Jefferies' recent survey of 40 IT executives identified Microsoft, Amazon Web Services (AWS), Palo Alto Networks and ServiceNow as the leading performers in IT buying intent, the firm said on Friday.
The research note accompanying the survey described a broadly constructive demand environment for software despite what the bank characterized as negative investor sentiment toward the sector.
Budget outlook and direction
Jefferies analyst Brent Thill reported that respondents expect software budgets to accelerate, with CIOs projecting 6.2% growth in 2026 compared with 4.8% in 2025. According to the firm, 83% of those surveyed expect software budgets to increase in calendar year 2026, while only 5% anticipate a decline.
AI spending patterns
"tokenmaxxing is real," the report stated.
Jefferies said roughly 68% of CIOs now maintain a dedicated AI budget. In addition, 73% of respondents reported that year-to-date token and API spending is tracking above their initial expectations. The bank described the activity as a "pragmatic scaling phase, not a pullback," and noted that 38% of those surveyed plan to increase AI budgets to support higher usage.
Company-level reads from CIOs
Microsoft emerged as the clear standout in the survey, with 85% of respondents expecting to increase spending with the company in 2026 and none indicating plans to spend less. AWS produced a net score of 44%. Palo Alto Networks showed a 53% net score, while ServiceNow recorded a 47% net score.
By contrast, Adobe registered a sharply negative read-through in the poll. Only 11% of survey participants expected slightly higher spend with Adobe, while 38% expected lower spend, producing a net score of negative 27%. Jefferies noted that this result aligns with investor concerns around AI pressure on creator technology; the firm's prior survey result for Adobe was flat.
The survey results highlight two concurrent trends: an improving CIO appetite for software spending next year and a pronounced shift of resources into AI-related expenditures, with certain legacy application vendors facing headwinds tied to AI-driven changes in demand.