Track market-moving stories before they get noisy

Diversify Advisory Services LLC grew its position in shares of Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) by 5.8% during the 3rd quarter, according to the company in its most recent filing with the SEC. The firm owned 186,326 shares of the network equipment provider’s stock after purchasing an additional 10,166 shares during the quarter. Diversify Advisory Services LLC’s holdings in Cisco Systems were worth $20,468,000 as of its most recent filing with the SEC.

Other hedge funds also recently modified their holdings of the company. Petredis Investment Advisors LLC boosted its position in shares of Cisco Systems by 0.3% during the 3rd quarter. Petredis Investment Advisors LLC now owns 62,778 shares of the network equipment provider’s stock valued at $6,757,000 after purchasing an additional 157 shares in the last quarter. Revisor Wealth Management LLC raised its holdings in shares of Cisco Systems by 10.4% in the 3rd quarter. Revisor Wealth Management LLC now owns 4,848 shares of the network equipment provider’s stock worth $523,000 after purchasing an additional 455 shares in the last quarter. Briaud Financial Planning Inc raised its holdings in shares of Cisco Systems by 5.1% in the 3rd quarter. Briaud Financial Planning Inc now owns 2,553 shares of the network equipment provider’s stock worth $275,000 after purchasing an additional 124 shares in the last quarter. West Branch Capital LLC lifted its stake in Cisco Systems by 1.7% during the third quarter. West Branch Capital LLC now owns 55,190 shares of the network equipment provider’s stock valued at $5,940,000 after purchasing an additional 915 shares during the last quarter. Finally, 55 North Private Wealth LLC lifted its stake in Cisco Systems by 4.8% during the third quarter. 55 North Private Wealth LLC now owns 10,107 shares of the network equipment provider’s stock valued at $1,088,000 after purchasing an additional 459 shares during the last quarter. 73.33% of the stock is currently owned by institutional investors and hedge funds.

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

Positive Sentiment: New AI networking platforms strengthen Cisco’s growth story. Cisco introduced 51.2-terabit and 102.4-terabit networking systems powered by its Silicon One chips, along with 1.6T optical modules and liquid-cooling technology for high-density data centers. Its collaboration with NVIDIA, TE Connectivity and Amphenol on next-generation optical connectivity could help Cisco capture more spending from the expanding AI infrastructure buildout. Cisco Systems Unveiled 102.4T AI Networking Platforms Positive Sentiment: AI demand is supporting an optimistic earnings setup. A preview article cited Cisco’s guidance for approximately 21% year-over-year revenue growth and 33% EPS growth, alongside recent revenue and earnings beats. Agentic AI adoption and infrastructure contracts, including international opportunities such as Bell Canada, are viewed as longer-term catalysts. Cisco Earnings Preview Positive Sentiment: Industry commentary supports continued AI capital spending. Strategist Tom Lee argued that the AI investment cycle may have substantial room to run, with networking, power, cooling and security among the beneficiaries. This reinforces the bullish case that Cisco’s AI order momentum could develop into a broader networking supercycle. Tom Lee on AI Stocks and Cisco Positive Sentiment: Splunk’s observability research highlights a potential software opportunity. Cisco reported that enterprises are struggling to monitor AI agents and control rising telemetry and AI costs. Growing demand for observability, security and operational predictability could support cross-selling through Cisco’s Splunk business. Splunk State of Observability 2026 Neutral Sentiment: World Wide Technology’s new Cisco Secure AI Infrastructure specialization adds partner validation, but the direct near-term revenue impact is unclear. World Wide Technology Achieves Cisco Specialization Negative Sentiment: Valuation and margin risks remain important headwinds. One analyst downgraded Cisco to Hold after a substantial year-to-date rally, arguing that the shares are near fair value and that hardware mix could pressure gross margins. Elevated price-to-sales levels may also reduce the stock’s sensitivity to positive AI news. Cisco Valuation and Technical Support Insider Transactions at Cisco Systems In other news, 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 transaction, the insider owned 230,593 shares in the company, valued at $25,727,261.01. This represents a 3.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,628 shares of the stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $111.54, for a total transaction of $2,412,387.12. Following the completion of the sale, the chief executive officer directly owned 602,710 shares of the company’s stock, valued at $67,226,273.40. This trade represents a 3.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 44,869 shares of company stock worth $5,005,620. 0.01% of the stock is currently owned by company insiders. Analysts Set New Price Targets CSCO has been the subject of a number of research reports. KeyCorp raised their target price on shares of Cisco Systems from $130.00 to $135.00 and gave the stock an “overweight” rating in a report on Thursday, August 13th. HSBC cut Cisco Systems from a “buy” rating to a “hold” rating and dropped their price target for the company from $137.00 to $120.00 in a report on Friday, August 14th. Truist Financial increased their price objective on Cisco Systems from $125.00 to $140.00 and gave the company a “buy” rating in a research report on Thursday, August 13th. Wall Street Zen raised Cisco Systems from a “hold” rating to a “buy” rating in a research note on Sunday, October 11th. Finally, Freedom Capital upgraded Cisco Systems from a “hold” rating to a “strong-buy” rating in a report on Sunday, August 16th. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $128.52.

Read Our Latest Analysis on Cisco Systems

Cisco Systems Price Performance Shares of NASDAQ:CSCO opened at $106.71 on Wednesday. The company’s fifty day moving average is $110.78 and its two-hundred day moving average is $109.50. 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 12-month low of $69.85 and a 12-month high of $130.37. The company has a market cap of $420.71 billion, a P/E ratio of 31.95, a price-to-earnings-growth ratio of 2.22 and a beta of 0.99.

Cisco Systems (NASDAQ:CSCO – Get Free Report) last issued 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 business had revenue of $17.25 billion during the quarter, compared to analysts’ expectations 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 was up 17.6% compared to the same quarter last year. During the same quarter last year, the firm posted $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. Equities analysts expect that Cisco Systems, Inc. will post 4.42 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend The firm also recently disclosed 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. This represents a $1.68 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Friday, October 2nd. Cisco Systems’s dividend payout ratio is currently 50.30%.

Cisco Systems Profile (Free Report)

Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration and observability solutions for businesses, government organizations and service providers. Its offerings include routers, switches, wireless networking equipment, data-center infrastructure, security software and services, as well as technologies that support cloud and hybrid IT environments.

The company also provides collaboration tools through its Webex portfolio, cloud-managed networking through Cisco Meraki and security and observability capabilities that include technologies from Splunk, which Cisco acquired in 2024.

