Palo Alto Networks Inc (NYSE:PANW, XETRA:5AP) recently hosted its Quantum-Safe Summit, bringing together experts in quantum computing and cryptography to discuss emerging threats and protections in the era of quantum technology.
The event featured John Martinis, 2025 Physics Nobel Laureate, and Dustin Moody, lead of Post-Quantum Cryptography Standardization Projects at NIST.
According to Wedbush analysts, the summit highlighted the growing importance of preparing for quantum computing, which is expected to challenge current encryption systems.
"Security remains top of mind with quantum computing as it becomes a growing pressure point with these buildouts as quantum computers continue to improve and approach the point of being able to break most encryption forms, creating major risks to data environments,” they wrote.
They noted that governments, including the US, are beginning to mandate shifts to post-quantum cryptography, with a 2030 target cited as a "when, not if" milestone.
Wedbush added that other international agencies are likely to follow suit, as global authorities increasingly recognize the risks of outdated security infrastructures.
Wedbush highlighted a "harvest now, decrypt later" threat, where malicious actors capture data today with the intent to access it once quantum systems can break current encryption.
"It is becoming increasingly critical to provide a path to a quantum-safe future with this complex transformation taking multiple years to play out along with rising risks from the malware landscape,” the analysts wrote.
According to the firm, Palo Alto Networks has already laid groundwork for quantum-safe cybersecurity through initiatives such as its partnership with IBM in November 2025, aimed at helping enterprises prepare for the era of quantum computing.
"With Palo Alto Networks getting ahead of providing necessary protection for the new age of quantum computing, we believe that the company is setting the foundation to benefit from rising demand to protect assets against malware over the coming years,” Wedbush wrote.
Wedbush maintains an ‘Outperform’ rating on Palo Alto Networks with a $225 price target, citing the company’s positioning at the forefront of what it calls "the next stage of technological transformation."
Palo Alto shares traded hands at about $184 on Wednesday afternoon.