[size=18pt]Cybersecurity Stocks 2025 – Deep‑Dive Research[/size]
Executive Summary
Global cyber spending is forecast to reach $219 billion in 2025 (+14 % YoY, Gartner). High‑profile breaches (MOVEit, Change Healthcare) keep security budgets resilient even amid macro uncertainty.
Industry Tailwinds
- Generative AI is driving new attack surfaces, accelerating demand for AI‑powered XDR.
- Zero‑Trust mandates from the U.S. Federal Government (OMB M‑22‑09) benefit identity‑centric vendors.
- Cloud migration remains above 25 % CAGR, pushing SASE and CNAPP adoption.
Core Investment Buckets
1. Endpoint & XDR
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[*]CrowdStrike (CRWD) – 98 % gross retention, 30 %+ FCF margin, trades at 12× FY26 EV/S.
[*]SentinelOne (S) – Smaller but fastest ARR growth (>40 %), potential M&A target.
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2. Network & SASE
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[*]Palo Alto Networks (PANW) – Platformization strategy delivering 25 % billings growth.
[*]Cato Networks – Pre‑IPO, but leading pure‑play SASE with $200 M ARR.
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3. Identity & Access
[ul]
[*]Okta (OKTA) – Turning the corner on profitability; FedRAMP High achieved in July 2025.
[*]CyberArk (CYBR) – PAM leader expanding into CIEM and IDaaS; 90 % recurring revenue.
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4. Cloud & CNAPP
[ul]
[*]Wiz – Private unicorn; confidentially filed for IPO, valued >$10 B.
[*]Palo Alto Networks Prisma Cloud – 50 % YoY growth, integrated into PANW platform.
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Valuation Snapshot (19 Aug 2025 Close)
| Company | Ticker | Price | FY26 EV/S | FY26 EV/FCF | 5‑Yr CAGR |
|---------|--------|-------|-----------|-------------|-----------|
| CrowdStrike | CRWD | $290 | 12× | 38× | 30 % |
| Palo Alto | PANW | $315 | 9× | 32× | 22 % |
| Zscaler | ZS | $185 | 10× | 45× | 27 % |
| SentinelOne | S | $17 | 6× | N/A | 40 % |
| Okta | OKTA | $86 | 5× | 28× | 18 % |
Risks
- Macro slowdowns could delay large enterprise deals.
- Vendor consolidation trends may compress stand‑alone multiples.
- Regulatory scrutiny of data residency (EU, India) could raise compliance costs.
Conclusion
Cybersecurity remains a secular growth story with multiple ways to play: platform leaders (PANW, CRWD), high‑growth challengers (S), and upcoming IPOs (Wiz, Cato Networks). A barbell approach—owning both blue‑chip and emerging names—offers balanced exposure to this mission‑critical sector.
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[small]Research compiled 19 Aug 2025 from company filings, Gartner, IDC, FactSet and public news reports.[/small]