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New research reveals how observability restores financial predictability as enterprises navigate rising telemetry costs and unpredictable AI bills

News Summary  

The global Splunk State of Observability 2026 report reveals agentic AI is creating unpredictable outcomes and costs, leaving observability practices to rein them in. Agent observability is increasingly important, with nearly 9 in 10 respondents saying monitoring AI is a priority, but over half still can't effectively measure agent quality. The AI cost crisis isn't just the size of the bill. It's about the surprise charges, with over half saying they cannot accurately control AI costs. Shared data across observability and security teams is essential to AI trust, with more than three quarters of respondents saying monitoring AI has increased their collaboration with security teams. , /PRNewswire/ -- Cisco (NASDAQ: CSCO) today released the Splunk State of Observability 2026: Restoring Predictability in the AI Era report, marking its sixth analysis of the observability industry. This year's research, which surveyed 2,050 ITOps and engineering respondents across 10 countries, exposes a significant disconnect: the urgency to deploy AI agents is rapidly outpacing the ability to monitor them.

With AI costs becoming more volatile, organizations are struggling to maintain both agent quality and fiscal predictability. This year's report highlights how observability is helping to restore stability and financial predictability of agentic AI systems, providing the governance to build trust with agents and ensure AI spend is tethered to business value.

In addition, with 83% of respondents saying they're concerned about the unintended consequences of AI agents, there's an urgent need for "agent observability," or the ability to monitor AI agents and put guardrails in place. This need is driving ITOps and engineering teams to collaborate more closely with security teams, as agents gain access to the entire tech stack.

"Most companies will soon have far more agents at work than people," said Jeetu Patel, President and Chief Product Officer at Cisco. "Managing agents at scale requires reimagining both security and observability. Have our agents been compromised? Are they doing their job well? In the world of agentic AI, these questions are inseparable, and they're moving at machine speed. This report shows that observability and security data are converging, and that teams need to collaborate more than ever. Common data platforms that help us detect and respond to issues in real-time are the key to deploying agents we can trust at scale."

"For today's enterprises, the excitement of AI is clashing with the reality of the bill," added Kamal Hathi, SVP and GM, Splunk at Cisco. "We believe observability is the essential bridge to restoring predictability and confidence to the agentic AI era. By providing the necessary guardrails and incorporating observability into an AI tokenomics framework, leaders can transform AI from an unpredictable expense into a measurable and strategic long-term business investment."

Agent observability emerges as a business priority and a gap
As organizations add AI agents into workflows like software development and customer experience, an incorrect agent action can evolve into a critical business failure. Unlike monitoring traditional applications, visibility into AI agent behavior requires a new class of behavioral metrics that are tied to business outcomes and agent decision-making. While many see the value of agent observability technology, respondents still struggle with how to execute or measure the tools effectively.

87% confirm monitoring AI is a priority for their organization; however 54% don't have clear business outcomes tied to it. 56% reveal they're unable to measure AI workload metrics like LLM response quality, a core metric to tracking the success of an AI agent. While 85% say it's important to have visibility into AI hallucinations, only 58% claim they're effective at doing so. AI is driving unpredictable costs
Observability is what makes AI spend visible, attributable, and controllable. When today's organizations run dozens of agents across multiple models, AI costs and usage can become convoluted. In addition, AI is exacerbating a data volume problem for many enterprises, making sifting through mountains of data almost impossible.

55% say they can't control AI costs, as AI use has become more complex with both consumption increasing and usage remaining hard to predict. 60% say unexpected billing spikes cause more operational strain than high baseline costs. 57% say their telemetry costs eclipsed the cost of the infrastructure being monitored, making financial predictability more critical than ever. 67% of respondents use a single observability platform, providing a unified view to pinpoint exactly where telemetry costs are coming from. The convergence of observability and security ensures AI trust  
As AI agents gain more access to operations in every layer of a business, monitoring them requires collaboration between ITOps, engineering, and security teams, breaking down walls that have historically kept them apart.   

81% say monitoring AI workloads has increased the collaboration between observability and security teams, and 73% can accurately trace performance issues to security root causes, up from 65% last year. More observability teams are troubleshooting (77%) with security teams, up from 62% in 2025. Data sharing between teams has climbed from 74% to 84%. The leader's edge: restoring predictability in the agentic era
In the research, an advanced group of organizations emerged as leaders who are achieving concrete business outcomes with their observability practices. These leaders follow three best practices:

Rely on AI agents to fix and prevent issues frequently. Leaders use agents to perform and execute key remediation tasks often.   Closely monitor the factors that keep AI in check. Leaders focus closely on monitoring model quality, cost, usage, security, and privacy. Connect signals to business impact. These advanced respondents agree that telemetry is a key factor in their planning process and helping to shape strategic decisions.   These leaders are seeing transformative results – they are far more likely to accurately attribute AI costs (91% of leaders vs. 69% of non-leaders), by pinpointing which agents, models, and workloads drive spend. They are also 2.4 times more likely than non-leaders to say the ROI of their observability platforms significantly exceeds expectations, and 54% say observability has yielded at least $5 million in annual business revenue (versus 28% of non-leaders). Leaders are realizing the benefits of observability and security teams working closely together – with 94% saying monitoring AI has increased collaboration with security teams (compared to 80% of non-leaders,) and 86% are more likely to accurately trace performance issues back to their security root causes (in contrast with 71% non-leaders).

Global highlights
This year's report showed the topics around prioritizing monitoring AI agents, unpredictable costs, and concern of agentic AI remained key themes of the 10 countries surveyed. Indian organizations stand out as advanced for their agent observability capabilities, with 51% calling their practice very effective at monitoring AI model quality, in contrast to 35% globally. The UK reflected both impressive adoption and concern of agentic AI, with 32% using AI agents all the time to diagnose root cause (vs. 20% globally), and 55% strongly worry about the unintended consequences of AI agents. Saudi Arabia stood out as more advanced and AI-forward, with 98% saying AI enabled them to focus more on innovation, well above the global average at 84%. Germany leads in data sensitivity, with 74% rating visibility into AI privacy as very important.

To learn more, explore the blogs and resources below:

Blog: State of Observability 2026 Reveals How Leaders Are Restoring Predictability to the Agentic Era Report: State of Observability 2026: Restoring Predictability to the Agentic Era Methodology
Oxford Economics researchers surveyed 2,050 ITOps and engineering professionals from practitioners to executives (including developers, SREs, systems engineers, infrastructure operations professionals, CTOs, and CIOs) from February through March 2026. Respondents resided in Australia, France, Germany, India, Japan, New Zealand, Singapore, Saudi Arabia, the United Kingdom, and the United States.

Respondents represented 16 industries: business services, construction and engineering, consumer packaged goods, education, financial services, government (federal/national, state, and local), healthcare, life sciences, manufacturing, technology, media, oil/gas, retail/wholesale, telecom, transportation/logistics, and utilities.

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.

Cisco and the Cisco logos are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco's trademarks can be found at http://www.cisco.com/go/trademarks. Third-party trademarks mentioned 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.

