Andra AP fond v 1. čtvrtletí zvýšil podíl v Cisco Systems o 23,1 % a nakoupil dalších 107 689 akcií. Nyní drží 574 167 akcií v hodnotě 44,55 milionu USD.
Andra AP fonden boosted its position in Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) by 23.1% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 574,167 shares of the network equipment provider’s stock after purchasing an additional 107,689 shares during the period. Cisco Systems comprises 0.6% of Andra AP fonden’s portfolio, making the stock its 25th biggest holding. Andra AP fonden’s holdings in Cisco Systems were worth $44,550,000 at the end of the most recent quarter.
A number of other large investors have also made changes to their positions in CSCO. Norges Bank bought a new stake in shares of Cisco Systems during the 4th quarter valued at $4,473,272,000. Auto Owners Insurance Co raised its holdings in Cisco Systems by 8,718.3% in the 4th quarter. Auto Owners Insurance Co now owns 51,952,421 shares of the network equipment provider’s stock worth $400,190,000 after purchasing an additional 51,363,281 shares during the period. Price T Rowe Associates Inc. MD raised its holdings in Cisco Systems by 103.2% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 29,289,151 shares of the network equipment provider’s stock worth $2,256,144,000 after purchasing an additional 14,874,407 shares during the period. Franklin Resources Inc. lifted its position in Cisco Systems by 18.0% during the fourth quarter. Franklin Resources Inc. now owns 50,320,905 shares of the network equipment provider’s stock valued at $3,876,219,000 after purchasing an additional 7,679,422 shares in the last quarter. Finally, Invesco Ltd. lifted its position in Cisco Systems by 11.6% during the fourth quarter. Invesco Ltd. now owns 59,836,782 shares of the network equipment provider’s stock valued at $4,609,227,000 after purchasing an additional 6,224,062 shares in the last quarter. 73.33% of the stock is currently owned by institutional investors.
Wall Street Analysts Forecast Growth CSCO has been the subject of a number of analyst reports. The Goldman Sachs Group upped their price target on Cisco Systems from $116.00 to $125.00 and gave the stock a “neutral” rating in a research report on Wednesday, June 3rd. Piper Sandler lifted their price objective on Cisco Systems from $86.00 to $132.00 and gave the company a “neutral” rating in a research report on Thursday, May 14th. New Street Research boosted their price objective on Cisco Systems from $82.00 to $122.00 and gave the company a “neutral” rating in a research note on Thursday, May 14th. Zacks Research raised shares of Cisco Systems from a “hold” rating to a “strong-buy” rating in a report on Tuesday, June 30th. Finally, BNP Paribas Exane raised their target price on shares of Cisco Systems from $87.00 to $132.00 and gave the stock an “outperform” rating in a research note on Thursday, May 14th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $123.14.
Read Our Latest Report on Cisco Systems
Trending Headlines about Cisco Systems Here are the key news stories impacting Cisco Systems this week:
Positive Sentiment: Wall Street Zen upgraded Cisco Systems to “Buy,” adding to a generally favorable analyst backdrop for the stock. Wall Street Zen Upgrades Cisco Systems (NASDAQ:CSCO) to “Buy” Positive Sentiment: Cisco continues to be viewed as an AI infrastructure play, with reports noting that the company has raised its AI order target and is working on quantum networking and AI-powered Webex Contact Center tools, which could support longer-term growth. Cisco (CSCO) Tests Quantum Networking While Webex Adds AI Contact Center Partner Positive Sentiment: Commentary around Cisco’s stock remaining below its 52-week high despite strong year-to-date gains has fueled additional bullish price-prediction headlines, reinforcing optimism about the company’s AI-related upside. Price Prediction: Cisco Stock Will Double on This Date Neutral Sentiment: Cisco has been labeled a “trending stock” in recent Zacks coverage, reflecting heightened investor attention rather than a clear new catalyst. Here is What to Know Beyond Why Cisco Systems, Inc. (CSCO) is a Trending Stock Neutral Sentiment: Analyst-focused articles reiterate that consensus brokerage ratings remain constructive, but they do not point to a major new business catalyst. Wall Street Analysts Think Cisco (CSCO) Is a Good Investment: Is It? Negative Sentiment: Cisco fell alongside a broader market dip, and one article specifically highlighted that CSCO’s decline was slightly worse than the market’s move, contributing to near-term weakness. Cisco Systems (CSCO) Sees a More Significant Dip Than Broader Market: Some Facts to Know Negative Sentiment: Reports that Cisco may be considering a $150 million to $200 million acquisition of Zafran Security created some uncertainty, especially after the startup denied active sale talks, which may have weighed on sentiment. Cisco Systems (CSCO) Stock Dips Amid Zafran Security Acquisition Reports Cisco Systems Stock Down 1.1% Shares of CSCO opened at $110.70 on Tuesday. The business’s 50 day moving average is $117.63 and its 200 day moving average is $93.67. The company has a current ratio of 0.92, a quick ratio of 0.81 and a debt-to-equity ratio of 0.40. Cisco Systems, Inc. has a 12-month low of $65.75 and a 12-month high of $130.37. The company has a market capitalization of $436.32 billion, a PE ratio of 35.94, a price-to-earnings-growth ratio of 2.85 and a beta of 1.02.
