Markets
Platforms
Accounts
Investors
Partner Programs
Institutions
Contests
loyalty
Tools
Shares
Written by Itsariya Doungnet
Fact checked by Samer Hasn
Updated 28 August 2025
Table of Contents
The number of cyber threats continues to grow annually so businesses require enhanced security measures.
The popularity of Cyber Security Stocks among investors continues to rise because of their growing demand. The digital protection market will experience significant growth in 2025 because of rising demand.
This article examines five top Cyber Security Stocks which combine trusted brands with promising growth prospects and innovative technological solutions.
Key Takeaways
The growing digital threats require cybersecurity as an essential element which will sustain long-term market demand.
The SaaS model along with other recurring revenue streams create stable growth opportunities for investors.
The adoption of AI and cloud technology drives security innovation which leads to growing security requirements in the cyber security stocks sector.
A portfolio that includes leaders and disruptors and ETFs helps investors minimize risks while achieving better returns through diversification.
Try a No-Risk Demo Account
Register for a free demo and refine your trading strategies.
The digital world demands Cybersecurity as its most essential element in present times. Cyber Security Stocks provide both strong growth potential and reliable performance which makes them an excellent investment choice for 2025.
The number of cyber threats continues to increase at a rapid pace while targeting both small businesses and national infrastructure systems. Governments worldwide are boosting their cybersecurity funding because they recognize its critical importance. The rising sense of urgency in the market will sustain long-term demand for cybersecurity solutions.
The Software-as-a-Service (SaaS) model enables cybersecurity companies to generate consistent recurring revenue (ARR). The businesses maintain high customer retention rates which creates stability and predictability throughout economic downturns.
The cybersecurity industry stands as a unique sector which provides both quick expansion opportunities and defensive protection mechanisms. The sector maintains its performance during market volatility which makes it suitable for investors who want to be either aggressive or conservative.
Artificial intelligence technology has led to the development of advanced cybersecurity tools which detect threats at unprecedented speeds. The growing adoption of cloud computing by businesses has created a surge in demand for cloud-based security solutions which drives both innovation and revenue growth throughout the sector.
Criteria: Pure-play vs hybrid exposure, ARR growth, AI differentiation, profitability, global reach, analyst coverage.
Balanced selections: platform leaders, high-growth innovators, and ETFs.
Consideration of latest M&A, AI trends, and 2025 news sensitivity.
The following list presents the top 19 cyber security stocks in the world that investors should consider in 2025.
Sophos Group PLC (SOPH)
Darktrace PLC (DARK)
Microsoft Corporation (MSFT)
CrowdStrike Holdings, Inc. (CRWD)
CyberArk Software Ltd. (CYBR)
Broadcom Inc. (AVGO)
Cloudflare, Inc. (NET)
Palo Alto Networks, Inc. (PANW)
Qualys, Inc. (QLYS)
Okta, Inc. (OKTA)
Rubrik, Inc. (RBRK)
Elastic N.V. (ESTC)
Fortinet, Inc. (FTNT)
Trend Micro Incorporated (4704.T)
Tenable Holdings, Inc. (TENB)
R.S. Software (India) Ltd.
Expleo Solutions Ltd.
Sasken Technologies Ltd.
Quick Heal Technologies Ltd.
Here are the 19 best cyber security stocks to watch in 2025, representing global leaders in digital defense and innovation.
No.
Company Name
Price (USD)
Country
Why it's a good pick
1
783.96
UK
Strong global presence with focus on cloud security
2
779.10
Leader in AI-driven cybersecurity solutions
3
506.74
US
Diversified tech giant with strong security segment
4
422.61
Leading endpoint protection with cloud-native platform
5
446.28
US/Israel*
Specialist in privileged access security
6
300.25
Strong hardware and software security offerings
7
205.24
Fast-growing cloud security and web performance
8
187.61
Market leader in network security solutions
9
134.66
Comprehensive cloud security and compliance tools
10
93.03
Leading identity and access management provider
11
87.53
Innovator in cloud data management and security
12
83.30
Netherlands / U.S.*
Strong in search, logging, and security analytics
13
78.13
Best-in-class hardware for data center security
14
53.58
Japan
Leading Asia-based cybersecurity software company
15
30.58
Pioneer in vulnerability management
16
74.30
India
Expertise in secure payment ecosystems and fintech cybersecurity
17
11.74
Strong in BFSI software testing and cybersecurity compliance
18
15.96
Niche focus on IoT and embedded device security
19
3.39
Leading antivirus and endpoint security provider in India
Current Price (28 August 2025): $783.96
The UK-based private cybersecurity company Sophos delivers cloud-native AI-powered threat protection solutions.
