In this article, we explore the 12 Best Performing Cybersecurity Stocks in 2025.
Cybersecurity stocks are holding up much better than expected amid broader software pessimism triggered by concerns about the artificial intelligence revolution. The resilience stems from the fact that cybersecurity companies provide crucial governance services as AI-powered agents increasingly handle a greater share of web traffic.
Gartner already reports that AI agents could take up to 40% of enterprise tasks by the end of the year, up from just 5% last year. This is expected to reshape cybersecurity needs as the number of attack surfaces increases. As more agentic capabilities come online, the threat landscape expands, presenting opportunities for bad actors to weaponize AI to launch attacks.
“Going forward, it’ll be a hybrid world with humans and agents interacting together, and agents acting in concert with and communicating with other agents,” said Stifel analyst Adam Borg. An explosion of agents means that organizations will now have to secure agent identities in addition to human identities, he said.
The conflict in the Middle East is also putting IT departments on their feet amid a surge in cyberattacks propagated by state-linked Iranian groups. According to researchers at Virginia-based Ultraviolet Cyber, the state-linked groups have become more effective at carrying out cyberattacks with less.
Poland has already had to foil an attack on a nuclear research facility targeted by Iranian actors. However, the Albanian parliament was not lucky as its systems were hacked by an Iran-linked hacker group. Palo Alto Networks researchers have also warned of a surge in pro-Iranian cyber operations.
Consequently, Goldman Sachs strategists have touted cybersecurity firms as an opportunity as the S&P 500 edges lower amid uncertainty triggered by the Middle East Conflict.
With that in mind, let’s take a look at some of the best-performing cybersecurity stocks in 2025.
Our Methodology
To find the 12 best‑performing cybersecurity stocks in 2025, we used the Finviz stock screener, cybersecurity stocks etfs and other online sources to build a list that includes both pure‑play cybersecurity firms and companies with indirect exposure to the sector. We checked their past year’s performance (more than 10%) and selected the 15 best performing stocks from our initial pool of more than 30 companies. We then picked out 12 stocks that are also popular among elite hedge funds. We considered institutional interest in each stock using hedge fund holdings data from Insider Monkey’s 13F database, as of Q4 2025. The final list is ranked in ascending order by past-year performance as of April 4.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).
Best Performing Cybersecurity Stocks in 2025
12. Leidos Holdings Inc (NYSE:LDOS)
Number of Hedge Fund Holders: 37
Past Year Performance: 13.86%
Leidos Holdings Inc (NYSE:LDOS) is among the best performing cybersecurity stocks in 2025. On March 30, Leidos Holdings Inc (NYSE:LDOS) announced that it had completed the acquisition of Entrust Solutions. Leidos purchased the business from Kohlberg in a transaction valued at around $2.4 billion.
Entrust provides a range of services to utilities and industrial customers. These include design, engineering, consulting, and automation. It operates in more than 40 locations across North America.
With this acquisition, Leidos says it has doubled its footprint in the energy infrastructure market. It’s also adding more than 3,100 professionals in areas like electric grid engineering and natural gas infrastructure.
Leidos says this acquisition expands its utility customer base. Moreover, the acquisition broadens its engineering capabilities in the power delivery space. The company further says adding Entrust to its portfolio aligns with its NorthStar 2030 strategy. This strategy focuses on five growth areas, including IT modernization and cyber, energy infrastructure, and space and maritime.
On March 17, a Leidos team led by CFO Chris Cage participated in the JPMorgan Industrials Conference 2026. The team used the platform to provide an overview of the company’s strategic focus.
The conference heard about the company’s efforts to expand its capabilities in key sectors like cyber and maritime. The company is bolstering its capabilities in these areas through AI partnerships.
The team also shared how the company is adapting to the changing federal IT landscape. Investors also heard that Leidos anticipates revenue and margin declines in its healthcare segment in 2026, though growth is expected in defense and other sectors.
Virginia-based Leidos Holdings Inc (NYSE:LDOS) is an American technology company that serves defense, aviation, energy, and healthcare sectors. It provides software, systems integration, engineering, and technical services. Its clients include the US federal government, which it provides with national security software.
11. Ziff Davis Inc (NASDAQ:ZD)
Number of Hedge Fund Holders: 20
Past Year Performance: 22.07%
Ziff Davis Inc (NASDAQ:ZD) is among the best performing cybersecurity stocks in 2025. Ziff Davis Inc (NASDAQ:ZD) announced on March 3 that it was looking to generate $1.2 billion in proceeds from the sale of its Connectivity division. This division houses brands like Ookla, RootMetrics, Speedtest, and Downdetector.
These businesses help organizations to deliver faster and more reliable connectivity so users can enjoy the best digital experience. The sale of the Connectivity division will see Ziff Davis streamline its operation and allow it to narrow focus to its media publishing brands like Mashable and Everyday Health, Reuters reported.
Ziff Davis is selling the division to Accenture, and it expects the transaction to close in the coming months. The closing of the transaction is contingent on the deal obtaining regulatory approvals.
The Connectivity unit brought in $231 million in revenue for Ziff Davis in 2025, representing around 16% of the company’s total sales that year. Ziff Davis says it will continue and operate the Connectivity businesses until the sale transaction is completed. After that, the company will classify the division as discontinued operations.
Ziff Davis plans to use proceeds from the sale of the Connectivity division for corporate purposes. In addition, the proceeds may be used to fund capital allocation activities.
Share repurchases is one area Ziff Davis has been deploying capital. In 2025, the company spent $174 million on share buybacks, including $60.6 million spent in Q4 2025. According to the management, the buybacks demonstrate their conviction that the share price doesn’t adequately reflect the intrinsic value of Ziff Davis’ businesses.
Ziff Davis Inc (NASDAQ:ZD) is an American digital media and internet services company. It operates a portfolio of brands focused on areas like cybersecurity, technology, health, shopping, and gaming. The company is based in New York.
