10 Best Cybersecurity Stocks to Buy in 2026

Core Insights - The cybersecurity sector is expected to remain strong in 2026, driven by increased budget allocations, rising geopolitical tensions, and the demand for AI integration [2][3] - The First Trust Nasdaq Cybersecurity ETF (CIBR) underperformed in 2025, but companies like Cloudflare and CrowdStrike showed resilience [2] - M&A activity is anticipated to increase as cybersecurity firms consolidate data management [3] Industry Overview - The demand for cybersecurity solutions is growing due to the fundamental need for software security, with various growth drivers identified [3] - Geopolitical tensions and the shift towards cyber warfare are acting as tailwinds for the cybersecurity sector [3] Company Analysis - Leidos Holdings, Inc. (NYSE:LDOS): - Analysts have lowered price targets, indicating potential headwinds due to increased competition in the Veterans Benefits Administration sector [8][9] - The company is a U.S. government technology and defense contractor focusing on cybersecurity and digital modernization [10] - Fortinet, Inc. (NASDAQ:FTNT): - The company has received mixed ratings, with a Buy rating from Truist but a Sell rating from J.P. Morgan due to rising costs impacting margins [11][13] - Revenue growth was muted at 12.7% year-over-year in Q3 2025, but expectations for re-acceleration in the second half of 2026 exist [12] - Fortinet's reliance on hardware revenue poses risks, especially with increasing DDR4 memory costs [13][14]