Cisco Systems (CSCO - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this seller of routers, switches, software and services have returned -10.9%, compared to the Zacks S&P 500 composite's -0.4% change. During this period, the Zacks Computer - Networking industry, which Cisco falls in, has lost 10.1%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Cisco is expected to post earnings of $1.32 per share, indicating a change of +32% from the year-ago quarter. The Zacks Consensus Estimate has changed +19.3% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $5.11 points to a change of +18% from the prior year. Over the last 30 days, this estimate has changed +10.7%.
For the next fiscal year, the consensus earnings estimate of $5.58 indicates a change of +9.2% from what Cisco is expected to report a year ago. Over the past month, the estimate has changed +5.8%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Cisco.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Cisco, the consensus sales estimate of $18.08 billion for the current quarter points to a year-over-year change of +21.5%. The $73.05 billion and $77.85 billion estimates for the current and next fiscal years indicate changes of +15.4% and +6.6%, respectively.
Last Reported Results and Surprise HistoryCisco reported revenues of $17.25 billion in the last reported quarter, representing a year-over-year change of +17.6%. EPS of $1.22 for the same period compares with $0.99 a year ago.
Compared to the Zacks Consensus Estimate of $16.85 billion, the reported revenues represent a surprise of +2.36%. The EPS surprise was +4.27%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Cisco is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Cisco. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
The AI Boom Is Turning This Cable Maker Into a Stock to WatchCisco Systems NASDAQ: CSCO executives said demand tied to artificial intelligence, infrastructure modernization and security is supporting what the company views as a multi-year networking growth cycle.
Speaking at the Goldman Sachs Communacopia + Technology Conference, President and Chief Product Officer Jeetu Patel said the shift toward AI agents is increasing demand for high-performance, low-latency networks and machine-scale security. He cited OpenRouter data indicating that agents consume about 60% of total inference capacity and said their token consumption has increased 14-fold since February.
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5 Tech Stocks Holding Their Ground Through the AI Trade Pullback“These agents tend to be far more consumptive on network bandwidth than humans,” Patel said, estimating that an agent uses about 450% more bandwidth than a human performing the same task. He said the growing use of agents, which can operate continuously, is creating sustained infrastructure requirements rather than demand limited to experimentation or model training.
AI Demand Across Customer Segments Patel said Cisco sees opportunities across hyperscalers, neoclouds, sovereign clouds, service providers, enterprises and edge deployments. He said Cisco’s hyperscaler AI orders rose from nearly zero two years ago to $9.3 billion in the last fiscal year, including $4 billion in orders during the fourth quarter.
Palantir’s Earnings Setup Puts Its AI Growth Story Back on Trial AgainThe company also said AI-related demand is extending into its traditional enterprise networking business. Patel said Cisco’s campus and branch networking business, which historically grew at roughly 3% to 4%, has expanded about 20% for several quarters. He attributed that growth to infrastructure refresh cycles, demand for lower-latency networking and heightened security concerns around aging equipment.
Chief Financial Officer Mark Patterson said networking has delivered double-digit growth for eight consecutive quarters and that companywide orders grew 40% in the latest quarter. Excluding hyperscalers, Patel said orders grew 25% in the fourth quarter.
Patterson said Cisco has identified more than $100 billion in upgrade and refresh opportunity involving its own installed base over the next several years. The company is also pursuing replacement opportunities involving competitors’ end-of-life and end-of-support products, he said.
Security and Modernization Cisco executives emphasized the convergence of networking and security as AI expands the potential scale of cyberattacks. Patterson said companies increasingly view modernization as a security requirement, rather than a discretionary return-on-investment decision, because frontier AI models can identify and exploit vulnerabilities at machine scale.
Patel said Cisco’s advantage is its ability to integrate security capabilities into networking infrastructure. He highlighted the company’s smart switches, which combine firewall and switching functions, as well as security, observability and data capabilities intended to help customers manage AI environments.
For fiscal 2027, Patterson said Cisco expects high-single-digit growth in security revenue after low-single-digit growth in fiscal 2026. He said Splunk is expected to return to positive growth as the company laps a transition from on-premises deployments to cloud offerings. Cisco added 1,500 new customers for its newer security products in the fourth quarter, he said, while firewall revenue grew more than 30% for two consecutive quarters.
