10 Best Cybersecurity Stocks to Invest in According to Analysts

In this article, we will look at some of the best names in the cybersecurity space that currently offer attractive upside for investors. On April 16, KPMG published its Cybersecurity Considerations 2026 report, which touched upon several factors relevant to the cybersecurity industry. According to the findings in the report, the threat scenario is quickly expanding and maturing. This can involve factors such as AI, geopolitics, regulation, supply chain disruptions, identity without humanity, hyper-connectivity, and the impending possibility of quantum decryption. For the CISOs, the challenge is not only protection from threats but also developing resilience and innovating.

Eight critical cyber challenges were highlighted in the report. These challenges include self-governance for security, geopolitics, ensuring cybersecurity for AI technologies, addressing non-human identities, converging information technology and operational technology, readiness for post-quantum cryptography, supply chain resilience, and the growing scope of the CISO role.

The report features input from more than 20 cyber leaders across KPMG’s global offices. Input is also provided by senior management at Google, Microsoft, Palo Alto Networks, and ServiceNow. Findings are further enhanced by KPMG’s global and regional surveys.

The key takeaway is that in addition to defense, cybersecurity has evolved into a means of enabling trust, resilience, and improved organizational effectiveness. It is now very important for companies to strengthen their frameworks and infrastructure to accommodate the ever-evolving landscape of cybersecurity. With that background, let’s explore our 10 Best Cybersecurity Stocks to Invest in According to Analysts.

Our Methodology

To identify relevant stocks for this article, we screened U.S.-listed cybersecurity companies with market capitalizations above $2 billion. Also, we only shortlisted stocks with at least 35% upside potential, according to consensus, as of the April 22 close. Finally, we selected 10 stocks with the highest upside and ranked them in ascending order.

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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

10. Commvault Systems Inc. (NASDAQ:CVLT)

Commvault Systems Inc. (NASDAQ:CVLT) is one of the 10 best cybersecurity stocks to invest in according to analysts.

On April 21, Scotiabank initiated coverage of Commvault Systems Inc., assigning the stock a Sector Perform rating and a price target of $105. In the firm’s view, the competitive landscape in the data protection, backup, and cyber recovery market is quite aggressive.

The firm noted that the company faces the risk of witnessing its topline growth being derived mainly from leveraging its huge installed base, instead of a more sustainable new logo traction. The firm also believes that the consensus 2027 targets for Commvault do not inspire too much confidence.

The company’s valuation metrics in case of a potential acquisition are also what is driving this investment story. Back on April 13, Oppenheimer observed that an opportunity to acquire Commvault Systems Inc. exists because of the attention given by Thoma Bravo. In terms of current market makeup, a financial buyer is more likely to acquire the company, considering that the top six players within the segment control nearly 70% of the market share.

According to the firm, acquisition by Rubrik is unlikely to be a good fit from a strategic point of view. The firm also highlighted Cohesity, which bought Veritas recently and has already started the post-deal technological integration. It is very likely that Veeam will make a bid as they aim to enter large enterprise markets. From the valuation point of view, Oppenheimer believes that acquiring Commvault at a 15 times EV/FCF multiple will be a wise investment. This would imply a stock price of $125-$130, offering roughly 40% premium to the prevailing market price. Currently, the firm rates Commvault stock as Outperform with a target price of $150, leading to an upside of almost 65%.

Commvault Systems Inc. is a cybersecurity and data protection company that delivers data recovery and protection services. Through its Operational Recovery function, it offers data backup, recovery, and workload mobility solutions covering on-premises, hybrid, and multiple cloud environments.

9. Microsoft Corp. (NASDAQ:MSFT)

Microsoft Corp. (NASDAQ:MSFT) is one of the 10 best cybersecurity stocks to invest in according to analysts.

The company’s multi-year overseas investments in AI infrastructure and cybersecurity are supporting a bullish case on the stock. On April 3, Microsoft Corp. unveiled a $10 billion investment in Japan for the period from 2026 to 2029, amounting to roughly ¥1.6 trillion. It is Microsoft’s most significant investment in Japan ever. The investment comes after an earlier $2.9 billion investment in April 2024.

Under this investment program, the framework for initiatives to be taken is built around three key pillars. First is the technology pillar, which includes leveraging the in-country AI ecosystem via collaborations with Sakura Internet and SoftBank. Next is the trust pillar, which will be dedicated to establishing stronger cybersecurity partnerships with Japan’s National Cybersecurity Office and National Police Agency. Finally, the talent pillar will aim to train 1 million engineers and developers by 2030.

