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Buy These 3 Cybersecurity Stocks to Protect Your Portfolio in 2026
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Key Takeaways
CSCO sees strong AI-driven orders, with hyperscaler demand and Hypershield boosting security and networking.
FTNT gains from enterprise demand, rising subscriptions, and a dominant firewall market share.
FFIV benefits from software growth, multi-cloud security demand, and expanding BIG-IP and NGINX deals.
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.
The chart below shows the price performance of our three picks year to date.
Image Source: Zacks Investment Research
Fortinet Inc.
Fortinet is benefiting from strength in demand from large enterprise customers and growth in the company's security subscriptions amid a slowdown in networking products, along with challenges in sales execution and marketing efficiency.
The network security market is experiencing structural expansion as enterprises prioritize zero-trust architectures and hybrid cloud protection, creating a substantial growth runway for FTNT in 2026. Industry forecasts indicate that the global network security market will exceed $50 billion by the year-end, driven by increasing cyber threats and regulatory compliance requirements.
FTNT’s dominant 50%+ firewall market share and extensive innovation portfolio of 1,400 global patents, including 500 AI-related innovations are expected to remain the key growth drivers. Higher IT spending on cybersecurity is further expected to aid FTNT in the near-term. For first-quarter 2026, FTNT guided revenues of $1.7-$1.76 billion. The full-year 2026 guidance calls for EPS of $2.94-$3 on revenues of $7.5-$7.7 billion.
Fortinet has an expected revenue and earnings growth rate of 11.7% and 8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.3% over the last 60 days.
F5 Inc.
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 and NGINX subscription software deals is an upside.
FFIV is incorporating more automation and orchestration in its platforms to enable quicker application provisioning. Our model estimates suggest that FFIV’s revenues will increase 5% in fiscal 2026. FFIV’s cost-reduction initiatives are likely to boost profitability. A strong balance sheet and an aggressive shareholder return policy are the other upsides.
F5 has an expected revenue and earnings growth rate of 5.6% and 0.5%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.8% over the last 60 days.
Cisco Systems Inc.
Cisco Systems’ business model is benefiting from strong product orders from hyperscalers, enterprises, the public sector, service providers, and cloud customers. Splunk's acquisition enhances CSCO’s recurring revenue base. The buyout significantly expands CSCO’s portfolio of software-based solutions.
The launch of AI-powered Hypershield, which combines security and networking, strengthens CSCO’s security portfolio. Networking sales benefit from strong demand for AI infrastructure and campus networking solutions.
Product orders from service providers and cloud customers were strong driven by high double-digit order growth in hyperscalers. CSCO expects to take AI orders in excess of $5 billion and to recognize more than $3 billion in AI infrastructure revenue from hyperscalers in fiscal 2026.
Cisco Systems has an expected revenue and earnings growth rate of 8% and 8.9%, respectively, for the current year (ending July 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 1% over the last 60 days.
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Buy These 3 Cybersecurity Stocks to Protect Your Portfolio in 2026
Key Takeaways
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 three cybersecurity stocks for 2026 to strengthen your portfolio. These are: Fortinet Inc. (FTNT - Free Report) , F5 Inc. (FFIV - Free Report) and Cisco Systems Inc. (CSCO - Free Report) . Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our three picks year to date.
Image Source: Zacks Investment Research
Fortinet Inc.
Fortinet is benefiting from strength in demand from large enterprise customers and growth in the company's security subscriptions amid a slowdown in networking products, along with challenges in sales execution and marketing efficiency.
The network security market is experiencing structural expansion as enterprises prioritize zero-trust architectures and hybrid cloud protection, creating a substantial growth runway for FTNT in 2026. Industry forecasts indicate that the global network security market will exceed $50 billion by the year-end, driven by increasing cyber threats and regulatory compliance requirements.
FTNT’s dominant 50%+ firewall market share and extensive innovation portfolio of 1,400 global patents, including 500 AI-related innovations are expected to remain the key growth drivers. Higher IT spending on cybersecurity is further expected to aid FTNT in the near-term. For first-quarter 2026, FTNT guided revenues of $1.7-$1.76 billion. The full-year 2026 guidance calls for EPS of $2.94-$3 on revenues of $7.5-$7.7 billion.
Fortinet has an expected revenue and earnings growth rate of 11.7% and 8%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.3% over the last 60 days.
F5 Inc.
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 and NGINX subscription software deals is an upside.
FFIV is incorporating more automation and orchestration in its platforms to enable quicker application provisioning. Our model estimates suggest that FFIV’s revenues will increase 5% in fiscal 2026. FFIV’s cost-reduction initiatives are likely to boost profitability. A strong balance sheet and an aggressive shareholder return policy are the other upsides.
F5 has an expected revenue and earnings growth rate of 5.6% and 0.5%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 0.8% over the last 60 days.
Cisco Systems Inc.
Cisco Systems’ business model is benefiting from strong product orders from hyperscalers, enterprises, the public sector, service providers, and cloud customers. Splunk's acquisition enhances CSCO’s recurring revenue base. The buyout significantly expands CSCO’s portfolio of software-based solutions.
The launch of AI-powered Hypershield, which combines security and networking, strengthens CSCO’s security portfolio. Networking sales benefit from strong demand for AI infrastructure and campus networking solutions.
Product orders from service providers and cloud customers were strong driven by high double-digit order growth in hyperscalers. CSCO expects to take AI orders in excess of $5 billion and to recognize more than $3 billion in AI infrastructure revenue from hyperscalers in fiscal 2026.
Cisco Systems has an expected revenue and earnings growth rate of 8% and 8.9%, respectively, for the current year (ending July 2026). The Zacks Consensus Estimate for the current year’s earnings has improved 1% over the last 60 days.