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Cisco is posting hyperscaler AI order numbers that would make pure-play networking rivals jealous, yet its valuation still reflects a company selling switches to office parks. Something in that gap deserves a closer look.

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Cisco Systems (NASDAQ:CSCO | CSCO Price Prediction) has quietly become one of the most important names in the AI infrastructure buildout, yet trades like a legacy networking vendor. With $9.3 billion in FY2026 hyperscale AI orders and management guiding to $7.5 billion in AI infrastructure revenue in FY2027, the setup for the next twelve months looks compelling.

Our 24/7 Wall St. price target for Cisco is $134.21, roughly 21.47% above the recent close of $110.49. Our recommendation is buy, with a high confidence rating of 90%.

24/7 Wall St. Price Target Summary Metric Value Current Price $110.49 24/7 Wall St. Price Target $134.21 Upside 21.47% Recommendation BUY Confidence Level 90% A Rerating That Hyperscaler Orders Are Powering Cisco is up 45.51% year to date and 63.21% over the past year, driven by a rerating around AI networking. Shares are down 4.74% over the past month after touching a 52-week high of $129.88.

Q4 FY2026 revenue reached $17.252 billion, up 17.58%, beating estimates by 2.52%, while non-GAAP EPS of $1.22 topped consensus by 4.38%, extending the beat streak to five consecutive quarters. Networking revenue grew 28%, and Q4 networking product orders climbed 40%, an eighth consecutive quarter of double-digit growth.

Bull Case for $140+ The bull thesis is straightforward: CEO Chuck Robbins says “we believe the accelerating adoption of agentic AI is fueling a networking super cycle”, and the order book supports it.

Four of the top hyperscalers each grew AI infrastructure orders in Q4, and Acacia optics alone generated over $1 billion in orders (Cisco is one of several picks-and-shovels beneficiaries of that buildout, and we profiled seven of them, from power to cooling to networking, in a free AI infrastructure report).

FY2027 guidance calls for revenue of $72.2 billion to $73.4 billion and non-GAAP EPS of $5.05 to $5.11. If Cisco holds a forward multiple of 27x on FY2028 EPS estimates near $5.60, the bull scenario reaches $139.87, aligning with Wall Street consensus of $137.74.

What Could Go Wrong Non-GAAP gross margin fell to 66.3% from 68.4% year over year on a mix shift toward high-volume AI hardware, and tariff exposure remains a live risk. Restructuring charges announced in May 2026 could weigh on GAAP results.

Management stated operating margin is now the better profitability gauge as hyperscaler scale requires limited incremental operating expense. Our bear-case path lands at $111.44, essentially flat from here.

How Cisco Compares to Arista and HPE Arista Networks (NYSE:ANET) is the pure-play AI networking comp. Q2 2026 revenue grew 37.7% to $3.04 billion, but Arista trades at a trailing P/E near 70x. Cisco’s 21x forward P/E looks cheap for a business showing accelerating networking growth.

Hewlett Packard Enterprise (NYSE:HPE) is the closest scaled competitor post-Juniper. HPE’s Networking segment grew 148.2% in Q2 FY2026 to $2.69 billion, but runs on thinner margins with a trailing P/E stretched by acquisition charges. Against both peers, our $134.21 target for Cisco looks reasonable, arguably conservative given the FY2027 AI revenue ramp.

Company Forward P/E Latest Revenue Growth Cisco 21x 17.58% Arista Networks 70x trailing 37.7% HPE Elevated on charges 40% Cisco Price Prediction 2026-2030 The 24/7 Wall St. price target of $134.21 with a buy rating and 90% confidence reflects a company translating a networking super cycle into real dollars.

The bull case strengthens if FY2027 AI infrastructure revenue tracks toward the $7.5 billion guide. The setup weakens if gross margin dips below 65% without offsetting operating leverage. Right now, the risk/reward tilts constructive.

Year 24/7 Wall St. Price Target 2026 $118 2027 $136 2028 $157 2029 $169 2030 $185 These projections assume Cisco continues executing on hyperscaler AI wins and campus refresh. Meaningful upside or downside could result from Silicon One design wins accelerating or hyperscaler capex normalizing.

Contact [email protected] for any questions or corrections.

BNP Paribas lowered its stake in shares of Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) by 37.2% during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 278,974 shares of the network equipment provider’s stock after selling 165,601 shares during the period. Cisco Systems makes up approximately 0.9% of BNP Paribas’ portfolio, making the stock its 25th biggest holding. BNP Paribas’ holdings in Cisco Systems were worth $32,761,000 at the end of the most recent reporting period.

A number of other hedge funds have also made changes to their positions in CSCO. BlackRock Inc. purchased a new position in Cisco Systems in the 2nd quarter worth about $42,129,647,000. State Street Corp raised its stake in Cisco Systems by 0.5% during the 4th quarter. State Street Corp now owns 195,521,161 shares of the network equipment provider’s stock valued at $15,060,995,000 after purchasing an additional 1,057,962 shares during the period. Morgan Stanley lifted its stake in Cisco Systems by 0.3% in the 4th quarter. Morgan Stanley now owns 75,326,258 shares of the network equipment provider’s stock worth $5,802,382,000 after acquiring an additional 206,352 shares in the last quarter. Invesco Ltd. boosted its stake in shares of Cisco Systems by 11.6% during the 4th quarter. Invesco Ltd. now owns 59,836,782 shares of the network equipment provider’s stock valued at $4,609,227,000 after buying an additional 6,224,062 shares during the period. Finally, Norges Bank acquired a new position in Cisco Systems in the 4th quarter worth about $4,473,272,000. Hedge funds and other institutional investors own 73.33% of the company’s stock.

Cisco Systems News Roundup Here are the key news stories impacting Cisco Systems this week:

Positive Sentiment: Cisco launched a Sovereign Critical Infrastructure portfolio in Canada and expanded its Secure AI Factory with NVIDIA and Supermicro. The offerings target enterprises, neocloud providers and sovereign-cloud customers seeking integrated AI compute, cooling and networking infrastructure. Cisco Unveils Sovereign and AI Infrastructure Offerings Positive Sentiment: Morgan Stanley maintained a $135 price target, citing Cisco’s potential supply advantage through TSMC as shortages continue to affect the AI infrastructure market. This supports the view that Cisco may be positioned to benefit from strong AI networking demand. Morgan Stanley Reveals Cisco’s Supply Edge Positive Sentiment: Cisco’s NVIDIA partnership is also linked to the industry’s shift toward liquid-cooled, high-density AI systems, potentially expanding the company’s role in the broader AI infrastructure buildout. NVIDIA’s AI Chips and Liquid Cooling Positive Sentiment: Analysts comparing Cisco with Hewlett Packard Enterprise highlighted Cisco’s strong hyperscaler AI orders, networking growth and expanding security business as long-term competitive advantages. HPE vs. CSCO Neutral Sentiment: Cisco gave all approximately 90,000 employees access to personal AI agents, demonstrating broad internal adoption of AI, though the immediate financial impact is unclear. Cisco Gives Employees AI Agents Negative Sentiment: A growth-stock analysis questioned whether Cisco can sustain enough growth to support its premium valuation, reviving concerns that enthusiasm surrounding AI networking may have outpaced underlying fundamentals. With a P/E ratio above 30, the stock may be particularly sensitive to any slowdown in growth expectations. Growth Stock Analysis Analyst Upgrades and Downgrades CSCO has been the subject of a number of recent research reports. Truist Financial upped their price objective on shares of Cisco Systems from $125.00 to $140.00 and gave the stock a “buy” rating in a report on Thursday, August 13th. The Goldman Sachs Group upped their target price on Cisco Systems from $116.00 to $125.00 and gave the stock a “neutral” rating in a research report on Wednesday, June 3rd. Evercore increased their price target on Cisco Systems from $110.00 to $150.00 and gave the company an “outperform” rating in a report on Thursday, May 14th. Rosenblatt Securities boosted their target price on shares of Cisco Systems from $150.00 to $165.00 and gave the stock a “buy” rating in a research report on Thursday, August 13th. Finally, KeyCorp raised their target price on Cisco Systems from $130.00 to $135.00 and gave the company an “overweight” rating in a report on Thursday, August 13th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $129.43. Read Our Latest Stock Analysis on CSCO

Insiders Place Their Bets In related news, insider Jeetendra I. Patel sold 7,170 shares of the stock in a transaction on Friday, August 14th. The stock was sold at an average price of $111.57, for a total value of $799,956.90. Following the sale, the insider owned 230,593 shares in the company, valued at approximately $25,727,261.01. This represents a 3.02% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 5,832 shares of the stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $111.47, for a total transaction of $650,093.04. Following the completion of the transaction, the executive vice president directly owned 128,382 shares in the company, valued at approximately $14,310,741.54. This represents a 4.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 53,611 shares of company stock worth $6,066,680 in the last three months. Insiders own 0.01% of the company’s stock.

Cisco Systems Stock Performance Shares of NASDAQ:CSCO opened at $109.93 on Friday. The firm’s 50 day simple moving average is $115.21 and its 200 day simple moving average is $101.24. Cisco Systems, Inc. has a fifty-two week low of $66.13 and a fifty-two week high of $130.37. The company has a market capitalization of $433.28 billion, a price-to-earnings ratio of 32.91, a P/E/G ratio of 2.20 and a beta of 1.02. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.93 and a quick ratio of 0.79.

Cisco Systems (NASDAQ:CSCO – Get Free Report) last announced its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, topping the consensus estimate of $1.17 by $0.05. The firm had revenue of $17.25 billion for the quarter, compared to the consensus estimate of $16.84 billion. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The business’s quarterly revenue was up 17.6% on a year-over-year basis. During the same period last year, the company posted $0.99 EPS. Cisco Systems has set its FY 2027 guidance at 5.050-5.110 EPS and its Q1 2027 guidance at 1.320-1.340 EPS. As a group, sell-side analysts forecast that Cisco Systems, Inc. will post 4.44 earnings per share for the current year.

