3 US Defense And Security Stocks With Real Exposure To Cybersecurity Demand

Markets are already starting to price in the political drama building toward the 2026 US midterms, where questions about democratic resilience, future tariffs and the strength of checks on presidential power could reshape expectations for defense and security spending. This kind of policy crossroads can leave some investors flat footed. Read on to see how three US Defense and Security Stocks from our screener appear positioned against this backdrop.

The three stocks highlighted next are only a small sample of what this theme captures, since the full screen surfaced 38 more US Defense and Security companies with similarly detailed stories that are not covered here.

If you want to go broader and identify your own highest conviction ideas, head straight to the US Defense and Security Stocks screener to filter and analyze the full universe of candidates.

A10 Networks (ATEN)

Overview: A10 Networks provides security and application delivery tools that protect critical networks and data flows across global telecom, enterprise, and public sector customers.

Operations: A10 Networks generates about $310 million from computer services, with roughly $191 million in the United States and $120 million across EMEA, Asia Pacific, Japan, and other Americas.

Market Cap: US$1.78b

A10 Networks matters in this US Defense and Security Stocks theme because its tools help keep critical digital infrastructure secure and resilient when political risk is rising.

"AI infrastructure build-outs are increasing demand for secure, low latency networking. A10 Networks is launching the A10 AI Gateway in Q4 2026 to manage and secure AI agents, applications and LLM traffic."

What really moves the needle from here is how one concentrated source of demand interacts with that growing need for secure AI infrastructure.

That hinge point is where the story gets interesting, and the full narrative for A10 Networks explains how concentrated AI demand, product roll out risk and competition could reshape the opportunity ahead.

Satellogic (SATL)

Overview: Satellogic runs a vertically integrated Earth observation platform, using its own satellites and AI partnerships to supply defense focused geospatial intelligence.

Operations: Satellogic generates about $31.9 million from building satellite constellations, with reported revenue mainly tied to Europe and Asia Pacific.

Market Cap: US$590 million

Satellogic sits squarely in the defense and security theme because its imaging constellations give governments persistent visibility over borders, seas, and critical infrastructure at a moment when policymakers are rethinking surveillance and deterrence priorities.

"The fully funded Merlin constellation, designed to remap the entire planet daily at 1 meter resolution, aligns with growing global demand for persistent situational awareness and could support higher data volumes and analytics usage, which is typically most visible in top line revenue and Data & Analytics gross margins."

What really matters for Satellogic now is how one unresolved capacity bottleneck shapes future pricing power and the quality of long term contracts.

That contract mix is the real hinge, and the full narrative for Satellogic unpacks how Satellogic’s capacity, pricing power and defense demand could be decoupling from short term noise.

Rapid7 (RPD)

Overview: Rapid7 provides cybersecurity platforms and services that help governments and enterprises detect attacks, manage exposure, and respond to threats across on premises and cloud systems.

Operations: Rapid7 generates about $856 million from security software and services, with roughly $603 million in the United States and $253 million from the rest of the world.

Market Cap: US$850 million

Rapid7 matters for this US Defense and Security Stocks screen because its tools help security teams spot intrusions faster and coordinate responses across complex digital infrastructure during periods of heightened political and cyber risk.

"Although Rapid7 is pitching an AI first SOC vision supported by the Kenzo Security platform, the need to keep staffing MDR operations and absorb higher cloud usage has already pressured non GAAP gross margin to around 72%. This raises the risk that AI investments do not translate into the MDR like software margins management is targeting and instead leave gross margin structurally lower."

What investors really need to watch now is how one quiet shift in Rapid7’s business mix filters through to future earnings power.

That quiet shift in mix is exactly where the full narrative for Rapid7 pulls everything together, showing how Rapid7’s AI push could still accelerate earnings power rather than cap it.

Seeking Fresh Alternatives Beyond Defense?

Some of the sharpest breakouts start quietly while attention stays glued to the usual tickers. Scan fresh ideas before the crowd, while it matters, and get in early.

• Spot resilient balance sheets before momentum screens catch them by tracking companies in the list of solid balance sheet and fundamentals (25 results).
• Ride potential cash flow and yield while valuations are still being debated by reviewing the 33 high quality undervalued stocks.
• Front run demand shifts into automation and smart factories by scanning the curated 91 robotics and automation stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com