SOURCE Cisco Systems, Inc.

SummaryCisco is downgraded to Hold as shares approach fair value after a 46% YTD rally.AI-driven order momentum and robust FY 2026 results underpin strong revenue and earnings guidance into FY 2027.Valuation is no longer compelling, with margin risks from hardware mix and elevated price-to-sales ratios.Technical support near $100-105 offers a potential swing-trade entry; fundamentals suggest patience for long-term investors.Pixelbizz/iStock Editorial via Getty Images

AI winners continue to come off the boil. Shares of Cisco (CSCO) are now down 18% from their June 4 high of $130. Earnings don't hit until mid-November, so price action hinges on what AI hyperscalers report and

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Delivers the resilient, open Ethernet foundations required to connect and scale massive, distributed AI factories

News Summary

Cisco and NVIDIA plan to develop an open industry specification for a next-generation 400G-per-lane pluggable optics design, increasing bandwidth density while preserving serviceability and customer choice. Cisco advances open infrastructure across silicon, systems and optics to meet the demands of AI workloads, spanning high-density scale-out and distributed scale-across networks. The Cisco Silicon One portfolio continues to expand to serve all AI builders, with the first G300-powered systems shipping to customers, new 1.6T G302 silicon, and P200-powered systems now deployed in production hyperscale environments. , /PRNewswire/ -- Today at the Open Compute Project (OCP) Global Summit 2026, Cisco (Nasdaq: CSCO) introduced new silicon, systems and optical innovations that advance open AI infrastructure from rack-scale compute to distributed AI capacity. Together, the announcements demonstrate how Cisco is engineering the network as a coherent, programmable architecture while preserving the openness and choice customers expect in the super intelligence era. The new capabilities deepen Cisco's continued commitment to deliver an open stack from silicon to Kubernetes, required to connect the AI foundations for hyperscalers, neoclouds and enterprises. Strong market adoption validates Cisco's leadership and underscores deep customer trust as demand for AI compute capacity rapidly accelerates.

"AI is redefining what it means to scale infrastructure. It's no longer just about individual data centers or clusters, but how we connect compute at massive scale without compromising performance or resilience. Cisco's strength across silicon, networking, optics,systems and security puts us in a unique position to deliver the open infrastructure customers need as AI continues to evolve," said Kevin Wollenweber, SVP and General Manager of Data Center and Internet Infrastructure, Cisco.

"Scale-Across" Connects the World's AI Capacity
Scale-across extends coordinated AI workloads across facilities, building on traditional data center interconnect (DCI) technologies while introducing significantly different workload requirements. When accelerators across sites participate in the same coordinated job, congestion, latency and recovery can directly affect compute utilization and job progress. Cisco draws on its silicon, routing and optical networking leadership to address those requirements as one packet-to-optical architecture.

Cisco's scale-across architecture brings together Silicon One P200, deep-buffered systems and coherent optics to connect AI fabrics across locations to act as a unified cluster. It provides customers a single, unified compute fabric enabled by the performance, deep programmability and embedded security of the Silicon One architecture.  Cisco is the first in the industry to announce its 51.2T systems, powered by the Silicon One P200, are deployed in a production environment by leading hyperscalers. 

"Microsoft and Cisco share a longstanding partnership rooted in engineering collaboration and innovation. We are pleased to announce that today, Microsoft has moved into production on systems powered by the Cisco Silicon One P200. As our infrastructure demands grow, the P200's robust architecture provides the speed and enhanced buffering capabilities necessary to address the increasing scale of our cloud and high-performance services. This milestone reflects the next stage in our long-term collaboration, ensuring we continue to deliver the performance and reliability required for the modern digital era," said Anand Ramakrishna, Corporate Vice President, Engineering, Microsoft.

"Alibaba is proud to announce a major milestone for our next-generation backbone network, eCORE. We have deployed our in-house Quantum Cat router at massive scale, powered by the Cisco Silicon One P200. These routers bring 51.2 Tbps of routing capacity to our infrastructure. They feature a fully shared deep-buffer architecture, high programmability, and excellent power efficiency. This setup provides the exact performance and scale needed for today's heavy cloud and AI workloads. We paired Cisco's silicon with Alibaba's custom systems and the SONiC operating system. This combination proves the true value of open networking. It delivers the flexibility and operational power required for some of the world's most demanding networks. We look forward to deepening our work with Cisco, the Open Compute Project (OCP), and the SONiC community. Together, we will continue to advance open, high-performance networking for the AI era," said Dennis Cai, Vice President, Head of Network Infrastructure, Alibaba Cloud Intelligence Group

Scaling AI from Rack to Fabric for the 1.6T Era
Inside the data center, AI scale is driving the same need for greater bandwidth, density and power efficiency across silicon, systems and optics. To meet the radical bandwidth requirements of the next generation of AI, Cisco's Silicon One portfolio is delivering the next level of network performance designed for massive AI scale. As a member of OCP's ESUN, Cisco is committed to advancing open, interoperable, high-performance AI networking at scale and collaborating actively with ESUN on the 1.0 and future specifications for scale-up workloads.

Announced earlier this year, the 102.4T Silicon One G300 is now available for customer sampling, and the first G300-powered systems are currently shipping to customers. Cisco is also expanding the Silicon One portfolio with the first 51.2T switching silicon with 200G SerDes designed for top-of-rack (ToR) deployments. The new Silicon One G302 delivers 51.2T capacity and features Cisco 1.6T optics and direct-to-chip liquid cooling integration to drive efficiency gains. The G302 is built to power ToR switch systems, which sit at the rack level and gather traffic from servers and connect it efficiently to the larger data center network. This optimizes how servers are linked and integrated, delivering unprecedented front-end scale, density, and throughput for hyperscalers. The G302 is planned to begin shipping to customers before the end of 2026.

Cisco and NVIDIA Introduce New Pluggable Optics 
Together with NVIDIA, Cisco also unveiled plans to develop the Ultra-Dense Small Form Factor Pluggable (USFP), a new high density 400Gb/s-per-lane capable optical module. Compared to other approaches to increasing the bandwidth of optical modules, USFP relies on a proven operating model to scale to 400Gb/s-per-lane. USFP is expected to deliver 4x the bandwidth density and 1.3x the power efficiency of 200Gb/s-per-lane optics, improving the efficiency and scalability of AI factories without sacrificing serviceability, deployment flexibility or the operational simplicity of today's pluggable optics. To drive broad industry engagement and adoption, Cisco and NVIDIA plan to create an open industry specification for USFP through an upcoming community-led multi-source project.