Cisco Systems Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 21st. Investors of record on Friday, October 2nd will be paid a $0.42 dividend. The ex-dividend date of this dividend is Friday, October 2nd. This represents a $1.68 annualized dividend and a dividend yield of 1.5%. Cisco Systems’s dividend payout ratio (DPR) is currently 50.30%.

Cisco Systems Profile (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.

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Avanda Investment Management Pte. Ltd. bought a new position in Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor bought 5,000 shares of the network equipment provider’s stock, valued at approximately $587,000.

Several other hedge funds and other institutional investors also recently bought and sold shares of the company. Landscape Capital Management L.L.C. acquired a new stake in Cisco Systems during the 2nd quarter valued at approximately $2,607,000. Heartland Bank & Trust Co grew its position in Cisco Systems by 53.7% during the second quarter. Heartland Bank & Trust Co now owns 31,719 shares of the network equipment provider’s stock valued at $3,726,000 after buying an additional 11,081 shares during the period. M1 Capital Management LLC acquired a new position in shares of Cisco Systems in the second quarter worth about $281,000. Ieq Capital LLC boosted its stake in shares of Cisco Systems by 12.7% during the 2nd quarter. Ieq Capital LLC now owns 398,097 shares of the network equipment provider’s stock worth $46,760,000 after acquiring an additional 44,979 shares in the last quarter. Finally, Callan Family Office LLC grew its position in shares of Cisco Systems by 0.8% during the 2nd quarter. Callan Family Office LLC now owns 133,192 shares of the network equipment provider’s stock valued at $15,645,000 after acquiring an additional 1,081 shares during the period. Institutional investors own 73.33% of the company’s stock.

Cisco Systems News Roundup Here are the key news stories impacting Cisco Systems this week:

Positive Sentiment: AI infrastructure orders are supporting Cisco’s growth outlook. Cisco reportedly received approximately $4 billion in AI infrastructure orders during the quarter. Product revenue rose 24% year over year, helping produce record fiscal 2026 results and reinforcing the company’s position as a supplier of networking equipment for AI data centers. Cisco Stock: Buy or Sell? Positive Sentiment: Analyst sentiment remains favorable. Recent research updates raised several price targets, including targets of $135 from Morgan Stanley, $140 from Truist Financial, $150 from Bank of America and $165 from Rosenblatt Securities. Cisco has a consensus rating of “Moderate Buy,” suggesting analysts see additional upside if AI-networking demand translates into sustained earnings growth. Cisco Systems Receives a Rating Update Positive Sentiment: Streaming infrastructure may provide another growth opportunity. Rising demand for low-latency live video, expanded content-delivery capacity and AI-enabled media workflows could increase demand for Cisco’s networking products among streaming platforms, enterprises and cloud providers. What Could Cisco Systems Gain From The Streaming Infrastructure Boom? Neutral Sentiment: An executive sold 5,832 shares valued at approximately $650,000 under a pre-arranged Rule 10b5-1 trading plan. The transaction reduced the executive’s holdings by 4.35%, but the scheduled nature of the sale and substantial remaining ownership lessen its significance as a bearish signal. Cisco Executive SEC Filing Negative Sentiment: Valuation and execution risks remain. With Cisco trading at more than 32 times earnings, investors may be concerned that margin pressure, slower recurring-revenue growth or delays in converting AI orders into profits could limit near-term upside. Wall Street Analyst Weigh In A number of research firms have recently commented on CSCO. HSBC cut Cisco Systems from a “buy” rating to a “hold” rating and cut their price objective for the company from $137.00 to $120.00 in a research report on Friday, August 14th. Piper Sandler boosted their price target on shares of Cisco Systems from $86.00 to $132.00 and gave the stock a “neutral” rating in a report on Thursday, May 14th. KeyCorp increased their price objective on shares of Cisco Systems from $130.00 to $135.00 and gave the company an “overweight” rating in a report on Thursday, August 13th. BNP Paribas Exane lifted their target price on shares of Cisco Systems from $87.00 to $132.00 and gave the company an “outperform” rating in a research report on Thursday, May 14th. Finally, Wall Street Zen raised shares of Cisco Systems from a “hold” rating to a “buy” rating in a research note on Saturday, August 15th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $129.43. Read Our Latest Analysis on CSCO

Insider Activity at Cisco Systems In related news, EVP Deborah L. Stahlkopf sold 6,487 shares of Cisco Systems stock in a transaction on Friday, August 14th. The shares were sold at an average price of $111.53, for a total value of $723,495.11. Following the completion of the sale, the executive vice president owned 167,116 shares in the company, valued at approximately $18,638,447.48. The trade was a 3.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,760 shares of the stock in a transaction on Friday, August 14th. The shares were sold at an average price of $112.46, for a total transaction of $310,389.60. Following the transaction, the executive vice president owned 165,276 shares in the company, valued at $18,586,938.96. This trade represents a 1.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 53,611 shares of company stock valued at $6,066,680. 0.01% of the stock is currently owned by corporate insiders.

Cisco Systems Stock Up 1.3% Shares of NASDAQ CSCO opened at $111.04 on Friday. The stock has a market cap of $437.66 billion, a PE ratio of 33.25, a price-to-earnings-growth ratio of 2.33 and a beta of 1.02. The company has a quick ratio of 0.79, a current ratio of 0.93 and a debt-to-equity ratio of 0.39. Cisco Systems, Inc. has a 52-week low of $66.13 and a 52-week high of $130.37. The business has a 50-day moving average price of $116.02 and a 200 day moving average price of $100.24.

Cisco Systems (NASDAQ:CSCO – Get Free Report) last posted its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, beating analysts’ consensus estimates of $1.17 by $0.05. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The company had revenue of $17.25 billion for the quarter, compared to analyst estimates of $16.84 billion. During the same period in the previous year, the business posted $0.99 earnings per share. Cisco Systems’s quarterly revenue was up 17.6% on a year-over-year basis. Cisco Systems has set its FY 2027 guidance at 5.050-5.110 EPS and its Q1 2027 guidance at 1.320-1.340 EPS. Equities research analysts forecast that Cisco Systems, Inc. will post 4.09 earnings per share for the current year.

Cisco Systems Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 21st. Stockholders of record on Friday, October 2nd will be paid a $0.42 dividend. The ex-dividend date is Friday, October 2nd. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.5%. Cisco Systems’s dividend payout ratio (DPR) is 50.30%.

Cisco Systems Profile (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.

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Alpine Woods Capital Investors LLC bought a new position in Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The fund bought 51,966 shares of the network equipment provider’s stock, valued at approximately $6,104,000. Cisco Systems accounts for 1.3% of Alpine Woods Capital Investors LLC’s investment portfolio, making the stock its 22nd biggest position.

Other large investors have also recently modified their holdings of the company. Bridgewater Advisors Inc. acquired a new stake in Cisco Systems in the 2nd quarter worth approximately $6,442,000. World Investment Advisors grew its position in Cisco Systems by 15.4% during the 4th quarter. World Investment Advisors now owns 198,549 shares of the network equipment provider’s stock worth $13,905,000 after purchasing an additional 26,455 shares during the last quarter. WCG Wealth Advisors LLC increased its stake in Cisco Systems by 101.8% during the 4th quarter. WCG Wealth Advisors LLC now owns 107,306 shares of the network equipment provider’s stock valued at $8,266,000 after purchasing an additional 54,141 shares in the last quarter. Vise Technologies Inc. raised its holdings in shares of Cisco Systems by 47.1% in the fourth quarter. Vise Technologies Inc. now owns 200,341 shares of the network equipment provider’s stock worth $15,432,000 after buying an additional 64,144 shares during the last quarter. Finally, ABN AMRO Bank N.V. purchased a new position in shares of Cisco Systems in the second quarter worth $19,114,000. Institutional investors own 73.33% of the company’s stock.

Analysts Set New Price Targets A number of brokerages have recently weighed in on CSCO. Citigroup boosted their price objective on shares of Cisco Systems from $90.00 to $112.00 and gave the company a “buy” rating in a report on Thursday, May 14th. Barclays raised their target price on Cisco Systems from $121.00 to $123.00 and gave the stock an “equal weight” rating in a research note on Thursday, August 13th. Truist Financial boosted their price target on Cisco Systems from $125.00 to $140.00 and gave the company a “buy” rating in a research note on Thursday, August 13th. Morgan Stanley increased their price objective on Cisco Systems from $130.00 to $135.00 and gave the company an “overweight” rating in a report on Thursday, August 13th. Finally, BNP Paribas Exane raised their price objective on Cisco Systems from $87.00 to $132.00 and gave the stock an “outperform” rating in a research note on Thursday, May 14th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $129.43.

