Business

Cybersecurity stocks in spotlight as U.S. vulnerability takes center stage

By Art Zeile TheStreet

Updated June 10, 2026 6:46 PM

Given the increased use of AI in cyberattacks and the looming Anthropic Mythos model that is expected to make it even easier for hackers to find and exploit vulnerabilities, the federal government has been aggressively building out its cybersecurity capabilities.

The effort to catch up to speed is becoming visible in the job postings for increased hiring of cybersecurity experts with security clearances, both by large government contractors and firms that specialize in the field.

The stepped-up recruiting points to a potential investor play: seek out publicly traded firms that may benefit from the federal government's efforts to shore up their vulnerabilities.

AI cybersecurity forcing factors

Washington's sense of urgency has been driven by persistent concerns over the country's high vulnerability to cyberattacks and lack of preparedness. The Cybersecurity and Infrastructure Security Agency (CISA) admitted last November that it was unable "to fully support national security imperatives" due to personnel cuts.

AI has been a powerful new catalyst for increased investment. Hackers are now widely utilizing AI, making their attacks much more effective, and Washington has been looking to fill gaps in its expertise in order to effectively respond to the next wave of offensives.

The implications of Anthropic's Mythos remain unclear. The new model has not yet been released, except to a group of about 50 organizations as part of Project Glasswing. The preview aimed at giving key players, including government, large financial institutions, technology platforms, and cybersecurity technology providers, the ability to secure critical infrastructure.

Government cybersecurity expertise hiring jumps

Postings on ClearanceJobs.com indicate that in recent months the hiring of security-cleared professionals with cybersecurity expertise has turned sharply upward, rising from an average of 23,000 monthly postings from 2023 to 2025 to a projected high of about 37,000 this month, a 48% increase.

In 2026, top skills categories for new cybersecurity-related hires included IT hardware, software, and security, as well as roles in management. The top sectors hiring these security-cleared professionals included systems engineering, construction/facilities, aerospace and aviation, and intelligence.

Since the supply of cybersecurity professionals perennially falls far short of the demand for them, their compensation could rise dramatically as companies staff up in order to meet Washington's increased demand for their services.

Here are eight companies-all already well-positioned as vendors to the U.S. government-that are well-positioned to benefit from the federal government's increased emphasis on cybersecurity.

Cisco Systems

Washington uses the tech giant's Security Cloud platform to defend its applications, networks, and endpoints. Cisco's (CSCO) Secure Access offering utilizes zero-trust access, along with continuous verification and machine learning to protect highly prioritized information.

The product has achieved FedRAMP certification, which signifies that it has met the federal government's security standards, enabling Cisco to win many large federal contracts involving the product.

Finally, the firm's Umbrella for Government offering utilizes multiple types of systems, including secure gateways and firewalls, to defend Washington IT against cyberattacks.

In Cisco's fiscal third quarter that ended in April, its revenue climbed 12% versus the same period a year earlier to $15.8 billion. Its earnings per share, excluding certain items, rose 10% year-over-year to $1.06.CSCO has a forward price-earnings ratio of 24.9.

BlackBerry

The company's AtHoc offering enables secure communications during emergencies and it is utilized by 80% of all of Washington's agencies. Blackberry's (BB) Unified Endpoint Manager software was approved by the National Security Agency in 2020, and the Pentagon, the Department of Homeland Security, the Department of Justice, the State Department and the Treasury all utilize the offering.

Many of the same agencies also incorporate the firm's SecSUITE system, which specializes in defending smartphones from hackers. It uses very advanced encryption techniques and has also been adopted by NATO.

In the company's Q4 that ended in February, its revenue advanced 10% versus the same period a year earlier to $156 million, while its EBITDA, excluding certain items, advanced 71% year-over-year to $36.1 million. The shares have a forward price-earnings ratio of 50 times.

Anthropic

The Pentagon is reportedly already using Mythos to locate security flaws throughout the U.S. government. The product allows security vulnerabilities to be found and remedied more quickly, the Defense Department's CTO has said.

