Palo Alto Networks introduces quantum security and cloud protection

SANTA CLARA - Palo Alto Networks (NASDAQ:PANW), a $118 billion market cap cybersecurity leader with annual revenues exceeding $8.8 billion, unveiled new security solutions on Thursday aimed at helping organizations prepare for quantum computing threats and secure multi-cloud environments. According to InvestingPro data, the company maintains an impressive 73.5% gross profit margin, highlighting its operational efficiency in the competitive software industry.

The cybersecurity company announced a Quantum Readiness Dashboard for its Next-Generation Firewall and Secure Access Service Edge customers, providing visibility into cryptographic risk posture. The release includes cipher translation technology that upgrades applications to be quantum safe, along with 14 new firewall models designed to process post-quantum cryptography. This innovation comes as InvestingPro analysis shows the company trading at premium multiples, reflecting market confidence in its technological leadership. Get access to 12+ additional exclusive ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.

"The quantum threat to encryption is no longer theoretical; it’s an inevitability that demands action now," said Anand Oswal, SVP and GM of Network Security at Palo Alto Networks.

For cloud environments, the company introduced Cloud Network and AI Risk Assessment capabilities that continuously evaluate cloud and AI assets for security vulnerabilities. The system can automatically deploy software firewalls and configure infrastructure to direct traffic through a secure multi-cloud networking mesh.

The National Basketball Association (NBA) is among the organizations using Palo Alto Networks’ platform. "As we expand our multicloud infrastructure, we rely on Palo Alto Networks innovative platform to support this vision," said Mehdi Lahrech, Senior Manager of Hybrid Cloud Networking at the NBA.

These new features will be available through an upgrade to PAN-OS 12.1 Orion, according to the company’s press release statement.

Palo Alto Networks serves more than 70,000 organizations worldwide with AI-powered security solutions across network, cloud, and security operations. The company’s strong market position is reflected in its financial performance, with net income reaching $1.2 billion and revenue growing at ~14% year-over-year. For detailed insights and Fair Value analysis of PANW and 1,400+ other stocks, explore InvestingPro’s comprehensive research reports.

In other recent news, Palo Alto Networks has been the focus of several analyst updates and strategic developments. The company has announced its intention to acquire CyberArk in a cash and equity deal valued at approximately $25 billion, which represents a $5 billion premium over CyberArk’s pre-deal value. This acquisition has prompted Bernstein SocGen to lower its price target for Palo Alto Networks to $204, while maintaining an Outperform rating. Additionally, Rosenblatt has adjusted its price target from $235 to $215, though it continues to recommend a Buy rating.

Meanwhile, Evercore ISI has reiterated its Outperform rating with a price target of $220, focusing on the company’s upcoming fiscal year 2026 guidance. Piper Sandler has upgraded Palo Alto Networks from Neutral to Overweight, raising its price target to $225 due to the company’s platformization success and positive channel feedback. Stifel has also reiterated a Buy rating with a price target of $225, maintaining a positive outlook on the company’s performance. These developments highlight the ongoing interest and varied analyst perspectives surrounding Palo Alto Networks.

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