Sophos Group delivers endpoint and network security solutions and managed detection and response (MDR) services to more than 500,000 organizations worldwide.
The company generates most of its revenue through SaaS subscriptions which provide a stable and scalable business model.
Key Details:
Market Cap: $4.02 million
P/E ratio: 444.32
ARR: ~$1.3 billion
YoY Growth: ~18%
Investor Appeal:
The company stands out for its strong recurring revenue, global footprint, and innovation in AI-driven cybersecurity. It is one of the top private candidates for potential IPO or acquisition interest, offering long-term growth exposure in the cybersecurity sector.
Current Price (28 August 2025): $779.10
The UK-based cybersecurity company Darktrace uses artificial intelligence to provide autonomous threat detection and response capabilities.
The platform of Darktrace defends cloud infrastructure and email systems and endpoints and networks of organizations across the world.
Darktrace uses real-time learning capabilities to deliver proactive predictive security against developing cyber threats which enables organizations to stop attacks before they occur.
Market Cap: $5 billion
P/E ratio: 96.64
ARR: $782.2 million
YoY Growth: 22.7%
The company stands out because of its AI-first approach and strong recurring revenue model. The company's fast-growing ARR and its focus on the U.S. market make it a good cyber security stock pick for long-term cybersecurity exposure. Following its acquisition by Thoma Bravo, it may also be considered for future IPO opportunities or strategic expansions.
Current Price (28 August 2025): $506.74
Microsoft operates as a worldwide technology leader which delivers multiple products and services through cloud computing and software and hardware and cybersecurity solutions.
The Azure cloud platform from Microsoft operates as a leading enterprise cloud service while Microsoft Defender and other security products deliver comprehensive protection to organizations across the globe.
Market Cap: $3.871 trillion
P/E ratio: 38.16
ARR: over $10 billion
YoY Growth: 33%
MSFT attracts investors who want to invest in a leading technology company with multiple revenue sources and stable growth patterns.
The company's emphasis on cloud computing and software development and innovation creates long-term value for investors. The company suits investors who want both stable returns and growth opportunities and access to modern technological developments in a stable blue-chip organization.
Current Price (28 August 2025): $422.61
CrowdStrike is a top cybersecurity company that protects computers and data using cloud technology. Its Falcon platform helps businesses find and stop cyber threats quickly.
CrowdStrike works with many companies around the world and grows fast because more businesses need strong security. It keeps customers coming back with its easy-to-use, subscription-based service and is known for strong sales and new technology.
Market Cap: ~$105.93 billion
P/E Ratio: Not applicable
ARR: $4.24 billion
YoY Growth: ~23%
The company attracts investors who want to invest in cloud-based cybersecurity with high growth potential. The company's innovative platform and expanding customer base make it ideal for those seeking growth potential in the fast-growing cyber defense sector.
Current Price (28 August 2025): $446.28
The cybersecurity company CyberArk specializes in protecting vital access rights that exist within corporate environments. The company provides businesses with tools to manage access rights for sensitive systems and data which prevents cyberattacks from occurring.
CyberArk provides its services to numerous big corporations while its customer base continues to expand because organizations require better access security measures.
Market Cap: $20.29 billion
ARR: ~$1.17 billion
YoY Growth: ~33%
The company's growing ARR combined with its leading position in privileged access management and high forward valuation makes it suitable for those who want high-potential growth in identity and access security particularly through subscription-based models and expanding enterprise demand.
Current Price (28 August 2025): $300.25
The global technology company Broadcom specializes in designing and manufacturing semiconductors together with infrastructure software. The company produces products which operate within data centers and networking equipment and cybersecurity systems.
