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.
8. Gen Digital Inc. (NASDAQ:GEN)
Number of Hedge Fund Holders: 46
Gen Digital Inc. (NASDAQ:GEN) is one of the Best Cybersecurity Stocks to Buy in 2026. On January 16, Matthew Hedberg from RBC Capital reiterated a Hold rating on the stock with a $29 price target. Earlier on January 13, UBS reiterated a Buy rating on Gen Digital Inc. (NASDAQ:GEN) with a price target of $36.
The ratings come as the company gets close to releasing its fiscal FQ3 2026 results on February 5. During the last earnings release, management released its outlook. The company expects fiscal Q3 2026 revenue to be in the range of $1.22 billion to $1.24 billion, while the EPS for the quarter is expected to be in the range of $0.62 to $0.64.
During fiscal Q2 2026, Gen Digital Inc. (NASDAQ:GEN) grew its revenue by 25.26% year-over-year to $1.22 billion and topped the consensus by $23.86 million. The EPS of $0.62 was also above expectations by $0.01. Management had noted that Q2 marked the eighth straight quarter of EPS growth above the company’s 12% to 15% target.
Gen Digital Inc. (NASDAQ:GEN) is a global leader in consumer cyber safety that provides cybersecurity, identity theft protection, and online privacy solutions through its family of brands. It offers a comprehensive platform of digital protection products, including antivirus software, VPNs, and identity monitoring services.
7. Zscaler, Inc. (NASDAQ:ZS)
Number of Hedge Fund Holders: 50
Zscaler, Inc. (NASDAQ:ZS) is one of the Best Cybersecurity Stocks to Buy in 2026. On January 20, Citizens reiterated a Market Outperform rating on the stock with a $335 price target. Earlier on January 13, Fatima Boolani from Citi reiterated a Buy rating on Zscaler, Inc. (NASDAQ:ZS) and lowered the price target from $350 to $305.
Analysts at Citizens noted that they like the company’s ability to retain its customers. The firm highlighted that customers face a high cost of switching, extensive onboarding timelines, and complex migrations, which help the company retain customers. Moreover, according to the firm, the average onboarding period for network security solutions takes around 50 to 180 days, and puts companies in a situation where they have to pay existing and new providers. As a result, Citizens sees strong renewal activity for Zscaler, Inc. (NASDAQ:ZS).
On the other hand, Citi noted that the reduced price target reflects the firm’s updated outlook on the software security segment after surveying chief information security officers of various companies.
Zscaler Inc. (NASDAQ:ZS) is a cloud-based security company that provides cybersecurity solutions by protecting user access to applications and data, regardless of location. It replaces traditional hardware-based security, such as VPNs and firewalls, with its cloud-native Zero Trust Exchange platform, which secures internet access and private applications.
6. Rubrik, Inc. (NYSE:RBRK)
Number of Hedge Fund Holders: 52
Rubrik, Inc. (NYSE:RBRK) is one of the Best Cybersecurity Stocks to Buy in 2026. On January 16, Rubrik, Inc. (NYSE:RBRK) announced Security Cloud Sovereign, which is a new product for global organizations to help keep sensitive data under strict national control.
Management noted that nowadays customers worry about storing data in foreign clouds, where it can be breached upon government requests. This latest offering by the company ensures that all the data remains within the customer’s chosen borders or infrastructure. The Security Cloud Sovereign allows complete data sovereignty, immutable protection, threat detection, and flexible deployments. Management noted that the offering is available to select customers and will soon be made available to other organizations.
That said, Wall Street is also bullish on the stock, with analysts’ 12-month price target reflecting more than 70% upside from the current level. Recently, on January 12, Fatima Boolani from Citi reiterated a Buy rating on Rubrik, Inc. (NYSE:RBRK) with a $115 price target. On the same day, Eric Heath from KeyBanc also reiterated a Buy rating on the stock but lowered the price target from $113 to $95.
Rubrik Inc. (NYSE:RBRK) provides data security solutions to individuals and businesses worldwide.
5. Okta, Inc. (NYSE:OKTA)
Number of Hedge Fund Holders: 55
Okta, Inc. (NYSE:OKTA) is one of the Best Cybersecurity Stocks to Buy in 2026. On January 16, Okta, Inc. (NYSE:OKTA) announced that it will be launching local data centers in India, which will be hosted on AWS. Management noted that this strategic move ensures that Indian customer data stays within India and targets regulated industries, including banking, financial services, insurance, and healthcare. The deployment is expected to start for new and existing customers in early 2026.
Moreover, Wall Street also remains bullish on the stock. Analysts 12 month price target reflects more than 32% upside from the current level. Recently, on January 14, Todd Weller CFA from Stephens upgraded the stock from Hold to Buy and also raised the price target from $97 to $120. Earlier on January 5, Cantor Fitzgerald also reiterated an Overweight rating on the stock with a $115 price target.
Analysts at Stephens noted that they see growth acceleration materializing throughout the year. This places Okta in an attractive risk/reward profile for the year. Moreover, the firm also sees cybersecurity remaining a high-growth area in 2026, driven by strong demand.
Okta Inc. (NASDAQ:OKTA) is a cloud-based identity and access management company. It enables organizations to securely connect employees, customers, and partners to applications and systems.
