The technology budget process is well underway at most enterprises and the time frames are getting shorter. Here's a few mileposts to consider as 2026 technology budgets are being sketched.
The discussion at Constellation Research Connected Enterprise 2025 was under Chatham house rules so we're not calling out enterprises, but they represent household names.
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Here's a look at the takeaways about 2026 budgets from the Constellation Research community.
Expectations
The 12-month budget process doesn't exist. Enterprises are working on 6-month time frames due to rapid changes.
Enterprises are expecting revenue to increase in the next six months.
Profits are expected to fall. Companies are investing in AI and there will be multiple variables working against profits in the next six months.
Overall budgets
IT budgets are expected to come back and accelerate in the second half of 2026.
2026 budgets are in stasis right now. One CxO said: "With everything that's going on, we're wait and see. We're pretty much on the hold to see what's happening. Officially, 2026 budget will be up, but I think it's going down."
Hiring
Hiring is expected to pick up, but how that scenario plays out will impact profits. "There's profit pressure to make sure that we can maintain profit. AI is also reducing the need to do some hiring that we would have done," said one decision-maker.
In addition, enterprises are not announcing layoffs, but quietly shedding jobs. "We are switching out the workforce so they are more AI ready in a discreet way," said one CxO.
A common complaint in the Constellation Research community was that it's hard to find the right people largely because the current processes are broken.
"The system of search and hiring is completely broken," said an IT leader. "We need a new platform. We need people who knows how to think and solve problems, not the usual It person right now. We also need diversity of talents."
Another CxO noted: "Technology has taken us too far by using AI to write resumes and match people. That's something that has to be fixed. We need to think holistically about hiring the right human."
Priorities
One CxO said her company is doubling down on cybersecurity. However, cybersecurity spending isn't driving the total technology budget higher because it is taking from other categories.
In this case, cybersecurity is taking budget at the expense of networking spend.
AI is also an obvious priority for enterprise, but there's nuance to consider. "I've noticed that communities are getting smarter about where they want to put their money as it relates to AI, and moving out of migration modernizations much more quickly," said one CxO.