Expanding Secure AI Networking
SONiC (Software for Open Networking in the Cloud) is the open-source operating system that forms the foundation of many hyperscaler and now neoclouds, service providers and enterprise deployments, across the AI builder ecosystem. Cisco customers can adopt Cisco-validated SONiC with Nexus One, a next generation data center architecture, embracing an open approach for multi-site to rack-scale environments. This support will be extended with Live Protect for customers starting mid-year 2027. Utilizing Cisco runtime technology, Live Protect reduces the exposure customers would typically face between a vulnerability disclosure and a patch on supported Cisco products and releases. Live Protect will give Cisco SONiC customers time to test and deploy the permanent software fix without disrupting operations.

Control and Recovery at AI Scale
Out-of-band management systems form a network operators rely on to provide remote access even when the production network is down, allowing for fixes during a blackout or cyber incident. But at AI scale, out-of-band management systems can become a patchwork of legacy systems, tools and proprietary interfaces, making thousands of GPU nodes harder to manage and fix. The Cisco 8001, a new Silicon One A100-powered management system available as 10G or 1G , solves this challenge by upgrading performance and bringing SONiC to this critical network. Operators can use familiar APIs, automation and operating practices from the fabric to the rack, without building and maintaining a separate management environment. Customers can now deploy a simpler, programmable management network that scales with AI infrastructure, and remains available when it is needed most.

Cisco Silicon One: The Industry's Most Scalable and Programmable Unified Networking Architecture
Cisco Silicon One is the industry's most scalable and programmable unified networking architecture, offering a complete portfolio of networking devices across AI, hyperscaler, data center, enterprise, and service provider use cases. Introduced in 2019, Cisco Silicon One is playing critical roles in major networks around the world. With today's innovations, Silicon One proves its ability to scale  from 100G to 100T with a single, unified silicon architecture.

Supporting Resources:

Executive Blog Post: Cisco and NVIDIA Announce USFP: Expanding the Path to AI Connectivity Executive Blog Post: SONiC's Next Chapter with Cisco: Open Choice, Production Confidence 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.

Disclaimer: Some products or features described may be in various stages of development and offered on a when-and-if available basis. Cisco reserves the right to change delivery timelines and will have no liability for any delays or failures to deliver.

SOURCE Cisco Systems, Inc.

News Summary:

Cisco appoints Girish Rishi to its board of directors effective October 9, 2026. Rishi brings three decades of technology leadership and deep expertise across data and AI, product development, supply chain and M&A to Cisco's board. Rishi is Chairman and Chief Executive Officer of Cognite. , /PRNewswire/ -- Cisco (NASDAQ: CSCO) today announced the appointment of Girish Rishi to its board of directors, effective today.

"I'm delighted to welcome Girish to Cisco's board," said Chuck Robbins, Chair and CEO of Cisco. "He has helped many of the world's most complex organizations and industries harness the power of data and AI. His expertise will be invaluable as Cisco provides organizations around the world with the critical infrastructure required to lead in the AI era."

Girish Rishi, Chairman and Chief Executive Officer, Cognite Rishi has spent three decades leading technology businesses across hardware, software and systems. He currently serves as Chairman and Chief Executive Officer of Cognite, a leading industrial AI company that helps energy and industrial organizations turn their data into actionable insights, and he is a Senior Advisor to Blackstone. Prior to joining Cognite, Rishi served as Chief Executive Officer of Blue Yonder, a provider of supply chain management software and consulting services. He previously held executive leadership positions at Tyco International, Zebra Technologies, Motorola Solutions and Symbol Technologies, where he served customers in the government and commercial sectors.

"Every organization is racing to turn its data into a competitive advantage with AI, and that depends on secure, resilient infrastructure, which is exactly what Cisco delivers," Rishi said. "I'm honored to join Cisco's board and look forward to working with Chuck and the team as the company continues to help customers unlock the full potential of AI."

In addition to Cisco, Rishi currently serves on the board of directors of Insight Enterprises, where he has been a director since 2017. He previously served on the board of Digi International. Rishi is a member of the Council on Foreign Relations and an executive board member of the Arizona Commerce Authority. He holds a master's degree in public policy from Johns Hopkins University, an MBA from the University of Hartford and an undergraduate degree from the University of Mumbai.

For more information about Cisco's board of directors, visit here.

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.

Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco's trademarks can be found at http://www.cisco.com/go/trademarks. Third-party trademarks mentioned 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.

SOURCE Cisco Systems, Inc.

In the latest close session, Cisco Systems (CSCO - Free Report) was down 2.13% at $114.89. This change lagged the S&P 500's daily loss of 0.47%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq decreased by 1.25%.

Shares of the seller of routers, switches, software and services have appreciated by 7.27% over the course of the past month, outperforming the Computer and Technology sector's gain of 6.08%, and the S&P 500's gain of 1.15%.

Market participants will be closely following the financial results of Cisco Systems in its upcoming release. The company is expected to report EPS of $1.32, up 32% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $18.09 billion, indicating a 21.52% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.11 per share and a revenue of $73.03 billion, representing changes of +18.01% and +15.32%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Cisco Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Cisco Systems boasts a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 22.97. This signifies a discount in comparison to the average Forward P/E of 23.35 for its industry.

It's also important to note that CSCO currently trades at a PEG ratio of 2.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Computer - Networking industry stood at 1.53 at the close of the market yesterday.

The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 107, this industry ranks in the top 44% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

New updates bring people, digital teammates, and enterprise context together across work, workplaces and customer experience

News Summary

Cisco evolves Webex to empower digital teammates and people to work seamlessly across collaboration to understand what matters and move work forward. Teams will benefit from Claude in Webex to analyze data, generate content, and execute work using shared enterprise context, all without leaving Webex, built with Claude Managed Agents. Intelligent Workplace Experiences unify secure networking, collaboration technology, and physical spaces to create more engaging and inclusive experiences for people in the workplace. Dialog, an all-new agentic harness for the Webex AI Agent platform, turns fragmented interactions into continuous customer relationships and works on their behalf until issues are resolved. , /PRNewswire/ -- WebexOne 2026 -- Cisco (NASDAQ: CSCO) today introduced agentic collaboration innovations that transform how people and agents work together. This approach addresses three connected dimensions of work for the AI era: how people work, how the workplace adapts, and how businesses engage with customers.

Organizations face a critical challenge: as the workforce evolves, teams need a way to unlock the potential of digital teammates, while maximizing the impact of work that requires the human touch. Cisco is uniting conversations, physical workspaces, and customer touchpoints into shared context. This transforms AI from reactive chatbots into digital teammates that drive complex work forward.

"The next era of work isn't about bolting chatbots onto yesterday's tools," said Jeetu Patel, President and Chief Product Officer, Cisco. "It's about AI agents working alongside people and teams, being deeply embedded in their workspaces, and collaborating on a secure, trusted foundation. When people and agents share the same context, work keeps moving and every customer relationship gets stronger."

