Piper Sandler’s Top 5 Cybersecurity Stocks for 2026 - Investing.com

Piper Sandler’s Top 5 Cybersecurity Stocks for 2026 By Editor Pratyush Thakur Stock Markets Published 01/14/2026, 01:01 PM 1 © Reuters. CHKP -0.53% NOW 1.12% PANW 0.26% TEAM 1.29% Investing.com -- As cybersecurity concerns continue to dominate corporate priorities, Piper Sandler has identified the top performers positioned for growth through 2026. These companies stand out in a competitive landscape where innovation and execution are paramount. The cybersecurity sector remains resilient amid broader tech market fluctuations, with several standouts demonstrating potential for sustained or accelerated growth. Piper Sandler’s analysis highlights companies that combine strong technological foundations with improving execution metrics. See how Wall Street analysts are valuing these stocks with InvestingPro’s full ratings, price targets, and earnings models - get 55% off today Palo Alto Networks emerges as the top pick, with Piper Sandler maintaining its Overweight rating first issued in August. The firm believes in the "acceleration scarcity" theme continuing into 2026 amid a stable demand environment for software. Despite some initial concerns around the CYBR acquisition, PAWN demonstrated revenue growth acceleration throughout fiscal 2025 and maintained stability in the first quarter of fiscal 2026. The company’s performance positions it favorably against competitors in the cybersecurity space. In recent news, Palo Alto Networks reported strong first-quarter fiscal 2026 results and announced an expanded partnership with Google Cloud to enhance security for AI. The company also received a stock rating upgrade to Neutral from Sell by Guggenheim. Atlassian secures the second position with Piper Sandler expressing strong conviction in both near and long-term prospects. The company’s product-led growth model allows it to be a low-cost provider while simultaneously investing more in R&D than competitors. Under new CRO Brian Duffy, TEAM shows encouraging progress in enterprise penetration without significantly altering its cost structure, maintaining its competitive differentiation. Atlassian announced that its cloud applications are now available on the AWS Marketplace as part of a strategic collaboration. The company also reported the upcoming retirement of two directors from its board, effective in January 2026. Check Point Software ranks third following Piper Sandler’s upgrade to Overweight in March. The firm cites healthy firewall refresh trends, a more focused product strategy, and improving go-to-market execution under new leadership. CHKP offers an established network security platform with one of the strongest margin and free cash flow profiles in the sector, presenting a compelling security investment amid AI-related uncertainties. Check Point Software recently unveiled a major software update, Quantum Firewall Software R82.10, which adds new capabilities focused on securing AI technologies. Additionally, the company’s stock rating was upgraded to Overweight by Stephens. Netskope takes the fourth position as a modern Secure Access Service Edge (SASE) platform. Its private network and robust granular controls provide enhanced security outcomes, particularly for enterprises securing agent implementations across hybrid environments with complex data security requirements. Piper Sandler views NTSK as having a credible competitive position alongside larger platforms. ServiceNow rounds out the top five, with Piper Sandler noting its attractive valuation at approximately 29x EV/NTM FCF—near five-year lows. The firm believes market pessimism regarding growth durability is overblown, particularly concerns about seat-count headwinds, slower-than-expected AI rollouts, and potential secular headwinds in key verticals like federal government. This creates a compelling setup for 2026 as growth potentially exceeds expectations. ServiceNow has been the subject of varied analyst activity, with Goldman Sachs initiating coverage with a Buy rating. Other firms, including Evercore ISI and Cantor Fitzgerald, reiterated positive ratings, while Stifel lowered its price target but maintained a Buy. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. Should you be buying CHKP right now? ProPicks AI evaluates CHKP alongside thousands of other companies every month using 100+ financial metrics. Using powerful AI to generate exciting stock ideas, it looks beyond popularity to assess fundamentals, momentum, and valuation. The AI has no bias—it simply identifies which stocks offer the best risk-reward based on current data with notable past winners that include Super Micro Computer (+185%) and AppLovin (+157%). Want to know if CHKP is currently featured in any ProPicks AI strategies, or if there are better opportunities in the same space? See Stocks 1 Latest comments Post Comment Guidelines Navin Singh Jan 16, 2026, 08:52 Since when are Atlassian and ServiceNow considered to be cybersecurity stocks? Come on guys, you can do better than this! 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