The company provides its services to numerous major businesses and cloud providers who use its products to enhance their network speed and security. The company maintains a balanced portfolio of hardware and software products which generates consistent revenue and provides expansion possibilities.
Market Cap: $1.43 trillion
P/E Ratio: 114.17
ARR: $26 billion
YoY Growth: ~44%
The company stands out because it combines the stability of hardware (chips) with the high-growth potential of software and AI.
The company's fast revenue growth in AI and infrastructure software makes it an attractive investment choice for those who want both size and innovation.
The company's leadership position in rapidly expanding markets and its solid financial performance make it a strong candidate for long-term investment portfolios despite its high valuation.
Current Price (28 August 2025): $205.24
Cloudflare is the worldwide technology organization which defends and accelerates websites and internet services. The company delivers content delivery services together with DDoS protection and firewalls and zero trust security capabilities. The services enable businesses to maintain online presence while delivering fast performance and protecting against cyber threats.
Cloudflare is a massive worldwide network which links numerous internet properties while handling massive daily internet traffic volumes. The company expands its operations because businesses increasingly shift to online operations while requiring powerful cloud-based security and performance solutions.
Market Cap: $73.33 billion
P/E Ratio: ~173
ARR: ~$1.46 billion
YoY Growth: ~30%
Cloudflare attracts investors who want to invest in cloud-based infrastructure and cybersecurity with high growth potential. The company maintains a steady ARR growth rate of approximately 30% year-over-year while expanding its enterprise customer base and leading the market in edge computing and AI-powered security solutions which makes it an attractive long-term growth prospect for the digital economy.
Current Price (28 August 2025): $187.61
Palo Alto Networks is a worldwide cybersecurity leader through its complete range of next-generation firewalls and cloud-native security solutions and AI-powered threat intelligence capabilities.
The company provides Prisma Cloud and Cortex and Strata platforms which enable enterprises to protect their networks and applications and data throughout hybrid and multi-cloud environments.
The company's strong recurring revenue combined with its AI-driven security innovation and extensive enterprise customer base positions it as a fundamental element in contemporary cybersecurity infrastructure.
Market Cap: $112.28 billion
P/E Ratio: 96.20
ARR: $10.4 billion
YoY Growth: ~20%
Palo Alto Networks leads the market through its AI-based cloud-first security strategy as cyber threats become more sophisticated.
The company demonstrates both customer loyalty and market dominance through its $10.4 billion annual recurring revenue and 20% yearly growth rate.
The company provides investors with access to one of the fastest-growing enterprise technology sectors through its wide range of products and its expanding global presence.
Current Price (28 August 2025): $134.66
Qualys delivers cloud-based security and compliance solutions which enable organizations to detect vulnerabilities while managing IT assets and maintaining regulatory compliance.
The platform provides continuous monitoring and automated risk assessment which helps enterprises decrease their security gaps.
Qualys operates through a subscription model while maintaining a solid customer base to establish itself as a dependable cybersecurity market leader for vulnerability management and compliance.
Market Cap: ~$4.64 billion
P/E Ratio: 26.30
ARR: $164.1 million
YoY Growth: ~10%
Qualys operates as a dependable cloud-based cybersecurity provider which delivers vulnerability management and compliance solutions.
The company maintains 10% annual revenue growth while operating through a subscription-based model which provides investors with predictable recurring income.
The company provides enterprises with automated security and compliance solutions that help them reduce their risk exposure effectively thus making it an excellent option for investors who want steady growth in cybersecurity.
Current Price (28 August 2025): $93.03
Okta is a major identity and access management solution provider which enables organizations to establish secure connections between users and their applications and data.
The cloud-based platform provides single sign-on capabilities together with multi-factor authentication and lifecycle management which delivers robust security alongside simplified user access.
Okta operates through a subscription model while expanding its worldwide customer base to meet rising needs for secure digital identities in hybrid and remote work environments which results in steady revenue growth and market growth.
