The field of cybersecurity centers on businesses that deliver comprehensive defense against constantly changing security risks, while making IT security systems more straightforward. Firms in this area offer tools to protect applications, networks, and cloud computing setups.
The growing use of artificial intelligence (AI), IoT gadgets, and greater digital transformation in both government and business areas has created more risks and increased the areas that can be targeted, requiring the creation of sophisticated security measures. Cybersecurity companies offer strong protection from online attacks.
We suggest four cybersecurity stocks for 2026 to enhance your investment portfolio. These include:F5 Inc. FFIV, Cisco Systems Inc. CSCO, Datadog Inc. DDOG and Palantir Technologies Inc.PLTR. Each of our selections currently has a Zacks Rank of #2 (Buy). You can viewthe full list of today's Zacks #1 Rank (Strong Buy) stocks here.
The graph below illustrates the price movement of our four selections so far this year.
Image Credit: Zacks Investment Research
F5 Inc.
F5 is seeing increased interest due to robust software development, supported by a notable rise in public cloud and security solutions. FFIV is reaping the benefits of rising need for application security within multi-cloud setups. Growth in BIG-IP and NGINX subscription software contracts is a positive factor.
FFIV is integrating more automation and orchestration into its platforms to facilitate faster application setup. F5 holds a distinct advantage in the application networking sector because of its solid presence in Layer 4-7 content switching, which is essential for handling the growing capacity and security needs of contemporary applications.
F5 is projected to see a revenue growth rate of 7.7% and an earnings growth rate of 4.1% for the current year, which concludes in September 2026. The Zacks Consensus Estimate for this year's earnings has increased by 3.4% over the past 30 days.
Cisco Systems Inc.
Cisco Systems has experienced increased demand for its products from major cloud providers, businesses, service providers, government agencies, and other large-scale customers. During the most recent quarter, CSCO achieved all-time high revenue, largely driven by its networking offerings, which are supported by Silicon One, AI-focused security technologies, and operating systems.
CSCO anticipates total AI infrastructure orders to hit $9 billion in fiscal 2026, representing a 4.5-fold rise from fiscal 2025. Total product orders saw a significant 35% increase year-over-year in the third quarter. Specifically, data center switching orders rose 40% compared to the same period last year, driven by extensive AI-enabled data center expansion.
Cisco has chosen to reduce its workforce by 4,000 employees as part of a comprehensive restructuring initiative. Leadership stated that this reorganization is focused on placing greater attention on fields such as AI-driven networking infrastructure, network security, silicon technology, and optics.
Cisco Systems is projected to have a revenue growth rate of 10.8% and an earnings growth rate of 10.2% for the current year, which concludes in July 2026. The Zacks Consensus Estimate for this year's earnings has increased by 0.7% over the past 30 days.
Datadog Inc.
Companies are reaping the benefits of Datadog's unified observability platform as more enterprises adopt it, fueled by cloud migration and digital transformation efforts worldwide. AI-driven anomaly detection and root cause analysis enhance its competitive edge over traditional monitoring providers. DDOG's platform integration supports multi-product implementations, generating network effects and increasing customer loyalty.
The platform's extensive observability and security tools meet essential enterprise requirements for monitoring cloud infrastructure, managing application performance, analyzing security, observing large language models, ensuring data visibility, and controlling cloud expenses in ever more hybrid, multi-cloud, and AI-focused settings. Businesses often use several Datadog solutions, offering substantial growth potential through cross-selling and upselling.
DDOG's leadership in AI-driven observability and security creates substantial competitive benefits as companies place greater emphasis on smart monitoring systems. These AI features grow more essential as cloud setups become more intricate and spread across various infrastructure levels.
Datadog is projected to see a revenue growth of 25.7% and an earnings growth of 16.6% this year. The Zacks Consensus Estimate for this year's earnings has increased by 12.7% in the past 30 days.
Palantir Technologies Inc.
Palantir Technologies' approach to artificial intelligence is broad, integrating its own Foundry and Gotham systems along with a strong initiative to encourage the use of AI in both governmental and business areas. PLTR's Artificial Intelligence Platform (AIP) serves as the foundation for these features, allowing organizations to handle vast amounts of data and gain immediate insights. This is particularly beneficial in fields that need significant data merging, like defense, healthcare, finance, and intelligence, where efficiency and quick decision-making are essential.
In the public sector, Palantir is matching its AI approach with U.S. military objectives. Its involvement in notable projects, like the Department of Defense’s Open DAGIR initiative, demonstrates its capacity to enhance military operations using AI-based tools, where seamless data integration and instant decision-making are crucial. These skills reinforce PLTR's role as a major participant in the defense industry.
In the business sector, Palantir's AIP training programs—offering practical experience to more than 1,000 companies—have been crucial for attracting new clients. These programs highlight the platform's features and illustrate its flexibility in areas like logistics, manufacturing, and supply chain operations. PLTR's primary customer group includes organizations that require customized AI/ML solutions, especially major government and corporate entities that are prepared to make significant investments in its systems.
Palantir is projected to see a revenue growth rate of 71.8% and an earnings growth rate of 98.7% this year. The Zacks Consensus Estimate for this year's earnings has increased by 11.2% in the past 30 days.
This piece was first released on Zacks Investment Research ().
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