Cisco Systems (NASDAQ:CSCO – Get Free Report) last posted its quarterly earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share for the quarter, topping the consensus estimate of $1.03 by $0.03. The business had revenue of $15.84 billion during the quarter, compared to the consensus estimate of $15.56 billion. Cisco Systems had a return on equity of 28.44% and a net margin of 20.14%.The firm’s revenue for the quarter was up 12.0% compared to the same quarter last year. During the same period in the prior year, the company posted $0.96 EPS. Cisco Systems has set its Q4 2026 guidance at 1.160-1.180 EPS and its FY 2026 guidance at 4.270-4.290 EPS. Research analysts expect that Cisco Systems, Inc. will post 3.54 earnings per share for the current fiscal year.
Cisco Systems Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 22nd. Shareholders of record on Monday, July 6th will be paid a $0.42 dividend. The ex-dividend date is Monday, July 6th. This represents a $1.68 annualized dividend and a yield of 1.5%. Cisco Systems’s payout ratio is presently 54.55%.
Insider Buying and Selling at Cisco Systems In other news, EVP Oliver Tuszik sold 2,761 shares of the firm’s stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $114.61, for a total transaction of $316,438.21. Following the completion of the transaction, the executive vice president owned 180,877 shares in the company, valued at $20,730,312.97. This trade represents a 1.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 7,127 shares of the firm’s stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $119.91, for a total value of $854,598.57. Following the transaction, the executive vice president owned 140,857 shares of the company’s stock, valued at $16,890,162.87. This represents a 4.82% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 47,650 shares of company stock worth $5,668,823. Insiders own 0.01% of the company’s stock.
About Cisco Systems (Free Report)
Cisco Systems, Inc is a global technology company that designs, manufactures and sells networking hardware, software and telecommunications equipment. Its core business focuses on enabling enterprise and service-provider networks through products such as routers, switches, network security appliances and wireless systems. Over time Cisco has broadened its portfolio to emphasize software-defined networking, cybersecurity, cloud infrastructure and edge computing solutions that help organizations build and manage modern IT environments.
In addition to hardware, Cisco offers a growing range of software platforms and subscription services for network management, security, analytics and collaboration.
Further Reading Five stocks we like better than Cisco Systems The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story Want to see what other hedge funds are holding CSCO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Cisco Systems, Inc. (NASDAQ:CSCO – Free Report).
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Cisco Systems (NASDAQ: CSCO) is set to pay its next quarterly dividend on July 22, 2026, providing shareholders with another cash distribution as the networking giant continues to benefit from strong AI-driven demand and enterprise infrastructure spending.
According to the dividend data, Cisco’s upcoming dividend payment is $0.42 per share, unchanged from the previous quarter.
Cisco dividend payment date. Source: Dividend.com The company currently offers a forward annual dividend of $1.68 per share and a dividend yield of approximately 1.53%.
Cisco dividend details. Source: Dividend.com For investors holding 100 shares of CSCO stock, the upcoming dividend payment will amount to $42 before applicable taxes.
On an annualized basis, an investor holding 100 Cisco shares would generate about $168 in dividend income, assuming the company maintains its current payout rate of $1.68 per share annually.
Notably, Cisco has increased its dividend for 14 consecutive years, highlighting its commitment to returning capital to shareholders.
The company pays dividends every quarter and currently maintains a forward payout ratio of 35.11%, leaving room for continued shareholder distributions while funding growth initiatives.
Cisco stock fundamentals The latest CSCO dividend payout comes as Cisco continues to post strong operational performance in 2026.
The company reported fiscal third-quarter revenue of $15.84 billion, up 12% year-over-year, while non-GAAP earnings per share reached $1.06.
AI infrastructure has emerged as a major growth driver for Cisco, with the company reporting $5.3 billion in AI-related orders year-to-date and raising its fiscal 2026 AI order target to $9 billion.
Despite concerns about valuation following a strong rally earlier in the year, analysts continue to view Cisco as a key beneficiary of ongoing investments in AI networking, data center infrastructure, and enterprise technology upgrades.