Check Out Our Latest Stock Report on CSCO Cisco Systems News Roundup Here are the key news stories impacting Cisco Systems this week:

Positive Sentiment: Cisco reported record fiscal fourth-quarter revenue of about $17.3 billion, up 18% year over year, and non-GAAP EPS of $1.22, exceeding the $1.17 consensus estimate. Management also forecast fiscal 2027 EPS of $5.05–$5.11 and expects $7.5 billion in AI-infrastructure revenue, reinforcing the company’s growth outlook. Cisco AI infrastructure and margin article Positive Sentiment: Strong AI-infrastructure orders—$4 billion in the latest quarter and $9.3 billion for fiscal 2026—are increasing investor confidence that Cisco is benefiting from data-center networking demand. Reports identifying Cisco among Fabrinet’s AI-related customers provide additional support for the broader AI supply-chain opportunity. Strong AI infrastructure orders article Positive Sentiment: Freedom Capital upgraded Cisco from “hold” to “strong buy.” Other analysts, including Wells Fargo, have raised price targets, and the broader analyst consensus remains “Moderate Buy.” Neutral Sentiment: The earnings-driven selloff has prompted some commentators to call the decline an overreaction, while others recommend diversified ETFs as a lower-risk way to gain exposure to Cisco’s AI growth. This reflects optimism about the business but caution about owning the individual stock. Cisco selloff analysis Negative Sentiment: Gross margin fell to 66.3% and is expected at roughly 65%–66% in the next quarter. Higher memory costs, pricing changes and a heavier hardware mix are supporting revenue but pressuring profitability, raising questions about how sustainable the AI boom will be. Cisco margin pressure article Negative Sentiment: HSBC cut Cisco to “hold,” adding to valuation concerns after the post-earnings decline. CEO Charles Robbins and three other insiders also sold a combined 38,045 shares, although the transactions were made under pre-arranged Rule 10b5-1 plans and the executives retained substantial positions. Cisco Systems Stock Performance NASDAQ CSCO opened at $111.61 on Wednesday. The firm has a market capitalization of $439.90 billion, a P/E ratio of 33.42, a PEG ratio of 2.38 and a beta of 1.02. The stock has a 50-day simple moving average of $116.63 and a two-hundred day simple moving average of $99.71. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.79 and a current ratio of 0.93. Cisco Systems, Inc. has a fifty-two week low of $66.13 and a fifty-two week high of $130.37.

Cisco Systems (NASDAQ:CSCO – Get Free Report) last posted its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, topping the consensus estimate of $1.17 by $0.05. The firm had revenue of $17.25 billion for the quarter, compared to analyst estimates of $16.84 billion. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%.Cisco Systems’s revenue for the quarter was up 17.6% compared to the same quarter last year. During the same period last year, the company earned $0.99 earnings per share. Cisco Systems has set its FY 2027 guidance at 5.050-5.110 EPS and its Q1 2027 guidance at 1.320-1.340 EPS. On average, equities analysts forecast that Cisco Systems, Inc. will post 4.09 earnings per share for the current year.

Cisco Systems Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 21st. Shareholders of record on Friday, October 2nd will be issued a $0.42 dividend. The ex-dividend date of this dividend is Friday, October 2nd. This represents a $1.68 dividend on an annualized basis and a yield of 1.5%. Cisco Systems’s payout ratio is presently 50.30%.

Insider Buying and Selling In related news, CEO Charles Robbins sold 21,628 shares of Cisco Systems stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $111.54, for a total value of $2,412,387.12. Following the completion of the transaction, the chief executive officer owned 602,710 shares in the company, valued at $67,226,273.40. The trade was a 3.46% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jeetendra I. Patel sold 7,170 shares of the company’s stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $111.57, for a total value of $799,956.90. Following the completion of the transaction, the insider directly owned 230,593 shares of the company’s stock, valued at $25,727,261.01. The trade was a 3.02% 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. Insiders have sold 69,179 shares of company stock valued at $7,985,229 in the last ninety days. Company insiders own 0.01% of the company’s stock.

Cisco Systems Company Profile (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.

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Key Takeaways Cisco shares fell 8.4% despite record $17.3 billion revenues and earnings that topped Wall Street estimates.Cisco's AI infrastructure orders reached $4 billion in Q4, lifting its fiscal 2026 pipeline to $9.3 billion.ETFs like IYZ offer Cisco exposure across telecom, internet and cybersecurity industries. Shares of Cisco Systems (CSCO - Free Report) fell as much as 8.4% in the immediate trading session following the release of its fourth-quarter and full-year fiscal 2026 financial results. Despite reporting record quarterly revenues of $17.3 billion and solid earnings that topped Wall Street estimates, investors remained skeptical of the company’s compressed gross margin guidance.

For long-term investors, this post-earnings sell-off may present a compelling buying opportunity, considering Cisco’s dominant position in the expanding artificial intelligence (AI) ecosystem. The company is capitalizing on rapid, AI-driven demand from hyperscalers, which enabled it to generate a solid $4 billion in AI infrastructure orders in the fiscal fourth quarter, bringing its total fiscal 2026 AI order pipeline to $9.3 billion. 

However, direct investment in CSCO shares carries clear single-stock risks. As Cisco expands its footprint in AI data center networking, it faces stiff competition from established players in the industry. If Cisco's Ethernet-based architectures face adoption delays against proprietary alternatives like InfiniBand, or if lower-margin AI hardware shipments continue to pressure profitability, the stock could face continued valuation adjustments. 

For investors seeking to capture Cisco's AI-driven growth trajectory without taking on individual stock risk, exchange-traded funds (ETFs) with heavy allocations to CSCO offer a prudent alternative. This basket approach allows investors to gain exposure to Cisco and the broader networking hardware sector while cushioning against single-stock volatility, margin pressures, and macroeconomic shifts.

Before evaluating these ETFs, let us take a closer look at Cisco's fiscal fourth-quarter performance across key operating metrics.

A Brief Analysis of CSCO's Q4 ResultsCisco's earnings beat the Zacks Consensus Estimate by 4.3%, while revenues topped the mark by 2.4%. On a year-over-year basis, the company registered double-digit growth in its top and bottom-line numbers. 

The reported quarter marked the eighth consecutive quarter of double-digit growth for Cisco’s networking portfolio overall, in line with the company’s view that it is in the midst of a multiyear, multibillion-dollar networking supercycle.

Cisco’s industrial IoT portfolio achieved its ninth consecutive quarter of double-digit order growth, driven by accelerating demand across manufacturing, utilities, and data center facilities in the fiscal fourth quarter. This sustained momentum is fueled by strong demand for ruggedized networking hardware built to operate in harsh environmental conditions.

Circuit, Cisco’s proprietary on-premises AI assistant, is now fully integrated into the company’s operations and supported more than 75 million prompts during the reported quarter.

Looking ahead, CSCO’s management projects AI infrastructure revenues alone to scale to $7.5 billion in fiscal 2027 as cloud titans build out their next-generation data centers. 

The company expects multiple AI design wins across its Silicon One chip families and Optics over the next six months, driven by strong hyperscaler demand for its scalable, programmable architecture.

By fully integrating Silicon One across its networking systems by fiscal 2029, Cisco aims to gain control over its supply chain, silicon, systems, and software to deliver superior performance, security, and market share growth.

CSCO-Heavy ETFs to BuyiShares U.S. Telecommunications ETF (IYZ - Free Report)

This fund, with net assets worth $1.27 billion, offers exposure to 24 U.S. companies that provide telephone and internet products, services, and technologies. Of these, Cisco carries the first spot, holding 20.86% of the fund. 

IYZ has gained 29.3% year to date and charges 37 basis points (bps) as fees. It traded at a volume of 0.66 million shares in the last trading session.

First Trust Dow Jones Internet ETF (FDN - Free Report)  

This fund, with net assets worth $5.41 billion, offers exposure to 41 U.S. companies from the Internet industry. Of these, Cisco carries the third spot, holding 7.38% of the fund. 

FDN has rallied 8.3% year to date and charges 49 bps as fees. It traded at a volume of 0.26 million shares in the last trading session.

First Trust NASDAQ Cybersecurity ETF (CIBR - Free Report)

This fund, with net assets worth $15.84 billion, offers exposure to 42 companies engaged in the cybersecurity segment of the technology and industrials sectors. It includes companies primarily engaged in developing, implementing, and managing security protocols for private and public networks, computers, and mobile devices to protect data integrity and network operations. Of these, Cisco carries the fourth spot, holding 6.64% of the fund. 

CIBR has surged 39.4% year to date and charges 58 bps as fees. It traded at a good volume of 1.29 million shares in the last trading session.

Amplify Cybersecurity ETF (HACK - Free Report)  

With net assets of $3.04 billion, this fund provides exposure to 23 companies actively involved in delivering cybersecurity hardware, software, and services. Of these, Cisco carries the seventh spot, holding 4.88% of the fund. 

HACK has soared 47.1% year to date and charges 60 bps as fees. It traded at a volume of 0.23 million shares in the last trading session.

Posted by Defense World Staff on Aug 16th, 2026

ABN AMRO Bank N.V. purchased a new position in shares of Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) during the second quarter, according to its most recent disclosure with the SEC. The institutional investor purchased 162,736 shares of the network equipment provider’s stock, valued at approximately $19,114,000.

Several other institutional investors and hedge funds have also added to or reduced their stakes in CSCO. Summit Asset Management LLC purchased a new position in shares of Cisco Systems during the second quarter valued at approximately $703,000. S&CO Inc. bought a new stake in shares of Cisco Systems in the 2nd quarter worth $12,583,000. Kelleher Financial Advisors bought a new stake in shares of Cisco Systems in the 2nd quarter worth $1,703,000. EJMK Ventures LLC purchased a new stake in shares of Cisco Systems in the second quarter valued at about $1,200,000. Finally, Bellars Harris Wealth Management LLC purchased a new stake in shares of Cisco Systems in the second quarter valued at about $13,255,000. Institutional investors own 73.33% of the company’s stock.

Analysts Set New Price Targets Several research analysts recently weighed in on the stock. New Street Research boosted their price target on shares of Cisco Systems from $82.00 to $122.00 and gave the stock a “neutral” rating in a report on Thursday, May 14th. UBS Group increased their price objective on shares of Cisco Systems from $132.00 to $138.00 and gave the company a “buy” rating in a research note on Thursday. Bank of America lifted their target price on shares of Cisco Systems from $135.00 to $150.00 and gave the stock a “buy” rating in a research report on Monday, June 8th. The Goldman Sachs Group boosted their target price on Cisco Systems from $116.00 to $125.00 and gave the stock a “neutral” rating in a research note on Wednesday, June 3rd. Finally, Zacks Research lowered Cisco Systems from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 4th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat.com, Cisco Systems presently has a consensus rating of “Moderate Buy” and a consensus target price of $129.43.

