Cybersecurity stocks are typically well-insulated from market downturns because most companies won't shut off their digital defenses just to save a few dollars. As cyberattacks become more frequent and increasingly sophisticated, organizations will need to continually upgrade their cybersecurity platforms to protect their data.
From 2026 to 2034, Fortune Business Insights expects the global cybersecurity market to expand at a 13.8% CAGR. That growth should be driven by the increased adoption of enterprise security solutions across the manufacturing, banking, insurance, and healthcare sectors.
While it might be tough to find new millionaire-maker stocks in this crowded market, some of its previous millionaire-makers could still have plenty of room to run. Let's take a look at two of those millionaire-maker cybersecurity stocks -- Palo Alto Networks (PANW +2.25%) and CrowdStrike (CRWD +4.92%) -- and see why they could still generate robust long-term gains for investors who understand their competitive advantages.
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Palo Alto Networks
Palo Alto Networks is one of the world's largest cybersecurity companies. It splits its ecosystem into three main platforms: Strata for its on-premise network security tools, Prisma for its cloud-based security tools, and Cortex for its AI-powered threat detection services. Most of its recent growth has been driven by Prisma and Cortex.
Palo Alto went public at a split-adjusted price of $7.00 per share in 2012, and it trades at nearly $370 today. A $50,000 investment in its IPO would be worth $2.64 million.
NASDAQ: PANW
Key Data Points
That growth was driven by the organic expansion of its core businesses and dozens of acquisitions. Its main long-term strategy is to bundle together and "platformize" a wide range of cybersecurity services to drive smaller niche players out of the market.
From fiscal 2026 (which ended this July) to fiscal 2029, analysts expect Palo Alto's revenue and EPS to grow at CAGRs of 17% and 90%, respectively. It will continue to launch new tools for Prisma and Cortex, acquire more companies to support its platformization strategy, and expand its share of the privileged access management (PAM) market -- which it significantly increased by acquiring CyberArk, the leader in PAM solutions, for $25 billion earlier this year.
At $370, Palo Alto's stock isn't cheap at 87 times its forward adjusted earnings. However, its scale, diversification, and rising profits could justify that higher valuation. It might not replicate its massive gains from the past decade, but it will remain a balanced play on the growth of the on-premise, cloud-based, and AI-driven cybersecurity markets for the foreseeable future.
CrowdStrike
CrowdStrike went public at a split-adjusted price of $8.50 per share in 2019, but it trades at nearly $250 today. A $50,000 investment in its IPO would have grown to $1.47 million.
NASDAQ: CRWD
Key Data Points
Most conventional cybersecurity companies, including Palo Alto, still deploy some of their services through on-site appliances. However, those hardware setups require constant maintenance and are expensive to scale as an organization expands.
CrowdStrike addresses those challenges by providing only cloud-native services, which don't require any appliances, within its end-to-end network security platform. Its clients receive four starter modules for specific tasks, and they're encouraged to adopt more modules. In its latest quarter, 51% of its subscription customers had adopted at least six of its modules.
From fiscal 2026 (which ended this January) to fiscal 2029, analysts expect its revenue to grow at a 23% CAGR. They also expect it to turn profitable by generally accepted accounting principles (GAAP) in fiscal 2027, then grow its EPS at a 165% CAGR through fiscal 2029.
At $250, CrowdStrike also isn't cheap at 189 times its forward adjusted earnings. But if it continues to disrupt on-site cybersecurity companies with its subscription-based, cloud-native services, it could deserve that premium valuation.