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Cisco zvýšila cíl objednávek AI infrastruktury pro fiskální rok 2026 na zhruba 9 miliard USD díky silné poptávce hyperscalerů. Objednávky enterprise switching vzrostly o více než 40 % a objednávky campus networking o více než 25 %.
Key Takeaways Cisco raised its fiscal 2026 AI infrastructure order target to about $9 billion on hyperscaler demand.Enterprise switching orders rose over 40%, while campus networking orders increased more than 25%.Acacia secured over $1 billion in quarterly orders and is expected to grow more than 200% in fiscal 2026. Cisco Systems (CSCO - Free Report) shares have jumped 52% year to date (YTD), outperforming the broader Zacks Computer & Technology sector’s return of 14.7%. The company has been benefiting from a strong AI push, a networking supercycle, improving its enterprise networking business and recovering its security business. These factors have helped in improving Cisco’s competitive prowess compared with the likes of Hewlett Packard Enterprise (HPE - Free Report) , Broadcom (AVGO - Free Report) and Arista Networks (ANET - Free Report) , shares of which have appreciated 106.4%, 39.4% and 12.6%, YTD, respectively. Is there room for further upside in Cisco shares? Let’s find out.
CSCO Stock’s Price Performance
Image Source: Zacks Investment Research
AI Push & Strong Networking Growth Aids Cisco’s ProspectsCisco’s growing AI infrastructure business has been a major growth driver. The company raised its fiscal 2026 AI infrastructure order target from $5 billion to approximately $9 billion, reflecting stronger-than-expected hyperscaler demand. Cisco secured five new hyperscaler AI design wins during the third quarter of fiscal 2026, including Silicon One-powered systems and Acacia optical networking products. This reinforces investor confidence that the AI networking opportunity is expanding beyond a handful of deployments. Cisco now expects to recognize approximately $4 billion in AI infrastructure revenues from hyperscalers in fiscal 2026. The company expects at least $6 billion of AI-related revenues in fiscal 2027, indicating strong visibility into future growth.
Cisco is a key beneficiary of the networking supercycle as hyperscalers, enterprises, sovereign cloud operators, public-sector organizations and telecom providers modernize networks simultaneously to support AI workloads. The company believes this demand is larger and faster than previous technology cycles because AI infrastructure cannot function without modern, high-speed networking. In the third quarter of fiscal 2026, enterprise data center switching orders grew more than 40%, campus networking orders reached record levels (up more than 25%), and wireless orders increased more than 40% year over year.
The Acacia optics business generated more than $1 billion of orders in the third quarter of fiscal 2026 and is expected to grow over 200% in fiscal 2026, positioning Cisco to capture a larger share of AI networking spend. The business has shipped more than 750,000 400G coherent optics and over 40,000 800G coherent optics, giving Cisco leadership in AI optical interconnects. Meanwhile, Silicon One continues winning large hyperscaler deployments, strengthening Cisco's competitive position in AI networking.
The company’s refreshed security portfolio is gaining traction, with double-digit order growth in core security products (excluding Splunk) and strong firewall momentum. Cisco is leveraging its unique position across networking, security, identity and observability to address emerging AI security needs, including agentic AI security, AI Defense, Hypershield and Zero Trust Access. Cisco has also expanded its Secure AI Factory with NVIDIA and announced acquisitions of Galileo and Astrix to strengthen AI identity and agentic security capabilities.
Cisco’s Prospects: Key Catalysts Outweigh ChallengesCisco’s prospects are likely to benefit from accelerating AI networking demand. Continued expansion of Silicon One, Acacia optics and AI switching is expected to support another leg of growth. A strong pipeline of AI infrastructure buildout ($3 billion roughly) across enterprise, sovereign AI and neocloud customers suggests that AI demand is broadening beyond hyperscalers. Cisco believes campus upgrades remain in the early innings as enterprises migrate to Wi-Fi 7, AI-enabled switching and secure networking.
In terms of the Security business, Cisco expects easier comparisons beginning in fiscal 2027 as Splunk’s cloud transition normalizes. Combined with stronger adoption of Hypershield, AI Defense and Zero Trust, Security could become a faster growth contributor. Strong adoption of agentic AI bodes well for Cisco’s prospects. The company believes that agentic AI requires security to be embedded directly into networking infrastructure, an area where Cisco has a competitive advantage over pure networking or standalone cybersecurity vendors.
These positive drivers are expected to help Cisco comfortably navigate challenges related to higher memory prices, Splunk’s cloud transition, stiff competition and heightened AI-related spending.
