Global IT spending is projected to reach $6.08 trillion in 2026, up 9.8% from 2025, according to research firm Gartner Inc. The increase is mainly attributed to increasing demand for artificial intelligence (AI) infrastructure and software with embedded AI features.
Gartner said the slowdown that began in the second quarter of 2025 started to ease by the third quarter, leading to a “significant budget flush” expected before year-end.
“The uncertainty pause that began in the second quarter of 2025 started to alleviate in the third quarter, and a significant budget flush is anticipated before the end of the year,” said John-David Lovelock, VP analyst of Gartner. “Despite being in the trough of disillusionment, GenAI features are now ubiquitous across software already owned and operated by enterprises, and these features cost more money, aligning with this flush.”
Lovelock added that the cost of software is increasing as companies pay more for AI-driven features and functionality.
However, Gartner noted that not all IT segments will grow at the same rate. Spending on software and IT services in 2025 will not rebound as quickly as on devices and data center systems.
“For instance, vertical-specific software spending has been slightly more affected, as vertical-industry-level software buyers are more sensitive to policy changes and business uncertainties,” Lovelock said.
Device spending is expected to reach $783 billion in 2025, up 8.4% from 2024, supported by stronger mobile phone and PC shipments. Gartner said spending in this segment will remain solid in 2026, though growth will slow compared with the previous year.
“This growth in 2025 is mainly driven by stronger-than-expected spending on mobile phones,” Lovelock said. “The availability of AI devices has also boosted overall spending by more than $30 billion. With the replacement cycle unchanged, the stronger performance in 2025 will result in a lower relative growth rate for 2026, as demand has been pulled forward.”
In data center systems, Gartner said the push to build AI infrastructure has increased demand for servers, particularly AI-optimized server racks. But server growth remains limited by supply constraints, the firm added.