5 Best Performing Cybersecurity Stocks in 2025

2. Cloudflare Inc (NYSE:NET)

Number of Hedge Fund Holders: 70

Past Year Performance: 97.12%

Cloudflare Inc (NYSE:NET) is among the best performing cybersecurity stocks in 2025. On March 30, following the RSA 2026 Conference, TD Cowen named Cloudflare Inc (NYSE:NET) among the companies well-positioned for growth in the cybersecurity sector. Cloudflare’s solutions help make websites and internet applications more secure and reliable.

According to TD Cowen, cybersecurity spending is on track to surpass $320 billion by 2030, reflecting a compound annual growth rate of around 12%. The firm points out that AI will drive the next phase of the security industry growth. It sees increasing demand for network security and endpoint detection amid growing AI adoption.

From a security standpoint, TD Cowen noted AI is widening the attack surface more quickly than reducing risk. While this is happening, companies are consolidating their security stacks out of the need to reduce complexity and costs. According to the firm, this trend is shifting spending toward a handful of scaled providers like Cloudflare.

On March 16, Cloudflare Inc (NYSE:NET) announced an expanded security partnership with SentinelOne. This partnership brings together Cloudflare’s network telemetry data and SentinelOne’s Singularity AI SIEM platform.

With this combined system, security teams can better detect and respond to threats. This is because the integration allows teams to automate action and analysis from a single point. SentinelOne’s Singularity AI SIEM applies intelligence to pick out risks sooner in the attack sequence. It does this by processing live data streams as opposed to static logs.

Cloudflare Inc (NYSE:NET) is an American technology company headquartered in San Francisco, California. Its global cloud platform improves the performance, reliability, and security of websites and internet applications. Cloudflare serves businesses of all types around the world.