The New Webex: Built for People and AI Agents Working Together
Cisco is moving enterprise AI beyond reactive, prompt-based assistants into proactive digital teammates that participate directly in the flow of work. New capabilities include:

Claude Managed Agents | intelligent teammates and multi-step actions in Webex: Soon, turn shared team context into deeper analysis, strategic recommendations, and coordinated action across approved agents. New AI agents that work alongside teams: Collaborative AI agents can be invited directly into spaces, meetings, and calls to execute complex, multi-step work across Webex and third-party applications. For example, a team member can @mention an analytics agent in a Webex space to pull usage statistics, then ask a presentation agent to update a PowerPoint deck to reflect those numbers. OpenAI dots | rich context and personal intelligence: The Webex Suite Model Context Protocol (MCP) integration brings Webex context directly into dots. In the future, dots will also be available within Webex as an always-on personal agent. Built for enterprise trust: Cisco brings identity, security, governance and visibility together so organizations can control what AI can access, what it can do and how it acts. A New Workplace for the AI Era
To support the vital moments of the agentic era that require the human touch—critical judgment, strategic alignment, and relationship-building—today's workplace must become an intelligent ecosystem that senses, reasons, and acts. Through Intelligent Workplace Experiences, Cisco is unifying secure networking, collaboration devices, digital experience assurance and physical spaces into a single architecture. Managed through Cisco Cloud Control, this foundation enables organizations to create flawless in-office environments, streamline IT operations, and unlock actionable insights to drive efficiency across physical spaces and technology. New innovations include:

Visual planning for IT and facilities: Workplace Designer extends Cisco's visual planning experience from individual rooms to the entire workplace, spanning networking, collaboration and workplace intelligence. It can, for example, turn a street address into a tailored blueprint to help teams align decisions and prepare for deployment, resulting in a simpler and better employee experience. Pinpoint and resolve workplace disruptions faster: Extending Experience Metrics into the workplace helps IT move beyond simple connectivity alerts to reveal exactly where issues occur and how they affect employees. By correlating network and device assurance with floor plans, Wi-Fi coverage, and occupancy, IT teams can prioritize and troubleshoot issues based on business impact, remediate problems faster, and ensure reliable workplace experiences. Optimize space and capacity planning: Workplace Insights in Cisco Cloud Control delivers a clear, unified view of how physical offices are utilized across locations and floors. By tracking activity patterns over time and comparing booked spaces against real-world occupancy, it empowers workplace leaders to move beyond isolated snapshots, right-size real estate investments, and adapt environments to how people collaborate every day. Cisco is also introducing RoomOS 27, the operating system for Collaboration Devices. Built for a new era of AI in physical spaces, RoomOS 27 advances the workplace experience across AI, platform choice, and intelligent management—helping spaces understand context, adapt to what's happening and increasingly take action, including:

Comprehensive interoperability: Through a new partnership with Google, Cisco devices now offer support for fully featured Google Meet natively, joining Webex, Microsoft Teams, and Zoom — making Cisco the most open collaboration hardware on the market. This gives customers complete freedom to choose their preferred meeting and AI environments, while retaining Cisco device intelligence and management. Advanced AI at the edge: The new Cisco AI Assistant on Collaboration Devices brings natural-language interaction to the room. With greater intelligence, AI Assistant can now engage in 32 languages. A prompt that the room is too warm, for example, automatically results in adjusting the temperature and lowering the blinds. Intelligent workplace management: Optimize workspaces with new intelligence in RoomOS 27 and Cisco Cloud Control. Workspace Advisor, Smart Room Assurance, Divisible Rooms, Splunk and agent integrations give IT greater visibility into how spaces are used with new ways to investigate, operate and continuously improve them at scale. Available in November, RoomOS 27 brings intelligence to where work happens—making the workplace more natural for people and easier for IT to secure, manage and improve.

Cisco Ceiling Speaker Pro completes Cisco's vision for fully integrated, IP-connected meeting spaces, ensuring every voice is heard clearly and naturally no matter where people join from. It integrates into the same intelligent system as Cisco cameras, microphones, and room devices, using AI to adapt audio across the space so even quiet voices carry naturally. Connected directly from the network to central management, Ceiling Speaker Pro replaces complex, multi-vendor audio setups with a single Ethernet cable that is simple to deploy and scale.

A New Approach to Customer Relationships
Customer experience today is constrained by treating engagements as isolated, atomic interactions. Advances in agentic AI now make it possible to connect interactions across customer journeys, systems and time into a single, continuous relationship. To help organizations evolve from an interaction-based approach to a relationship-based approach, Cisco is introducing Dialog, an agentic harness that enables personalized, long lasting customer relationships. New capabilities in Dialog include:

Long-horizon execution: Agents keep working on the customer's behalf after a conversation ends, coordinating across people, agents, and backend systems until the desired outcome is achieved. Persistent relationship context: Unifies customer history with enterprise data to maintain continuous context across all channels and time, powering absolute personalization at scale. Self-learning with every interaction: Continuously refines agent performance with every interaction, learning from customer journeys and human agent judgment while adhering to enterprise policy. Rapid onboarding: Enables organizations to onboard AI agents like new teammates, indexing existing employee handbooks, knowledge bases, and operating procedures. To ensure enterprise trust and scale, Webex AI Agents operate within active safety guardrails from Cisco AI Defense, with live telemetry and operational observability powered by Splunk.

Bringing It All Together
Cisco brings together collaboration, networking, workplace intelligence, customer experience, security, and observability on one integrated foundation. Together with Connected Intelligence, this foundation turns fragmented context into coordinated action across work, workplaces, and customer experiences.

Forward-Looking Statements
This press 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. 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. Any forward-looking statements in this release are based on limited information currently available to Cisco, which is subject to change, and Cisco will not necessarily update the information.

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.

SOURCE Cisco Systems, Inc.

Cisco just posted its fifth straight earnings beat while AI infrastructure orders piled up faster than Wall Street expected, yet the stock sits nearly 18% below its 52-week high. Something does not add up, and the answer could mean serious…

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Our 24/7 Wall St. price target for Cisco Systems (NASDAQ:CSCO | CSCO Price Prediction) is $125.42 over the next 12 months. That is 17.6% above today’s price, and our model rates the stock a buy.

24/7 Wall St. Price Target Summary Metric Value Current Price $106.63 Price Target from 24/7 Wall St. $125.42 Upside/Downside 17.62% Recommendation BUY Confidence Level 90% For years, investors owned Cisco mainly for the dividend. Now the company is booking AI infrastructure orders fast enough to drive revenue growth into the high teens. The stock trades at about 21x forward earnings, well below pure-play AI networking stocks.

Record Earnings Collide With a September Pullback Shares are up 40.98% year to date and 61.02% over the past year. They fell 2.25% over the past week and 4.73% over the past month, partly after Piper Sandler cut its price target (CNBC). The stock sits 17.9% below its 52-week high of $129.88.

