Essential Cybersecurity Growth Stocks for 2026: CrowdStrike and Zscaler

With the advent of the AI era, the importance of cybersecurity has never been higher. As AI becomes a bigger part of our lives, hackers become more sophisticated, and vulnerabilities multiply. Digitization, data centers, AI - everything is making cybersecurity increasingly critical.

Today, I'll introduce two cybersecurity growth stocks to watch in 2026: CrowdStrike, the endpoint security powerhouse, and Zscaler, the leader in cloud-native security.

🛡️ CrowdStrike (Ticker: CRWD) - The Endpoint Security Powerhouse

A $17 Billion Cybersecurity Giant

CrowdStrike is a $17 billion cybersecurity company. Since being added to the recommended list in 2021, it's up 165%. It's a monster, but not yet at Nvidia levels.

Remarkably, CrowdStrike, much like Vertiv, owns about 20% of its own market.

Why CrowdStrike is Essential

With digital transformation, cloud adoption, data center expansion, and increasingly sophisticated cyber threats, CrowdStrike's Falcon platform has become not just important—it's mission-critical.

As AI-driven threats increase, CrowdStrike becomes a must. As hackers get more sophisticated and use AI, as more vulnerabilities emerge from AI and digitization, CrowdStrike becomes more and more important.

The Power of Recurring Revenue

One of CrowdStrike's biggest advantages is its recurring revenue model—the most desirable thing in the software business. Every year, clients pay a fee. It's not a one-off. It's not project-based.

As endpoint protection becomes more important, CrowdStrike makes more money. Very simple.

Market Outlook

2030 TAM: $85-100 billion
Current Revenue: ~$6 billion/year
Expected 2030 Market Share: 20-30%
Expected Operating Income Growth: 6x

Fundamental Analysis 📊

Metric	Value
Revenue Growth (3 years)	124%
Current Annual Growth	22%
Free Cash Flow Growth (3 years)	95%
Debt	1/5 of cash position
Forward P/E	144
Short Interest	3%
Stock MVP Score	Very Impressive

A Forward P/E of 144 may seem expensive, but this company has just broken even. They just got over that hump. The high forward P/E doesn't really reflect as much as you might think because they just became profitable. Give them a year or two—they'll certainly grow into that valuation.

A 3% short interest means nobody's betting against the company.

☁️ Zscaler (Ticker: ZS) - The Leader in Cloud-Native Security

From 90s Firewalls to Cloud Security

Zscaler represents the shift from the old firewalls of the '90s and 2000s to cloud-native security. They are the best in the business.

Synergy with CrowdStrike

While CrowdStrike handles the first line of defense with laptops and servers, Zscaler exists on the cloud. They control and secure how users access the cloud, internet, and cloud-based platforms.

Both are equally important. In fact, many CrowdStrike clients use Zscaler and vice versa. They are complementary services.

Why Companies Must Invest More in Cybersecurity

Remember the CrowdStrike software update incident? A small software update glitch could literally bring the world to a standstill. Not a good idea.

As complexity increases, cybersecurity becomes more important. Because a cybersecurity screw-up can literally paralyze the world, companies will spend more and more on elite cybersecurity as non-discretionary spending.

Market Outlook

2030 TAM: $70-80 billion/year
Current Revenue: ~$3 billion
Growth Potential: Very substantial

Fundamental Analysis 📊

Metric	Value
Revenue Growth (3 years)	133%
Current Annual Growth	23%
Free Cash Flow	$850 million (expanding)
Stock MVP Score	75/100

A Stock MVP score of 75 is extremely solid.

💡 Key Points for Cybersecurity Investment

Why Cybersecurity?

Essential in the AI Era - As AI advances, threats become more sophisticated
Non-Discretionary Spending - Costs companies cannot cut
Recurring Revenue Model - Predictable and stable revenue
High Switching Costs - Once adopted, hard to replace

CrowdStrike vs Zscaler

Category	CrowdStrike	Zscaler
Protection Area	Endpoints (laptops, servers)	Cloud Access
Main Product	Falcon Platform	Zero Trust Security
Market Share	~20%	Growing
Profitability	Just turned profitable	Cash flow expanding