U.S. B2B tech spending hit $35.3 billion in H1 2026, with cloud leading at 15% growth

U.S. business technology spending held its ground in a turbulent economic environment. The B2B technology reseller market generated $35.3 billion in combined revenue across cloud, software and services, and IT hardware during the first half of 2026, a 10% year-over-year increase, according to Circana's "Future of B2B Technology" forecast released August 5.

The report covers the reseller channel specifically, meaning these figures reflect what organizations are actually buying through indirect distribution, a reliable barometer of enterprise and midmarket procurement activity. The three major segments all grew, but at meaningfully different rates, and that divergence carries real implications for technology procurement and budget planning teams heading into Q3 and Q4.

Cloud leads the pack, hardware carries the weight

Cloud was the standout performer at 15% growth, reaching $1.69 billion in the first half, according to GlobeNewswire's reporting of the Circana data. That rate is expected to hold through the second half of the year, making cloud the only segment not forecasted to decelerate. For IT and procurement leaders still negotiating multi-year cloud agreements, that sustained momentum gives vendors pricing leverage heading into renewal season.

IT hardware is the segment that actually moves the revenue needle. At $17.67 billion for the six months ending June 2026, it represents roughly half of total B2B technology spending and grew 11% year over year. Software and services reached $15.98 billion, up 8%. Both segments are forecast to moderate in the second half: IT hardware to 8% and software and services to just 4%, per the Circana forecast.

What's behind the hardware surge

The IT hardware numbers look strong on the surface, but the composition matters. Higher average selling prices, not higher unit volumes, are doing much of the work. According to Circana, rising memory and NAND pricing, tighter supply conditions, and a shift toward higher-performance configurations all contributed to revenue growth even as shipment volumes declined. Storage hardware and PC memory were the strongest-performing categories within the segment.

The PC market specifically is being shaped by enterprise and midmarket refresh cycles. Organizations are replacing aging device fleets with higher-specification machines, which lifts per-unit costs. Circana's Mike Crosby noted in the release that infrastructure modernization and PC refresh activity, particularly among enterprise and medium-sized businesses, will continue to fuel growth through the remainder of the year.

This has a direct implication for technology procurement teams: budget assumptions built on flat or declining hardware prices may no longer hold. Component cost inflation and richer configurations are structural, not temporary, and Circana expects revenue to continue outpacing unit growth for the foreseeable future.

Software and cybersecurity spending stays sticky

Software and services growth at 8% in the first half reflects continued investment in cybersecurity, managed services, and operational efficiency tools, according to the Circana report. That category is forecast to slow to 4% growth in the second half, which is the sharpest deceleration among the three segments. Even so, the spend base of nearly $16 billion underscores how deeply embedded software and managed services contracts are in enterprise operating budgets.

Cybersecurity remains a non-discretionary line item for most organizations, and managed services contracts tend to auto-renew, which provides a revenue floor even when new spending slows. The moderation in growth likely reflects a maturing buyer base lapping prior-year contract expansions rather than outright budget cuts.

H2 and 2027: still growing, but more selectively

Circana forecasts H2 2026 B2B technology revenue at $35.7 billion, a 6% year-over-year gain. The full-year 2026 picture therefore totals approximately $71 billion across the reseller channel, with the back half growing at a slower pace as replacement cycles normalize and buyers become more targeted in their purchasing decisions.

Looking into 2027, Circana projects 5% combined growth. Crosby described technology as "one of the most resilient areas of business investment" in the GlobeNewswire release, while also acknowledging that organizations are becoming more selective. That selectivity is the operative word for operations and procurement leaders: the market is not contracting, but the days of broad, category-wide spending increases are giving way to more deliberate, ROI-driven purchasing.

For IT and supply chain teams, the near-term priority is locking in hardware contracts before component cost pressures translate further into list prices, while ensuring cloud and software commitments are sized to actual consumption. With cloud the only segment expected to maintain its first-half growth rate through year-end, that is also the category where vendors will feel least pressure to negotiate.