2026 Earnings Estimate Revisions Positive for CSCOThe Zacks Consensus Estimate for CSCO’s fiscal 2026 earnings is currently pegged at $4.28 per share, up 0.9% over the past 60 days, indicating year-over-year growth of 12.3%.
The consensus mark for CSCO’s fourth-quarter fiscal 2026 earnings is currently pegged at $1.17 per share, up a penny over the past 60 days, indicating year-over-year growth of 18.2%.
CSCO Shares Are Trading at a PremiumCisco shares are trading at a premium, as suggested by the Value Score of F. In terms of the forward 12-month price/sales, CSCO is trading at a premium of 6.83X, higher than the broader sector’s 6.79X and Hewlett Packard Enterprise’s 1.35X.
However, Cisco shares are trading at a discount compared with Arista Networks and Broadcom. In terms of the forward 12-month P/S, Arista Networks and Broadcom shares are trading at 17.8X and 12.18X, respectively.
CSCO Stock’s Valuation
Image Source: Zacks Investment Research
ConclusionDespite trading at a modest premium, Cisco’s improving fundamentals and expanding AI opportunity continue to support a constructive long-term outlook. Strong momentum in AI infrastructure, Silicon One, Acacia optics, campus networking and security, combined with rising earnings estimates and solid execution, provides multiple avenues for sustained growth. CSCO remains an attractive stock for investors seeking long-term exposure to enterprise networking and AI infrastructure driven by durable demand drivers and increasing revenue visibility.
CSCO currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cisco oznámila silnou poptávku po síťových produktech díky AI infrastruktuře: objednávky vzrostly o více než 50 % a tržby této divize o 25 %. Zároveň zvýšila výhled tržeb na 62,8–63 miliard USD a non-GAAP EPS na 4,27–4,29 USD.
Key Takeaways CSCO's networking business is benefiting from AI infrastructure demand and modernization.Networking product orders jumped more than 50%, marking seven straight quarters of double-digit growth.CSCO raised fiscal 2026 revenue and earnings outlooks as AI and cloud demand accelerate. Cisco Systems’ (CSCO - Free Report) networking business is emerging as one of its strongest growth engines, supported by accelerating AI infrastructure investments, enterprise network modernization and rising bandwidth requirements. Management believes that the industry is entering a "networking super cycle," driven by hyperscaler AI deployments, enterprise AI adoption, sovereign cloud investments and public-sector infrastructure upgrades. As AI workloads become more distributed and bandwidth-intensive, networking is becoming the foundation of AI infrastructure rather than just a connectivity layer.
The improving demand environment offers an excellent growth opportunity for CSCO. In third-quarter fiscal 2026, networking product orders jumped more than 50% year over year, marking the seventh consecutive quarter of double-digit growth. Product revenues from networking increased 25%, driven by AI infrastructure, campus refresh projects, data center switching, wireless and service-provider routing.
Campus networking orders climbed more than 25%, while data center switching orders rose more than 40%, reflecting growing enterprise investments to prepare networks for AI-driven traffic growth. Cisco expects a multi-year, multi-billion-dollar campus refresh cycle as enterprises replace aging infrastructure with AI-ready networking platforms.
Cisco is also strengthening its competitive position through differentiated networking technologies. Silicon One has become a strategic advantage, enabling the company to provide custom silicon, systems and software tailored to hyperscaler requirements while reducing dependence on merchant silicon. Management noted that Silicon One is central to its AI networking strategy, with new hyperscaler design wins across scale-up and scale-out AI deployments.
At the same time, Acacia optics continues to benefit from the rapid expansion of AI clusters, generating more than $1 billion in quarterly orders as demand for coherent optical interconnects accelerates.
Cisco Offers Positive GuidanceCisco appears well-positioned to capitalize on sustained networking demand. Management expects AI infrastructure orders from hyperscalers to reach $9 billion in fiscal 2026, while growing enterprise, sovereign cloud and neocloud deployments should provide an additional long-term growth avenue.
For fiscal 2026, Cisco raised its outlook to revenues of $62.8 billion to $63 billion, and non-GAAP earnings of $4.27-$4.29 per share. The company also announced a restructuring plan to reallocate resources toward silicon, optics, security and AI, and expects up to $1 billion of pretax charges, including roughly $450 million in the fourth quarter of fiscal 2026, with the remainder in fiscal 2027.
CSCO Faces Tough CompetitionCisco is facing stiff competition from Arista Networks (ANET - Free Report) and Hewlett Packard Enterprise (HPE - Free Report) . Both Arista Networks and HPE are expanding their footprint in the networking domain.
