Positive Outlook for Cybersecurity Spending in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 53 minutes ago
0mins
Source: seekingalpha
- Cybersecurity Budget Growth: Jefferies' survey of 40 executives indicates that cybersecurity budgets are expected to grow 6.2% year-over-year in 2026, aligning with IT and software budget growth, albeit slightly lower than the 6.6% growth in 2025, highlighting the continued prioritization of cybersecurity spending by enterprises.
- AI-Driven Spending: The survey reveals that spending on AI and machine learning is emerging as a positive catalyst for the cybersecurity sector, with analysts suggesting that companies like Palo Alto Networks and Okta will benefit, particularly in the identity management subsector.
- Spending Winners Analysis: In 2026, 56% of respondents expect to increase spending on Palo Alto Networks, although this is down from 66% in December 2025; CrowdStrike and Zscaler also show positive spending expectations at 44% and 43%, respectively, indicating a favorable outlook for these firms.
- Rising Cloud Security Demand: With cloud spending projected to rise from 9.6% growth in 2025 to 10.1% in 2026, this is expected to drive demand for cloud security solutions, particularly benefiting vendors like CRWD, PANW, and ZS, as security remains a critical factor in enterprises' cloud vendor selection.
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Analyst Views on CRWD
Wall Street analysts forecast CRWD stock price to fall
34 Analyst Rating
23 Buy
11 Hold
0 Sell
Moderate Buy
Current: 678.650
Low
353.00
Averages
559.71
High
640.00
Current: 678.650
Low
353.00
Averages
559.71
High
640.00
About CRWD
CrowdStrike Holdings, Inc. is a global cybersecurity company. The Company provides a cloud-native platform for protecting critical areas of enterprise risk - endpoints and cloud workloads, identity, and data. The Company's artificial intelligence (AI)-native CrowdStrike Falcon platform is a cloud-native unified platform built with AI at the core, capable of harnessing security and enterprise data to deliver highly modular solutions through a single lightweight sensor. Using cloud-scale AI, its Security Cloud enriches and correlates cybersecurity events with indicators of attack, threat intelligence, and enterprise data (including data from across endpoints, workloads, identities, DevOps, IT assets, and configurations) to create actionable data, identify shifts in adversary tactics, and automatically prevent threats in real-time across its customer base. It sells its Falcon platform via a partner-first subscription model to organizations of all sizes across multiple industries globally.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Cybersecurity Budget Growth: Jefferies' survey of 40 executives indicates that cybersecurity budgets are expected to grow 6.2% year-over-year in 2026, aligning with IT and software budget growth, albeit slightly lower than the 6.6% growth in 2025, highlighting the continued prioritization of cybersecurity spending by enterprises.
- AI-Driven Spending: The survey reveals that spending on AI and machine learning is emerging as a positive catalyst for the cybersecurity sector, with analysts suggesting that companies like Palo Alto Networks and Okta will benefit, particularly in the identity management subsector.
- Spending Winners Analysis: In 2026, 56% of respondents expect to increase spending on Palo Alto Networks, although this is down from 66% in December 2025; CrowdStrike and Zscaler also show positive spending expectations at 44% and 43%, respectively, indicating a favorable outlook for these firms.
- Rising Cloud Security Demand: With cloud spending projected to rise from 9.6% growth in 2025 to 10.1% in 2026, this is expected to drive demand for cloud security solutions, particularly benefiting vendors like CRWD, PANW, and ZS, as security remains a critical factor in enterprises' cloud vendor selection.
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- Margin Improvement: During the same period, the adjusted subscription gross margin rose from 77% to 81%, indicating enhanced operational efficiency and laying a solid foundation for future profitability.
- Increased Customer Stickiness: By fiscal 2025, the percentage of customers using at least six modules more than doubled from 24% to 50%, demonstrating the growing appeal and stickiness of CrowdStrike's Falcon platform despite macroeconomic challenges.
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- Stock Split Announcement: CrowdStrike will implement a 4-for-1 stock split on July 2, aimed at making its shares more accessible to retail investors, particularly after a remarkable 60% increase in stock price in 2026.
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- Record Free Cash Flow: CrowdStrike generated $468 million in free cash flow this quarter, significantly exceeding earnings expectations, which underscores the company's exceptional profitability and cash generation capabilities, thereby boosting investor confidence.
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- Stock Split Announcement: CrowdStrike has announced a 4-for-1 stock split effective July 2, aimed at making its shares more accessible to retail investors, particularly after a 60% rise in stock price in 2026.
- Sustained Growth Momentum: The company reported a 26% year-over-year revenue growth in its latest earnings report, adding $256 million in net new annual recurring revenue (ARR) in the first fiscal quarter, marking the highest addition in company history, indicating strong market demand.
- Outstanding Cash Flow Performance: CrowdStrike generated $468 million in free cash flow this quarter, an all-time high that significantly exceeded market expectations, showcasing its ongoing profitability enhancement.
- AI Security Infrastructure: CEO George Kurtz emphasized that CrowdStrike's leadership in AI security infrastructure will be a key growth driver moving forward, although its current valuation at 34 times revenue remains high, prompting investors to carefully assess valuation risks.
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