Cybersecurity stocks are companies that help individuals and organizations protect digital data from cyber threats.
Though many cybersecurity companies are growth stocks in the initial stages of expansion, analysts and investors are bullish about the industry’s growth potential. The number of cyberattacks on Canadian businesses (both small and large) has increased over the last decade. And with cyberattacks from foreign entities becoming a more plausible threat, the need for cybersecurity services grows more urgent by the day.
This heightened demand for more internet protection could make cybersecurity companies great long-term stocks.
Let’s break down what cybersecurity companies are and list some of the best cybersecurity stocks trading on the Toronto Stock Exchange (TSX).
What are cybersecurity stocks?
Cybersecurity stocks are companies designing solutions to safeguard organizations from common cybercrimes, such as ransomware attacks, malware, phishing, and distributed denial-of-service (DDoS) attacks.
Cybercriminals typically want to destroy or change an organization’s data, steal its money, or just wreak havoc. To counteract these cyber threats, cybersecurity companies help organizations protect themselves by strengthening network security, implementing multifactor authentications, providing endpoint security, and even using artificial intelligence to detect break-ins and hunt down criminals.
Why invest in cybersecurity stocks?
Short answer: There’s a strong need for it.
Cybersecurity is quickly becoming a corporate necessity. Companies can no longer get away with having flimsy firewalls or outdated software protecting their networks. Cyberattacks are getting more sophisticated and hitting companies where it hurts—their bank accounts. One cyberattack could easily become an ouch with seven zeros attached to it.
Fortunately, companies are beginning to wake up to their vulnerability. This could be why worldwide cybersecurity spending could climb exponentially higher in the next three years.
If we break that spending down, we’ll see that the heightened demand for cybersecurity is fuelled by three interconnecting catalysts:
- Cyber wars: The war in Ukraine and geopolitical tensions between Russia (and its allies) and the West have increased the likelihood of cyberattacks across borders.
- Remote work: More companies are adopting work-from-home policies, which leaves more devices outside firewalls and vulnerable to attacks.
- Hyper-localized cyberattacks: In a world that’s shrinking to the degree that it’s more digitally connected, hackers can target small- and medium-sized targets from thousands of miles away.
The fear of getting hacked—and allowing malicious users access to sensitive information—is why cybersecurity solutions are becoming so important in our digital world. That’s a good enough reason to consider cybersecurity stocks, as the demand for internet protection isn’t going away anytime soon.
Top cybersecurity stocks in Canada
As of 2024, Canada continues to strengthen its position in the global cybersecurity landscape. The National Cyber Threat Assessment 2025-2026 highlights the evolving cyber threats facing individuals and organizations in Canada, emphasizing the need for robust cybersecurity measures.
In terms of investment, the Canadian government remains committed to enhancing cybersecurity across various sectors. For instance, recent funding initiatives have been announced to bolster cyber resilience in critical infrastructure, helping to accelerate Canada’s growing cybersecurity market sector.
Below are three of the top cybersecurity stocks you’ll find in Canada.
| Cybersecurity Stock | Description |
| Blackberry (TSX:BB) | Builds endpoint security and other cybersecurity solutions, specifically for the healthcare and automotive sectors |
1. Blackberry
Based out of Waterloo, Blackberry has gone from providing the coolest cell phone of pre-smartphone times, to becoming a major player in the cybersecurity sector.
Blackberry uses machine learning (a branch of artificial intelligence) to design cybersecurity solutions that continually improve themselves as they’re tested by all types of cyber threats. The smarter the machine becomes, the less likely malware is capable of breaching an organization’s database, even if the cybersecurity software has never seen the malware before.
Over the past two years, BlackBerry Limited has continued its transformation from a smartphone manufacturer to a software and services company, focusing on cybersecurity and Internet of Things (IoT) solutions. In fiscal year 2024, ending February 29, 2024, the company reported total revenues of $853 million, with both its IoT and Cybersecurity divisions achieving year-over-year growth. The IoT division, particularly through its QNX platform, reached a record royalty backlog of $815 million.
The IoT segment experienced a 13% sequential revenue increase, while the Cybersecurity segment saw a 4% sequential decline. The company is exploring strategic options for its Cylance business, acquired in 2019, to reallocate resources toward its core growth areas in secure communications and IoT.
Investing in foreign cybersecurity markets
Though Canada has some great cybersecurity companies in the works, many of the largest cybersecurity companies trade in the United States. Below are some of the best cybersecurity stocks you can buy on U.S. markets.
| Cybersecurity Stock | Description |
| Crowdstrike Holdings (NASDAQ:CRWD) | The largest cybersecurity company by market cap in the U.S., specializing in endpoint protection |
| Zscaler (NASDAQ:ZS) | Cloud-based cybersecurity company with internet security and end-user monitoring products |
| Okta (NASDAQ:OKTA) | A pioneer in identity and access management, using a security methodology called zero-trust architecture |
Are cybersecurity stocks right for you?
As a high-growth segment of the tech sector, cybersecurity stocks could offer Canadian investors significant upside potential over the long term.
Because corporations and governments have an increased need to safeguard their data from cyberattacks, the products and services offered by cybersecurity companies will likely be in high demand. For buy-and-hold investors, these stocks could present a lucrative opportunity to buy low now and sell high later.
Investors should note that many cybersecurity stocks are growth stocks which are still expanding their businesses. Volatility in the short term should be expected. Market corrections are not uncommon during bearish times and bull runs after severe (and heavily reported) cyberattacks.
You might find the valuations on cybersecurity stocks to be higher than the industry average, as many of these companies will reinvest profits and investor dollars into their own continued expansion.
For investors who don’t want to choose an individual stock, you could also buy shares in a cybersecurity ETF. Two great cybersecurity ETFs you might want to consider:
- Evolve Cyber Security Index ETF (TSX:CYBR)
- iShares Cybersecurity and Tech ETF (NYSE:IHAK)