Arista is a leader in high-speed Ethernet switching, particularly 100G, and is benefiting from rising demand for 800G and faster networking. Growth is driven by large data center expansions supporting distributed computing and cloud infrastructure. Arista’s software stack, including EOS, CloudVision and AVD, simplifies network management. Customers include cloud providers, enterprises and telecom companies expanding across industries like manufacturing, insurance and telecom.
Hewlett Packard Enterprise focuses on AI, industrial IoT and distributed computing as the next major growth markets. The company sees these areas as key drivers of future infrastructure demand. The acquisition of Juniper Networks has strengthened Hewlett Packard Enterprise’s position in networking, expanding its capabilities across AI, cloud and hybrid environments. This has helped improve its competitive position in large-scale modern infrastructure deployments.
CSCO’s Share Price Performance, Valuation & EstimatesCisco shares have appreciated 46.3% year to date, outperforming the broader Zacks Computer and Technology sector’s rise of 14.6%.
CSCO Stock Outperforms Sector
Image Source: Zacks Investment Research
The Cisco stock is trading at a premium, with a forward 12-month price/earnings of 23.77X compared with the broader sector’s 22.73X. CSCO has a Value Score of F.
CSCO’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2026 earnings is currently pegged at $4.28 per share, up 2.6% over the past 30 days, suggesting 12.3% growth from the fiscal 2025 reported figure.
Cisco currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cisco oznámilo rekordní čtvrtletní tržby ve výši 15,8 miliardy USD, zvýšilo celoroční výhled a očekává objednávky na AI infrastrukturu v objemu 9 miliard USD od hyperscalerů ve FY26.
Cisco Systems (NASDAQ:CSCO | CSCO Price Prediction) has quietly become one of the most compelling AI infrastructure plays in the market, even as retail chatter has turned sour.
The company just posted record quarterly revenue of $15.8 billion, raised full-year guidance, and told investors it now expects to book $9 billion in AI infrastructure orders from hyperscalers in FY26. Yet Reddit sentiment sits firmly bearish. Our proprietary model sides with management.
The 24/7 Wall St. price target for Cisco is $133.66, implying 13.79% upside from the current $117.46. Our recommendation is buy, with confidence at 90%.
24/7 Wall St. Price Target Summary Metric Value Current Price $117.46 24/7 Wall St. Price Target $133.66 Upside 13.79% Recommendation BUY Confidence Level 90% The Stock Has Nearly Doubled Since April Cisco is up 54.12% year to date and 73.17% over the past year, though shares have cooled 3.05% over the last week and trade about 10% off the 52-week high of $130.37.
The catalyst was the May 13 earnings release, where CSCO delivered its fourth consecutive EPS beat at $1.06 and revenue growth of 11.96% year over year. The stock jumped 13.41% on earnings day. Networking revenue surged 25%, and total product orders climbed 35%. Management raised FY26 revenue guidance to $62.8 billion to $63 billion and EPS to $4.27 to $4.29.
The Case for $140+ The bull case rests on AI infrastructure durability. CFO Mark Patterson told analysts “it’s reasonable to expect we will recognize at least $6 billion of revenue in FY ’27” from hyperscale AI alone. Acacia optics orders topped $1 billion in Q3, and Cisco booked five new Silicon One design wins with hyperscalers.
CEO Chuck Robbins said “Cisco is well-positioned as the critical infrastructure for the AI era.” Enterprise data center switching orders jumped over 40%, and public sector orders rose 27%. Our bull scenario points to $140.03, a 19.22% return.
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The Risks Worth Watching The trailing P/E of 38 is rich for a company whose long-term model is 4% to 6% growth in totality. Non-GAAP gross margins compressed 260 basis points on AI hardware mix, and Cisco is absorbing up to $1 billion in restructuring charges. Hyperscaler concentration is real: strip out webscale and order growth was 19%, of which 4 to 5 percentage points came from price increases rather than unit growth.
Insider activity has skewed net selling across 44 recent transactions. That said, bulls would note Patterson said “gross margins have stabilized” and the restructuring reinvests into silicon and optics, where Cisco is winning. Our bear case lands at $111.02.
Cisco Price Prediction 2026-2030 The 24/7 Wall St. price target of $133.66 reflects a buy with 90% confidence. The scale tips on AI order momentum: a jump to $9 billion of hyperscaler orders from an initial $5 billion plan represents a real backlog with a $6 billion FY27 revenue floor.
The bullish thesis holds if hyperscaler capex sustains through 2027 and Silicon One keeps taking share. The bearish scenario plays out if enterprise pull-forward reverses in FY27 or memory costs re-inflate.
