The 3 Best Cybersecurity Stocks to Buy for 2026

Cybersecurity spending shows no signs of slowing as enterprises race to protect increasingly complex digital infrastructure from sophisticated threats. In addition to a steadily expanding addressable market, the cybersecurity sector is recession-resistant, making it attractive for growth investors in 2026. 

In this article, I have identified three top cybersecurity stocks you can buy for 2026. First is Broadcom (AVGO), a diversified infrastructure software powerhouse. Broadcom aims to combine enterprise software dominance with its semiconductor business to create a unique cybersecurity and cloud management platform. 

Next on the list is Zscaler (ZS), a cloud-native security company armed with a zero-trust architecture. Zscaler has gained traction as companies shift away from perimeter-based defenses amid accelerating remote work and cloud adoption. 

Finally, Palo Alto Networks (PANW) remains the gold standard in network security, as it continues to expand beyond firewalls into AI-powered threat detection and response platforms.  

All three companies benefit from rising regulatory pressures, escalating ransomware threats, and the fundamental reality that cybersecurity budgets rarely get cut even during economic downturns. 

The AI megatrend is creating new attack vectors and powerful defense capabilities, enabling these industry leaders to capture outsized returns as security spending accelerates. 

Best Cybersecurity Stocks #1: Broadcom (AVGO)

Broadcom’s cybersecurity-focused software segment now represents 39% of total revenue and operates at a stunning 78% operating margin, up from 72% a year earlier. 

Management expects infrastructure software to deliver low-double-digit growth throughout fiscal 2026. This provides stable recurring revenue, complementing the company's explosive AI semiconductor business. 

Total contract value booked in the fourth quarter exceeded $10.4 billion compared to $8.2 billion a year ago, while infrastructure software backlog climbed to $73 billion from $49 billion previously. This massive contracted revenue base provides exceptional visibility and allows Broadcom to invest aggressively in both AI chips and enterprise software. 

With cybersecurity spending remaining resilient even during economic uncertainty, Broadcom's infrastructure software business offers investors a defensive growth engine alongside its AI semiconductor operations.

Out of the 41 analysts covering Broadcom stock, 35 recommend “Strong Buy,” three recommend “Moderate Buy,” and three recommend “Hold.” The average AVGO stock price target is $450.62, above the current price of about $344.

Best Cybersecurity Stocks #2: Zscaler (ZS)

In fiscal Q1, Zscaler increased annual recurring revenue by 26% year-over-year (YoY) to more than $3 billion. Organic growth stood at 22%, outpacing internal estimates, prompting management to raise full-year guidance. The company now processes over 500 billion transactions daily through its security cloud, giving it unmatched visibility into network traffic that competitors cannot replicate.

Zero Trust Everywhere customers, who deploy security across users, cloud workloads, and branch offices, crossed 450 in the quarter, well ahead of the 390-year target and representing a two-to-three-times revenue uplift per customer. 

Data security revenue surpassed $450 million in annual recurring revenue. In comparison, the AI security business topped $400 million as enterprises scramble to secure their AI deployments and to leverage AI-powered threat detection.

Management sees a massive runway remaining with only 45% penetration of Fortune 500 companies and estimates at least 20,000 addressable enterprise customers globally compared to the current 4,400. The Red Canary acquisition brings crucial agentic technology for security operations that integrates seamlessly with Zscaler's existing platform. Zscaler ended Q1 with a free cash flow margin of 52% as it maintains steady growth and captures market share. 

Out of the 44 analysts covering Zscaler stock, 33 recommend “Strong Buy,” two recommend “Moderate Buy,” and nine recommend “Hold.” The average ZS stock price target is $325.71, above the current price of about $222.

Best Cybersecurity Stocks #3: Palo Alto Networks (PANW)

Palo Alto Networks has transformed into a comprehensive cybersecurity platform and aims to reach $20 billion in next-generation security annual recurring revenue by fiscal 2030. 

It recently announced two significant acquisitions: CyberArk for identity security and Chronosphere for observability. PANW emphasized that these acquisitions represent the largest infrastructure inflections alongside its existing SIEM business, which already hit $1 billion in total contract value faster than any competitor.

The CyberArk deal brings the leading identity platform into Palo Alto's portfolio, with management expecting operating margins to converge from 20% to over 30% within two years, driven by scale advantages. 

PANW sees identity as a critical missing infrastructure as AI agents proliferate and require secure credential management. The Chronosphere acquisition targets the $50 billion to $100 billion observability market, where one of the largest AI model providers already relies on the platform at 40% the cost of alternatives. Core businesses remain strong, with SASE revenue hitting $1.3 billion while growing 34%, now serving over 6,000 customers, including a third of Fortune 500 companies.

Out of the 49 analysts covering PANW stock, 34 recommend “Strong Buy,” three recommend “Moderate Buy,” 11 recommend “Hold,” and one recommends “Strong Sell.” The average PANW stock price target is $225.38, above the current price of about $186.