The cybersecurity space focuses on companies that offer integrated protection against evolving security threats while simplifying IT security infrastructure. Companies in this space provide solutions to safeguard applications, networks, and cloud computing environments. 

The widespread adoption of artificial intelligence (AI), IoT devices, and increased digitization across both public and private sectors has heightened vulnerabilities and expanded attack surfaces, necessitating the development of advanced security solutions. 

Cybersecurity companies’ offerings include application-specific integrated circuits, hardware architecture, operating systems, and associated security and networking functions, ensuring robust defenses against cyberattacks.

We recommend five cybersecurity stocks for the rest of 2025 to strengthen your portfolio. These are CrowdStrike Holdings Inc. (CRWD Quick QuoteCRWD - Free Report) , F5 Inc. (FFIV Quick QuoteFFIV - Free Report) , Qualys Inc. (QLYS Quick QuoteQLYS - Free Report) , Palantir Technologies Inc. (PLTR Quick QuotePLTR - Free Report) and SailPoint Inc. (SAIL Quick QuoteSAIL - Free Report) . Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The chart below shows the price performance of our three picks in the past three months.

Image Source: Zacks Investment Research

CrowdStrike Holdings Inc.

Zacks Rank #1 CrowdStrike Holdings has been benefiting from the rising demand for cybersecurity solutions. In the last reported quarter, CRWD added a record $221 million in net new annual recurring revenues (ARR). This pushed up CrowdStrike’s total ARR to $4.66 billion, representing an increase of 20% from last year, beating the consensus mark of $4.64 billion. 

A big part of this growth came from Falcon Flex, CrowdStrike’s subscription model. The company now has over 1,000 Falcon Flex customers, and more than 100 have already signed follow-on “re-Flex” deals before their contracts ended. These re-Flex deals are important because they show that customers are expanding faster than expected, often boosting ARR by nearly 50%.

CrowdStrike is widening its focus to secure how enterprises use AI. Agentic AI is creating new risks as non-human identities, such as AI agents, have become integral to daily business operations that can access systems and data, thereby increasing the need for governance and protection. 

CRWD sees this as a major growth opportunity and is focusing on its strategy to secure AI agents, large language models, and generative AI systems. In August 2025, the company announced new steps in this direction. 

CrowdStrike expanded Falcon Shield’s abilities to cover AI agents built with OpenAI’s ChatGPT Enterprise and Codex. This will help organizations see what these agents are doing, link them to their human creators, and stop risky behavior if an account is compromised.

CrowdStrike also launched Signal, a new AI detection engine. Signal learns what is normal in each customer’s environment and then spots unusual patterns that could indicate an early-stage attack. The company further expanded its AI Security Services with two new offerings, which include AI Systems Security Assessment and AI for SecOps Readiness. 

CrowdStrike Holdings has an expected revenue and earnings growth rate of 20.9% and -6.6%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for current-year earnings has improved 4.9% in the last 30 days.

F5 Inc.

Zacks Rank #1 F5 is gaining traction from strong software growth, backed by a solid uptick in public cloud and security offerings. FFIV is benefiting from the growing demand for application security across multi-cloud environments. Acceleration in BIG-IP, NGINX, ELA and Virtual Edition subscription software deals is an upside. 

FFIV has resorted to acquisitions to boost its network security capabilities and tap the solid growth prospects in the market. Over the past five years, it has acquired six businesses. The buyouts have helped it enhance its security capabilities, enabling it to pick up market share.

FFIV is uniquely positioned in the application networking market due to its strong presence in Layer 4-7 content switching, critical for managing the increasing capacity and security demands of modern applications. Unlike its competitors, F5 has established itself as a leader in the data center space, offering tailored solutions that seamlessly integrate with data applications.

F5 has an expected revenue and earnings growth rate of 3.9% and 4%, respectively, for next year (ending September 2026). The Zacks Consensus Estimate for next-year’s earnings has improved 3.1% over the last 60 days. 

Qualys Inc.

Zacks Rank #1 Qualys is benefiting from the increasing demand for cloud-based cybersecurity solutions amid growing cyber threats and digital transformation initiatives. With a diverse customer base that includes enterprises, SMBs and government entities, QLYS maintains a balanced customer mix, which keeps it resilient against fluctuations in IT spending. 

Two major AI-powered solutions of QLYS include TotalAppSec, a unified application risk management platform for web applications and APIs, and TotalAI, which focuses on AI and LLM workloads. 

Qualys' strategic acquisitions are pivotal in driving its growth trajectory. Since its inception, the company has acquired seven companies, of which Blue Hexagon was acquired in November 2022. Blue Hexagon's AI/ML capabilities enhanced QLYS’ threat detection and response solutions, bolstering its cybersecurity offerings.

Qualys has expected revenue and earnings growth rates of 8.1% and 4.4%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.3% over the last 30 days. 

Palantir Technologies Inc.

Zacks Rank #2 AI-powered data mining and analytics company Palantir Technologies has reported blockbuster second-quarter earnings results. The top line surpassed $1 billion for the first time in its history, exceeding all estimates.

Palantir Technologies’ commercial business has gathered pace in addition to its traditional government contracts. This is primarily due to PLTR’s aggressive venture in the AI space. In 2023, PLTR launched its Artificial Intelligence Platform (“AIP”), an AI-powered system that helps customers quickly concentrate and analyze data and discover how it can help advance their business goals. 

AIP provides unified access to open-source, self-hosted, and commercial large language models (LLMs) that can transform structured and unstructured data into LLM-understandable objects and turn organizations' actions and processes into tools for humans and LLM-driven agents. This shift in revenue structure has enabled the company to no longer depend on government defense agencies. 

Palantir increased its full-year guidance, now expecting revenues between $4.142 billion and $4.150 billion, up from the previous forecast of $3.89 billion to $3.90 billion.  CEO, Alex Karp, expressed enthusiasm about the company's prospects, stating in the quarterly letter to shareholders that “this is still only the beginning of something much larger and, we believe, even more significant.”

Palantir Technologies has an expected revenue and earnings growth rate of 45.6% and 58.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 12.1% over the last 60 days. 

SailPoint Inc.

Zacks Rank #2 SailPoint is a unified identity security for enterprises. SAIL in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. SAIL offers a cloud-based identity security solution, known as Identity Security Cloud and a customer-hosted identity security solution, known as IdentityIQ.

SailPoint has an expected revenue and earnings growth rate of 22.2% and more than 100%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for current-year earnings has improved 10.5% over the last 30 days.