The fundamentals point the other way. Fiscal fourth-quarter revenue came in at $17.25B, up 17.6% and ahead of the $16.83B consensus. Non-GAAP EPS of $1.22 exceeded the $1.17 estimate, Cisco’s fifth consecutive EPS beat.

AI infrastructure orders reached $4B in the quarter and $9.3B for the fiscal year. Management raised fiscal 2027 guidance to $72.2B–$73.4B in revenue and $5.05–$5.11 in non-GAAP EPS.

Why Bulls See $137 and Beyond Management expects AI infrastructure revenue of about $7.5B in fiscal 2027, up from roughly $4B this year. Cisco also added three new hyperscaler design wins in the quarter. CEO Chuck Robbins said on the call, “We believe we’re only at the beginning of this super cycle.” CFO Mark Patterson added that orders should be “meaningfully higher” in fiscal 2027.

Wall Street agrees. Covering analysts count 5 Strong Buys, 14 Buys, 9 Holds and zero Sells. The bull case lands at $137.26.

Margin Squeeze and Hyperscaler Dependence Could Cap Gains Non-GAAP gross margin slipped to 66.3% from 68.4% as the sales mix shifted toward AI hardware. Price increases added about five points to fourth-quarter growth. Management warned comparisons get harder in the second half of fiscal 2027. Our bear case is $105.57.

There is a counterpoint. Management says lower-margin hyperscaler hardware still earns attractive operating profits because it adds little extra expense. Guidance calls for an operating margin of about 35%, and $8.1B remains on the buyback authorization.

Cisco Trades at a Deep Discount to Faster-Growing Rivals Arista Networks (NYSE:ANET) competes directly with Cisco in AI data center switching. Last quarter it grew revenue 37.69%, but the stock trades at 74x trailing earnings.

Hewlett Packard Enterprise (NYSE:HPE) now owns Juniper, and its networking revenue rose 74.9%. HPE guides to 16%-20% non-GAAP EPS growth in fiscal 2027, close to Cisco’s rate, but with much lower margins.

Company P/E Latest Quarter Revenue Growth Non-GAAP Operating Margin Cisco 21x forward 17.6% 35.9% Arista 74x trailing 37.69% 49.9% HPE Not meaningful 32.72% 16.2% Compared with these peers, our 24/7 Wall St. price target looks reasonable and arguably conservative.

Cisco’s AI Order Book Tips the Scale Toward Upside My 24/7 Wall St. price target is $125.42, with a buy rating and 90% confidence. Cisco trades at a discount even though AI infrastructure revenue is on track to nearly double.

I would turn cautious if AI orders stall or gross margins keep sliding. On the evidence so far, the AI boost looks stronger than the market is giving it credit for.

Year Price Target from 24/7 Wall St. 2026 $111.04 2027 $125.42 2028 $136.83 2029 $149.28 2030 $162.86 Cisco would need to keep executing its AI networking strategy for these projections to hold. A lasting cut in hyperscaler capital spending would be the biggest risk to that path. Cisco is one of several non-chip names riding the data-center expansion, and we covered seven of them, from power to networking, in a free report you can grab here.

Contact [email protected] for any questions or corrections.

Key Takeaways CSCO's security portfolio, including Splunk, posted double-digit order growth in fiscal Q4 2026.More than 1,500 customers bought CSCO's newer security offerings in fiscal Q4 2026.CSCO's fiscal Q4 Security revenues rose 14%, while Observability revenues increased 6%. Cisco Systems (CSCO - Free Report) is benefiting from growing enterprise adoption of integrated security and observability solutions as artificial intelligence (AI), distributed applications and increasingly sophisticated cyberattacks expand IT complexity. CSCO is combining networking with security through Secure Access, XDR, Hypershield and AI Defense, while Splunk and ThousandEyes strengthen its observability and network-assurance capabilities. The integrated approach enhances CSCO’s ability to address customers seeking unified visibility and protection across networks, applications, users, and AI agents, while reinforcing its competitive positioning against Datadog (DDOG - Free Report) and CrowdStrike (CRWD - Free Report) .

Customer adoption is gaining momentum. CSCO’s entire security portfolio, including Splunk, recorded double-digit order growth in the fourth quarter of fiscal 2026. More than 1,500 customers purchased newer offerings such as Secure Access, XDR, Hypershield and AI Defense during the quarter, taking total net new customers since launch to more than 6,400. Firewall orders increased more than 30% year over year, while management highlighted that customers are increasingly seeking unified protection across users, applications and AI agents.

CSCO is also broadening its AI-driven operations capabilities. In the fourth quarter of fiscal 2026, nearly 4,500 enterprises had signed up for Cisco Cloud Control, while Resilient Infrastructure Services, powered by Cisco IQ, had more than 8,600 customers. CSCO also launched Antares, a family of open-weight small language models designed to identify known code vulnerabilities.

The momentum is beginning to support financial growth. In the fourth quarter of fiscal 2026, Security revenues rose 14% year over year to $2.23 billion, while Observability revenues increased 6% to $275 million. For fiscal 2026, Security revenues grew 2% to $8.23 billion, while Observability revenues increased 4% to $1.10 billion. Observability growth was driven by network assurance, partly offset by weakness in CSCO’s observability-suite offerings.

CSCO Faces Tough CompetitionDatadog is expanding from traditional cloud observability into AI-focused monitoring and security. More than 750 AI customers use DDOG, including all 10 top AI leaders. Its portfolio includes GPU Monitoring, Agent Observability, Agent Console, Data Observability and AI Guard. Datadog is also pushing deeper into security through AI Guard and Bits Security Analyst, which can operate with non-Datadog SIEM platforms. In the second quarter of fiscal 2026, platform adoption continued to deepen, with 58% of customers using four or more products and 37% using six or more products.

CrowdStrike is challenging CSCO through the continued expansion of its Falcon platform. The company reported next-generation SIEM annual recurring revenues (ARR) of more than $695 million, cloud security ARR above $905 million and identity ARR exceeding $585 million in the second quarter of fiscal 2027. Falcon Flex ARR surpassed $2.29 billion, up 101% year over year. CRWD is also seeing deeper platform consolidation, with 51% of subscription customers using six modules, 35% using seven and 26% using eight or more. This growing adoption across SIEM, endpoint, cloud, identity and AI security is increasing competitive pressure on CSCO’s integrated security and observability strategy.

CSCO’s Share Price Performance, Valuation & EstimatesShares of Cisco Systems have appreciated 38.5% year to date, outperforming the broader Zacks Computer and Technology sector’s 22.6% growth.

CSCO Stock’s Price Performance
Image Source: Zacks Investment Research

CSCO stock is trading at a premium, with forward 12-month price/earnings of 20.56X compared with the broader sector’s 21.27X. Cisco Systems has a Value Score of F.

