CrowdStrike vs. Palo Alto Networks: Which Cybersecurity Stock Will Win 2026? - The Motley Fool

By Leo Sun – Mar 13, 2026 at 11:39AM EST KEY POINTS CrowdStrike’s cloud-native approach is locking in lots of customers. Palo Alto’s platformization strategy will widen its moat. CrowdStrike ( CRWD 4.06% ) and Palo Alto Networks ( PANW +0.29% ) are two of the world's largest cybersecurity companies. Both stocks have generated massive multibagger gains since their public debuts as the cybersecurity market expanded. But over the past 12 months, CrowdStrike's stock has risen 33%, while Palo Alto's stock has declined 4%. Let's see why the former outperformed the latter, and if it will remain the better cybersecurity stock to buy for the rest of 2026. Image source: Getty Images. The differences between CrowdStrike and Palo Alto Networks Palo Alto Networks splits its ecosystem into three main platforms: Strata, for its older on-site networking services; Prisma, for its cloud-based services; and Cortex, for its AI-powered threat detection services. Most of its recent growth has been driven by Prisma and Cortex, which it collectively refers to as its "next-gen security" services. It also recently acquired CyberArk, a leader in privileged access management (PAM) services, for $25 billion. Palo Alto's older services still need to be deployed on-site via expensive, maintenance-intensive appliances that are difficult to scale as a company grows. CrowdStrike addresses those issues with Falcon, its cloud-native endpoint security platform that doesn't require on-site appliances and locks customers in with sticky recurring subscriptions. Its customers start with a handful of trial cloud modules and add more to access additional security features. Which company is growing faster? From fiscal 2020 to fiscal 2025 (which ended last July), Palo Alto's revenue grew at a 22% CAGR. It also became profitable under generally accepted accounting principles (GAAP) in fiscal 2023 and grew its net income at a 61% CAGR over the following two years. From fiscal 2025 to fiscal 2028, analysts expect Palo Alto's revenue and EPS to grow at CAGRs of 19% and 22%, respectively. That growth should be driven by its NGS services, its recent acquisition of CyberArk, and its "platformization" strategy of bundling more niche services into its core platforms to pull companies away from smaller cybersecurity companies. Expand NASDAQ: PANW Palo Alto Networks Today's Change (0.29%) $0.48 Current Price $167.50 KEY DATA POINTS Market Cap $136B Day's Range $166.22 - $168.25 52wk Range $139.57 - $223.61 Volume 163K Avg Vol 10M Gross Margin 73.50% From fiscal 2021 to fiscal 2026 (which ended this January), CrowdStrike's revenue grew at a 41% CAGR. However, it isn't profitable by GAAP measures yet. It grew rapidly as its cloud-native services pulled more companies away from legacy cybersecurity providers, and it increased revenue per customer by selling more modules. From fiscal 2026 to fiscal 2029, analysts expect CrowdStrike's revenue to grow at a 22% CAGR. They also expect it to turn profitable in fiscal 2027, and to grow its net income at a 100% CAGR over the following two years. Its top-line growth should be driven by the expansion of its consumption-based "Falcon Flex" plans (which don't require rigid subscriptions or module purchases) and the use of generative AI tools to simplify its threat detection services. Its profitability should also improve as it reduces its stock-based compensation expenses. Expand NASDAQ: CRWD CrowdStrike Today's Change (-4.06%) $-17.94 Current Price $423.84 KEY DATA POINTS Market Cap $112B Day's Range $423.77 - $443.52 52wk Range $298.00 - $566.90 Volume 3.7M Avg Vol 3.6M Gross Margin 74.53% Both companies are well positioned to profit from the secular expansion of the cybersecurity market, which is generally insulated from macro headwinds because companies won't shut off their digital defenses just to save a few dollars. According to Fortune Business Insights, the global cybersecurity market could still expand at a 13.8% CAGR from 2026 to 2034. However, both companies could eventually face tougher competition from diversified tech giants like Microsoft ( MSFT +1.11% ), which are bundling more endpoint security services into their software, and AI-native cybersecurity companies like SentinelOne ( S 1.58% ). Which stock is the better value? Palo Alto trades at 45 times its forward-adjusted (non-GAAP) earnings, while CrowdStrike has a much higher forward-adjusted price-to-earnings ratio of 91. CrowdStrike is growing only slightly faster than Palo Alto, but its cloud-native approach is attracting more growth-oriented investors. Both of these stocks are still reliable cybersecurity plays. But if I had to pick one over the other, I'd buy Palo Alto because it's trading at a more reasonable valuation in this volatile market. Read Next Mar 10, 2026 By Bryan White Palo Alto Networks Just Made a $25 Billion Bet on 1 Security Platform. Is the Stock a Buy? Mar 8, 2026 By Chris Neiger 2 Top Cybersecurity Stocks to Buy in March Feb 27, 2026 By Harsh Chauhan The Cybersecurity Market Is Set to Double to $300 Billion by 2030. Here's the Best Artificial Intelligence (AI) Stock to Buy Now. Feb 22, 2026 By Geoffrey Seiler Is It Time to Buy Palo Alto Networks Stock on the Dip? Feb 22, 2026 By Anthony Di Pizio 1 No-Brainer Artificial Intelligence (AI) Stock to Buy With $160 and Hold for the Long Term Feb 20, 2026 By Eric Volkman Why Palo Alto Networks Stock Dipped Today ABOUT THE AUTHOR Leo Sun is a contributing Motley Fool stock market analyst who has worked with the company since 2013, covering technology, consumer goods, industrial, and financial sectors. He became a self-made millionaire by age 40 through long-term investing, crediting lessons from Warren Buffett and Peter Lynch. Leo is a regular guest on CNBC Asia providing stock analysis on Chinese technology companies, including Tencent, Baidu, and Alibaba. He previously wrote for InvestorGuide and holds a bachelor’s degree in English from the University of Texas at Austin. TMFSunLion @TMFSunLion STOCKS MENTIONED Palo Alto Networks NASDAQ: PANW $167.50 (+0.29%) +$0.49 Microsoft NASDAQ: MSFT $399.95 (+1.11%) +$4.40 CrowdStrike NASDAQ: CRWD $424.05 (-4.01%) -$17.73 SentinelOne NYSE: S $14.29 (-1.58%) -$0.23 *Average returns of all recommendations since inception. Cost basis and return based on previous market day close.