3 Top Cybersecurity Stocks to Buy in September

Key Points

• Cybersecurity spending is projected to hit $377 billion by 2028 as threats increase.

• Palo Alto Networks, CrowdStrike, and Microsoft each bring unique strengths to this space.

• Investors would be hard-pressed to find stronger options than these three companies.

• 10 stocks we like better than Palo Alto Networks ›

Cybersecurity threats are a persistent problem for companies across the globe, requiring businesses, small and large, to devote some of their budgets to fighting them. IDC estimates that cybersecurity spending is on the rise and will reach an estimated $377 billion by 2028. And it's not just that there's an increase in threats; the rise of artificial intelligence-based attacks makes defending critical software and infrastructure increasingly complex.

But good investors know that opportunities are created out of these threats when companies create the right tools to combat them. And that's where Palo Alto Networks (NASDAQ: PANW), CrowdStrike (NASDAQ: CRWD), and Microsoft (NASDAQ: MSFT) come in. Their sophisticated toos are leading the charge against cyber threats -- and rewarding shareholders with significant gains.

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1. Palo Alto is a cybersecurity leader that's continually growing

Palo Alto Networks shocked investors recently when it announced that it was acquiring CyberArk, an identity access management leader, for $25 billion -- the largest purchase by Palo Alto by far. The purchase will allow Palo Alto to offer clients a comprehensive cybersecurity solution, covering all aspects of identity and access control, and is expected to close in the second half of fiscal 2026.

Even without the acquisition, Palo Alto's growth is impressive. The company's Q4 revenue of $2.54 billion beat Wall Street's consensus estimate of $2.5 billion, and its earnings of $0.95 easily topped estimates of $0.88 for the quarter. Management also issued strong guidance for 2026, with revenue estimated to increase 14% to about $10.5 billion and non-GAAP earnings per share to rise 14% to $3.80, at the midpoint of guidance.

The company recently announced that the founder and CTO of Palo Alto Networks, Nir Zuk, is retiring. But investors shouldn't be concerned about the transition. CEO Nikesh Arora has served as the company's leader since 2018 and is still at the helm and leading the company into its next era of growth.

2. CrowdStrike makes security easy for clients

CrowdStrike offers its customers a one-stop shop for security, with the company's Falcon platform providing an easy-to-use cloud-based solution. The company was also quick to implement new artificial intelligence features into its services, launching Charlotte AI two years ago and saving customers an average of 40 hours per week as the AI finds and neutralizes threats on its own.

The company recently reported its Q2 results, with earnings per share sliding 10% to $0.93 but coming in ahead of analysts' consensus estimate of $0.83. Meanwhile, revenue jumped 21% to nearly $1.2 billion, ahead of estimates.

Investors weren't thrilled with the results, even though they weren't bad, and some latched onto management's estimate that Q3 revenue will be in the range between $1.21 to $1.22 billion, slightly below Wall Street's estimate of $1.23 billion. CrowdStrike's shares slid following the report and are down about 7.5% over the past three months.

Don't be distracted by the temporary dip. The recent decline is giving investors a good time to pick up shares, and CrowdStrike is still on track to meet its goal of achieving $10 billion in annual recurring revenue by 2031.

3. Microsoft is an AI leader with solid cybersecurity chops

Microsoft took early steps into the artificial intelligence market through its partnership with OpenAI years ago, giving it access to one of the most advanced chatbot systems and integrating the tech into everything from its Azure cloud computing platform to Windows 365 software.

But hidden within Microsoft's cloud and AI opportunities is a growing cybersecurity business. Microsoft has 1.4 million cybersecurity customers globally and has 34,000 engineers working full-time on security. Most importantly, Microsoft's cybersecurity sales will reach an estimated $37 billion in fiscal 2025, accounting for about 14% of the company's total revenue.

With Microsoft already a leading AI and cloud computing company, in addition to having an impressive cybersecurity business, the company is one of the best no-brainer tech stocks to own. And with the stock sliding about 3% over the past month, now is a good time to buy shares as the company continues to lead in the expanding AI and cybersecurity markets.

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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike and Microsoft. The Motley Fool recommends Palo Alto Networks and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.