Usman Salis
⬤ Goldman Sachs numbers show companies are still planning big IT budgets through 2026. Both their Overall IT Spending Index and IT Capital Spending Index are sitting well above 50 points—the line that separates growth from pullback. Businesses are clearly keeping tech investment as a priority, even after years of heavy spending since the pandemic ended.
⬤ Looking at the trend, IT spending indicators have mostly stayed in expansion mode over the past few years, with only brief dips here and there. They're running above their long-term averages too. Sure, spending dropped hard during crisis moments like 2009 and 2020, but it bounced back fast. Right now, companies are still pouring money into software, cloud services, infrastructure upgrades, and new hardware.
⬤ The IT Capital Spending Index tells a similar story—it's also above the growth threshold. That means corporate tech budgets aren't just holding steady, they're actually expanding. We're talking spending on servers, data centers, chips, devices, and network upgrades. The fact that these numbers have been consistent quarter after quarter shows CIO budgets are staying resilient despite economic uncertainty.
⬤ For investors, this matters because when IT spending stays strong, it usually means steady revenue for tech companies. It also shows that businesses are still betting on efficiency improvements, automation, and going digital. A healthy IT spending cycle tends to lift sentiment across the whole tech sector while giving you a read on how confident companies feel about growth and innovation.
Usman Salis
