With the explosion in demand for data and cloud computing, many organisations also face a persistent problem.
Their systems, data and confidential information are subject to breaches by malicious players, thus necessitating the need for robust cybersecurity systems.
The burgeoning cybersecurity space is a great sector to invest in for long-term capital appreciation as these growth stocks are riding on the coattails of a persistent trend.
And with artificial intelligence and digitalisation booming, there is an urgent and pressing need for more stringent checks and security barriers to prevent sensitive data from falling into the wrong hands.
Here are five promising US cybersecurity players that can give you exposure to this growing sector.
Fortinet (NASDAQ: FTNT)
Fortinet has an integrated portfolio with 50 enterprise-grade cybersecurity products.
The company boasts more than half a million customers and also runs a training institute, which is one of the largest and most comprehensive in the industry.
For the first quarter of 2025 (1Q 2025), revenue rose 13.8% year on year to US$1.5 billion.
Operating profit climbed 41.3% year on year to US$453.8 million while net profit shot up 44.8% year on year to US$433.4 million.
The cybersecurity specialist also churned out a positive free cash flow of US$796.8 million, 31% higher than a year ago.
Fortinet also recorded billings of US$1.6 billion, up 14% year on year.
Management highlighted a large total addressable market (TAM) for secure networking of US$75 billion.
The more significant TAM is in AI-driven security operations, where the TAM stood at US$146 billion, representing just 10% of 1Q 2025’s billings.
Crowdstrike (NASDAQ: CRWD)
Crowdstrike operates a cloud platform (Crowdstrike Falcon) that protects enterprise risk areas such as endpoints, cloud workloads, identity, and data.
The company reported a solid set of results for its first quarter of fiscal 2026 (1Q FY2026) ending 30 April 2025.
Revenue climbed 19.8% year on year to US$1.1 billion while gross profit increased by 17% year on year to US$814.3 million.
The business also churned out a positive free cash flow of US$280.9 million for the quarter, down 13% year on year.
Annual recurring revenue (ARR) grew 22% year on year to hit US$4.44 billion.
Management believes that its AI-native security platform TAM stood at US$116 billion for 2025, and looks set to grow to US$250 billion by 2029.
For FY2026, Crowdstrike projects that its revenue will hit US$4.77 billion (at the midpoint of its guidance), representing a 20.8% year-on-year increase from US$3.95 billion in FY2025.
Zscaler (NASDAQ: ZS)
Zscaler operates a Zero Trust Exchange platform that protects customers from cyberattacks and data loss.
This platform is distributed across more than 160 data centres globally and counts as the world’s largest in-line cloud security platform.
For the first nine months of fiscal 2025 (9M FY2025) ending 30 April 2025, Zscaler grew its revenue by 24.1% year on year to US$1.95 billion.
Gross profit increased by 22.8% year on year to US$1.51 billion.
Free cash flow for 9M FY2025 also jumped 23.7% year on year to US$554.8 million.
The ARR for the business increased by 23% year on year to US$2.9 billion, with remaining performance obligations (RPO) leaping 30% year on year to US$5 billion.
Zscaler is not only onboarding more customers, but customers are also spending more.
Those with ARR of >US$1 million grew from 400 in the third quarter of fiscal 2023 to 642 in the current quarter, representing a compound annual growth rate (CAGR) of 27%.
Last month, the company unveiled new AI-powered innovations to enhance data security and stop cyberattacks, raising its capabilities and making its cloud solutions more compelling to customers.
Okta (NASDAQ: OKTA)
Okta helps to secure identity to protect users, employees, and data.
Many well-known brands use Okta to safeguard their credentials and rely on the company for authentication and authorisation.
Okta reported an encouraging set of financial results for 1Q FY2026.
Revenue rose 11.6% year on year to US$673 million while gross profit improved by 13.6% year on year to US$533 million.
Free cash flow surged by 58.7% year on year to US$338 million for the quarter.
Okta also reported a 21% year-on-year increase in RPO to US$4.08 billion while its subscription backlog improved by 14% year on year to US$2.23 billion.
Like Zscaler, Okta is also seeing healthy traction in customer spending.
Customers with more than US$100,000 in annual contract value (ACV) stood at 4,870 for 1Q FY2026, far higher than the 3,930 at the end of FY2023.
Management believes that Okta occupies just a small slice of a US$80 billion TAM, thereby offering significant opportunities for the business to grow further.
Palo Alto Networks (NASDAQ: PANW)
Palo Alto Networks provides comprehensive AI-powered security solutions to more than 70,000 organisations.
For 9M FY2025, the company saw revenue rise 14.5% year on year to US$6.7 billion.
Operating profit soared 67% year on year to US$745.7 million.
Net profit plunged 60% year on year to US$880.1 million, but investors should note that 9M FY2025 saw a large tax credit that boosted net profit.
Profit before tax climbed 50% year on year to US$1 billion.
RPO for the quarter grew 19% year on year to US$13.5 billion, while next-generation security ARR increased by 34% year on year to US$5.09 billion.
Total revenue for FY2025 is projected at US$9.18 billion, representing a year-on-year increase of 14%.
Just this week, Palo Alto Networks partnered with Okta to deliver a unified security architecture that enables customers to automate threat response and secure their applications on any device.
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Disclosure: Royston Yang does not own shares in any of the companies mentioned.
