Best Internet of Things Stocks for 2026 and How to Invest

As an increasing number of everyday objects, such as lights, televisions, major appliances, cars, and even doorbells, are brought online, Internet of Things (IoT) stocks are attracting a growing number of investors. According to Horowitz Research, for example, 48% of U.S. homes have at least one smart device.

While it may sound complicated, the IoT simply refers to the networks of devices and objects that communicate with other devices in the same network via connections to data centers.

1. Cisco Systems

Cisco Systems (CSCO +2.07%) is the leading provider of enterprise networking hardware. Because its products form the backbone of the internet, the tech giant benefits from the explosion of internet-enabled devices. On the software side, the company provides the Cisco Edge Intelligence platform and other tools for managing IoT data and devices.

One of the largest cybersecurity companies. Cisco offers hardware, software, and services to secure networks against threats, including those targeting IoT systems.

Cisco is a low-risk way of investing in IoT. The company is supremely profitable, having generated earnings per share (EPS) of $2.61 on revenue of $56.7 billion in fiscal 2025, and it projects fiscal 2026 revenue and EPS of about $61.5 billion and $3.04, respectively. And it's not only on the income statement that Cisco shines. In fiscal 2025, Cisco generated about $13.3 billion in free cash flow.

Investing in the stock is a good way to gain exposure to IoT without taking on significant risk. Cisco remains dominant as ever and is poised to benefit from the growth of the IoT market.

2. Alarm.com

Providing a cloud-based software platform for managing connected homes and businesses, Alarm.com (ALRM +2.00%) offers subscribers software to manage internet-enabled devices, including security cameras, lights, locks, thermostats, and other supported products.

The company currently works with about 12,000 service providers in more than 80 countries, and its products are found in about 67 million properties worldwide.

Recognizing both steady top- and bottom-line growth from 2016 through 2025, Alarm.com has increased revenue at a 16.2% compound annual growth rate (CAGR) and adjusted earnings before interest, depreciation, and amortization (EBITDA) at a 17.3% CAGR.

In addition to revenue of $1.058 billion to $1.065 billion, Alarm.com projects adjusted EBITDA of $213 million to $215 million for 2026. If the company achieves the midpoints of both of these metrics, it will have recognized year-over-year growth of 5% and 4%, respectively.

Management recognizes ample growth opportunities, identifying more than 500 million serviceable properties. Since only a small fraction of homes are currently using Alarm.com's platform, the IoT company has a long growth runway.

3. DexCom

The Internet of Things goes far beyond consumer devices. DexCom (DXCM +4.47%) focuses on medical devices that continuously monitor glucose levels for diabetics. The company's G7 system delivers real-time data to smartphones and smartwatches without the need for finger sticks.

The number of people in the U.S. with diagnosed diabetes grew from 1.58 million in 1958 to 23.35 million in 2015. In 2023, the estimated total of individuals with diagnosed or undiagnosed diabetes in the United States reached 40.1 million.

The combination of rising diabetes rates and the transition to continuous glucose monitoring will create significant growth opportunities for DexCom in the coming years.

The company booked revenue of nearly $4.7 billion in 2025, a 16% increase over 2024, and management projects continued growth in 2026, forecasting 2026 sales of about $5.16 billion to $5.25 billion. With respect to profitability, Dexcom projects an adjusted gross profit margin of 63% to 64% and an adjusted operating margin of 22% to 23% for 2026.

For those interested in exposure to both IoT and healthcare, DexCom is a stock to consider.

4. Impinj

6. Samsara

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