CrowdStrike vs. Palo Alto Networks: Which Cybersecurity Stock Will Win 2026?

CrowdStrike (NASDAQ: CRWD) and Palo Alto Networks (NASDAQ: PANW) are 2 of the world's largest cybersecurity companies. Both stocks person generated monolithic multibagger gains since their nationalist debuts arsenic the cybersecurity marketplace expanded.

But implicit the past 12 months, CrowdStrike's banal has risen 33%, portion Palo Alto's banal has declined 4%. Let's spot wherefore the erstwhile outperformed the latter, and if it volition stay the amended cybersecurity banal to bargain for the remainder of 2026.

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Palo Alto Networks splits its ecosystem into 3 main platforms: Strata, for its older on-site networking services; Prisma, for its cloud-based services; and Cortex, for its AI-powered menace detection services. Most of its caller maturation has been driven by Prisma and Cortex, which it collectively refers to arsenic its "next-gen security" services. It besides precocious acquired CyberArk, a person successful privileged entree absorption (PAM) services, for $25 billion.

Palo Alto's older services inactive request to beryllium deployed on-site via expensive, maintenance-intensive appliances that are hard to standard arsenic a institution grows. CrowdStrike addresses those issues with Falcon, its cloud-native endpoint information level that doesn't necessitate on-site appliances and locks customers successful with sticky recurring subscriptions. Its customers commencement with a fistful of proceedings unreality modules and adhd much to entree further information features.

From fiscal 2020 to fiscal 2025 (which ended past July), Palo Alto's gross grew astatine a 22% CAGR. It besides became profitable nether mostly accepted accounting principles (GAAP) successful fiscal 2023 and grew its nett income astatine a 61% CAGR implicit the pursuing 2 years.

From fiscal 2025 to fiscal 2028, analysts expect Palo Alto's gross and EPS to turn astatine CAGRs of 19% and 22%, respectively. That maturation should beryllium driven by its NGS services, its caller acquisition of CyberArk, and its "platformization" strategy of bundling much niche services into its halfway platforms to propulsion companies distant from smaller cybersecurity companies.

From fiscal 2021 to fiscal 2026 (which ended this January), CrowdStrike's gross grew astatine a 41% CAGR. However, it isn't profitable by GAAP measures yet. It grew rapidly arsenic its cloud-native services pulled much companies distant from bequest cybersecurity providers, and it accrued gross per lawsuit by selling much modules.