Market Cap: ~$16.38 billion
P/E Ratio: 127.52
ARR: $2.556 billion
YoY Growth: ~15%
Okta is a leading identity and access management solution which solves the essential requirement for secure digital connections during the current hybrid work era.
The company's commitment to delivering smooth secure user experiences while growing its enterprise customer base positions it as an attractive investment opportunity in the rapidly expanding cybersecurity and identity management market.
Current Price (28 August 2025): $87.53
Rubrik delivers cloud data management and backup solutions which simplify enterprise data protection and recovery operations.
The platform enables automated backup and disaster recovery operations for hybrid and multi-cloud environments. The subscription-based model combined with increasing enterprise adoption positions Rubrik for future growth in data management solutions.
Market Cap: ~$17.36 billion
ARR: $1.18 billion
YoY Growth: ~38%
The cloud data management market shows rapid growth through Rubrik's strong subscription ARR of $1.18 billion and its impressive ~38% year-over-year growth.
The platform provides straightforward data protection and recovery solutions for hybrid and multi-cloud environments which fulfills essential enterprise requirements for security and compliance.
The fast-growing adoption of Rubrik by large organizations combined with its scalable SaaS model makes it an attractive investment opportunity for investors in the essential cybersecurity and data management sector.
Current Price (28 August 2025): $83.30
Elastic delivers robust search capabilities and data analytics tools which help businesses create better search interfaces and track system performance and security through observability.
The platform serves multiple use cases which include enterprise search and log analysis and threat detection. Elastic operates through a subscription model while maintaining a widespread global customer base to become a leading force in data-driven decision-making and operational intelligence.
Market Cap: ~$8.06 billion
ARR: $1.2 billion
Elastic is a leading company for search and data analytics solutions which enables essential enterprise applications including search functionality and observability and security capabilities.
The company's adaptable platform together with its expanding worldwide customer network creates strong opportunities to benefit from rising market demand for data intelligence and operational insights.
Current Price (28 August 2025): $78.13
Fortinet is a major cybersecurity organization which delivers advanced firewalls together with endpoint protection and secure network access solutions.
The integrated security platform from Fortinet protects enterprises against evolving cyber threats that exist in cloud and on-premises and hybrid environments.
Fortinet is a strong commitment to innovation and scalability which enables it to serve customers worldwide through subscription and hardware sales while generating steady revenue growth in a market with high demand.
Market Cap: $57.64 billion
P/E Ratio: 40
ARR: $422 million
YoY Growth: 32%
Fortinet generates strong subscription-based ARR through its Unified SASE and Security Operations segments which demonstrates annual growth between 28% and 32%.
The company's scalable platform combined with its focus on innovation and worldwide customer base enables it to benefit from increasing enterprise demand for complete integrated cybersecurity solutions across the globe.
Current Price (28 August 2025): $53.58
Trend Micro is a worldwide cybersecurity organization which specializes in cloud security and endpoint protection and threat intelligence services across Asia.
The company serves both enterprise and small business customers while its commitment to innovation and local market knowledge enables it to maintain consistent growth in a competitive market.
Market Cap: ~8.8 billion
P/E Ratio: 28
ARR: 33.79
YoY Growth: 1%
The company maintains a stable business position in its competitive market through its $1.6 billion annual recurring revenue and its modest year-over-year growth rate.
The company's extensive threat intelligence capabilities and wide customer base that includes both enterprises and small and medium businesses make it an attractive investment opportunity for those who want cybersecurity exposure with regional strength and stable performance.
Current Price (28 August 2025): $30.58
Tenable provides vulnerability management and cyber exposure solutions that help organizations identify, assess, and reduce cybersecurity risks.
Its platform delivers continuous visibility across IT environments, enabling proactive threat detection and risk mitigation. With a subscription-based model and growing customer base, Tenable is positioned to capitalize on increasing demand for comprehensive risk management tools.
Market Cap: ~$923.2 million
ARR: $923.2 million
YoY Growth: 11.8%
TENB is a major force in vulnerability management and cyber exposure because it enables organizations to actively detect and minimize their security risks.
Tenable generates almost $1 billion in annual revenue through recurring sales while maintaining double-digit growth because organizations continue to seek cybersecurity risk management solutions.
