As we enter 2026, investors are focusing on the rapidly growing cybersecurity sector, which is projected to expand significantly over the coming decade. According to Fortune Business Insights, the global cybersecurity market is expected to grow at a compound annual growth rate (CAGR) of 13.8% from 2026 to 2034. This growth is driven by the increasing necessity for companies to protect their digital assets against cyber threats. Here are three prominent companies in the cybersecurity space that are positioned for growth: CrowdStrike, Zscaler, and Palo Alto Networks.
CrowdStrike
CrowdStrike Holdings, Inc. (NASDAQ: CRWD) is a key player in the cybersecurity realm, offering a cloud-native platform known as Falcon. Unlike traditional cybersecurity solutions that rely on on-site appliances, Falcon provides endpoint security without the need for physical devices, making it easier to scale and update remotely. This model not only saves companies on hardware costs but also locks in customer subscriptions, a crucial aspect for recurring revenue.
As of December 31, 2025, CrowdStrike serves over 30,000 subscription customers, including 70 of the Fortune 100 companies. The company’s revenue is expected to grow at a CAGR of 22% from fiscal 2025 to fiscal 2028, with adjusted earnings per share (EPS) forecasted to increase at a CAGR of 17% during the same period. Despite its high valuation at over 100 times next year’s earnings, the company’s strong growth trajectory and market position make it an attractive investment option.
Zscaler
Zscaler, Inc. (NASDAQ: ZS) specializes in cloud-based cybersecurity services, focusing on a “zero trust” security model that treats all users as potential threats until verified. This approach has attracted over 7,700 customers, securing more than 500 billion transactions daily.
Analysts project Zscaler’s revenue will grow at a CAGR of 21% and adjusted EPS will rise at a CAGR of 18% from fiscal 2025 to fiscal 2028. The company is actively expanding its offerings, including the AI-powered ZDX Copilot platform, and has made strategic acquisitions to enhance its service portfolio. Although trading at 62 times this year’s earnings may appear steep, its unique position in the zero trust segment provides ample growth potential.
Palo Alto Networks
Palo Alto Networks, Inc. (NASDAQ: PANW) stands as one of the largest cybersecurity providers globally, serving over 70,000 enterprise customers, including nine of the Fortune 10 companies. The company operates three main platforms: Strata for traditional network security, Prisma for cloud-based security, and Cortex for AI-powered threat detection services.
Palo Alto’s growth strategy involves significant investments and acquisitions, including the planned $25 billion acquisition of CyberArk, which focuses on privileged access management. The company anticipates its revenue will grow at a CAGR of 14% and adjusted EPS at 13% from fiscal 2025 to fiscal 2028. While its stock trades at nearly 50 times its forward-adjusted earnings, its balanced approach to expanding its service offerings makes it a solid candidate for investors looking to capitalize on the cybersecurity boom.
In conclusion, as the cybersecurity market continues to grow, investing in established companies like CrowdStrike, Zscaler, and Palo Alto Networks could provide significant returns. Keeping an eye on the evolving cybersecurity landscape will be crucial for investors looking to align their portfolios with sectors poised for growth. For more insights and expert analysis, visit Stock Market News. Additionally, for reliable stock portfolio management and retirement investment services, check out Stock Portfolio Management.
