2 Top Cybersecurity Stocks to Buy in January

• AI-enabled cyberattacks accrued 72% successful 2025.

• Palo Alto has a precise profitable information concern and is expanding its footprint with its Cyberark purchase.

• Microsoft is the largest cybersecurity institution by revenue.

• 10 stocks we similar amended than Palo Alto Networks ›

Security threats are perpetually rising and getting much sophisticated, acknowledgment to atrocious actors utilizing artificial quality (AI). AI-enabled cyberattacks accrued an estimated 72% successful 2025 and that's led to a accelerated summation successful the fig of companies utilizing AI to combat threats, with astir two-thirds present doing so.

As information complexities increase, cybersecurity companies are much important than ever, driving what volition go a $377 cardinal marketplace by 2028, according to IDC. As companies emergence to conscionable the expanding threats, investors person the imaginable to payment from the companies starring the pack. Here's wherefore Palo Alto Networks (NASDAQ: PANW) and Microsoft (NASDAQ: MSFT) are 2 of the champion cybersecurity stocks to bargain close now.

Palo Alto precocious made a precise important determination to grow its information pb by purchasing Cyberark Software for $25 billion. The determination helps the company, which was already a person successful cybersecurity, grow its footprint successful individuality and entree control. The move, portion pricey, means Palo Alto tin connection a broad cybersecurity solution to its clients, erstwhile the woody closes successful the adjacent fewer months.

But it's worthy mentioning that Palo Alto would already beryllium a apical cybersecurity institution adjacent without the purchase. In the fiscal archetypal 4th (which ended Oct. 31), the company's income roseate 16% to $2.5 billion, and its non-GAAP (adjusted) nett income roseate by 19% to $0.93 per share.

Palo Alto's concern is highly profitable, with absorption reporting different 4th of an astir 30% operating borderline and guiding toward an adjusted free-cash-flow borderline of 40% oregon higher by fiscal 2028. With the company's profitability already precocious and Palo Alto connected the verge of closing its Cyberark woody to grow its information services, shareholders person a batch to look guardant to.

Microsoft is champion known for its Azure unreality computing business, its increasing power successful artificial quality with Copilot, and its Microsoft 365 bundle offerings. That's important to enactment due to the fact that the AI unreality marketplace is estimated to scope $2 trillion globally by 2030.

But the institution is besides an important subordinate successful the cybersecurity space, with 1.5 cardinal cybersecurity customers globally. Microsoft has an Azure Security work it offers to its unreality customers, allowing the institution to payment from some hosting clients' unreality networks and their request to unafraid them.