These 5 Cybersecurity Plays Are Quietly Outpacing the Market—Here's Why

The cybersecurity sector is experiencing a fundamental shift. As AI adoption accelerates and digital infrastructure becomes increasingly mission-critical, enterprises are scrambling to protect applications, networks, and cloud environments against a rapidly evolving threat landscape. This convergence of IoT proliferation, legacy system vulnerabilities, and sophisticated cyberattacks has created an unprecedented demand for next-generation security solutions.

But not all cybersecurity stocks are created equal. We’ve identified five high-conviction picks that are delivering exceptional results in 2025: CrowdStrike Holdings Inc. (CRWD), F5 Inc. (FFIV), Qualys Inc. (QLYS), Palantir Technologies Inc. (PLTR), and SailPoint Inc. (SAIL).

The Undisputed Leader: CrowdStrike’s AI-Powered Dominance

CrowdStrike (CRWD) isn’t just riding the cybersecurity wave—it’s creating it. The latest quarter delivered jaw-dropping numbers: $221 million in net new ARR, pushing total ARR to $4.66 billion (up 20% YoY, beating consensus of $4.64 billion). The secret sauce? Falcon Flex.

This subscription model has crossed 1,000 customers, with over 100 already committed to follow-on “re-Flex” deals before their contracts expired. These expansions typically boost ARR by nearly 50%, signaling exceptional customer retention and satisfaction.

The real growth lever, however, is AI security. Agentic AI—where non-human identities operate autonomously—presents both risk and opportunity. CrowdStrike’s new Falcon Shield enhancements now cover AI agents built on OpenAI’s infrastructure, while its Signal detection engine identifies anomalous patterns in real-time. The company launched AI Systems Security Assessment and AI for SecOps Readiness, positioning itself as the go-to platform for enterprise AI governance.

Growth outlook: Revenue expected to climb 20.9%, with earnings consensus improving 4.9% in the last month.

F5’s Quiet Ascent in Application Security

While headlines focus on endpoint protection, F5 (FFIV) dominates an equally critical segment: application networking and security. The company’s Layer 4-7 content switching technology is unmatched in managing capacity and security demands for modern multi-cloud deployments.

F5’s acquisition strategy—six acquisitions in five years—has methodically expanded its security footprint. BIG-IP and NGINX subscription acceleration, combined with strength in public cloud and virtual edition offerings, demonstrate solid software momentum. Unlike competitors, F5 has built defensible competitive moats through deep data center expertise and seamless application integration.

Growth outlook: 3.9% revenue growth and 4% earnings growth expected for fiscal 2026, with consensus estimates improving 3.1% recently.

Qualys: The Cloud-Native Cybersecurity Play

Qualys (QLYS) benefits from a rare strategic advantage: a truly diversified customer base spanning enterprises, SMBs, and government entities. This balanced mix insulates the company from cyclical IT spending volatility.

The company’s dual AI pillars—TotalAppSec (unified application risk management) and TotalAI (AI/LLM workload protection)—directly address today’s greatest vulnerabilities. The Blue Hexagon acquisition (November 2022) injected world-class ML threat detection capabilities, meaningfully enhancing Qualys’ response arsenal.

Growth outlook: 8.1% revenue expansion and 4.4% earnings growth projected, with stable estimate revisions.

Palantir’s Commercial Breakout Moment

Palantir (PLTR) just crossed a historic milestone: commercial revenue exceeded $1 billion in Q2 for the first time. This wasn’t incremental—it demolished estimates across the board.

The transformation stems from AIP (Artificial Intelligence Platform), launched in 2023. This system enables organizations to consolidate, analyze, and act on data at unprecedented speed, integrating open-source, self-hosted, and commercial LLMs. AIP transforms both structured and unstructured data into actionable intelligence for humans and AI-driven agents alike.

This commercial acceleration means Palantir no longer depends on government contracts. Management raised full-year guidance to $4.142-$4.150 billion (from $3.89-$3.90 billion), signaling confidence in sustained momentum. CEO Alex Karp summed it up perfectly: “This is still only the beginning.”

Growth outlook: 45.6% revenue growth and 58.5% earnings growth expected—among the highest in the entire cybersecurity complex. Earnings consensus has improved 12.1% in the last 60 days.

SailPoint: Identity as the Perimeter

SailPoint (SAIL) operates in a sector that’s often overlooked but increasingly critical: identity security. Its cloud-native Identity Security Cloud and on-premises IdentityIQ solutions protect enterprises across all geographies.

As remote work, cloud migration, and API proliferation blur traditional security boundaries, identity becomes the new perimeter. SailPoint’s unified approach to identity governance positions it perfectly for this shift.

Growth outlook: 22.2% revenue growth with earnings growth exceeding 100% projected for fiscal 2026. Consensus earnings estimates improved 10.5% in the last month.

The Bottom Line

The cybersecurity sector’s growth trajectory remains intact, with AI security capabilities emerging as the primary value driver. CrowdStrike leads on execution and market momentum, while F5 offers steady application-layer exposure. Qualys provides stability through diversification, Palantir represents the explosive commercial inflection story, and SailPoint captures the identity security tailwind.

Each pick carries either Strong Buy or Buy-rated fundamentals, reflecting their positioning in what remains one of the most secular growth markets in equities.