Is it worth investing in cybersecurity stocks?

Cybersecurity is like the unsung hero of the tech world -- it's always needed. With every leap in technology, there's a surge in demand for robust security measures as the threats grow more dangerous. Investing in cybersecurity stocks might just be a savvy strategy. The industry is already gigantic and growing.

How do economic downturns affect cybersecurity stocks?

While cybersecurity stocks can be volatile during market downturns due to their growth-stock valuations, their essential nature often leads to quicker recoveries than the broader tech sector. Canceling data security orders is like telling first responders to stay away from your block. The attacks won't stop coming.

Is cybersecurity going away?

Not at all. The idea of cybersecurity becoming obsolete is like imagining a world without the internet. As technology becomes increasingly embedded in our daily lives, the importance of cybersecurity only grows. Security threats simply come with the territory, as bad actors always try to grab other people's property -- with increasingly advanced technology at their disposal. It's a field expanding as fast as technology itself, ensuring it will remain relevant and crucial for safeguarding our digital future.

Can cybersecurity stocks be part of a diversified investment portfolio?

Sure, but you really only need one or two of these in a balanced basket of 20 stocks or more. Owning multiple cybersecurity stocks doesn't spread your risk by much -- they tend to move together. Think of cybersecurity as one focused bet within your broader tech allocation, which itself should be just one slice of your overall holdings.

8 Best Cybersecurity Stocks for 2026 and How to Invest

By Anders Bylund – Updated Aug 20, 2026 at 12:51 PM EST | Fact-checked by Parker Hicks

Key Points

Cybersecurity stocks rebound quickly from market downturns, maintaining long-term growth potential.
Palo Alto Networks leads in cloud security transformation, predicting double-digit revenue growth.
CrowdStrike excels in mobile and remote work security, continuously expanding its service modules.

Cybersecurity stocks are a mainstay of tech investments. Spending in this category has soared in recent years. Organizations have faced new security challenges as cloud computing and remote work have become essential and widely used business tools. As a result, many cybersecurity stocks were top performers during the COVID-19 pandemic, boosted by strong demand for next-gen security software.

Since the threats keep coming, cybersecurity stocks often bounce back quickly from sudden market challenges. The industry remains a top investment theme for the decade.

8 Best cybersecurity stocks in 2026

Here are some of the top cybersecurity stocks to own in the long run:

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Ticker Information Table
Name and ticker	Market capMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary.	Current price	Industry
Palo Alto Networks (NASDAQ:PANW)	$293.2 billion	$349.56	Software
CrowdStrike (NASDAQ:CRWD)	$205.3 billion	$190.34	Software
Fortinet (NASDAQ:FTNT)	$112.1 billion	$150.79	Software
Zscaler (NASDAQ:ZS)	$29.9 billion	$174.95	Software
Okta (NASDAQ:OKTA)	$24.5 billion	$134.16	IT Services
SentinelOne (NYSE:S)	$7.3 billion	$20.94	Software
Datadog (NASDAQ:DDOG)	$83.9 billion	$232.55	Software
Akamai Technologies (NASDAQ:AKAM)	$16.2 billion	$110.09	IT Services

Data as of Aug 20, 2026. Showing 8 of 8 total entries.

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Cloud security, identity management, and legacy security vendors

As cloud computing has quickly grown into an industry worth hundreds of billions annually, sales of cloud-native security software have skyrocketed. The leaders in this space have some of the best long-term potential.

1. Palo Alto Networks

Hailing from an era that predates cloud technology, Palo Alto Networks' specialty is rooted in firewalls -- devices that protect traffic into and out of physical locations such as offices and data centers. While its legacy services still see strong demand, the real growth is in the cloud.

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NASDAQ: PANW

Palo Alto Networks

Today's Change

(-2.83%) $-10.20

Current Price

$349.56

Key Data Points

Market Cap

$293B

Day's Range

$347.68 - $360.70

52wk Range

$139.57 - $398.88

Volume

4.7M

Avg Vol

7.4M

Gross Margin

71.05%

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The company's highly profitable platform has helped it acquire more than a dozen smaller cloud-native businesses in the past few years. As a result, Palo Alto Networks has given its security operations a serious makeover.

Management predicts double-digit percentage revenue growth in the years ahead for its next-gen security portfolio geared for the cloud era. This steady growth and market leadership helped make its stock one of the best performers among cybersecurity companies from 2023 to 2026.

Palo Alto Networks is the largest pure-play cybersecurity company by revenue and market cap. Now also a leading cloud security provider, this legacy business is highly competitive in the cybersecurity industry. Shares trade at a discount compared to its younger, high-flying, cloud-native rivals.

