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FinanceCybersecurity stocks surge after IBM warns of enterprise spending shift toward infrastructure and security
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Cybersecurity stocks including CrowdStrike, Fortinet, Okta, and Palo Alto Networks surged on Tuesday after IBM warned that enterprise customers are shifting spending away from traditional software toward infrastructure and cybersecurity. IBM CEO Arvind Krishna noted that in late June, clients redirected quarterly capex to servers, storage, and memory to secure supply-constrained infrastructure ahead of expected price increases. He also highlighted that rapidly evolving cybersecurity concerns are drawing customer focus. Investors interpreted the comments as a sign that businesses are not cutting cybersecurity spending despite AI investments. CrowdStrike rose over 9%, and the Global X Cybersecurity ETF gained more than 6%. The article notes that cybersecurity firms are benefiting from the rise of agentic AI, which increases demand for verification and authentication.
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Author: Ines Ferré, Senior Business Reporter, Yahoo Finance Last Updated: July 14, 2026, 9:55 AM PDT Read Time: 1 minute
Tickers: BUG, CRWD, FTNT, PANW, IBM
What Happened
CrowdStrike (CRWD) stock surged more than 9% on Tuesday, alongside other cybersecurity names. The Global X Cybersecurity ETF (BUG) jumped more than 6%. Fortinet (FTNT), Okta (OKTA), and Palo Alto Networks (PANW) also rose during the session.
What's Behind the Move
IBM (IBM) warned earlier in the day that its enterprise customers had shifted spending away from traditional software in the most recent quarter.
"In the last few weeks of June, we saw clients shift their quarterly capex spend toward servers, storage, and memory purchases to secure supply-constrained infrastructure ahead of expected price increases," IBM CEO Arvind Krishna said. He added that "rapidly-evolving, industry-wide cybersecurity concerns" also drew customer focus in the quarter.
Investors viewed the comments as a sign that businesses were not cutting back on cybersecurity despite their spending on AI.
What Else You Need to Know
While companies may be reducing spending in some areas, other "must-have" expenses appear to be a priority, benefiting pure-play cybersecurity firms like CrowdStrike. The stock is up more than 90% year-to-date.
Despite concerns earlier this year that AI would disrupt traditional business models, cybersecurity companies have instead benefited from the rise of agentic AI, which is driving increased demand for verification and authentication.
Ines Ferre is a Senior Business Reporter for Yahoo Finance covering the US stock market, publicly traded companies, and commodities.
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Part of this Story
Cybersecurity Stocks Surge on Analyst Upgrades and AI-Driven Demand Forecast