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Can AT&T's Cisco-Powered Quantum Security Network Drive Profits?

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Key Takeaways

  • AT&T launched North America's first PQC-enabled SD-WAN service with Cisco for enterprises.
  • T uses Cisco's 8000 Series Secure Router to strengthen encryption and data protection.
  • AT&T Business added SSE features to SD-WAN offerings to boost security and performance.

AT&T Inc. (T - Free Report) has launched a new secure networking service with Cisco Systems, Inc. (CSCO - Free Report) to help businesses protect their data from quantum-computing-induced cyber threats. This initiative makes AT&T the first major telecom firm in North America to offer Post-Quantum Cryptography (PQC)-enabled Software-Defined Wide Area Network (SD-WAN) solution for a stronger, future-ready network security.

AT&T is using Cisco’s 8000 Series Secure Router to help businesses protect sensitive data from future cyber threats related to quantum computing. As quantum technology advances, current encryption methods may become easier to break, creating concerns for industries such as finance, healthcare and government.  The new PQC-enabled SD-WAN solution uses advanced security technology based on NIST standards to provide stronger encryption, secure authentication, resilient connections and long-term data protection for businesses.

The new offering strengthens AT&T’s long-term partnership with Cisco in enterprise networking and security. By combining its network expertise with Cisco’s advanced security technology, the companies aim to deliver reliable connectivity solutions for modern enterprises facing evolving digital risks.

In addition, AT&T Business is adding Security Service Edge (SSE) features to its SD-WAN solutions to help businesses improve network security and performance, while staying prepared for the quantum era, further strengthening its position in next-generation cybersecurity.

How Are Competitors Advancing in Cybersecurity?

AT&T faces stiff competition from Verizon Communications, Inc. (VZ - Free Report) and T-Mobile, US, Inc. (TMUS - Free Report) . Verizon provides cybersecurity solutions to help businesses protect their networks, cloud systems and data from cyber threats. The company offers services such as threat detection, risk management, secure connectivity and security support to improve business security. Verizon is also strengthening its cybersecurity business through partnerships and advanced technologies.

T-Mobile helps businesses keep their networks, devices and data safe from cyber threats through its cybersecurity services. The company provides solutions like threat protection, mobile security and risk management to support safe business operations. Through partnerships, T-Mobile is also improving its cybersecurity business.

T’s Price Performance, Valuation & Estimates

AT&T shares have lost 6% over the past year compared with the industry’s decline of 9.8%.

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From a valuation standpoint, AT&T trades at a forward price-to-sales ratio of 1.32, below the industry tally of 1.73.

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Image Source: Zacks Investment Research

Earnings estimates for 2026 have increased 1.3% to $2.30 over the past 60 days, while the same for 2027 have remained static at $2.52.

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Image Source: Zacks Investment Research

AT&T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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