This announcement follows Microsoft’s current program that has already trained over 3.4 million individuals in Japan, resulting in a high level of AI adoption in Japan. Currently, almost one out of every five adults in Japan uses generative AI. The figure surpasses the world average. 94% of Nikkei 225 companies also employ Microsoft 365 Copilot. This strategy will solve the shortage of the AI and robotics workforce predicted at 3.26 million by 2040. Given current market trends, this is a substantial growth for Microsoft in the area.

Microsoft Corp. is a technology leader that delivers software, cloud computing, and PC solutions. Some of its offerings include Microsoft 365 commercial, enterprise mobility, Power BI, Microsoft Teams, and security and compliance solutions. The company’s Intelligent Cloud segment includes its public cloud platform, Azure, that delivers server products and enterprise mobility services.

8. Varonis Systems Inc. (NASDAQ:VRNS)

Varonis Systems Inc. (NASDAQ:VRNS) is one of the 10 best cybersecurity stocks to invest in according to analysts.

The company’s innovative launches make it one of the top names across the cybersecurity universe. On March 17, Varonis Systems Inc. introduced Atlas, an all-in-one solution that will help enterprises gain full control and visibility of the AI solutions that they build or operate. AI agents, copilots, and large language models have become integral parts of any enterprise workflow because they work quickly and interpret information effectively. But enterprises rarely know how many AI solutions are operating in their ecosystem, and the capabilities of these AI solutions remain unclear to them.

Atlas addresses this gap through full coverage of the AI security lifecycle, including discovery, posture management, runtime protection, and compliance through one product. The platform integrates with hosted AI platforms, custom language learning models, agentic technology systems, chatbots, and embedded AI technologies.

By integrating with the Varonis Data Security Platform, Atlas provides contextual data that independent AI security platforms lack. Features also include AI inventory and shadow AI discovery, security testing for vulnerabilities, guardrails for preventing data leaks during AI operations, compliance, and threat detection.

Varonis Systems Inc. delivers software products and solutions that help with the classification of critical data and detecting advanced threats with AI-powered technology. Its Software-as-a-Service portfolio includes services for data access intelligence, discovery & classification, activity monitoring, and more. It also offers protection packages, database and email security capabilities, and on-premises subscription products.

7. Tenable Holdings Inc. (NASDAQ:TENB)

Tenable Holdings Inc. (NASDAQ:TENB) is one of the 10 best cybersecurity stocks to invest in according to analysts.

What makes Tenable Holdings Inc. stand out as one of the best cybersecurity stocks is the company’s focus on addressing market gaps. On April 15, it launched an advanced OT Asset Discovery Engine that is intended to provide protection for cyber-physical systems. This feature makes it possible to rapidly include the risks related to OT, IoT, and Shadow IT in the comprehensive picture of cyber exposure for organizations. It can be rolled out immediately without any extra cost for IT resources.

This new launch solves a vital problem, as over 50% of CISOs manage OT security. However, visibility has been a risky blind spot at the intersection of IT networks and cyber-physical systems. Concerns over disruptions have stifled efforts to enhance cybersecurity, and consequently, 45% of today’s OT breaches are triggered by IT systems. The first users also discovered 100 to 1000 plus hidden assets during the launch phase.

This engine has been designed to seamlessly incorporate itself into the Tenable One Exposure Management Platform. The organization will have immediate visibility of its previously undiscovered assets without disrupting operations. This can help the organization comply with regulations and help reduce risks from the very first day. Under existing market circumstances, this is a significant extension of Tenable’s capabilities in exposure management.

Tenable Holdings Inc. is a seller of cyber exposure management solutions. These include AI-powered software to identify and reduce security risks, cloud-based software for risk mitigation, management of web app scans, and end-to-end protection from identity-based threats, to name a few. It also provides on-premises vulnerability management and assessment solutions, security solutions for converged OT/IoT, and more.

6. Cellebrite DI Ltd. (NASDAQ:CLBT)

Cellebrite DI Ltd. (NASDAQ:CLBT) is one of the 10 best cybersecurity stocks to invest in according to analysts.

On March 31, Cellebrite DI Ltd. announced the launch of the Spring 2026 Release, providing access to a great number of iOS and Android devices and operating systems. The release features support for iPhone 17 and iOS 26, along with Corellium, which was made public and can also be accessed on the Google Cloud platform.

Considering that 75% of devices in North America are locked when they reach forensics laboratories, the new version also comes with Safeguard Mode, which facilitates quick data extraction in emergencies. Forensic investigation capabilities for drones are also included in this release.