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2. CrowdStrike Holdings

As a cloud-native software company, CrowdStrike Holdings provides endpoint security -- protection for devices such as laptops, PCs, smartphones, and any other device connected to a network. Because it's cloud-based, CrowdStrike is particularly well-suited for supporting remote work.

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NASDAQ: CRWD

CrowdStrike

Today's Change

(-5.60%) $-11.29

Current Price

$190.34

Key Data Points

Market Cap

$205B

Day's Range

$189.93 - $200.74

52wk Range

$85.68 - $227.50

Volume

8.9M

Avg Vol

10.9M

Gross Margin

74.89%

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CrowdStrike's software uses machine learning to detect security breaches and hunt down threats. It's also easy to deploy to the millions of people working from home and the billions of machines connected to the internet.

The company has steadily expanded the number of modules on its platform to better serve its customers. It also has new integration agreements with other tech companies to ensure data protection consistency across an organization's entire IT infrastructure.

It is also highly profitable, with strong free cash flow. In an increasingly mobile world with more devices continually coming online, CrowdStrike is poised to continue growing at a brisk rate.

3. Fortinet

Fortinet, another legacy security software provider, is also one of the world's largest cybersecurity companies by revenue and market cap. Like its peer Palo Alto Networks, it has maintained double-digit percentage growth and is highly profitable. But unlike Palo Alto Networks' acquisition spree, Fortinet has invested in organic cloud security development to remain competitive.

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NASDAQ: FTNT

Fortinet

Today's Change

(-1.35%) $-2.06

Current Price

$150.79

Key Data Points

Market Cap

$112B

Day's Range

$150.16 - $154.44

52wk Range

$73.55 - $172.09

Volume

5.2M

Avg Vol

5.9M

Gross Margin

80.20%

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One of its developments is a software-based internet security product being built and deployed with one of Europe's leading telecom providers, Telefónica (NYSE:TEF).

Fortinet is also a top provider of firewalls. Its best-in-class hardware continues generating more revenue as many organizations turn to Fortinet for help building new data centers and 5G mobile networks. For investors seeking strongly profitable sales growth, Fortinet stands out as one of the top security stocks on the market.

4. Zscaler

Zscaler, another cloud-native security vendor, works in tandem with endpoint security services to help keep data secure. The company has been rapidly increasing its sales and is another of the largest pure-play cybersecurity stocks, as measured by market cap. Zscaler continues to deliver profitable revenue growth.

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NASDAQ: ZS

Zscaler

Today's Change

(-5.23%) $-9.65

Current Price

$174.95

Key Data Points

Market Cap

$30B

Day's Range

$174.60 - $184.98

52wk Range

$114.63 - $336.99

Volume

2.1M

Avg Vol

4.2M

Gross Margin

76.29%

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Zscaler started with a software-as-a-service (SaaS) product designed for network protection in the modern cloud computing era. It has since added new internet security and end-user monitoring products.

End-user monitoring is increasingly valuable with so many people now working remotely. With global spending on cloud computing expected to grow $1-2 trillion annually this decade, Zscaler is poised to profit from a massive secular growth trend.

5. Okta

Okta is a pioneer in identity and access management, rethinking traditional security through a zero-trust architecture. This type of identity management requires constant user verification before granting access to data and applications.

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NASDAQ: OKTA

Okta

Today's Change

(-4.99%) $-7.05

Current Price

$134.16

Key Data Points

Market Cap

$25B

Day's Range

$133.12 - $140.36

52wk Range

$62.66 - $157.00

Volume

2.6M

Avg Vol

3.6M

Gross Margin

77.44%

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In an increasingly mobile and cloud-based world, Okta's identity management software has been in high demand. Businesses often have a complicated web of stakeholders, including employees, third-party contractors, suppliers, and customers.

Okta is a leader in this branch of security. However, a cyberattack in January 2022 affected two of its largest customers, accelerating the stock's decline during the inflation-driven bear market. Even so, Okta remains in long-term growth mode as new customers adopt its software to manage identity and access security. As of August 2026, Okta's stock price has began a slow but steady climb back into the triple digits.

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6. SentinelOne

SentinelOne is another recent pure-play cybersecurity company to go public. Its initial public offering (IPO) in June 2021 raised $1.2 billion in cash and valued the company at $10 billion, making SentinelOne's IPO the largest ever for a cybersecurity company at the time.