CSCO’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Cisco Systems’ earnings is currently pegged at $1.32 per share, down by a penny over the past 30 days, suggesting 32% growth.

Cisco Systems currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Cisco shares fell 7.8% in three months amid margin pressure and concerns over recurring-revenue growth.Cisco expects hyperscaler AI infrastructure revenues to rise from about $4B in fiscal 2026 to $7.5B in 2027.Cisco sees more than $100 billion in networking refresh opportunities. Cisco Systems (CSCO - Free Report) shares have dropped 7.8% in the past three months, underperforming the broader Zacks Computer & Technology sector’s fall of 2.6%. Cisco has underperformed peers, including Hewlett Packard Enterprise (HPE - Free Report) and Arista Networks (ANET - Free Report) , but outperformed Broadcom (AVGO - Free Report) over the same time frame. Shares of Hewlett Packard Enterprise and Arista Networks have appreciated 28.8% and 17.6% over the past three months, respectively, while Broadcom has dropped 15.5%. The decline in CSCO appears to reflect concerns around margin pressure, the revenue mix, and the sustainability of the current networking upcycle. However, does the dip offer an opportunity to take a position in CSCO shares? Let’s find out.

CSCO Price Performance
Image Source: Zacks Investment Research

Cisco Suffers from Margin PressureInvestor concerns around margin pressure and the quality of forward growth despite very strong top-line results have been plaguing Cisco shares in recent times. The company’s fourth-quarter fiscal 2026 non-GAAP gross margin declined 210 basis points (bps) year over year to 66.3%, while product gross margin fell 270 bps to 64.8%. Cisco attributed the decline primarily to a greater mix of hardware revenue and higher memory costs, partly offset by productivity gains and pricing actions. Cisco guided first-quarter fiscal 2027 non-GAAP gross margin to 65-66%, indicating continued pressure.

The rapid expansion of AI infrastructure is contributing to this mix pressure. Cisco is shipping more hardware into hyperscale and enterprise deployments, while associated software subscriptions and services are recognized over time. The company acknowledged that this creates a timing difference that can weigh on gross margins as hardware revenue scales faster than recurring revenues.

Sluggish recurring and services growth could also be weighing on sentiment. Services revenues were essentially flat year over year at $3.79 billion in the fourth quarter of fiscal 2026. Annualized recurring revenue (ARR) increased only 3% to $32.1 billion despite total revenues jumping 18%. Observability revenues rose just 6%, while fiscal 2026 Security revenues increased only 2%. These trends contrast with the much stronger growth currently being generated by networking hardware.

Splunk is also still moving through its transition from on-premises offerings toward cloud subscriptions. The company expects this comparison to improve during fiscal 2027, but the transition has temporarily restrained reported growth. Cisco expects Security growth to improve from low-single digits in fiscal 2026 toward high-single digits in fiscal 2027.

AI Push & Strong Networking Growth Aids Cisco’s ProspectsAI infrastructure represents Cisco’s biggest emerging growth catalyst. Hyperscaler AI infrastructure orders reached $9.3 billion in fiscal 2026, roughly 4.5 times the fiscal 2025 level. Cisco generated approximately $4 billion of hyperscaler AI infrastructure revenues in fiscal 2026 and expects this figure to jump to $7.5 billion in fiscal 2027. Importantly, the AI opportunity is expanding beyond hyperscalers. Cisco recorded $1.3 billion of fiscal 2026 AI orders from neocloud, sovereign-cloud and enterprise customers.

Silicon One and optics should strengthen Cisco’s position in AI networking. The company secured new hyperscaler design wins for its P200 scale-across and G200 scale-out systems in the fiscal fourth quarter and expects additional opportunities involving the G300, G200 and P200 platforms. The company plans comprehensive adoption of Silicon One across its high-performance networking portfolio by fiscal 2029.

Scale-across networking could be particularly important as AI clusters become distributed across multiple data centers. Cisco estimates that these architectures can require roughly 14 times the bandwidth of traditional data-center interconnects and 12,000-32,000 coherent ports compared with only 1,000-2,000 traditionally. Cisco can address this opportunity through Silicon One systems, Acacia coherent optics and optical line systems.

A massive enterprise network-refresh cycle provides another durable growth driver. Cisco estimates more than $100 billion of networking refresh opportunities over the coming years. Campus networking orders rose more than 15% in fiscal 2026, yet only about 7% of Cisco’s campus switching installed base had been refreshed by fiscal year-end, suggesting substantial runway. The refresh cycle is being accelerated by AI workloads, Wi-Fi 7 adoption, higher bandwidth requirements and cybersecurity needs. Campus networking orders increased 20% in the fourth quarter, while wireless bookings advanced more than 25%. Wi-Fi 7 represented more than half of wireless bookings, creating additional demand for multi-gigabit campus switches.

Fiscal 2027 Earnings Estimate Revisions Positive for CSCOThe Zacks Consensus Estimate for CSCO’s fiscal 2027 earnings is currently pegged at $5.11 per share, up 7% over the past 60 days, indicating year-over-year growth of 18.01%.
 

The consensus mark for CSCO’s first-quarter fiscal 2027 earnings is currently pegged at $1.32 per share, up 14.8% over the past 30 days, indicating year-over-year growth of 32%.

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 6.01X, higher than the broader sector’s 5.95X and Hewlett Packard Enterprise’s 1.51X.

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 16.92X and 9.97X, respectively.

CSCO Stock’s Valuation
Image Source: Zacks Investment Research

ConclusionCisco’s near-term margin pressure, slower recurring-revenue growth and premium valuation warrant some caution. However, the company’s strengthening position in AI infrastructure, robust hyperscaler demand and sizable enterprise networking refresh opportunity support an improving growth outlook. Rising adoption of Silicon One, Acacia optics, Wi-Fi 7 and next-generation switching solutions should further expand Cisco’s addressable market. Moreover, positive fiscal 2027 earnings estimate revisions reflect improving expectations for profitability. With AI infrastructure revenues expected to accelerate and Security growth projected to improve, the recent share-price weakness could offer investors an attractive entry point into Cisco’s long-term growth story.

CSCO currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The release combines infrastructure and software while leaving customers responsible for operating their own deployment. Summary

Cisco is creating an integrated route to enterprise AI spending through on-premises Splunk workloads.

A customer-controlled path into enterprise AI opened Monday as Cisco rolled out version 1.0 of Cisco AI POD for Splunk. Cisco Systems CSCO, the networking and cybersecurity giant, traded about 1.5% lower at $110.395, based on the latest price shown. The September 14 release gives enterprises a new way to run Splunk's AI capabilities inside their own infrastructure, although the documentation itself does not tie the launch to Monday's share-price decline.

