Top Cybersecurity Stocks to Watch in May: Datadog, Cloudflare, CrowdStrike Lead

TLDR

• Fortinet beat earnings with $1.85B revenue and 31% billing growth; BTIG upgraded to Buy with $125 target
• Datadog raised its 2026 revenue outlook to $4.30B–$4.34B on strong cloud security demand
• Cloudflare cut 20% of its workforce and shares fell over 15% despite beating estimates
• Palo Alto Networks got a price target raise to $216 from BTIG, citing strong channel checks
• CrowdStrike remains a top watch for AI-driven endpoint security and platform consolidation

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Cybersecurity stocks are drawing more investor attention in May 2026. AI is changing both the threat landscape and the tools companies use to fight back. Here are five stocks investors are watching closely this month.

Fortinet

Fortinet had a strong earnings report. The company posted adjusted earnings of $0.82 per share on $1.85 billion in revenue, beating Wall Street expectations.

Fortinet, Inc., FTNT

Billings rose 31% year over year to $2.09 billion. That growth helped ease fears that AI could hurt traditional security vendors.

Demand was strong across network security, AI-related data center protection, and defense against AI-driven ransomware.

BTIG upgraded the stock to Buy and set a $125 price target. Fortinet currently holds a consensus Hold rating based on 1 strong buy, 6 buy, 24 hold, and 4 sell ratings.

Datadog

Datadog raised its full-year 2026 revenue outlook to $4.30 billion–$4.34 billion, up from a prior forecast of $4.06 billion–$4.10 billion.

Datadog, Inc., DDOG

The company is not a pure cybersecurity firm, but its cloud monitoring and observability tools make it an important player in cloud security.

Businesses use Datadog to monitor infrastructure, detect problems, and protect digital systems. That places it firmly in the cybersecurity conversation.

Datadog holds a Moderate Buy consensus rating, with 1 strong buy, 39 buy, 2 hold, and 2 sell ratings.

Cloudflare

Cloudflare beat quarterly estimates and raised its annual revenue forecast. Despite that, shares fell more than 15% in premarket trading after its latest update, according to Reuters.

Investors focused on slowing growth, margin pressure, and higher AI infrastructure costs.

The company also announced plans to cut about 20% of its workforce as it restructures for the AI era. That makes Cloudflare a high-interest but higher-risk name right now.

Cloudflare holds a Moderate Buy consensus with 1 strong buy, 19 buy, 7 hold, and 3 sell ratings.

Palo Alto Networks

Palo Alto Networks is one of the largest cybersecurity companies in the market. It rose alongside the broader cybersecurity rally, driven by optimism that AI will improve security products.

BTIG raised its price target on Palo Alto to $216 from $200, keeping a Buy rating. The firm cited positive channel checks and strength in Prisma SASE.

Palo Alto holds a Moderate Buy consensus with 2 strong buy, 36 buy, and 9 hold ratings. There are no sell ratings listed.

CrowdStrike

CrowdStrike remains one of the most-watched names in cybersecurity. Its Falcon platform is closely tied to AI-driven threat detection, cloud security, and platform consolidation.

Investors are watching whether demand holds as companies look to reduce the number of security vendors they use.

CrowdStrike holds a Moderate Buy consensus with 37 buy, 13 hold, and 1 sell rating.

Final Thoughts

Fortinet and Datadog have strong near-term momentum following earnings. Palo Alto and CrowdStrike remain major platform leaders with broad analyst support.

Cloudflare is the most volatile of the five, with a workforce cut and a sharp stock drop putting it under close watch.

CrowdStrike’s consensus sits at Moderate Buy with 37 buy ratings, 13 hold, and just 1 sell.

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