Cybersecurity stocks rose Tuesday following comments from IBM CEO Arvind Krishna regarding corporate budget shifts. Krishna noted that enterprise clients are redirecting spending toward cybersecurity defenses to address rapidly evolving industry threats.
IBM shares fell after the company reported preliminary second-quarter results that missed analyst estimates. The CEO attributed the performance to clients being distracted by urgent security concerns.
CrowdStrike led the sector rally with a stock price increase of 12%. Okta shares also climbed approximately 11%.
Other notable gainers included Zscaler, SentinelOne, and Palo Alto Networks. Investors anticipate higher corporate allocations for security software following the IBM update.