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NYSE: S

SentinelOne

Today's Change

(-1.78%) $-0.38

Current Price

$20.94

Key Data Points

Market Cap

$7.3B

Day's Range

$20.71 - $21.64

52wk Range

$11.81 - $23.95

Volume

5.3M

Avg Vol

7.9M

Gross Margin

73.00%

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SentinelOne is also making steady progress toward profitability. It operates a cloud-based endpoint security platform, which puts it in direct competition with CrowdStrike. Its ability to automatically detect and resolve cybersecurity threats is well-received in the market.

Did you know?

As a high-growth segment of the tech industry, cybersecurity offers investors lots of upside in the decade ahead.

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Infrastructure monitoring and content delivery networks

Cloud computing creates, uses, and stores more digital data, and an organization's IT infrastructure can quickly become an order of magnitude more complex. Companies that help monitor these cloud-based operations are critical to cybersecurity, as are companies that manage the web content and apps themselves. Here are some top names to consider.

7. Datadog

Datadog is a cloud-native platform built to collect, monitor, and yield insights on cloud-based data and operations. The company uses AI to help automate the process of monitoring large and complex data sets, relieving some of the burden of busy IT teams.

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NASDAQ: DDOG

Datadog

Today's Change

(-0.41%) $-0.97

Current Price

$232.55

Key Data Points

Market Cap

$84B

Day's Range

$227.11 - $236.56

52wk Range

$98.01 - $292.72

Volume

3.2M

Avg Vol

5.2M

Gross Margin

79.48%

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It's also been steadily expanding its platform's capabilities with new modules that include cloud-based security and data monitoring. Data analytics software is a large, fast-growing segment of the tech world, which bodes well for Datadog. Elastic (ESTC -1.65%) and Dynatrace (DT -0.85%) are two other promising software makers to consider in this space.

8. Akamai

As a content delivery network (CDN), Akamai ensures that data arrives securely at its intended destination. With the amount of data traveling across the internet steadily rising, CDNs are becoming increasingly important.

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NASDAQ: AKAM

Akamai Technologies

Today's Change

(-2.44%) $-2.75

Current Price

$110.09

Key Data Points

Market Cap

$16B

Day's Range

$109.48 - $112.72

52wk Range

$70.82 - $165.45

Volume

2.1M

Avg Vol

4.1M

Gross Margin

53.37%

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More people than ever are using the web for everything from entertainment to work. To bolster its network security offerings and protect its customers from ransomware attacks, Akamai acquired several smaller security specialists from 2022 to 2024.

CDNs are internet infrastructures that maintain the internet "freeway" on which data travels. Akamai is a leader in this sector and also a developer of edge computing technology that pulls data away from centralized data centers and brings it closer to end users.

Cloudflare (NET -4.44%) and Fastly (FSLY -4.01%), which are newer CDN providers, have a sharper focus on edge computing and are competitors to Akamai worth considering.

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How to invest in cybersecurity stocks

Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
Search for your chosen cybersecurity stock: Enter the ticker into the search bar to bring up the stock's trading page.
Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
Submit your order: Confirm the details and submit your buy order.
Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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Benefits and risks of investing in cybersecurity stocks

Cybersecurity is a classic "picks-and-shovels" play on the digital economy, but that doesn't make it a sure thing. You should consider these pros and cons before buying any of these stocks.

Criminals never take a day off: Cyberattacks aren't going away, which means demand for security solutions is essentially baked into modern business operations. It's a rare industry where the tailwinds are, unfortunately, guaranteed.
Regulatory pressure is your friend: Governments worldwide keep tightening data protection rules. Compliance isn't optional, which pushes even reluctant companies to spend on security solutions.
Competition is fierce: New entrants pop up constantly, and today's hot platform can become tomorrow's legacy solution. Keeping a technological edge requires relentless R&D spending.
Valuations can get silly: Cybersecurity stocks often trade at nosebleed multiples during hype cycles. Buying at the wrong time can mean years of waiting for fundamentals to catch up to the stock price.
The sector moves in herds: Cybersecurity stocks tend to rise and fall together. Even a great company can get dragged down when the sector as a whole falls out of favor with growth investors.

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Methodology: How these stocks were chosen

Companies that focused on moving beyond single-product solutions to provide more comprehensive "platforms" were selected as the top cybersecurity stocks for 2026. In today’s threat landscape, the winners are those that can consolidate a company’s entire security stack, reducing complexity while increasing protection.

The selection process prioritized three key financial and operational pillars: recurring revenue growth, robust free cash flow, and a clear technological moat in high-growth sub-sectors like Zero Trust, Cloud Native Protection, and AI-driven automation.

