Evercore survey signals stronger cybersecurity budgets as sector shares rise

Evercore ISI's quarterly survey of channel partners—businesses that help vendors sell products to customers—found a strengthening budget outlook across cybersecurity. These partners offer a view into corporate purchasing plans.^[1]

The report said cybersecurity stocks were outperforming other large-cap technology shares, highlighting 4% gains in Okta, CrowdStrike and Palo Alto Networks.^[1]

A stronger budget outlook suggests business customers may have more money for security software purchases or larger existing contracts. If customers commit that spending, security vendors and their sales partners could gain business; the share-price gains show investors responding to the improved demand outlook.^[1]

The revenue benefit depends on budgets turning into orders. The supplied report gives no measure of budget growth or the resulting increase in sales.^[1]

Impact

• Cybersecurity software and sales partnersOpportunity

  Stronger customer budgets could give Okta, CrowdStrike, Palo Alto Networks and competing vendors more room to win new orders or expand contracts. Their sales partners could also benefit, provided corporate customers follow through with purchases.^[1]