Year 24/7 Wall St. Price Target 2026 $133.66 2027 $145.00 2028 $158.00 2029 $170.00 2030 $180.89 These projections assume Cisco continues executing on its AI infrastructure roadmap and campus refresh cycle. Significant upside or downside could result from hyperscaler capex trends and Silicon One share gains.
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Cisco zvýšila cíl zakázek na AI infrastrukturu pro fiskální rok 2026 na zhruba 9 miliard USD díky silné poptávce hyperscalerů. Zároveň čeká tržby 62,8–63 miliard USD a non-GAAP EPS 4,27–4,29 USD.
Key Takeaways CSCO shares trade at a premium, but AI demand and networking strength support the valuation.CSCO raised its fiscal 2026 AI infrastructure order target to about $9 billion on hyperscaler demand.CSCO expects fiscal 2026 revenues of $62.8-$63 billion and non-GAAP EPS of $4.27-$4.29. Cisco Systems (CSCO - Free Report) shares are trading at a premium, as suggested by the Value Score of F. In terms of the forward 12-month price/sales, CSCO is trading at a premium of 7.01X, higher than the Zacks Computer Networking industry’s 6.76X and Hewlett Packard Enterprise’s (HPE - Free Report) 1.3X. However, Cisco shares are trading at a discount compared with Arista Networks (ANET - Free Report) and Broadcom (AVGO - Free Report) . In terms of the forward 12-month P/S, Arista Networks and Broadcom shares are trading at 16.78X and 13.61X, respectively.
CSCO Stock’s Valuation
Image Source: Zacks Investment Research
So, is the Cisco stock a buy at this level? Let’s find out.
AI Push & Strong Networking Portfolio Aids Cisco’s ProspectsYear to date (YTD), CSCO shares have appreciated 55.2%, outperforming the broader Zacks Computer & Technology sector, as well as Broadcom and Arista Networks, but lagging Hewlett Packard Enterprise. The broader sector, Hewlett Packard Enterprise, Arista Networks and Broadcom have jumped 20%, 97.4%, 29.5% and 18.9%, respectively, over the same time frame.
CSCO Stock’s Price Performance
Image Source: Zacks Investment Research
The outperformance can be attributed to strong AI revenues. Cisco raised its fiscal 2026 AI infrastructure order target from $5 billion to approximately $9 billion, reflecting stronger-than-expected hyperscaler demand. YTD, AI infrastructure orders have already reached $5.3 billion, exceeding the original annual target with one quarter remaining. The company expects to recognize approximately $4 billion in AI infrastructure revenues from hyperscalers in fiscal 2026. Cisco expects at least $6 billion of AI-related revenues in fiscal 2027, indicating strong visibility into future growth.
Cisco is benefiting from a multi-year networking refresh cycle as third-quarter fiscal 2026 enterprise data center switching orders grew more than 40%, campus networking orders reached record levels, and wireless orders increased more than 40% year over year. CSCO believes AI-driven traffic growth will force enterprises to modernize networks over the next several years. The Acacia optics business generated more than $1 billion of orders in the third quarter of fiscal 2026 and is expected to grow over 200% in fiscal 2026, positioning Cisco to capture a larger share of AI networking spend.
The company’s refreshed security portfolio is gaining traction, with double-digit order growth in core security products and strong firewall momentum. The company is leveraging its unique position across networking, security, identity, and observability to address emerging AI security needs, including agentic AI security, AI Defense, Hypershield, and Zero Trust Access. Cisco’s management noted five consecutive quarters of high firewall win rates and expects security growth to improve exiting fiscal 2026.
Cisco’s proprietary Silicon One architecture has been a key differentiator. The company has secured multiple hyperscaler design wins and expects all high-end systems across its portfolio to be powered by Silicon One by fiscal 2029.
CSCO Offers Positive Q4 & FY26 GuidanceCisco expects non-GAAP earnings between $1.16 per share and $1.18 per share for the fourth quarter of fiscal 2026. Revenues are expected to be in the range of $16.7-$16.9 billion.
The Zacks Consensus Estimate for CSCO’s fourth-quarter fiscal 2026 revenues is pegged at $16.85 billion, indicating growth of 14.9% on a year-over-year basis. The consensus mark for CSCO’s earnings is currently pegged at $1.17 per share, unchanged over the past 30 days, indicating year-over-year growth of 18.2%.
For fiscal 2026, CSCO expects revenues to be in the $62.8-$63 billion range compared with $56.7 billion reported in fiscal 2025. Non-GAAP earnings are expected between $4.27 per share and $4.29 per share compared with $3.81 per share reported in fiscal 2025.
