In this article, we will look at the 10 Best Cybersecurity Stocks to Buy in 2026.
On December 30, Peter Levine, a Software Analyst at Evercore ISI, appeared on a CNBC interview to discuss the cybersecurity playbook for 2026. It was noted that the First Trust Nasdaq Cybersecurity ETF (CIBR) underperformed the broader technology sector in 2025. However, a few names, including Cloudflare and CrowdStrike, remained strong throughout the year. Peter noted there was a lot going on within the overall software segment. Throughout 2025, investors mostly focused on the hardware stocks, particularly semiconductor companies. However, Peter remains bullish on the cybersecurity sector and believes it remains one of the most defensible.
He added that the fundamental story of software requiring security remains the same. In fact, there are many growth drivers benefiting the sector. Peter noted that not only has the budget allocation for cybersecurity increased, but the rising geopolitical tensions, shift towards cyber warfare, and AI enterprise demands are also acting as tailwinds for the sector. Peter added that the cybersecurity companies are yet to monetize AI, and he sees the change happening in 2026. Lastly, he sees greater M&A activity within the segment throughout 2026 as security companies move towards consolidating data under a single purview.
With that, let’s take a look at the 10 Best Cybersecurity Stocks to Buy in 2026.
Our Methodology
To curate the list of 10 Best CyberSecurity Stocks to Buy in 2026, we used top cybersecurity ETFs, including First Trust NASDAQ Cybersecurity ETF, Amplify Cybersecurity ETF, and Global X Cybersecurity ETF. Using these sources, we compiled a list of cybersecurity stocks and ranked them in ascending order by the number of hedge fund holdings sourced from Insider Monkey’s Q3 2025 database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best CyberSecurity Stocks to Buy in 2026
10. Leidos Holdings, Inc. (NYSE:LDOS)
Number of Hedge Fund Holders: 43
Leidos Holdings, Inc. (NYSE:LDOS) is one of the Best Cybersecurity Stocks to Buy in 2026. On January 16, Gautam Khanna from TD Cowen reiterated a Hold rating on the stock and lowered the price target from $210 to $190. A day earlier, on January 15, Gavin Parsons from UBS also maintained a Hold rating on Leidos Holdings, Inc. (NYSE:LDOS) and lowered the price target from $216 to $204.
Analysts at UBS noted that the demand for the company’s Veterans Benefits Administration medical exam business remains strong. However, the entry of a fourth provider has increased competition by capturing shares in new obligations, thereby threatening Leidos Holdings, Inc.’s (NYSE:LDOS) position. The firm notes that this heightens market concerns about the unsustainable current advantages, especially given major contracts up for rebid in 2027. Moreover, the firm also highlighted that the Veterans Benefits Administration contributes significantly to the company’s profits; therefore, any negative impact is likely to have a huge impact on earnings.
UBS expects headwinds for the company in 2026. The firm sees margins to remain below consensus, but above the long-term historical average.
Leidos Holdings Inc. (NYSE:LDOS) is a U.S. government technology and defense contractor. The company focuses on digital modernization, cybersecurity, logistics, and defense and mission systems for federal agencies, the military, and intelligence clients.
9. Fortinet, Inc. (NASDAQ:FTNT)
Number of Hedge Fund Holders: 44
Fortinet, Inc. (NASDAQ:FTNT) is one of the Best Cybersecurity Stocks to Buy in 2026. On January 20, Junaid Siddiqui from Truist Financial reiterated a Buy rating on the stock but lowered the price target from $95 to $88. Earlier on January 15, Brian Essex from RBC Capital reiterated a Sell rating on Fortinet, Inc. (NASDAQ:FTNT) with a $75 price target.
The rating comes as the company gets close to releasing its fiscal Q4 2025 results, scheduled for February 5, 2026. Truist noted that revenue growth remained muted in fiscal Q3 2025, with only a 12.7% year-over-year increase, below expectations. However, looking ahead, the firm expects the company to re-accelerate growth in the second half of 2026, driven by strength in products. Moreover, the firm also highlighted that the impact of China’s ban on software from certain US and Israeli cybersecurity companies remains minimal for Fortinet, Inc. (NASDAQ:FTNT). This is because China accounts for only around 1% of the 19% revenue the company generates from the Asia-Pacific region.
On the other hand, J.P. Morgan noted the Sell rating is due to heightened risks from surging DDR4 memory costs driven by AI demand. The firm noted that the price increase threatens margins for firewall hardware. J.P. Morgan believes that Fortinet, Inc. (NASDAQ:FTNT) faces greater vulnerability than peers due to the company’s heavy reliance on hardware revenue and limited software mix.
Fortinet, Inc. (NASDAQ:FTNT) is a provider of cybersecurity solutions to a range of businesses, including government organizations, communication service providers, enterprises, and small to medium-sized businesses. The company’s portfolio includes secure access service edge, network security, application security, enterprise networking, and operational technology.