Read Our Latest Stock Analysis on Cisco Systems

Insider Buying and Selling at Cisco Systems In other Cisco Systems news, EVP Oliver Tuszik sold 2,607 shares of the firm’s stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $121.12, for a total value of $315,759.84. Following the completion of the sale, the executive vice president directly owned 172,727 shares of the company’s stock, valued at $20,920,694.24. This trade represents a 1.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,400 shares of the business’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $120.03, for a total value of $2,568,642.00. Following the completion of the sale, the chief executive officer owned 637,085 shares in the company, valued at approximately $76,469,312.55. The trade was a 3.25% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 31,134 shares of company stock valued at $3,739,000. Company insiders own 0.01% of the company’s stock.

Cisco Systems Stock Performance Shares of CSCO stock opened at $111.68 on Friday. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.81 and a current ratio of 0.93. The firm has a market cap of $440.18 billion, a price-to-earnings ratio of 33.44, a P/E/G ratio of 2.52 and a beta of 1.02. Cisco Systems, Inc. has a 52 week low of $65.75 and a 52 week high of $130.37. The firm’s 50-day simple moving average is $117.03 and its two-hundred day simple moving average is $99.09.

Cisco Systems (NASDAQ:CSCO – Get Free Report) last released its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share for the quarter, beating analysts’ consensus estimates of $1.17 by $0.05. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The firm had revenue of $17.25 billion during the quarter, compared to the consensus estimate of $16.84 billion. During the same period in the prior year, the firm earned $0.99 EPS. The company’s revenue was up 17.6% compared to the same quarter last year. Cisco Systems has set its FY 2027 guidance at 5.050-5.110 EPS and its Q1 2027 guidance at 1.320-1.340 EPS. As a group, equities analysts forecast that Cisco Systems, Inc. will post 4.09 earnings per share for the current year.

Cisco Systems Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 21st. Shareholders of record on Friday, October 2nd will be issued a dividend of $0.42 per share. This represents a $1.68 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend is Friday, October 2nd. Cisco Systems’s dividend payout ratio is 50.30%.

Key Stories Impacting Cisco Systems Here are the key news stories impacting Cisco Systems this week:

Positive Sentiment: AI demand is accelerating. Cisco reported fiscal Q4 revenue of approximately $17.3 billion, up 18% year over year, and adjusted EPS of $1.22 versus the $1.17 consensus estimate. AI infrastructure orders increased 4.5 times to $9.3 billion for fiscal 2026, while management expects approximately $7.5 billion of hyperscaler AI infrastructure revenue in fiscal 2027. Chuck Robbins Says AI Is Fueling a Networking Supercycle Positive Sentiment: Fiscal 2027 guidance exceeded expectations. Management forecast roughly 15% revenue growth, supported by hyperscaler spending, data-center switching and broader networking upgrades. Several firms—including UBS, Truist, Wells Fargo, KeyCorp, Morgan Stanley and Rosenblatt—raised their price targets and maintained bullish ratings, suggesting long-term upside if the AI networking cycle continues. Cisco Just Gave Investors Three Big Reasons to Be Bullish Neutral Sentiment: The market is demanding faster growth. Despite the earnings beat and upbeat outlook, Cisco’s shares have decreased because expectations were already elevated after a substantial rally. Investors are questioning whether the company’s AI momentum can remain strong beyond the current infrastructure buildout and whether Cisco’s premium valuation is justified. Cisco Shares Slide Despite Earnings Beat and Strong Guidance Negative Sentiment: Margin pressure is the primary concern. AI infrastructure growth is arriving mainly through lower-margin hardware, creating mix-related gross-margin compression and raising questions about how profitably Cisco can scale orders. HSBC downgraded CSCO to Hold from Buy and reduced its price target to $120 from $137, citing a lack of near-term catalysts even after the strong quarter. Cisco Beat on Every Line, Then Fell on What AI Costs to Ship Cisco Systems Profile (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.

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For much of the AI boom, the assumption has been straightforward: as companies adopt artificial intelligence, more computing workloads will move to the public cloud.

Cisco Systems Inc. (NASDAQ:CSCO) is now making a different bet.

The networking giant used its fiscal fourth quarter earnings call to argue that the next phase of enterprise AI will not be defined by cloud migration alone, but by companies bringing more AI infrastructure into their own data centers.

The shift, Cisco argues, is being driven by economics as much as technology. As enterprises move beyond experimenting with AI and begin deploying it at scale, they are looking more closely at where AI workloads should run to balance cost, performance and security.

• Cisco Systems shares are retreating from recent levels. Why is CSCO stock dropping?

On-Premise AI Infrastructure Is Becoming a Strategic Enterprise ChoiceCisco made its position clear during the earnings call.

“We believe on-premise AI infrastructure will become an important option for enterprise customers as they look to optimize both the business value and cost of AI,” Chairman and CEO Chuck Robbins said.

The statement marks a notable departure from the long-held narrative that enterprise AI would increasingly reside inside hyperscale cloud platforms. Instead, Cisco sees businesses adopting a more flexible approach, deploying workloads wherever they make the most operational and financial sense.

That strategy, the company believes, will require significant investments in enterprise infrastructure rather than cloud capacity alone.

Enterprise AI Deployments Are Expanding Beyond the Public CloudCisco said companies deploying AI increasingly need infrastructure capable of supporting AI applications close to where their data is generated and stored.

As Robbins explained, “Enterprises need GPU clusters on premise and at the edge with low-latency, high-bandwidth networking and built-in security, observability and automation, all of which Cisco Systems can provide in a co-designed, vertically integrated stack.”

For businesses handling sensitive information or applications requiring fast response times, keeping AI workloads on premises can reduce delays, improve control over data and potentially lower operating costs. Those requirements, in turn, create demand for networking equipment capable of connecting increasingly complex AI infrastructure.

Cisco Sees Opportunity Regardless of Where AI RunsRather than framing public cloud and private infrastructure as competing models, Cisco believes enterprises will adopt a combination of deployment options.

“Regardless of how or where customers choose to deploy AI — whether in the public cloud, through neo or sovereign clouds, on premise, or at the edge — we believe Cisco Systems will benefit because of the unmatched depth and breadth of our portfolio and our expertise in each scenario,” Robbins said.

Cisco’s outlook reflects a broader evolution in enterprise AI adoption. The first wave of investment centered on cloud providers building massive AI infrastructure. The next may be shaped by enterprises building AI capabilities of their own, creating fresh opportunities for networking vendors as corporate data centers once again become a focal point of technology spending.

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News Summary:

Record top and bottom-line performance with double-digit growth in Q4 and FY 2026, exceeding the high end of guidance ranges Exceptional FY 2026 operating margin results, demonstrating strong execution and operating efficiency Broad-based, record high demand for Cisco technology with a networking supercycle underway Q4 total product orders up 35% year over year; up 25% excluding hyperscalers, with double-digit growth across every geography and customer market Networking product orders grew 40% year over year in Q4, marking the eighth consecutive quarter of double-digit growth Significant momentum and raised expectations for AI infrastructure from hyperscalers $4 billion of orders taken in Q4, bringing the total for FY 2026 to $9.3 billion Delivered approximately $4 billion of revenue in FY 2026; $7.5 billion expected in FY 2027 Q4 FY 2026 Results: Revenue: $17.3 billion Increase of 18% year over year Operating Margin: GAAP: 24.7%; Non-GAAP: 35.9% Earnings per Share: GAAP: $0.97; Non-GAAP: $1.22 GAAP EPS increased 52% year over year Non-GAAP EPS increased 23% year over year FY 2026 Results: Revenue: $63.3 billion  Increase of 12% year over year Operating Margin: GAAP: 24.3%; Non-GAAP: 34.8% Earnings per Share: GAAP: $3.33; Non-GAAP: $4.33 GAAP EPS increased 31% year over year Non-GAAP EPS increased 14% year over year Q1 FY 2027 Guidance: Revenue: $18.0 billion to $18.2 billion Earnings per Share: GAAP: $1.08 to $1.10; Non-GAAP: $1.32 to $1.34 FY 2027 Guidance: Revenue: $72.2 billion to $73.4 billion Earnings per Share: GAAP: $4.00 to $4.06; Non-GAAP: $5.05 to $5.11 Cisco (NASDAQ: CSCO) today reported fourth quarter and fiscal year results for the period ended July 25, 2026. Cisco reported fourth quarter revenue of $17.3 billion, net income on a generally accepted accounting principles (GAAP) basis of $3.9 billion or $0.97 per share, and non-GAAP net income of $4.9 billion or $1.22 per share.

"We delivered a very strong close to fiscal 2026, marking another record year for Cisco. Our record performance is a testament to the accelerated pace of innovation and the excellent execution by our teams," said Chuck Robbins, Chair and CEO of Cisco. "With the breadth and depth of our portfolio and our competitive differentiation in secure networking, Cisco is well positioned to support our customers however or wherever they decide to deploy AI."

"In Q4, we delivered record revenue, non-GAAP operating income and EPS, all exceeding the high end of our guidance ranges and demonstrating strong financial discipline and operating leverage," said Mark Patterson, CFO of Cisco. "In fiscal 2026, Cisco achieved its highest productivity metrics in 30 years measured by revenue, non-GAAP operating margin, and earnings per employee. As we enter fiscal 2027, we remain focused on delivering durable growth, consistent profitability and continued capital returns as we make the strategic investments to capitalize on the significant growth opportunities we see ahead." 