The Zacks Consensus Estimate for CSCO’s fiscal 2026 revenues is pegged at $62.95 billion, indicating growth of 11.1% from fiscal 2025. The consensus mark for CSCO’s fiscal 2026 earnings is currently pegged at $4.28 per share, up by a penny over the past 30 days, indicating year-over-year growth of 12.3%.
Here’s Why CSCO Stock is a Buy Right NowCisco is emerging as a major beneficiary of AI infrastructure spending, enterprise network modernization, AI security adoption, and its differentiated Silicon One platform. The company is seeing some of the strongest demand trends in its history, with broad-based order growth across networking, AI infrastructure, optics, and security. These trends are expected to help the stock rally and bode well for CSCO’s long-term prospects. These also justify the current premium valuation.
CSCO currently carries a Zacks Rank #2 (Buy), suggesting that it is the right time to start accumulating the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Datadog i Cisco těží z rostoucí poptávky po observabilitě, ale Cisco má díky Splunku širší platformu a větší opakující se příjmy. DDOG se přitom obchoduje za výrazně vyšší ocenění než CSCO.
Key Takeaways DDOG is expanding its platform and AI observability capabilities, supporting customer adoption.CSCO strengthened observability through Splunk, growing ARR and subscription revenue.DDOG trades at a valuation premium to Cisco despite both benefiting from observability demand. Datadog (DDOG - Free Report) and Cisco Systems (CSCO - Free Report) are key players in the growing observability market, helping enterprises monitor and optimize complex IT environments. As cloud adoption, AI workloads and digital transformation initiatives accelerate, organizations are generating larger volumes of infrastructure, application and security data, driving demand for real-time monitoring and analytics solutions.
Observability platforms have become essential for maintaining performance, reliability and security across modern technology stacks. While Datadog offers a cloud-native observability platform, Cisco has strengthened its position through the Splunk acquisition, expanding its reach across observability, security and AI operations. Both companies are well-positioned to capitalize on the expanding observability opportunity.
Let's examine the fundamentals and growth drivers of both companies to determine which stock offers a better long-term investment opportunity.
The Case for DDOGDatadog continues to strengthen its position in observability through a platform expansion strategy that is driving higher customer adoption and spending. DDOG offers 26 products spanning infrastructure monitoring, application performance monitoring, log management, security and AI observability. This breadth has supported cross-selling momentum, with five products generating more than $100 million in annual recurring revenue (ARR) and three additional products contributing between $50 million and $100 million in ARR. Total ARR surpassed $4 billion in the first quarter of fiscal 2026, highlighting the increasing scale of the platform.
DDOG has been benefiting from strong enterprise demand. Revenues for first-quarter of fiscal 2026 increased 32% year over year, while free cash flow margin remained at 29%. Growth has been broad-based, with the non-AI customer cohort accelerating to the mid-20% range, indicating that demand extends beyond AI-native customers.
AI observability is emerging as a key catalyst. Datadog has expanded its capabilities through GPU Monitoring, LLM Observability and Bits AI offerings, enabling customers to manage complex AI environments. Adoption trends remain encouraging, with Datadog MCP Server tool calls quadrupling sequentially during the fiscal first quarter. DDOG is expanding security observability capabilities to address AI-specific threats while introducing deployment options that help customers meet data residency and compliance requirements.
Further growth is expected to be supported by FedRAMP High certification and a planned U.K. data center expansion. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $4.31 billion, indicating 25.7% year-over-year growth.
The Case for CSCOCisco has been strengthening its observability position through the integration of Splunk, enabling it to offer a broader platform spanning observability and security analytics. Unlike Datadog, Cisco benefits from a large installed base across networking, data center and security infrastructure, creating opportunities to embed observability capabilities deeper within enterprise environments. This integrated approach is expected to support cross-selling and customer retention as organizations increasingly seek unified visibility across their IT operations.
CSCO has also been benefiting from strong enterprise technology spending trends. In the third quarter of fiscal 2026, revenues increased 12% year over year to $15.8 billion, while product orders grew 35% year over year, reflecting broad-based demand across enterprise, public sector and cloud customers. Cisco's recurring revenue profile continues to strengthen, with ARR reaching $31.2 billion and subscription revenues accounting for 49% of total revenues.
Agentic security observability is emerging as a key catalyst. Cisco has been expanding capabilities that combine observability, threat detection and automated response across enterprise environments. Hypershield and AI Defense extend visibility across AI deployments, while the pending acquisitions of Galileo and Astrix are expected to add agentic identity, access management and behavior monitoring capabilities, strengthening the company's observability and security portfolio.