Back on March 18, Cellebrite DI Ltd. announced the global availability of its AI-driven tool named Guardian Investigate, which revolutionizes the process of investigations with its innovative approach. In this solution, humans and AI are combined into a team to collaborate seamlessly and in real-time. Evidence is collected through documents, mobile forensics, phone metadata, and other digital evidence.

Team members from different departments and agencies will be able to collaborate while remaining accountable. The software helps close the increasing gap in resource availability and investigations. It provides real-time insight about a significant event when all decisions become critical for the case. This marks a considerable change in modern investigative management.

Cellebrite DI Ltd. is a creator of services and solutions for legally sanctioned investigations. Its services portfolio includes a range of software used to manage digital evidence, digital forensics software, evidence management solutions, evidence sharing tools, and more. It also provides training and certification services and mobile vulnerability research.

5. SailPoint Inc. (NASDAQ:SAIL)

SailPoint Inc. (NASDAQ:SAIL) is one of the 10 best cybersecurity stocks to invest in according to analysts.

On April 13, SailPoint Inc. officially shared its recognition as Customers’ Choice for Identity Governance and Administration for the year 2026, by the research firm Gartner. Based on 197 published reviews, the company received an overall rating of 4.8 out of 5. Such favorable feedback makes it one of the best names within the cybersecurity segment.

Over 96% of the people who took the survey stated that they would definitely suggest SailPoint Inc. platform to others. To actively tackle complex market challenges such as securing agentic AI and managing non-human identities, the company continues rolling out targeted capabilities such as Shadow AI Remediation and Agent Identity Security. Ultimately, the customized service offerings enable business clients to effectively maintain strict regulatory compliance while optimizing their operating investments.

Some of the recent commercial developments also support an optimistic view around the stock. On March 17, SailPoint Inc. released Shadow AI Remediation, which is one of the new features that will be part of its real-time AI governance and security platform. The product aims to tackle the increasing problem of workers leveraging unsanctioned AI technologies, such as ChatGPT and Gemini, that may not be accessed through official channels.

The use of these unapproved technologies causes major security risks for organizations. The platform helps businesses gain real-time insights regarding their employees’ activities in terms of leveraging AI technologies. It allows companies to block unauthorized uploads and steer employees towards authorized platforms. The deployment process involves the use of a straightforward browser plug-in. This is a crucial element in SailPoint’s overall strategy regarding the safety of identities.

SailPoint Inc. is an identity security company, that delivers Identity Governance and Administration solutions across the globe. It allows organizations to manage their security and compliance procedures. The company covers various aspects of identity security such as data, employee identities, and non-employee identities.

4. Qualys Inc. (NASDAQ:QLYS)

Qualys Inc. (NASDAQ:QLYS) is one of the 10 best cybersecurity stocks to invest in according to analysts.

On April 13, RBC Capital significantly decreased the price target on Qualys Inc. from $134 to $85 while maintaining a Sector Perform rating. This change is based on the detailed first-quarter results preview for the software industry. According to the firm, overall market sentiment is still noticeably negative as investors consider the growing competitive threat of large language models.

Moreover, the firm has also identified significant macroeconomic challenges, such as prolonged deal cycles, adverse foreign exchange movements, faster labor reductions, and persistent operational uncertainty resulting from the Iran conflict. Consequently, the firm expects these upcoming March financial reports to offer minimal sector relief.

Despite underlying sectoral challenges, the stock offers impressive upside potential of over 57%, according to consensus estimates. These projections are supported by the company’s latest solutions offerings, which make it one of our top cybersecurity picks. On March 23, Qualys Inc. introduced Agent Val in the Enterprise TruRisk Management solution. The intelligent agent can verify exploitability and can trigger automated remediation. This is an important step in addressing a significant problem in cybersecurity, considering that exploited vulnerabilities have increased by 6.5x in the past 4 years.

The window of opportunity for exploitation has been reduced to negative using this agent. Although hackers exploit vulnerabilities before patches are available, Agent Val checks the true exploitability of vulnerabilities in real-world scenarios through contextual analysis of business and asset importance, and then confirmed risks are prioritized for remediation.

Qualys Inc. offers cloud-based IT, security, and compliance solutions. Its service offerings include cybersecurity asset management, vulnerability management, cloud workload protection, cloud infrastructure, entitlement management, and more. It also offers asset tagging and management, reporting, and analytical tools for IT security data. It serves a range of enterprises, including government entities, cloud providers, and consulting firms, to name a few.

3. Rubrik Inc. (NYSE:RBRK)

Rubrik Inc. (NYSE:RBRK) is one of the 10 best cybersecurity stocks to invest in according to analysts.

