the pandemic. In the service sector, healthcare providers face more prominent difficulties; applications related to finance, insurance, and real estate remain significantly higher than historical averages due to the ongoing pressure on the real estate market.

About the report

"Large Corporate Bankruptcy and Financial Distress Trends: Mid-2026 Update" examines the bankruptcy filings of companies with assets exceeding $100 million over a 12-month period up to June 30, 2026. The report analyzes trends in filings, industry activities, locations of bankruptcies, progress in reorganizations, and the key drivers of corporate financial distress.

About Cornerstone Research

Cornerstone Research is at the forefront of economic and financial consulting, providing rigorous analytical solutions needed to address complex disputes. The company leverages a wide network of renowned academic and industry experts to support each project. Cornerstone combines a deep understanding of economics and finance with a set of industry-leading artificial intelligence and machine learning tools to offer clients mature, customized approaches. Since 1989, innovation, precision, and excellence have defined Cornerstone. This momentum continues today, with the company having over 1,000 professionals collaborating in 9 offices across the United States, the United Kingdom, and the European Union.