4. Cloudflare, Inc. (NYSE:NET)
Number of Hedge Fund Holders: 63
Cloudflare, Inc. (NYSE:NET) is one of the Best Cybersecurity Stocks to Buy in 2026. Wall Street is bullish on the stock, with analysts’ 12-month price targets reflecting more than 50% upside from the current level. Recently, on January 21, Gregg Moskowitz from Mizuho Securities reiterated a Buy rating on Cloudflare, Inc. (NYSE:NET) but lowered the price target from $280 to $255. Earlier, on January 20, Citizens maintained a Market Outperform rating on the stock with a price target of $270.
Analysts at Citizen noted that the company is set to benefit from emerging agentic traffic patterns, driven by its network that supports architectures such as MCP. The assessment is based on the firm’s survey, which suggests that Cloudflare, Inc.’s (NYSE:NET) strategic positioning is strong.
On the other hand, Mizuho Securities lowered the price target as part of its adjustment to the large-cap software segment. The firm’s Q4 earnings preview suggests that channel checks are solid with AI adoption remaining strong. However, some checks suggest that budget flush activity remains more modest than usual, and investor concerns about AI are decimating multiples for software companies.
Cloudflare Inc. (NYSE:NET) is a global cloud services provider offering a range of services, including content delivery network, cybersecurity, and DDoS mitigation.
3. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
Number of Hedge Fund Holders: 66
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is one of the Best Cybersecurity Stocks to Buy in 2026. Wall Street is bullish on the stock, with analysts’ 12-month price targets suggesting more than 26% upside from current levels. Recently, on January 20, Gray Powell from BTIG reiterated a Buy rating on CrowdStrike Holdings, Inc. (NASDAQ:CRWD) with a $640 price target. On the same day, Jonathan Ruykhaver from Cantor Fitzgerald also reiterated an Overweight rating on the stock without disclosing any price targets.
The ratings are based on the company’s recent acquisition of Seraphic Security, which is an Israeli startup specializing in browser runtime security. Management noted that the strategic acquisition aims to secure web browsers, which are a key vulnerability in modern enterprises. As a result of this move, the company will be able to integrate Seraphic’s technology into its Falcon platform. Management noted that this is an all-cash deal, expected to close in the company’s fiscal Q1 2027.
According to Cantor Fitzgerald, the deal is valued at roughly $250 million and positions CrowdStrike Holdings, Inc. (NASDAQ:CRWD) to compete effectively with Island and Prisma Access Browser. The firm also highlighted that this acquisition will act as a long-term tailwind, as they predict 25% of the enterprises will use secure browsers by 2028.
CrowdStrike Holdings, Inc. (NASDAQ:CRWD) is a leader in AI-driven endpoint and cloud workload protection.
2. Cisco Systems, Inc. (NASDAQ:CSCO)
Number of Hedge Fund Holders: 74
Cisco Systems, Inc. (NASDAQ:CSCO) is one of the Best Cybersecurity Stocks to Buy in 2026. On January 20, Tal Liani from Bank of America Securities reiterated a Buy rating on the stock without disclosing any price targets. On the same day, Cisco Systems, Inc. (NASDAQ:CSCO) announced its multi-year partnership with Georgetown University to modernize the campus network.
Management noted that the partnership entails upgrading the entire university campus network using cutting-edge technologies. As a result, Georgetown will become one of the first universities with the largest Wi-Fi 7 deployment. Management noted that their solutions are purpose-built for high-density environments such as these campuses, and this move underscores the company’s efforts to enter the public sector and education markets.
That said, Cisco Systems, Inc. (NASDAQ:CSCO) is expected to release its fiscal Q2 2026 earnings on February 11. Wall Street expects the company to post around $15.11 billion in revenue, along with a GAAP EPS of $0.74. Analysts’ 12-month price target implies more than 17% upside from the current level.
Cisco Systems, Inc. (NASDAQ:CSCO) designs and sells technologies that power the Internet. The company brings together networking, security, collaboration, applications, and cloud products into a single, integrated portfolio.
1. Palo Alto Networks, Inc. (NASDAQ:PANW)
Number of Hedge Fund Holders: 85
Palo Alto Networks, Inc. (NASDAQ:PANW) is one of the Best Cybersecurity Stocks to Buy in 2026. On January 20, Gregg Moskowitz from Mizuho Securities reiterated a Buy rating on the stock with a $220 price target. Earlier, on January 4, Guggenheim upgraded Palo Alto Networks, Inc. (NASDAQ:PANW) from Sell to Neutral without disclosing any price targets.
Analysts at Guggenheim noted that although the company underperformed the S&P 500 index by 1,753 basis points since January 2025, it still outperformed the BUG security ETF by 632 basis points. Moreover, the firm also likes the recent acquisitions by the company and views them as a strategic move. Management believes that Palo Alto Networks, Inc. (NASDAQ:PANW) will maintain its best-in-class free-cash flow margins throughout 2028.
Guggenheim expects the company to maintain its market share as one of the largest pure-play companies in the cybersecurity domain. The firm expects the sector to benefit from several tailwinds driven by AI. Overall, analysts’ 12-month price targets reflect more than 26.7% upside from the current levels.
Palo Alto Networks Inc. (NASDAQ:PANW) provides security solutions to help secure enterprise users, networks, clouds, and endpoints, with platforms such as Prisma Access, Prisma Cloud, and Cortex.
While we acknowledge the potential of PANW to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PANW and that has 100x upside potential, check out our report about this cheapest AI stock.
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