Current Price (28 August 2025): $74.30
R.S. Software specializes in payment and transaction processing technology, offering secure payment solutions, fraud prevention systems, and software services for financial institutions. The company’s focus on secure payment ecosystems aligns with rising global cybersecurity needs in the fintech sector.
Market Cap: $228.8 million
P/E ratio: 15.6
Operating Margin: 16.8%
Net Profit Margin: 17.2%
Dividend Yield: 0.3%
Investor Appeal: With deep expertise in secure financial transaction software and steady profitability, R.S. Software is well positioned to benefit from increasing digital payment adoption and regulatory emphasis on cybersecurity compliance.
Current Price (28 August 2025): $11.74
Expleo Solutions provides end-to-end quality assurance and cybersecurity testing services to enterprises, with a strong presence in BFSI (Banking, Financial Services, and Insurance) sectors. The company focuses on securing software systems and meeting compliance standards for global clients.
Market Cap: $2.09 billion
P/E ratio: 7.1
Operating Margin: 16.2%
Net Profit Margin: 22.4%
Dividend Yield: 4.5%
Investor Appeal: A low P/E and high dividend yield make Expleo attractive for income-focused investors, while its specialization in mission-critical software testing and cybersecurity ensures sustained demand in regulated industries.
Current Price (28 August 2025): $15.96
Sasken Technologies offers product engineering and digital transformation services, including embedded software security, IoT protection, and device security solutions. The company serves automotive, telecom, and industrial clients with cybersecurity-focused engineering capabilities.
Market Cap: $2.70 billion
P/E ratio: 35.7
Operating Margin: 6.5%
Net Profit Margin: 8.3%
Dividend Yield: 1.7%
Investor Appeal: Though margins are moderate, Sasken’s niche focus on embedded security for connected devices positions it well to capitalize on the growth of IoT and Industry 4.0 cybersecurity needs.
Current Price (28 August 2025): $3.39
Quick Heal Technologies is a leading Indian provider of antivirus and endpoint security solutions, offering products for individuals, SMEs, and enterprises. It has expanded into enterprise-grade threat management and cloud security.
Market Cap: $144.2 million
P/E ratio: ~35
ARR: Significant recurring revenue from subscriptions
YoY Growth: ~10–12%
Investor Appeal: With a strong brand in the Indian market and expansion into enterprise cybersecurity, Quick Heal offers a combination of stable subscription revenues and potential upside from new product lines in cloud and managed security services.
The identification of suitable cyber security stocks requires investors to understand the various categories of cyber security stocks which match their investment goals and risk tolerance. The main categories of cyber security stocks consist of the following:
The companies within this category concentrate on protecting network infrastructure through firewalls and intrusion detection and threat prevention systems. Enterprise communication remains protected through their systems which monitor and control data traffic to stop unauthorized access and attacks.
The segment delivers protection solutions for end-user devices including laptops, smartphones and servers together with cloud-based infrastructure. The companies that defend distributed systems from malware and ransomware and other cyber threats serve essential tools for remote work and cloud adoption.
The providers of IAM solutions help organizations manage digital identities while enforcing access controls for systems and applications. The combination of multi-factor authentication with single sign-on tools serves as essential security measures to stop unauthorized access while maintaining compliance with security policies.
The companies in this group specialize in developing sophisticated tools which perform real-time monitoring and threat detection alongside vulnerability assessment. Security Information and Event Management (SIEM) platforms gather security data for rapid identification and response to potential breaches.
Specialized cybersecurity companies focus on delivering unique technologies and industry-specific solutions and regional market solutions. These companies provide customized security solutions which global firms lack and this allows them to grow through innovative approaches and focused market strategies.
Exchange-Traded Funds (ETFs) that focus on cybersecurity enable investors to access a wide range of cyber security stocks through a single diversified investment. The funds distribute investment risk across multiple companies while tracking the broader cybersecurity industry growth patterns.
The importance of cybersecurity has reached a critical point because digital threats continue to expand in both scale and sophistication.