Q4 GAAP Results

Q4 FY 2026

Q4 FY 2025

Vs. Q4 FY 2025

Revenue

$  17.3   billion

$   14.7   billion

18 %

Net Income

$    3.9   billion

$     2.6   billion

51 %

Diluted Earnings per Share (EPS)

$            0.97

$             0.64

52 %

Q4 Non-GAAP Results

Q4 FY 2026

Q4 FY 2025

Vs. Q4 FY 2025

Net Income

$    4.9   billion

$    4.0   billion

23 %

EPS

$            1.22

$            0.99

23 %

Fiscal Year GAAP Results

FY 2026

FY 2025

Vs. FY 2025

Revenue

$   63.3   billion

$  56.7   billion

12 %

Net Income

$   13.3   billion

$  10.2   billion

30 %

EPS

$             3.33

$            2.55

31 %

Fiscal Year Non-GAAP Results

FY 2026

FY 2025

Vs. FY 2025

Net Income

$  17.2   billion

$  15.2   billion

13 %

EPS

$            4.33

$            3.81

14 %

Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP basis are provided in the tables located in the section entitled "Reconciliations of GAAP to non-GAAP Measures."

Cisco Declares Quarterly Dividend

Cisco has declared a quarterly dividend of $0.42 per common share to be paid on October 21, 2026, to all stockholders of record as of the close of business on October 2, 2026. Future dividends will be subject to Board approval.

Financial Summary

All comparative percentages are on a year-over-year basis unless otherwise noted.

Q4 FY 2026 Highlights 

Revenue -- Total revenue was $17.3 billion, up 18%, with product revenue up 24% and services revenue was flat.

Revenue by geographic segment was: Americas up 18%, EMEA up 19%, and APJC up 14%. Product revenue performance reflected growth in Networking up 28%, Security up 14%, Collaboration up 12%, and Observability up 6%.

Gross Margin -- On a GAAP basis, total gross margin, product gross margin, and services gross margin were 64.1%, 62.6%, and 69.4%, respectively, as compared with 63.2%, 61.5%, and 68.3%, respectively, in the fourth quarter of fiscal 2025.

Total gross margins by geographic segment were: 64.5% for the Americas, 70.1% for EMEA and 67.3% for APJC.

On a non-GAAP basis, total gross margin, product gross margin, and services gross margin were 66.3%, 64.8%, and 71.6%, respectively, as compared with 68.4%, 67.5%, and 70.8%, respectively, in the fourth quarter of fiscal 2025.

Operating Expenses -- On a GAAP basis, operating expenses were $6.8 billion, up 10% year over year, and were 39.4% of revenue. Non-GAAP operating expenses were $5.2 billion, up 5%, and were 30.4% of revenue.

Operating Income -- GAAP operating income was $4.3 billion, up 38%, with GAAP operating margin of 24.7%. Non-GAAP operating income was $6.2 billion, up 23%, with non-GAAP operating margin at 35.9%.

Provision for Income Taxes -- The GAAP tax provision rate was 21.8%. The non-GAAP tax provision rate was 18.8%.

Net Income and EPS -- On a GAAP basis, net income was $3.9 billion, an increase of 51%, and EPS was $0.97, an increase of 52%. On a non-GAAP basis, net income was $4.9 billion, an increase of 23%, and EPS was $1.22, an increase of 23%. 

Cash Flow from Operating Activities -- $5.4 billion for the fourth quarter of fiscal 2026, an increase of 27% compared with $4.2 billion for the fourth quarter of fiscal 2025.

FY 2026 Highlights

Revenue -- Total revenue was $63.3 billion, an increase of 12%.

Operating Income -- GAAP operating income was $15.4 billion, up 31%, with GAAP operating margin of 24.3%. Non-GAAP operating income was $22.0 billion, up 13%, with non-GAAP operating margin at 34.8%.

Net Income and EPS -- On a GAAP basis, net income was $13.3 billion, an increase of 30%, and EPS was $3.33, an increase of 31%. On a non-GAAP basis, net income was $17.2 billion, an increase of 13%, and EPS was $4.33, an increase of 14%.

Cash Flow from Operating Activities -- $14.2 billion for fiscal 2026, flat compared with fiscal 2025.

Balance Sheet and Other Financial Highlights

Cash and Cash Equivalents and Investments -- $15.9 billion at the end of the fourth quarter of fiscal 2026, compared with $16.6 billion at the end of the third quarter of fiscal 2026, and compared with $16.1 billion at the end of fiscal 2025.

Remaining Performance Obligations (RPO) -- $46.7 billion, up 7% in total. Product RPO was up 9% and services RPO was up 6%.

Deferred Revenue -- $29.8 billion, up 3% in total, with deferred product revenue up 2%. Deferred services revenue up 4%. 

Capital Allocation -- In the fourth quarter of fiscal 2026, we returned $3.2 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.42 per common share, or $1.7 billion, and repurchased approximately 13 million shares of common stock under our stock repurchase program at an average price of $111.53 per share for an aggregate purchase price of $1.5 billion. The remaining authorized amount for stock repurchases under the program is $8.1 billion with no termination date.

Acquisitions

In the fourth quarter of fiscal 2026, we closed the following acquisitions:

Galileo Technologies, Inc., a privately held observability company Astrix Securities Ltd., a privately held security company focused on Non-Human Identity (NHI) Security Guidance

Cisco expects to achieve the following results for the first quarter of fiscal 2027:

Q1 FY 2027

Revenue

$18.0 billion - $18.2 billion

Non-GAAP gross margin

65% - 66%

Non-GAAP operating margin

35.5% - 36.5%

Non-GAAP EPS

$1.32 - $1.34

Cisco estimates that GAAP EPS will be $1.08 to $1.10 for the first quarter of fiscal 2027.

Cisco expects to achieve the following results for fiscal 2027:

FY 2027

Revenue

$72.2 billion - $73.4 billion

Non-GAAP EPS

$5.05 - $5.11

Cisco estimates that GAAP EPS will be $4.00 to $4.06 for fiscal 2027.

Our Q1 FY 2027 guidance assumes an effective tax provision rate of approximately 15% for GAAP and approximately 18.5% for non-GAAP results. Our FY 2027 guidance assumes an effective tax provision rate of approximately 14.5% for GAAP and approximately 18.5% for non-GAAP results.

A reconciliation between the guidance on a GAAP and non-GAAP basis is provided in the tables entitled "GAAP to non-GAAP Guidance" located in the section entitled "Reconciliations of GAAP to non-GAAP Measures."

Editor's Notes:

Q4 fiscal year 2026 conference call to discuss Cisco's results along with its guidance will be held on Wednesday, August 12, 2026 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international). Conference call replay will be available from 4:00 p.m. Pacific Time, August 12, 2026 to 10:00 p.m. Pacific Time, August 18, 2026 at 1-800-839-2232 (United States) or 1-203-369-3662 (international). The replay will also be available via webcast on the Cisco Investor Relations website at https://investor.cisco.com.  Additional information regarding Cisco's financials, as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, August 12, 2026. The conference call will also be livestreamed on YouTube at https://www.youtube.com/live/yYJFmYwIPeM, LinkedIn at https://www.linkedin.com/events/7490076339694387200 & X at https://x.com/i/broadcasts/1AxRnnDawDgxl. Text of the conference call's prepared remarks will be available within 24 hours of completion of the call. The webcast and livestreaming will include both the prepared remarks and the question-and-answer session. This information, along with the GAAP to non-GAAP reconciliation information, will be available on the Cisco Investor Relations website at https://investor.cisco.com.  CISCO SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per-share amounts)

(Unaudited) 

Three Months Ended

Fiscal Year Ended

July 25,
2026

July 26,
2025

July 25,
2026

July 26,
2025

REVENUE:

Product

$      13,459

$      10,886

$      48,295

$      41,608

Services

3,793

3,787

15,030

15,046

Total revenue

17,252

14,673

63,325

56,654

COST OF SALES:

Product

5,029

4,194

17,781

15,121

Services

1,160

1,199

4,684

4,743

Total cost of sales

6,189

5,393

22,465

19,864

GROSS MARGIN

11,063

9,280

40,860

36,790

OPERATING EXPENSES:

Research and development

2,431

2,380

9,563

9,300

Sales and marketing

2,952

2,818

11,559

10,966

General and administrative

679

706

2,761

2,992

Amortization of purchased intangible assets

226

254

916

1,028

Restructuring and other charges

511

35

693

744

Total operating expenses

6,799

6,193

25,492

25,030

OPERATING INCOME

4,264

3,087

15,368

11,760

Interest income

220

227

866

1,001

Interest expense

(373)

(368)

(1,470)

(1,593)

Other income (loss), net

822

53

1,245

(68)

Interest and other income (loss), net

669

(88)

641

(660)

INCOME BEFORE PROVISION FOR INCOME TAXES

4,933

2,999

16,009

11,100

Provision for income taxes

1,074

449

2,742

920

NET INCOME

$        3,859

$         2,550

$      13,267

$      10,180

Net income per share:

Basic

$          0.98

$           0.64

$          3.36

$           2.56

Diluted

$          0.97

$           0.64

$          3.33

$           2.55

Shares used in per-share calculation:

Basic

3,949

3,960

3,953

3,976

Diluted

3,984

3,992

3,987

3,998

CISCO SYSTEMS, INC.

REVENUE BY SEGMENT

(In millions, except percentages)

July 25, 2026

Three Months Ended

Fiscal Year Ended

Amount

Y/Y%

Amount

Y/Y%

Revenue:

Americas

$      10,396

18 %

$      37,799

12 %

EMEA

4,350

19 %

16,613

12 %

APJC

2,506

14 %

8,914

9 %

Total

$      17,252

18 %

$      63,325

12 %

Amounts may not sum and percentages may not recalculate due to rounding.

CISCO SYSTEMS, INC.

GROSS MARGIN PERCENTAGE BY SEGMENT

(In percentages)

July 25, 2026

Three Months Ended

Fiscal Year Ended

Gross Margin Percentage:

Americas

64.5 %

65.1 %

EMEA

70.1 %

71.2 %

APJC

67.3 %

66.6 %

CISCO SYSTEMS, INC.

REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES

(In millions, except percentages)

July 25, 2026

Three Months Ended

Fiscal Year Ended

Amount

Y/Y %

Amount

Y/Y %

Revenue:

Networking

$         9,791

28 %

$      34,668

22 %

Security

2,226

14 %

8,232

2 %

Collaboration

1,167

12 %

4,300

4 %

Observability

275

6 %

1,095

4 %

Total Product

13,459

24 %

48,295

16 %

Services

3,793

— %

15,030

— %

Total

$      17,252

18 %

$      63,325

12 %

Amounts may not sum and percentages may not recalculate due to rounding.

CISCO SYSTEMS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

July 25,
2026

July 26,
2025

ASSETS

Current assets:

Cash and cash equivalents

$           7,218

$           8,346

Investments

8,700

7,764

Accounts receivable, net of allowance

of $78 at July 25, 2026 and $69 at July 26, 2025

7,470

6,701

Inventories

5,694

3,164

Financing receivables, net

3,392

3,061

Other current assets

6,191

5,950

Total current assets

38,665

34,986

Property and equipment, net

2,760

2,113

Financing receivables, net

4,940

3,466

Goodwill

59,477

59,136

Purchased intangible assets, net

7,557

9,175

Deferred tax assets

7,109

7,356

Other assets

9,129

6,059

TOTAL ASSETS

$       129,637

$       122,291

LIABILITIES AND EQUITY

Current liabilities:

Short-term debt

$         10,161

$           5,232

Accounts payable

3,366

2,528

Income taxes payable

190

1,857

Accrued compensation

4,057

3,611

Deferred revenue

16,988

16,416

Other current liabilities

6,763

5,420

Total current liabilities

41,525

35,064

Long-term debt

19,372

22,861

Income taxes payable

2,339

2,165

Deferred revenue

12,793

12,363

Other long-term liabilities

3,323

2,995

Total liabilities

79,352

75,448

Total equity

50,285

46,843

TOTAL LIABILITIES AND EQUITY

$       129,637

$       122,291

CISCO SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

Three Months Ended

Fiscal Year Ended

July 25,
2026

July 26,
2025

July 25,
2026

July 26,
2025

Cash flows from operating activities:

Net income

$       3,859

$       2,550

$      13,267

$      10,180

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization, and other

638

635

2,540

2,811

Share-based compensation expense

927

948

3,830

3,641

Provision for receivables

12

7

23

24

Deferred income taxes

443

(341)

226

(1,133)

(Gains) losses on divestitures, investments and other, net

(858)

(90)

(1,358)

(38)

Change in operating assets and liabilities, net of effects of acquisitions and
divestitures:

Accounts receivable

(1,019)

(1,428)

(832)

(22)

Inventories

(992)

(332)

(2,541)

209

Financing receivables

(1,801)

(291)

(1,835)

214

Other assets

(430)

17

(1,032)

(499)

Accounts payable

398

267

842

257

Income taxes, net

38

163

(2,304)

(1,839)

Accrued compensation

789

378

457

(53)

Deferred revenue

1,266

772

1,125

248

Other liabilities

2,116

979

1,769

193

Net cash provided by operating activities

5,386

4,234

14,177

14,193

Cash flows from investing activities:

Purchases of investments

(1,607)

(1,523)

(8,974)

(4,589)

Proceeds from sales of investments

129

415

2,013

2,643

Proceeds from maturities of investments

2,294

958

6,105

4,943

Acquisitions, net of cash and cash equivalents acquired and divestitures

(470)

—

(516)

(291)

Purchases of non-marketable equity securities

(247)

(118)

(946)

(383)

Return of investments in non-marketable equity securities

47

198

270

306

Acquisition of property and equipment

(390)

(217)

(1,410)

(905)

Other

(20)

14

(26)

9

Net cash provided by (used in) investing activities

(264)

(273)

(3,484)

1,733

Cash flows from financing activities:

Issuances of common stock

451

416

805

736

Repurchases of common stock - repurchase program

(1,501)

(1,252)

(6,106)

(6,000)

Shares repurchased for tax withholdings on vesting of restricted stock units

(511)

(312)

(1,873)

(1,222)

Short-term borrowings, original maturities of 90 days or less, net

204

448

616

(31)

Issuances of debt

2,408

1,904

13,048

19,292

Repayments of debt

(4,397)

(3,528)

(12,251)

(22,073)

Dividends paid

(1,659)

(1,625)

(6,553)

(6,437)

Other

(1)

—

(33)

(80)

Net cash used in financing activities

(5,006)

(3,949)

(12,347)

(15,815)

Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted
cash and restricted cash equivalents

28

(20)

(29)

(43)

Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash
equivalents

144

(8)

(1,683)

68

Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of
period

7,083

8,918

8,910

8,842

Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period

$       7,227

$       8,910

$       7,227

$       8,910

Supplemental cash flow information:

Cash paid for interest

$          116

$          130

$       1,421

$       1,500

Cash paid for income taxes, net

$          593

$          627

$       4,821

$       3,892

CISCO SYSTEMS, INC.

REMAINING PERFORMANCE OBLIGATIONS

(In millions, except percentages)

July 25, 2026

April 25, 2026

July 26, 2025

Amount

Y/Y %

Amount

Y/Y %

Amount

Y/Y %

Product

$    23,436

9 %

$    22,058

6 %

$    21,572

8 %

Services

23,298

6 %

21,404

2 %

21,961

5 %

Total

$    46,734

7 %

$    43,462

4 %

$    43,533

6 %

CISCO SYSTEMS, INC.

DEFERRED REVENUE

(In millions)

July 25,
2026

April 25,
2026

July 26,
2025

Deferred revenue:

Product

$      13,817

$      13,461

$      13,490

Services

15,964

15,138

15,289

Total

$      29,781

$      28,599

$      28,779

Reported as:

Current

$      16,988

$      16,446

$      16,416

Noncurrent

12,793

12,153

12,363

Total

$      29,781

$      28,599

$      28,779

CISCO SYSTEMS, INC.

DIVIDENDS PAID AND REPURCHASES OF COMMON STOCK

(In millions, except per-share amounts)

DIVIDENDS

STOCK REPURCHASE PROGRAM

TOTAL

Quarter Ended

Per Share

Amount

Shares

Weighted-
Average Price
per Share

Amount

Amount

Fiscal 2026

July 25, 2026

$            0.42

$          1,659

13

$        111.53

$          1,502

$          3,161

April 25, 2026

$            0.42

$          1,660

16

$          80.28

$          1,252

$          2,912

January 24, 2026

$            0.41

$          1,617

18

$          76.29

$          1,351

$          2,968

October 25, 2025

$            0.41

$          1,617

29

$          68.28

$          2,001

$          3,618

Fiscal 2025

July 26, 2025

$            0.41

$          1,625

19

$          64.65

$          1,252

$          2,877

April 26, 2025

$            0.41

$          1,627

25

$          59.78

$          1,504

$          3,131

January 25, 2025

$            0.40

$          1,593

21

$          58.58

$          1,236

$          2,829

October 26, 2024

$            0.40

$          1,592

40

$          49.56

$          2,003

$          3,595

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GAAP TO NON-GAAP NET INCOME

(In millions)

Three Months Ended

Fiscal Year Ended

July 25,
2026

July 26,
2025

July 25,
2026

July 26,
2025

GAAP net income

$        3,859

$        2,550

$      13,267

$      10,180

Adjustments to cost of sales:

Share-based compensation expense

138

150

589

584

Amortization of acquisition-related intangible assets

236

233

918

1,150

Acquisition/divestiture-related costs

4

13

25

66

Legal and indemnification settlements/charges

—

355

—

355

Supplier component remediation charge (adjustment)

—

—

—

(7)

Total adjustments to GAAP cost of sales

378

751

1,532

2,148

Adjustments to operating expenses:

Share-based compensation expense

751

797

3,181

3,019

Amortization of acquisition-related intangible assets

226

255

916

1,029

Acquisition/divestiture-related costs

68

104

350

791

Significant asset impairments and restructurings

511

35

693

744

Total adjustments to GAAP operating expenses

1,556

1,191

5,140

5,583

Adjustments to interest and other income (loss), net:

(Gains) and losses on investments

(869)

(115)

(1,398)

(187)

Total adjustments to GAAP interest and other income (loss), net

(869)

(115)

(1,398)

(187)

Total adjustments to GAAP income before provision for income taxes

1,065

1,827

5,274

7,544

Income tax effect of non-GAAP adjustments

(386)

(426)

(1,490)

(1,682)

Significant tax matters

330

—

198

(829)

Total adjustments to GAAP provision for income taxes

(56)

(426)

(1,292)

(2,511)

Non-GAAP net income

$        4,868

$        3,951

$      17,249

$      15,213

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GAAP TO NON-GAAP EPS

Three Months Ended

Fiscal Year Ended

July 25,
2026

July 26,
2025

July 25,
2026

July 26,
2025

GAAP EPS

$          0.97

$           0.64

$           3.33

$           2.55

Adjustments to GAAP:

Share-based compensation expense

0.22

0.24

0.95

0.90

Amortization of acquisition-related intangible assets

0.12

0.12

0.46

0.55

Acquisition/divestiture-related costs

0.02

0.03

0.09

0.21

Legal and indemnification settlements/charges

—

0.09

—

0.09

Significant asset impairments and restructurings

0.13

0.01

0.17

0.19

(Gains) and losses on investments

(0.22)

(0.03)

(0.35)

(0.05)

Income tax effect of non-GAAP adjustments

(0.10)

(0.11)

(0.37)

(0.42)

Significant tax matters

0.08

—

0.05

(0.21)

Non-GAAP EPS

$          1.22

$           0.99

$           4.33

$           3.81

Amounts may not sum due to rounding.