Anthropic's very popular assistant, Claude, now interfaces "with 28 security and compliance platforms," making the model more secure and controllable.

With a reported ARR of about $47 billion, the company announced it would go public later this year in a confidential filing with the SEC on June 1.

CrowdStrike

The company holds an incredible 26 FedRAMP High authorizations. Crowdstrike's (CRWD) Falcon platform defends data, identifies threats, provides cloud security, and protects endpoints and identities.

CRWD's GovCloud offering, which incorporates many of Falcon's systems, now utilizes multiple AI technologies in order to disrupt hackers armed with AI.

Among the federal agencies that use CrowdStrike's products are the Pentagon and the Department of Homeland Security, including CISA.

In CRWD's fiscal Q4 that ended in January, its revenue jumped 23% year-over-year to $1.3 billion, while its adjusted net income rose to $289.1 million, up from $205.3 million in Q4 of the previous year. The shares have a forward price-earnings ratio of 139 times.

Palo Alto Networks

Another vendor that has obtained FedRAMP authorizations, Palo Alto (PANW) uses Zero Trust technologies and AI in order to enhance its products.

By incorporating AI, its products can respond faster and disrupt ransomware.

Impressively, last December, the company agreed to allow Washington to purchase its " AI Security, Cloud Security, Software Next-Generation Firewalls, and Service Access Zero Trust solution" at discounted prices.

"Securing federal networks and data will be easier and more cost-effective for agencies, thanks to this OneGov agreement with Palo Alto Networks," Federal Acquisition service Commissioner Josh Gruenbaum said in a statement at the time.

In PANW's fiscal Q2 that ended in January, its revenue climbed 15% year-over-year to $2.6 billion, while its adjusted EPS rose to $1.03 in Q2 from 38 cents during Q2 of the previous year. The shares have a forward price-earnings ratio of 64.5 times.

Fortinet Inc.

The company has a 100%-owned subsidiary, Fortinet Federal, dedicated to serving Washington and its partners.

Fortinet (FTNT) provides "Security-Driven Networking, Zero-Trust Access, Dynamic Cloud Security, and AI-Driven Security Operation" to federal agencies. It also provides firewalls and AI technology to Washington, and helps the federal government "modernize (its) edge devices ."

The company combines all of its products into "a single operating system."

In Q1, FTNT's revenue advanced 20% versus the same period a year earlier to $1.85 billion, while its adjusted earnings per share soared 41% YOY to 82 cents.The shares have a forward price-earnings ratio of 45.25 times.

Okta Inc.

The firm specializes in providing Identity and Access Management to the federal government. Okta (OKTA) has obtained a FedRAMP High Authorization, and its offering combats phishing attempts and improper usage of IT products by employees.

The company's systems, which use a Zero Trust approach, are widely utilized by the Department of Defense.

In Okta's Q4 that ended in January, its revenue increased 11% year-over-year to $761 million, while its EPS came in at 36 cents, versus 13 cents in Q4 of the previous year. The shares have a forward price-earnings ratio of 24.7 times.

Zscaler

Specializing in allowing employees to securely work from any location, Zscaler (ZS), like Okta, focuses on identity management. Its products are used "by over 100 federal agencies and federal systems integrators."

Its Private Access system uses zero-trust technology while bypassing networks that can be hacked and "hiding applications from the internet."

Last July, FedTech, a tech-news outlet specializing in covering Washington, called Private Access " a compelling alternative to any agency looking to remove legacy VPNs or perimeter-based security models and move to something more scalable, sustainable and secure."

In Zscaler's fiscal Q3 that ended in April, its revenue jumped 25% year-over-year to $850.5 million, while its free cash flow rose 14% YOY to $136 million.

The company's stock tumbled after it reduced its full-year free cash flow margin outlook to 22.8%-23.3% from 26.5%-27% because of investments that it's making, but the decline may be an overreaction. ZS stock has a forward price-earnings ratio of 39.7 times.

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This story was originally published June 10, 2026 at 6:37 PM.