On April 21, Joe Vandrick from Scotiabank assigned an Outperform rating to Rubrik Inc. while setting a price target at $70. The firm emphasized that the platform is based on a highly distinctive, security-first architectural design. Vandrick also noted that the company is still in the early phases of breaking into a desirable target market while maintaining structural protection against more widespread disruption caused by AI.

The analyst also believes that the stock’s current valuation range appears to be underappreciated by the market, given its long-term prospects. This makes it one of the best cybersecurity stocks to invest in.

On April 8, Rubrik Inc. was certified as a Preferred Cybersecurity Provider by the American Hospital Association (AHA). The certification applies to almost 5000 hospitals currently within the AHA membership. The cybersecurity services provided include cyber resilience, data protection, ransomware preparedness, and risk assessment, making this service vital.

Cyber threats have been increasing, jeopardizing both finances and patient safety. As stated by Josh Howell, who is the Healthcare Chief Technology Officer at Rubrik, limiting the damage after a cyber threat is very important. Knowing when and how to restore critical services will ensure continuity of life-saving healthcare delivery processes.

Rubrik Inc. is a provider of cloud-based data management and security solutions for enterprises and individuals. Its service offerings include cloud, enterprise, and SaaS data protection, data threat analytics, and cyber recovery solutions. It covers various industries such as public sector enterprises, retail, finance, energy, industrial, and healthcare, with emphasis on securing and monitoring data across hybrid and multi-cloud infrastructure.

2. Zscaler Inc. (NASDAQ:ZS)

Zscaler Inc. (NASDAQ:ZS) is one of the 10 best cybersecurity stocks to invest in according to analysts.

On April 15, Eric Heath from KeyBanc reiterated an Overweight share for Zscaler Inc.. However, the analyst significantly reduced the price target from $220 to $160, which still yields an upside of more than 21% at the prevailing level.

The firm highlighted a survey of 36 IT and security channel partners, which indicated mixed views for the first quarter. According to KeyBanc, geopolitical uncertainty, high component costs, and continuous disruption from AI have all contributed to such sentiment. Despite these headwinds, the overall performance indicators really improved. In particular, 88% of respondents met or exceeded expectations, mostly due to early pull-forward demand for networking, server, and storage gear, as well as a marginally improved public cloud forecast.

However, broader budget growth projections for 2026 drastically decreased from 5.3% to 2.5%. Additionally, the analyst has warned that roughly 20% of partners are now actively rerouting traditional software spend toward new AI-native alternatives and noted declining federal sector performance.

On March 18, Zscaler Inc. received Impact Level 5 Provisional Authorization by the Department of War for the company’s Internet Access solution. This constitutes the DoW’s highest-level cloud authorization without any classification. Agencies within the defense industry are now able to utilize a Zero Trust-based architecture for cloud-based solutions in high-risk situations.

With Impact Level 5 authorization, it is possible to decommission existing disjointed security architectures. The authorization allows Zscaler to provide cloud-based solutions within bases, coalition networks, and expeditionary missions as part of its efforts to adopt Zero Trust technologies, which are highly preferred by agencies in the prevalent conditions.

Zscaler Inc. is a cloud security company that provides cyber threat protection products. These include cloud sandbox, cloud browser, data protection, IoT/OT segmentation, security operations products, and more. Additionally, it provides unified vulnerability management, application protection, reduced attack surface, and browser isolation as well. It caters to several industries, including energy, manufacturing, and automotive, to name a few.

1. Netskope Inc. (NASDAQ:NTSK)

Netskope Inc. (NASDAQ:NTSK) is one of the 10 best cybersecurity stocks to invest in according to analysts.

On April 14, Rosenblatt initiated coverage on Netskope Inc., assigning a Buy rating with a price target of $15. This translates to more than a 51% upside for investors, making it one of our top cybersecurity picks.

According to the analyst Catharine Trebnick, Netskope is a “high-quality, sub-scale leader” within the secure access service edge segment. There is room for Netskope to continue growing in the market, and growth may exceed market expectations. Gross margins, operating margins, and free cash flows are expected to see consistent improvement.

Back on March 19, Netskope Inc. reported that it had attained the AI Security Amazon Web Services Security Competency level. This certification attests to the company’s explicit compliance with all the quality and technical standards which are set by the cloud provider. The company will now be able to actively secure and safeguard critical workloads across all artificial intelligence security use cases for AWS clients.

Netskope Inc. is a provider of security, networking, and analytics solutions to mid to large-sized organizations. Its product offerings include cloud inline security, security events across the web, security broker, threat protection, secure web gateway, data loss prevention, and many more. Additionally, it provides Software-as-a-Service (SaaS) security posture management, Firewall-as-a-Service, and dedicated egress IP services.

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