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET, AND NET INCOME

(In millions, except percentages)

Three Months Ended

July 25, 2026

Product
Gross
Margin

Services
Gross
Margin

Total
Gross
Margin

Operating
Expenses

Y/Y

Operating
Income

Y/Y

Interest
and
other
income
(loss),
net

Net
Income

Y/Y

GAAP amount

$ 8,430

$ 2,633

$ 11,063

$ 6,799

10 %

$ 4,264

38 %

$ 669

$ 3,859

51 %

% of revenue

62.6 %

69.4 %

64.1 %

39.4 %

24.7 %

3.9 %

22.4 %

Adjustments to GAAP amounts:

Share-based compensation expense

59

79

138

751

889

—

889

Amortization of acquisition-related intangible assets

236

—

236

226

462

—

462

Acquisition/divestiture-related costs

1

3

4

68

72

—

72

Significant asset impairments and restructurings

—

—

—

511

511

—

511

(Gains) and losses on investments

—

—

—

—

—

(869)

(869)

Income tax effect/significant tax matters

—

—

—

—

—

—

(56)

Non-GAAP amount

$ 8,726

$ 2,715

$ 11,441

$ 5,243

5 %

$ 6,198

23 %

$  (200)

$ 4,868

23 %

% of revenue

64.8 %

71.6 %

66.3 %

30.4 %

35.9 %

(1.2) %

28.2 %

Three Months Ended

July 26, 2025

Product
Gross
Margin

Services
Gross
Margin

Total
Gross
Margin

Operating
Expenses

Operating

Income

Interest
and
other
income
(loss),
net

Net

Income

GAAP amount

$ 6,692

$ 2,588

$ 9,280

$ 6,193

$ 3,087

$ (88)

$ 2,550

% of revenue

61.5 %

68.3 %

63.2 %

42.2 %

21.0 %

(0.6) %

17.4 %

Adjustments to GAAP amounts:

Share-based compensation expense

66

84

150

797

947

—

947

Amortization of acquisition-related intangible assets

233

—

233

255

488

—

488

Acquisition/divestiture-related costs

2

11

13

104

117

—

117

Legal and indemnification settlements/charges

355

—

355

—

355

—

355

Significant asset impairments and restructurings

—

—

—

35

35

—

35

(Gains) and losses on investments

—

—

—

—

—

(115)

(115)

Income tax effect/significant tax matters

—

—

—

—

—

—

(426)

Non-GAAP amount

$ 7,348

$ 2,683

$ 10,031

$ 5,002

$ 5,029

$  (203)

$ 3,951

% of revenue

67.5 %

70.8 %

68.4 %

34.1 %

34.3 %

(1.4) %

26.9 %

Amounts may not sum and percentages may not recalculate due to rounding.

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET, AND NET INCOME

(In millions, except percentages)

Fiscal Year Ended

July 25, 2026

Product
Gross
Margin

Services
Gross
Margin

Total
Gross
Margin

Operating
Expenses

Y/Y

Operating

Income

Y/Y

Interest
and

 other

 income
(loss),
net

Net
Income

Y/Y

GAAP amount

$ 30,514

$ 10,346

$ 40,860

$ 25,492

2 %

$ 15,368

31 %

$ 641

$ 13,267

30 %

% of revenue

63.2 %

68.8 %

64.5 %

40.3 %

24.3 %

1.0 %

21.0 %

Adjustments to GAAP amounts:

Share-based compensation expense

254

335

589

3,181

3,770

—

3,770

Amortization of acquisition-related intangible assets

918

—

918

916

1,834

—

1,834

Acquisition/divestiture-related costs

7

18

25

350

375

—

375

Significant asset impairments and restructurings

—

—

—

693

693

—

693

(Gains) and losses on investments

—

—

—

—

—

(1,398)

(1,398)

Income tax effect/significant tax matters

—

—

—

—

—

—

(1,292)

Non-GAAP amount

$ 31,693

$ 10,699

$ 42,392

$ 20,352

5 %

$ 22,040

13 %

$  (757)

$ 17,249

13 %

% of revenue

65.6 %

71.2 %

66.9 %

32.1 %

34.8 %

(1.2) %

27.2 %

Fiscal Year Ended

July 26, 2025

Product
Gross
Margin

Services
Gross
Margin

Total
Gross

 Margin

Operating
Expenses

Operating

Income

Interest
and

other
income
(loss),
net

Net

Income

GAAP amount

$ 26,487

$ 10,303

$ 36,790

$ 25,030

$ 11,760

$  (660)

$ 10,180

% of revenue

63.7 %

68.5 %

64.9 %

44.2 %

20.8 %

(1.2) %

18.0 %

Adjustments to GAAP amounts:

Share-based compensation expense

255

329

584

3,019

3,603

—

3,603

Amortization of acquisition-related intangible assets

1,150

—

1,150

1,029

2,179

—

2,179

Acquisition/divestiture-related costs

14

52

66

791

857

—

857

Legal and indemnification settlements/charges

355

—

355

—

355

—

355

Supplier component remediation charge (adjustment)

(7)

—

(7)

—

(7)

—

(7)

Significant asset impairments and restructurings

—

—

—

744

744

—

744

(Gains) and losses on investments

—

—

—

—

—

(187)

(187)

Income tax effect/significant tax matters

—

—

—

—

—

—

(2,511)

Non-GAAP amount

$ 28,254

$ 10,684

$ 38,938

$ 19,447

$ 19,491

$  (847)

$ 15,213

% of revenue

67.9 %

71.0 %

68.7 %

34.3 %

34.4 %

(1.5) %

26.9 %

Amounts may not sum and percentages may not recalculate due to rounding.

CISCO SYSTEMS, INC.

RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

EFFECTIVE TAX RATE

(In percentages)

Three Months Ended

Fiscal Year Ended

July 25,
2026

July 26,
2025

July 25,
2026

July 26,
2025

GAAP effective tax rate

21.8 %

15.0 %

17.1 %

8.3 %

Total adjustments to GAAP provision for income taxes

(3.0) %

3.1 %

1.9 %

10.1 %

Non-GAAP effective tax rate

18.8 %

18.1 %

19.0 %

18.4 %

GAAP TO NON-GAAP GUIDANCE

Q1 FY 2027

Gross Margin

Operating Margin

Earnings per
Share (1)

GAAP

63% - 64%

28% - 29%

$1.08 - $1.10

Estimated adjustments for:

Share-based compensation expense

1.0 %

4.5 %

$0.14

Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs

1.0 %

2.5 %

$0.09

Significant asset impairments and restructurings(2)

—

0.5 %

$0.01

Non-GAAP

65% - 66%

35.5% - 36.5%

$1.32 - $1.34

FY 2027

Earnings per Share (1)

GAAP

$4.00 - $4.06

Estimated adjustments for:

Share-based compensation expense

$0.60

Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs

$0.34

Significant asset impairments and restructurings (2)

$0.11

Non-GAAP

$5.05 - $5.11

(1) Estimated adjustments to GAAP earnings per share are shown after income tax effects.

(2) Reflects charges related to a restructuring plan announced on May 13, 2026. We expect this plan to be substantially completed by the end of fiscal 2027.

Except as noted above, this guidance does not include the effects of any future acquisitions/divestitures, significant asset impairments and restructurings, significant litigation settlements and other contingencies, gains and losses on investments, significant tax matters, or other items, which may or may not be significant.

Forward Looking Statements, Non-GAAP Information and Additional Information

This release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events (such as being well positioned to support our customers however or wherever they decide to deploy AI, the significant momentum and raised expectations of AI infrastructure from hyperscalers, the broad-based high demand for Cisco technology, and the significant growth opportunities ahead) and the future financial performance of Cisco (including the guidance for Q1 FY 2027 and full year FY 2027) that involve risks and uncertainties, such as the actual impact of tariffs on our guidance for Q1 FY 2027 and full year FY 2027. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including: business and economic conditions and growth trends in the networking industry, our customer markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; our development and use of artificial intelligence; overall information technology spending; the growth and evolution of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for products and services, including sales to the service provider market, cloud, enterprise and other customer markets; the return on our investments in certain key priority areas, and in certain geographical locations, as well as maintaining leadership in Networking and services; the timing of orders and manufacturing and customer lead times; supply constraints; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; variability of component costs; variations in sales channels, product costs or mix of products sold; our ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; our ability to achieve expected benefits of our partnerships; increased competition in our product and services markets, including the data center market; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks; product defects and returns; litigation involving patents, other intellectual property, antitrust, stockholder and other matters, and governmental investigations; our ability to achieve the benefits of restructurings and possible changes in the size and timing of related charges; cyber attacks, data breaches or other incidents; vulnerabilities and critical security defects; our ability to protect personal data; evolving regulatory uncertainty; terrorism; natural catastrophic events (including as a result of global climate change); any pandemic or epidemic; our ability to achieve the benefits anticipated from our investments in sales, engineering, service, marketing and manufacturing activities; our ability to recruit and retain key personnel; our ability to manage financial risk, and to manage expenses during economic downturns; risks related to the global nature of our operations, including our operations in emerging markets; currency fluctuations and other international factors; changes in provision for income taxes, including changes in tax laws and regulations or adverse outcomes resulting from examinations of our income tax returns; potential volatility in results of operations; and other factors listed in Cisco's most recent reports on Forms 10-Q and 10-K filed on May 19, 2026 and September 3, 2025, respectively. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco's most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. Cisco's results of operations for the three months and the year ended July 25, 2026 are not necessarily indicative of Cisco's results of operations for any future periods. Any projections in this release are based on limited information currently available to Cisco, which is subject to change. Although any such projections and the factors influencing them will likely change, Cisco will not necessarily update the information, since Cisco will only provide guidance at certain points during the year. Such information speaks only as of the date of this release.

