Computers are the fastest-growing part of business tech spending
US businesses spent $420 billion a year on computers and peripheral equipment in the second quarter of 2026, 59.5% more than a year earlier. No other part of business technology investment grew half as fast. Technology now makes up 54.8% of all business investment.
The short version
Business spending on computers and peripheral equipment rose 59.5% in the year to the second quarter of 2026, to $420 billion at an annual rate.
Since the end of 2019 it has more than tripled, up 256%. Software is up 75% and R&D 73% over the same period.
Equipment, software and R&D together are 54.8% of business investment, up from 46.7% at the end of 2019.
They accounted for 90% of the past year's increase in business investment. The rest of business investment rose 2.0%.
+59.5%
Business investment in computers and peripheral equipment, year to Q2 2026
+8.7%
Business investment in software, same year
54.8%
Technology's share of business investment, Q2 2026
+2.0%
Business investment outside technology, same year
1 · Computers
Spending on computers has more than tripled since 2019
The Bureau of Economic Analysis (BEA) measures business investment in computers and peripheral equipment. The category covers personal computers, larger multiuser computers, storage devices, displays and printers. In the second quarter of 2026 that investment ran at $420 billion a year. In the fourth quarter of 2019 it was $118 billion. That is a rise of 256%.
Over the same period, business investment in software rose 75% and in research and development 73%.
Adjusted for prices, spending on computers rose 198% since the end of 2019. In the second quarter of 2026 it rose in dollars from the first quarter of 2026. After adjusting for prices, it fell.
Business investment in computers, software and R&D
Index, fourth quarter of 2019 = 100, current dollars, quarterly
Computers and peripheral equipmentSoftwareResearch and development
Source: Bureau of Economic Analysis, National Income and Product Accounts, via FRED (B935RC1Q027SBEA, B985RC1Q027SBEA, Y006RC1Q027SBEA).
2 · The last year
Computers grew fastest, software slowest
Between the second quarter of 2025 and the second quarter of 2026, business investment in computers and peripheral equipment rose 59.5%, from $263 billion to $420 billion.
Other information processing equipment rose 13.5%. That category covers communication equipment, medical equipment, other instruments, photocopiers and office equipment. Research and development rose 12.2%. Software rose 8.7%, the slowest of the four.
At the end of 2019, businesses spent less on computers than on other information processing equipment. In the second quarter of 2026 they spent more: $420 billion against $416 billion.
Growth in business investment over the last year, by type
Percent change, the second quarter of 2025 to the second quarter of 2026, current dollars
Source: Bureau of Economic Analysis, National Income and Product Accounts, via FRED (B935RC1Q027SBEA, A937RC1Q027SBEA, B985RC1Q027SBEA, Y006RC1Q027SBEA, Y034RC1Q027SBEA, PNFI).
3 · Share
Technology is now more than half of business investment
In the second quarter of 2026, businesses invested $2.60 trillion a year in information processing equipment, software and R&D. That is 54.8% of the $4.74 trillion they invested in all equipment, structures and intellectual property. At the end of 2019 the share was 46.7%.
R&D is the largest part, at $951 billion. Software is next, at $809 billion. Computers alone went from 3.9% of business investment to 8.9%.
All business investment rose 9.6% in the last year. Technology investment rose 16.8%. The rest rose 2.0%. Computers alone accounted for 38% of the increase.
Technology's share of business investment
Percent of private nonresidential fixed investment, current dollars, quarterly
Information processing equipment, software and R&DComputers and peripheral equipment
Source: Bureau of Economic Analysis, National Income and Product Accounts, via FRED (Y034RC1Q027SBEA, B985RC1Q027SBEA, Y006RC1Q027SBEA, B935RC1Q027SBEA, PNFI).
What the data does not tell us
Who bought and why. These are national totals. They do not say which industries bought the computers or what for. BEA publishes computers and peripheral equipment as one line, with no split by type of machine.
What counts as investment. Business investment is private nonresidential fixed investment: spending by businesses and nonprofit institutions on equipment, structures and intellectual property. Figures are in current dollars at a seasonally adjusted annual rate. Software includes prepackaged, custom and own-account software. Other information processing equipment includes medical equipment, instruments, photocopiers and office equipment, so the technology total includes equipment an IT department would not buy. Imported equipment is included.
Prices and revisions. Shares and the comparisons in section 2 use current dollars, because price-adjusted components do not add up to a total. BEA revises these figures, sometimes by a lot. This edition uses the figures published as of October 14, 2026.
What it means for a technology leader
Hardware. Computers and peripheral equipment were the fastest-growing part of business technology investment over the last year, at 59.5%. In the second quarter of 2026 the dollar figure rose while the price-adjusted figure fell.
Software. Software investment rose 8.7% in the year to the second quarter of 2026, the slowest of the four parts and less than all business investment's 9.6%.
Budgets. Equipment, software and R&D took 54.8% of US business investment in the second quarter of 2026, against 46.7% at the end of 2019.
Figures you can quote
Each with its source
US businesses invested $420 billion a year in computers and peripheral equipment in the second quarter of 2026, 59.5% more than a year earlier.
Bureau of Economic Analysis, seasonally adjusted annual rate. CIOPages CIOnomics, Tech Investment, Q4 2026.
Information processing equipment, software and R&D made up 54.8% of business investment in the second quarter of 2026, up from 46.7% at the end of 2019.
Bureau of Economic Analysis, current dollars. CIOPages CIOnomics, Tech Investment, Q4 2026.
Technology accounted for 90% of the rise in US business investment in the year to the second quarter of 2026.
Bureau of Economic Analysis. CIOPages CIOnomics, Tech Investment, Q4 2026.
Download
The report and its data
The report (PDF) and the data appendix (Excel): every chart, every figure and the series behind them, sent to your work email.
Method and sources
How this was put together
Every figure comes from a published Bureau of Economic Analysis series, downloaded from FRED, the St. Louis Fed's data service, on October 14, 2026. Technology investment is the sum of three published series: information processing equipment, software, and research and development. Business investment outside technology is private nonresidential fixed investment minus that sum. Changes over a year compare the same quarter a year apart. Changes since 2019 start from the fourth quarter of 2019. No figure is estimated or modeled.
Measure
Agency
Series
Frequency
Latest
Computers and peripheral equipment (actual dollars)
