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FinanceCrowdStrike, Fortinet, Palo Alto Networks surge after IBM warns of enterprise spending shift to infrastructure
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On July 14, 2026, cybersecurity stocks including CrowdStrike (CRWD), Fortinet (FTNT), and Palo Alto Networks (PANW) surged after IBM warned that enterprise customers shifted spending away from traditional software toward servers, storage, and memory in the last weeks of June. IBM CEO Arvind Krishna cited supply-constrained infrastructure and rapidly-evolving cybersecurity concerns as drivers. Investors interpreted this as a sign that businesses are not cutting cybersecurity spending despite AI investments. The Global X Cybersecurity ETF (BUG) rose over 6%. CrowdStrike is up more than 90% year-to-date, benefiting from demand for verification and authentication driven by agentic AI.
Source report
By Ines Ferré · Senior Business Reporter Date: Tue, July 14, 2026, 9:55 AM PDT Reading Time: 1 min
Market Movers
- BUG (Global X Cybersecurity ETF): -2.69%
- CRWD (CrowdStrike): -1.88%
- FTNT (Fortinet): -1.39%
- PANW (Palo Alto Networks): +0.32%
- IBM: -2.70%
What Happened
CrowdStrike (CRWD) stock surged more than 10% on Tuesday, leading gains among 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 interpreted the comments as a sign that businesses were not cutting back on cybersecurity spending, even as they increased investment in AI.
What Else You Need to Know
- While companies may be reducing spending in some areas, other "must-have" expenses appear to remain a priority, benefiting pure-play cybersecurity firms like CrowdStrike.
- CrowdStrike stock is up more than 90% year to date.
- Despite earlier concerns 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 Ferré is a Senior Business Reporter for Yahoo Finance, covering the US stock market, publicly traded companies, and commodities.
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Cybersecurity Stocks Surge on Analyst Upgrades and AI-Driven Demand Forecast