Wake That SaaS Up Daily 7/14/2026

Research evidence excerpt

Wake That SaaS Up Daily 7/14/2026

July 15, 2026

Interesting Reads

Software Readthroughs from IBM - Nuanced, Not SaaSpocalyptic - What Happened? On Tuesday morning, IBM (not

covered) released preliminary results that showed the company expects to miss total revenue estimates for 2Q, driven

by slower growth in both their Software and Infrastructure segments. IBM called out the drivers of underperformance,

stating "In the last few weeks of June, we saw clients shift their quarterly capex spend toward servers, storage,

and memory purchases to secure supply-constrained infrastructure ahead of expected price increases....While we

anticipated some supply chain related impact in our expectations, we did not anticipate the magnitude of the capex

reprioritization.In addition, clients were distracted with rapidly-evolving, industry-wide cybersecurity concerns in the

quarter...We did not adapt and move quickly enough, and numerous large deals failed to close on the timelines we

expected, driving the majority of our shortfall." IBM shares traded down ~25% and among our coverage, cybersecurity

stocks benefited from the commentary trading up mid-single-digits to low-double-digits, while enterprise software

names largely traded off.

Our Take. On the security front, IBM's commentary suggested that cyber remains top of mind for enterprises and,

from our point view, reiterates both what we have heard from management teams on our recent bus tour and

ecosystem checks. However, we would also highlight that management teams from CRWD, PANW, and S during

our bus tour all noted that while the heightened threat environment and post-Mythos impacts are expected to be

a positive tailwind for the space, the impacts are likely more of a multi-quarter story rather than an immediate

one felt today.