Services revenue is also expected to turn positive and reach mid-single-digit growth by the end of fiscal 2027, Patterson said. He attributed the anticipated improvement partly to services and subscription revenue attaching to recent hardware shipments over time.
Margin Outlook and Product Strategy Patterson said Cisco has managed rising memory prices by passing much of the cost to customers, aided by demand conditions. The company’s fiscal first-quarter 2027 gross-margin guidance of 65% to 66% reflects some timing effects from hardware revenue being recognized upfront while associated software subscriptions and services are recognized over time, he said.
While Cisco expects a slight gross-margin headwind through fiscal 2027, Patterson pointed to operating-margin improvement. In the fourth quarter, gross margin increased about two percentage points from a year earlier, while operating expenses declined nearly four percentage points as a share of revenue, resulting in a record operating margin, he said.
Patel said Cisco has reorganized its product approach into a vertically integrated, co-designed technology stack spanning silicon, photonics, systems, software, security, observability, data and management platforms. He said the company expects to be fully independent of merchant silicon providers by 2029.
The company is targeting networking for both scale-out AI systems within data centers and scale-across systems linking data centers over long distances. It is also working with NVIDIA and Supermicro on “Secure AI factories” that combine servers, networking, security, observability and data-management capabilities.
Capital Allocation Patterson said Cisco’s capital-allocation priorities remain unchanged: investing to support organic and inorganic growth, protecting and increasing its dividend, offsetting dilution through share repurchases and returning excess cash to shareholders. He said the company returned nearly all of its free cash flow to shareholders in the last fiscal year.
Looking ahead, Patel said Cisco plans to continue investing across networking, security, observability, data platforms, silicon and photonics while maintaining an open ecosystem that can include partnerships with competitors. Patterson said he is more optimistic about Cisco’s opportunity set and ability to capture it than at any point in his 27 years with the company.
About Cisco Systems (NASDAQ:CSCO)Cisco Systems, Inc is a global technology company that provides networking, cybersecurity, collaboration, observability and other information technology solutions. Its offerings include routers, switches, wireless networking equipment, data center infrastructure, security platforms, unified communications tools and software designed to help organizations connect, manage and protect their digital environments.
Cisco serves businesses, government agencies, educational institutions, telecommunications providers and other organizations worldwide.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Greenland Capital Management LP cut its stake in Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) by 38.6% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 10,112 shares of the network equipment provider’s stock after selling 6,347 shares during the period. Greenland Capital Management LP’s holdings in Cisco Systems were worth $1,188,000 as of its most recent SEC filing.
Several other large investors also recently bought and sold shares of CSCO. BlackRock Inc. acquired a new position in Cisco Systems during the second quarter worth approximately $42,129,647,000. Norges Bank purchased a new stake in Cisco Systems in the fourth quarter valued at approximately $4,473,272,000. Auto Owners Insurance Co boosted its holdings in shares of Cisco Systems by 8,718.3% in the fourth quarter. Auto Owners Insurance Co now owns 51,952,421 shares of the network equipment provider’s stock valued at $400,190,000 after acquiring an additional 51,363,281 shares during the period. Bank of America Corp DE acquired a new stake in shares of Cisco Systems in the second quarter valued at approximately $5,892,379,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of Cisco Systems during the second quarter worth approximately $4,714,574,000. Institutional investors and hedge funds own 73.33% of the company’s stock.
Insiders Place Their Bets In other Cisco Systems news, insider Jeetendra I. Patel sold 7,170 shares of the business’s stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $111.57, for a total transaction of $799,956.90. Following the transaction, the insider owned 230,593 shares in the company, valued at approximately $25,727,261.01. The trade was a 3.02% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Deborah L. Stahlkopf sold 6,487 shares of the stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $111.53, for a total value of $723,495.11. Following the transaction, the executive vice president directly owned 167,116 shares of the company’s stock, valued at approximately $18,638,447.48. This trade represents a 3.74% 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. Over the last quarter, insiders have sold 53,611 shares of company stock valued at $6,066,680. Corporate insiders own 0.01% of the company’s stock.