The setup brings Splunk's AI tier onto Red Hat OpenShift while combining Cisco compute infrastructure, Nvidia GPU acceleration and Splunk software. Customers can deploy tools including AI Assistant and AI Toolkit while keeping the OpenShift environment under their own control. That matters because Cisco is not simply selling another piece of hardware here. It is positioning itself to collect infrastructure demand as enterprises move AI workloads from experimentation into production.

The valuation picture, however, raises the bar. The chart puts Cisco at $110.395 versus a GF Value™ estimate of $74.40, meaning the stock trades 48.38% above that benchmark. That premium suggests investors are already paying for substantial execution. Cisco AI POD could deepen the link between its hardware and Splunk software, but the real test will be whether customers deploy these systems at scale, consume more software and generate enough recurring economics to justify both the operating cost and Cisco's elevated valuation.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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Brings together Infleqtion's neutral-atom quantum computers and sensors with Cisco's networking stack to accelerate scalable, distributed quantum computing.

LOUISVILLE, Colo.--(BUSINESS WIRE)--Infleqtion, a global leader in quantum computing and quantum sensing powered by neutral atom technology, today announced a collaboration with Cisco to pursue joint research and development focused on connecting, operating, and scaling quantum systems. Together, the companies will explore architectures to link individual devices into distributed, more capable networks, an important step toward making distributed quantum systems a reality.

“The next major breakthrough in quantum will not come from building bigger isolated machines, but from networking systems together,” said Ramana Kompella, VP and Head of Cisco Research. “By combining Cisco's quantum networking leadership with Infleqtion’s quantum platforms, we are developing the communication architecture needed to scale quantum capabilities from standalone devices into resilient, collaborative networks.”

“Achieving the broadest applications of quantum computing will require many quantum systems working together. The path forward is connecting these systems together the same way the internet emerged from connecting many classical computers,” said Pranav Gokhale, Chief Technology Officer at Infleqtion. “That's why this collaboration matters. Together, Infleqtion and Cisco are exploring how to connect quantum computers and sensors together into larger, more powerful quantum networks, which is a critical step toward unlocking distributed quantum.”

Neutral atoms interface naturally with photons, the particles of light used to carry information across networks, making them well suited to link quantum computing and quantum sensing with the photonic channels needed for quantum networking. Infleqtion’s systems combine native quantum memory with multi-modal computing and sensing, providing the device-level hardware and optical interfaces needed to connect into broader networks. Realizing that vision at scale, however, will require the modality-agnostic quantum network architecture Cisco is developing through Cisco Quantum Labs to connect heterogeneous quantum computers, sensors and other quantum technologies into scalable, distributed systems.

To support this distributed architecture, Cisco is advancing research and developing solutions for an end-to-end quantum networking stack designed to dynamically distribute quantum entanglement across connected devices on demand. This includes purpose-built quantum hardware and software designed to manage connections between quantum processors, memory, and sensors, enabling information to move reliably across systems. Most recently, Cisco debuted the Cisco Universal Quantum Switch, a working research prototype, to route quantum information between systems while preserving it with a conversion engine that makes a truly interoperable quantum network now possible.

Infleqtion and Cisco intend to explore key research areas to advance networked quantum systems:

Convergence of Sensing and Compute: Exploring network architectures that could orchestrate data transfer between distributed quantum sensors and computational nodes.Quantum Memory and Optical Transduction: Exploring methods to convert or transduce the quantum states held in neutral-atom quantum memory and QPUs with optical channels for quantum networking.Network-Aware Quantum Software: Evaluating opportunities to coordinate multi-modal quantum workloads across connected neutral-atom systems.Representatives from both companies will appear at industry gatherings this fall:

Quantum World Congress, September 23–25 in College Park, Maryland:
https://www.quantumworldcongress.com/Cisco Quantum Summit, October 6–7, Virtual. Register at:
https://research.cisco.com/quantum-summitAbout Infleqtion

Infleqtion, Inc. (NYSE: INFQ) is a global leader in quantum technology, delivering neutral-atom solutions for quantum computing, networking, sensing, and security. With a product portfolio spanning quantum computers, quantum optical clocks, RF receivers, and inertial sensors, Infleqtion’s full-stack approach combines high-performance hardware with the company’s proprietary Superstaq quantum computing software platform. Infleqtion’s systems are already in use by the U.S. Department of War, NASA, the U.K. government, and in multiple collaborations with NVIDIA. Infleqtion, in collaboration with NVIDIA, published the world’s first demonstration of a materials science application using logical qubits. With operations in the U.S., Europe, and Asia, Infleqtion meets the demands of government and commercial customers across the space, defense, energy, finance and telecommunications sectors. For more information, visit Infleqtion.com or follow Infleqtion on LinkedIn, YouTube, and X.

This press release contains forward-looking statements within the meaning of federal securities laws, including the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “anticipates,” “believe,” “do not believe,” “plans,” “seeks,” “will,” “on track,” “may,” “consider,” “likely,” “assume,” “estimate,” “expect,” “intend,” “aim,” “predict,” “project,” “continue,” “potential,” “guidance,” “objective,” “outlook,” “trends,” “future,” “could,” “would,” “should,” “target,” or their negatives or variations, and similar terminology and words of similar import, generally involve future or forward-looking statements. All statements, other than statements of historical facts, including without limitation, statements regarding the intended research and development of networked quantum technologies, are forward looking statements. These statements are based on Infleqtion’s current expectations, assumptions and projections as of the date of this release and are subject to risks and uncertainties that could cause actual results to differ materially and adversely. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Such risks and uncertainties include, without limitation, those related to Infleqtion’s ability to recognize anticipated benefits of its business combination with Churchill Capital Corp X; the implementation, market acceptance, and success of Infleqtion’s business model, growth strategy, and opportunities, and its ability to commercialize its quantum computing technology; the expected benefits of and ability to maintain and enter into new contracts, awards, and other relationships, partnerships, or collaborations with governments or government entities; the potential for quantum computing technology to achieve quantum advantages; the ability of Infleqtion’s products to meet government counterparties’ and customers’ technical requirements and compliance and regulatory needs; Infleqtion’s ability to obtain and maintain intellectual property protection and not infringe on the rights of others; and other risks and uncertainties described in Infleqtion’s Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent filings with the U.S. Securities and Exchange Commission. The Company undertakes no obligation to update these forward-looking statements except as required by law.

More News From Infleqtion

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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.

Further Reading Five stocks we like better than Cisco Systems The AI Boom Is Turning This Cable Maker Into a Stock to Watch A Star Investor Just Trimmed Amazon—Here’s What It means Wendy’s Deal Buzz May Give Fast-Food Investors a New Reason to Look Home Depot Analysts See a Path to $375 and Beyond 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 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.

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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.