This release includes non-GAAP net income, non-GAAP gross margins, non-GAAP operating expenses, non-GAAP operating income and margin, non-GAAP effective tax rates, non-GAAP interest and other income (loss), net, and non-GAAP net income per share data for the periods presented. It also includes future estimated ranges for gross margin, operating margin, tax provision rate and EPS on a non-GAAP basis.

These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles (GAAP) and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Cisco believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cisco's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Cisco's results of operations in conjunction with the corresponding GAAP measures.

Cisco believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations.

For its internal budgeting process, Cisco's management uses financial statements that do not include, when applicable, share-based compensation expense, amortization of acquisition-related intangible assets, acquisition/divestiture-related costs, significant asset impairments and restructurings, significant litigation settlements and other contingencies, gains and losses on investments, the income tax effects of the foregoing and significant tax matters. Cisco's management also uses the foregoing non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Cisco. In prior periods, Cisco has excluded other items that it no longer excludes for purposes of its non-GAAP financial measures. From time to time in the future there may be other items that Cisco may exclude for purposes of its internal budgeting process and in reviewing its financial results. For additional information on the items excluded by Cisco from one or more of its non-GAAP financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission.

About Cisco

Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco.

Copyright © 2026 Cisco and/or its affiliates. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. To view a list of Cisco trademarks, go to: www.cisco.com/go/trademarks. Third-party trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.

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SOURCE Cisco Systems, Inc.

Cisco Systems CSCO shares are inching lower ahead of the AI infrastructure giant’s Q4 earnings scheduled to be released after the market closes on August 11.

Consensus is for CSCO to record $1.17 a share of earnings (EPS) for its fourth quarter on $16.85 billion in revenue, representing mid-to-high teen gains in both the top and the bottom line.

The quarterly print arrives at a time when Cisco stock is already hovering a little under its year-to-date high of $130.  

Despite massive year-to-date gains, the derivatives market believes CSCO shares will push higher and print a new YTD high after the Q4 print late on Wednesday.

According to Barchart, the put-to-call ratio on options contracts expiring August 14th sits at 0.6 at writing. A reading below 1 is often interpreted as signaling a bullish skew.

The upper price on those contracts is set at nearly $130 currently, indicating Cisco Systems could soar as much as 6.6% within days after its financial release.

Investors should also note that the options traders’ optimism is mirrored in the technical setup as well.

CSCO is currently trading firmly above its key moving averages (MAs) – with an RSI in the late 50s indicating intense buying pressure.

To convert bullish options bets into a sustained rally, Cisco must demonstrate that its massive AI order pipeline is rapidly converting into recognized top-line revenue.

Investors are no longer content with cumulative booking metrics alone; market watchers want proof that Silicon One switching architectures and Acacia optical interconnect deployments are expanding rapidly within tier-one hyperscalers.

Furthermore, industry experts emphasize that a strong post-earnings surge in Cisco shares requires validation beyond hyperscaler capital expenditure.

CSCO needs to show accelerating enterprise traction across its sovereign AI pipeline while proving that its multi-billion-dollar “Catalyst 9000” campus refresh cycle is picking up speed as legacy hardware reaches end-of-support deadlines.

While demand tailwinds remain robust, CSCO stock faces near-term profitability friction that could temper market enthusiasm.

Higher memory chip prices and a shifting product mix toward high-volume hardware carry tighter margin profiles compared to software subscriptions, keeping gross margins under scrutiny.

Additionally, Splunk’s ongoing business model transition from legacy on-premise licensing to cloud-native subscriptions creates short-term revenue recognition lag.

If management provides confident forward guidance that reassures Wall Street on gross margin expansion and software recurring revenue trajectory, Cisco stands well-positioned to maintain its multi-month momentum and justify its expanding valuation multiples.

Heading into the quarterly release, Wall Street rates Cisco Systems Inc at Moderate Buy, with price targets going as high as $150, indicating potential upside of roughly 25% from current levels.

Cisco Systems (CSCO -0.51%) has quietly become one of the year's big artificial intelligence (AI) trades. Shares of the networking giant closed Tuesday at $121.74, up 5% on the day and about 60% higher in 2026 as of this writing. That leaves it about 7% shy of its 52-week high ($130.37) -- for a company whose revenue grew 5% last fiscal year.

The number doing most of the work is $9 billion. That's how much in AI infrastructure orders Cisco now expects to take from hyperscalers (the giant cloud companies building AI data centers) in fiscal 2026, a target it raised from $5 billion on its fiscal third-quarter earnings call in May.

So, with shares priced like a growth stock again, how much growth can $9 billion of orders actually buy?

Image source: Getty Images.

The order book is moving fast Cisco took $1.9 billion of AI infrastructure orders from hyperscalers in its fiscal third quarter (the period ended April 25), more than triple the $600 million it took a year earlier. That brought the year-to-date total to $5.3 billion, which already exceeded the company's full-year expectation of $5 billion with a quarter still to go.

Hence the new target of about $9 billion for the full fiscal year -- 4.5 times the roughly $2 billion of such orders Cisco booked in all of fiscal 2025. And fiscal 2025's total had itself doubled the company's original $1 billion target.

I think those numbers hold up to a hard look, and the order growth is broad. Cisco's Acacia optics business, which makes high-speed optical connections for data centers, had its strongest quarter to date, taking more than $1 billion of orders in the fiscal third quarter. Management said the business was on track to grow more than 200% year over year in fiscal 2026.

The quarter was strong beyond the order book as well. Revenue climbed 12% from a year earlier, hitting a record $15.8 billion, and non-GAAP (adjusted) earnings per share came in at $1.06, up 10%. Both figures topped the high end of the company's guidance.

What the math says about growth But orders are not revenue. Cisco expects to recognize only about $4 billion of AI infrastructure revenue from hyperscalers in fiscal 2026. The rest converts later. Against full-year guided revenue of $62.8 billion to $63.0 billion, that's about 6% of the total.

Zoom out, and the company guided for fiscal 2026 revenue growth of about 11% over fiscal 2025's $56.7 billion. That's a clear step up for a company that grew 5% the year before, and AI orders are a big part of the reason.

In other words, the rest of Cisco's business (campus networking, cybersecurity, collaboration, service provider gear) still sets the base rate. A $9 billion year of orders, converting over time, can lift a $63 billion company's growth from mid-single digits to low double digits. It can't make a company this size grow like a pure AI supplier.

Earnings tell a similar story. Cisco guided for full-year adjusted earnings per share between $4.27 and $4.29, up about 12% from fiscal 2025.

Today's Change

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Current Price

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120.88

Yet the stock trades at about 26 times forward earnings. And the dividend, at $1.68 per share annually, now yields about 1.4% -- roughly half what it yielded at the stock's 52-week low.

For that multiple to make sense, the AI order book has to keep compounding well past fiscal 2026, and the conversion of those orders into revenue has to stay on schedule. That could happen. The order growth says the demand is there.

Investors won't wait long to find out. Cisco's fiscal year ended in late July, so the $9 billion target is no longer a forecast with quarters left to run. It's a result waiting to be revealed, and the company reports its fiscal fourth quarter next Wednesday, Aug. 12.

So, should investors buy the stock after a run like this? I like what Cisco's order book says about demand, and an 11% growth year from this company is arguably a bigger change than it sounds. But at 26 times forward earnings for a business still guided to grow revenue about 11%, I'd want to see the $9 billion confirmed and hear the fiscal 2027 outlook before paying up. The report lands Wednesday. I can wait a few days.

Cisco Systems Inc (NASDAQ:CSCO, XETRA:CIS) is set to report quarterly results after the market close on August 12, with UBS expecting the networking equipment maker to deliver revenue and earnings above consensus estimates, supported by accelerating demand for AI infrastructure and resilient campus networking spending.

UBS wrote that industry checks and commentary from hyperscale cloud providers and neocloud companies indicate demand for AI infrastructure strengthened over the past three months, supporting upside to both networking revenue and product orders in the July quarter.

The analysts expect networking revenue to exceed its forecast of $9.6 billion, which would represent 26% year-over-year growth, while product orders could also outperform expectations following strong demand for AI-related systems and optical products. UBS currently forecasts product order growth of 29% for the quarter after a 35% increase in the prior quarter.

The firm noted that strength in pluggables and networking systems, following more than $1 billion of Acacia orders last quarter, could provide an additional boost to orders.

While UBS sees revenue skewing to the upside, it expects elevated component costs to limit gross margin expansion to around 66%. Even so, the brokerage believes adjusted earnings per share could reach $1.19, above its own estimate of $1.16 and the Visible Alpha consensus of $1.17.

Looking ahead, UBS expects Cisco's guidance for the October quarter to come in above its current forecasts. The brokerage estimates October-quarter revenue of $16.24 billion, but believes the company could guide to a range of $16.6 billion to $16.8 billion, reflecting roughly 12% year-over-year growth as revenue from recent AI-related hyperscaler design wins becomes more heavily weighted toward the second half.

UBS also expects Cisco to issue a fiscal 2027 revenue outlook of $68 billion to $69 billion, supported by more than $2 billion of incremental AI-related revenue, taking total AI revenue above $6 billion. The brokerage forecasts fiscal 2027 adjusted earnings guidance of $4.78 to $4.84 per share, broadly in line with consensus expectations.

The firm said demand has improved across Cisco's business, with product orders strengthening in both AI infrastructure and campus networking. Although it expects order growth to moderate from the previous quarter due to tougher comparisons and the timing of hyperscaler deployments, UBS said recent industry checks remain positive.

UBS maintained a $132 price target on Cisco, above current levels of about $122, arguing the company's premium valuation is supported by its AI networking, silicon and optical portfolio, as well as durable demand for campus networking equipment. The firm added that a recovery in the company's security business during fiscal 2027 could provide an additional tailwind.

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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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.

© Sundry Photography / iStock Editorial via Getty Images

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.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Cisco Systems didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

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.