Cybersecurity Stocks Outlook 2025‑2027
1. Market Size & Growth
Gartner forecasts global cybersecurity spend to exceed **$310 billion** by 2027, implying a **12% CAGR** from 2024 levels. Cloud‑native security and identity management are set to outpace the broader market.
2. Key Growth Drivers
- AI‑Powered Defense – Vendors embedding generative AI for autonomous threat hunting are capturing premium multiples.
- Regulatory Tailwinds – The EU’s NIS2 directive and U.S. SEC disclosure rules compel enterprises to boost security budgets.
- Zero Trust Adoption – According to Forrester, 60% of large organizations will have Zero Trust frameworks by 2026.
3. Valuation Landscape
| Company | Ticker | FY‑25 Revenue Growth | EV/Sales | Commentary |
|---------|--------|-----------------------|----------|------------|
| CrowdStrike | CRWD | 34% | 15x | Leader in endpoint + AI modules |
| Palo Alto Networks | PANW | 20% | 10x | Platform strategy driving SASE wins |
| SentinelOne | S | 31% | 11x | Improving operating leverage post‑acquisition of Attivo |
| Fortinet | FTNT | 18% | 7x | Hardware‑heavy but margins expanding with services |
4. Risks to Monitor
- Macro Slowdowns could delay enterprise contract cycles.
- Vendor Consolidation may compress pricing as platforms bundle multiple tools.
- Talent Shortages remain acute—ISC2 estimates a 3.5 million global workforce gap.
5. Top Picks & Watchlist
- CrowdStrike (CRWD) – Best‑in‑class net retention (120%+) and expanding into cloud security.
- Palo Alto Networks (PANW) – Diversified product stack, strong free cash flow.
- Okta (OKTA) – Turnaround story; identity market remains mission‑critical.
- Darktrace (DARK.L) – AI‑first approach; potential U.S. listing could unlock valuation upside.
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Prepared 07 July 2025 by InvestBoss Research Desk.