Cyber budgets to grow, but behind AI; positives for Palo Alto, CrowdStrike: Jefferies

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Jefferies' survey of 40 executives on cyber spending signals some positives for Palo Alto Networks ( PANW ), CrowdStrike ( CRWD ), Zscaler ( ZS ), Okta ( OKTA ), and SailPoint ( SAIL ). "Our data shows: 1) Cyber budgets aren't appearing to inflect in '26 (set to grow in line with IT/Software

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Jefferies' survey of 40 executives indicates that cybersecurity budgets are expected to grow to IT/Software levels by 2026, but no budget inflection (acceleration) was observed. AI-related investment has emerged as companies' top priority, raising the prospect that security spending could lag. Nevertheless, enterprise-driven demand for network, endpoint, cloud, and identity solutions should remain steady, which is positive for Palo Alto(PANW), CrowdStrike(CRWD), Zscaler(ZS), Okta(OKTA), and SailPoint(SAIL). The market highlights the subscription revenue stability of leading vendors, but budget limits could constrain growth acceleration and valuation premiums.

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