CIO survey shows 68% of firms now have dedicated AI budgets, with Microsoft leading vendor spend expectations for 2026.
Deutsche Bank reiterated its Buy rating on Microsoft (NASDAQ:MSFT), calling the stock underappreciated amid strong AI momentum. The firm highlighted sustainable commercial growth in AI-driven cloud businesses based on current market economics.
A Jefferies survey of 40 IT executives revealed Microsoft as a top performer, with 85% of CIOs expecting higher spending in 2026. Software budgets are projected to grow 6.2% in 2026, up from 4.8% in 2025, driven by accelerating enterprise AI adoption. Token and API spend is exceeding initial expectations for 73% of respondents.
The bank described the trend as a pragmatic scaling phase, with no signs of a pullback in AI investment. Microsoft’s cloud services and AI solutions positioned it as a primary beneficiary of the spending shift.