The industry will experience significant growth during the next decade because of AI advancements and cloud computing adoption and worldwide defense budget increases.
The number of cyberattacks continues to rise while state-sponsored actors and AI-generated attacks become more sophisticated. Security has become the worldwide top priority because businesses at every scale together with critical infrastructure face continuous threats.
AI technology is quickly becoming a standard component of cybersecurity solutions which enables faster and more precise threat detection and response. The use of AI by attackers requires defenders to maintain a one-step advantage which drives organizations to implement intelligent automated security platforms.
The transition of companies to cloud computing requires security solutions that defend both cloud-based and on-premise infrastructure. The market expansion of cloud-native security platforms and hybrid protection solutions occurs because of this industry transition.
Enterprise IT budgets together with public sector cybersecurity spending continue to increase. Advanced cybersecurity infrastructure receives long-term investment because organizations need to meet regulatory requirements and address national security needs while implementing digital transformation projects.
Investors need to understand three main challenges including high valuations and market volatility and intense competition before making investments in this sector.
.
The market value of many cyber security stocks and ARR-driven SaaS providers remains high because of their revenue growth. The growth justification does not eliminate the possibility of investors overpaying their investments which could lead to market value decreases when the market experiences a downturn.
Companies that depend on a small number of large enterprise or government clients face exposure to both contract termination and budget reduction risks. The assessment of risk requires close monitoring of customer retention together with diversification efforts.
The cybersecurity industry operates at a rapid pace. The cyber security stocks market transforms at a fast pace because new competitors emerge while technology advances and security threats evolve which makes previous solutions less competitive. Companies need to maintain continuous innovation to avoid becoming obsolete in their market.
The cyber security stock prices strongly react to quarterly financial reports and company guidance as well as general economic news. Strong long-term performers experience short-term market fluctuations because of shifting expectations and industry sentiment changes.
Investors should combine established stable companies like Microsoft (MSFT) and Broadcom (AVGO) with rapidly expanding businesses such as CrowdStrike (CRWD) and SentinelOne (S).
Investors should spread their funds across different cybersecurity segments which include cloud security and endpoint protection and identity management and analytics.
Investors should implement dollar-cost averaging by purchasing small portions of stocks at different times to minimize market volatility risks particularly for volatile growth stocks.
Investors should monitor three key trends which include new laws and government contracts and technological advancements like AI because these factors can positively or negatively impact specific companies.
Investing in Cyber Security Stocks makes sense because cyber threats continue to expand while providing both growth potential and stable returns. Investing in various cybersecurity sectors helps you minimize your investment risks. The use of ETFs enables safer and easier investment while allowing you to participate in an essential technology trend.
Ready for the Next Trading Step?
Open an account and get started.
Get the latest insights & exclusive offers delivered straight to your inbox.
Start Your Journey
Put your knowledge into action by opening an XS trading account today
The worldwide rise of cyber threats will maintain demand for security solution providers thus supporting long-term steady growth.
The growing need for cybersecurity helps stabilize the value of these stocks despite their volatile nature which is typical for many tech stocks.
Through an ETF you can invest in multiple stocks at once which reduces risk while making investment easier.
Big companies provide stability and diverse tech services while newer firms concentrate on innovative solutions and rapid expansion.
These companies face challenges and opportunities from data privacy and cyber law regulations.
Diversifying helps reduce risk because it spreads your investment across different companies and technologies, rather than relying on one to succeed.
Itsariya Doungnet
SEO Content Writer
Itsariya Doungnet is an SEO content writer with expertise in both Thai and English, specializing in financial education. Itsariya blends clear communication with SEO techniques to make complex topics on investing and finance easy to understand and accessible to readers.
Samer Hasn
Market Analyst
Samer has a Bachelor Degree in economics with the specialization of banking and insurance. He is a senior market analyst at XS.com and focuses his research on currency, bond and cryptocurrency markets. He also prepares detailed written educational lessons related to various asset classes and trading strategies.
This written/visual material is comprised of personal opinions and ideas and may not reflect those of the Company. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. XS, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same. Our platform may not offer all the products or services mentioned.
Register to our Newsletter to always be updated of our latest news!