Palo Alto Networks and Fortinet made the list for their massive installed bases and profitability. "Best-of-breed" specialists like CrowdStrike and Zscaler belong because they continue to define their respective niches. Together, these eight companies represent a balanced mix of steady industry stalwarts and high-growth innovators, all of which are positioned to outperform as annual spending on global cybersecurity services continues its climb toward the $300 billion mark.

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Why should you consider investing in cybersecurity stocks?

The cybersecurity threat landscape continues to evolve rapidly, driving massive investment in protection:

Record-breaking breach activity: Identity Theft Resource Center reports show data breaches hitting an all-time high of 3,322 in 2025.
Evolving attack strategies: Hackers shifted from mass attacks to more targeted fraud in 2024, with victim counts tripling year over year in 2024 as criminals adapted to tougher defenses. 2025 saw a return to lower attack counts, generally targeting more specific and lucrative data sources.
Massive market growth: Global cybersecurity spending is expected to exceed $200 billion annually by 2028, according to IDC research.
Long-term growth trajectory: The industry will likely remain a high-growth industry for years as digital threats multiply.

With cybersecurity stocks representing a red-hot niche of the tech industry, knowing how to invest in them can yield significant returns in the decade ahead.

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Investing in cybersecurity stocks FAQ

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About the Author

Anders Bylund is a contributing Motley Fool media and technology analyst covering semiconductors, cloud computing, internet infrastructure, quantum computing, and streaming media. Previously, Anders was a systems administrator for Nielsen Technology and CSX, gaining hands-on experience with enterprise-class systems. He was also a freelance writer for Ars Technica, TIME, USA Today, CNN, WIRED, and AOL's Daily Finance. He holds a bachelor’s degree in English and a master’s degree in library and information sciences from Florida State University. He believes in coyotes and time as an abstract.

TMFZahrim

@TMFZahrim

Anders Bylund has positions in Fastly. The Motley Fool has positions in and recommends Akamai Technologies, Cloudflare, CrowdStrike, Datadog, Fastly, Fortinet, Okta, and Zscaler. The Motley Fool recommends Elastic and Palo Alto Networks. The Motley Fool has a disclosure policy.

8 Best Cybersecurity Stocks for 2026 and How to Invest

Key Points

8 Best cybersecurity stocks in 2026

Cloud security, identity management, and legacy security vendors

1. Palo Alto Networks

Key Data Points

2. CrowdStrike Holdings

Key Data Points

3. Fortinet

Key Data Points

4. Zscaler

Key Data Points

5. Okta

Key Data Points

6. SentinelOne

Key Data Points

Infrastructure monitoring and content delivery networks

7. Datadog

Key Data Points

8. Akamai

Key Data Points

How to invest in cybersecurity stocks

Benefits and risks of investing in cybersecurity stocks

Methodology: How these stocks were chosen

Why should you consider investing in cybersecurity stocks?

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Investing in cybersecurity stocks FAQ

Is it worth investing in cybersecurity stocks?

Is it worth investing in cybersecurity stocks?

How do economic downturns affect cybersecurity stocks?

How do economic downturns affect cybersecurity stocks?

Is cybersecurity going away?

Is cybersecurity going away?

Can cybersecurity stocks be part of a diversified investment portfolio?

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8 Best cybersecurity stocks in 2026

Cloud security, identity management, and legacy security vendors

1. Palo Alto Networks

Key Data Points

2. CrowdStrike Holdings

Key Data Points

3. Fortinet

Key Data Points

Key Data Points

5. Okta

Key Data Points

6. SentinelOne

Key Data Points

Infrastructure monitoring and content delivery networks

7. Datadog

Key Data Points

Key Data Points

How to invest in cybersecurity stocks

Benefits and risks of investing in cybersecurity stocks

Methodology: How these stocks were chosen

Why should you consider investing in cybersecurity stocks?

How Much Are AI Companies Spending on Data Centers?

Best Cybersecurity ETFs to Buy in 2026 and How to Invest

How Much Are AI Companies Spending on Data Centers?

The Largest Technology Companies by Market Cap in August 2026

Investing in cybersecurity stocks FAQ

Is it worth investing in cybersecurity stocks?

Is it worth investing in cybersecurity stocks?

How do economic downturns affect cybersecurity stocks?

How do economic downturns affect cybersecurity stocks?

Is cybersecurity going away?

Is cybersecurity going away?

Can cybersecurity stocks be part of a diversified investment portfolio?

Can cybersecurity stocks be part of a diversified investment portfolio?

4. Zscaler

8. Akamai