Further growth is likely to be supported by Cisco's expanding software mix, strong cash generation and deep enterprise relationships. The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $62.95 billion, indicating 11.11% year-over-year growth.
DDOG vs. CSCO: Price Performance and ValuationYear to date, shares of CSCO have jumped 55.2%, trailing DDOG's 64% return. Both stocks have benefited from strong AI-related demand, with Datadog's gain led by its AI observability catalysts and Cisco's supported by its broader networking, security and AI infrastructure base.
DDOG Outperforms CSCO YTD
Image Source: Zacks Investment Research
DDOG currently trades at a forward 12-month price-to-sales (P/S) multiple of 16.86X, well above CSCO’s 7.01X. Datadog's premium to Cisco appears difficult to justify given Cisco's expanding observability footprint through Splunk, larger recurring revenue base, broader enterprise reach and growing software subscription business.
DDOG Vs CSCO : Forward 12-Month P/S Valuation
Image Source: Zacks Investment Research
ConclusionBoth Datadog and Cisco are well-positioned to capitalize on the growing observability opportunity. While Datadog continues to deliver robust growth, Cisco has significantly strengthened its position through the integration of Splunk. Given its larger recurring revenue base, broader enterprise footprint and more attractive valuation, CSCO appears to offer a more compelling investment opportunity than DDOG.
DDOG and CSCO carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Nejvyšší soud USA zamítl žalobu, která obviňovala Cisco z pomoci čínské vládě při pronásledování Falun Gongu. Rozhodnutí omezuje využití federálního zákona k žalobám na americké firmy za porušování lidských práv v zahraničí.
The Supreme Court on Tuesday issued a ruling that limits the use of a federal law to hold U.S. corporations liable for human rights abuses abroad when it dismissed a lawsuit that accused Cisco Systems of aiding the Chinese government's religious persecution of the Falun Gong movement.
The 6-3 ruling reversed a lower court's decision that had allowed a lawsuit filed by Falun Gong members in 2011 under the Alien Tort Statute of 1789.
The suit alleged that Cisco knowingly developed technology that enabled China's government to surveil and persecute Falun Gong members.
The Alien Tort Statute had been effectively dormant for nearly 200 years before lawyers started to use it in the 1980s to bring international human rights cases, and the Cisco suit questioned whether it can be used to hold corporations liable if they "aid and abet" human rights abuses through "accomplice liability."
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The Supreme Court dismissed the lawsuit accusing Cisco of aiding the persecution of Falun Gong in China. (Reuters/Evelyn Hockstein)
The Falun Gong movement was founded in China in 1992, and was banned by the Chinese Communist Party (CCP) in 1999, after thousands of the group's members appeared at the central leadership compound in Beijing to stage a silent protest. The group has called for its members to denounce the CCP and has been heavily critical of its leadership in China.
Justice Amy Coney Barrett authored the majority opinion which supported Cisco's argument that the law doesn't support holding companies liable for aiding and abetting human rights abuses.
"Courts cannot create new rights of action to remedy violations of international law, so there is necessarily no liability for aiding and abetting such violations," Barrett wrote as the ruling dismissed the claims against Cisco.
The Supreme Court's ruling split the justices along ideological lines, with the six conservative justices in the majority and the three liberals dissenting.
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The Falun Gong movement is critical of the Chinese Communist Party and its members face persecution in China. (Yasin Ozturk/Anadolu Agency/Getty Images)
Paul Hoffman, a lawyer for the plaintiffs, said they were disappointed with the ruling and called for Congress to take action and create a law "so that victims of serious human rights violations at the hands of U.S. corporations may hold those corporations accountable in U.S. courts under the Alien Tort Statute."
Ticker Security Last Change Change % CSCO CISCO SYSTEMS INC. 119.83 -1.32 -1.09% Additionally, the Supreme Court issued an 8-1 decision that a similar law known as the Torture Victim Protection Act of 1991 didn't permit a group of plaintiffs to move forward with a lawsuit that sought to hold two Cisco executives liable for allegedly aiding and abetting torture.
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Cisco called the allegations against them unfounded and offensive. (David Paul Morris/Bloomberg via Getty Images)
Plaintiffs accused Cisco of knowingly designing and implementing the "Golden Shield," which is an internet surveillance system used by the CCP to target dissidents, and they say China used the system to track and torture Falun Gong members.
FOX Business reached out to Cisco for comment. The company has called the allegations unfounded and offensive.
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The decision by the 9th Circuit Court of Appeals that was reversed by the Supreme Court had held the plaintiffs demonstrated plausible claims that Cisco provided technical assistance to the CCP and permitted it to proceed to discovery in advance of a trial. The Supreme Court's decision dismissed the lawsuit.