Wall Street Analysts Forecast Growth Several analysts recently commented on the stock. Zacks Research downgraded shares of Cisco Systems from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 4th. UBS Group raised their price objective on shares of Cisco Systems from $132.00 to $138.00 and gave the stock a “buy” rating in a research report on Thursday, August 13th. Citic Securities lifted their price objective on shares of Cisco Systems from $90.00 to $130.00 in a research note on Friday, May 15th. Argus upped their target price on shares of Cisco Systems from $100.00 to $150.00 and gave the company a “buy” rating in a report on Tuesday, May 19th. Finally, Weiss Ratings reiterated a “buy (b)” rating on shares of Cisco Systems in a research note on Wednesday, August 26th. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $129.68. View Our Latest Analysis on CSCO
Cisco Systems Price Performance Cisco Systems stock opened at $109.20 on Monday. Cisco Systems, Inc. has a 12 month low of $66.13 and a 12 month high of $130.37. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.93 and a quick ratio of 0.79. The business has a 50 day simple moving average of $114.26 and a 200-day simple moving average of $102.38. The stock has a market capitalization of $430.53 billion, a PE ratio of 32.69, a price-to-earnings-growth ratio of 2.28 and a beta of 1.00.
Cisco Systems (NASDAQ:CSCO – Get Free Report) last posted its quarterly earnings data 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. The firm had revenue of $17.25 billion for the quarter, compared to analyst estimates of $16.84 billion. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. Cisco Systems’s quarterly revenue was up 17.6% on a year-over-year basis. During the same period last year, the firm 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. Equities analysts predict that Cisco Systems, Inc. will post 4.43 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. Stockholders 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 annualized dividend and a dividend yield of 1.5%. Cisco Systems’s payout ratio is presently 50.30%.
Cisco Systems Company Profile (Free Report)
Cisco Systems, Inc is a global technology company that designs, manufactures and sells networking hardware, software and telecommunications equipment. Its core business focuses on enabling enterprise and service-provider networks through products such as routers, switches, network security appliances and wireless systems. Over time Cisco has broadened its portfolio to emphasize software-defined networking, cybersecurity, cloud infrastructure and edge computing solutions that help organizations build and manage modern IT environments.
In addition to hardware, Cisco offers a growing range of software platforms and subscription services for network management, security, analytics and collaboration.
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Elon Musk brought a staggering AI economic forecast to G20 policymakers, but Wall Street skeptics are raising pointed questions about the gap between today's debt-fueled buildout and the payoff Musk envisions.
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Speaking virtually at a G20 event in North Carolina, Tesla (NASDAQ:TSLA | TSLA Price Prediction) and SpaceX CEO Elon Musk offered what he called a rough estimate of AI’s economic upside. “I think AI will probably increase the global economy by 20% to 30%. That’s my rough estimate. Meaning on the order of $20 to $30 trillion per year,“ Musk said.
He paired that with a forecast of how AI’s capability will progress: “AI will be able to do anything that doesn’t require shaping of atoms by hand. Probably by the end of next year.”
Why Musk Took His $30 Trillion per Year AI Thesis to the G20 Musk’s argument, delivered to policymakers, is that AI’s productivity upside is large enough to reframe conversations about debt, spending and growth. This comes as investors watch a deepening global bond selloff and renewed U.S.-Iran attacks, with rate-hike expectations climbing again.
U.S. real GDP grew 1.5% in Q2’26, following 2.1% in Q1’26, per the Bureau of Economic Analysis series tracked by FRED. The 10-year Treasury yield sat at 4.79% and the 30-year at 5.27% on September 1, 2026.
Musk Is Far More Bullish Than Wall Street’s AI Skeptics Musk is aggressively bullish on AI compared to some of the more skeptical analysts:
The disciplined bull case: Goldman Sachs (NYSE:GS) CEO David Solomon, speaking at the same G20 meeting in North Carolina on August 31, argued AI productivity gains give the U.S. “a real opportunity to run at a higher growth rate” over the next 5-10 years, while warning the country must grow consistently faster or adjust spending policy given debt levels. The skeptics: Roger Altman has cautioned that no one yet knows whether AI spending will earn satisfactory returns. Mohamed El-Erian has flagged a funding gap and estimated a 3-4 year overbuild. Analyst Gil Luria has questioned the capex math outright. The near-term market risk: On an August 31 JonesTrading panel, Mike O’Rourke warned that debt-financed AI buildouts convert high-growth companies into rate-sensitive ones, and Peter Tchir cited $100 billion more corporate credit issuance than typical for August. That is the same bond pressure showing up in this week’s market action. The straight bull case: Jim Cramer has argued the era of profitless chip buying ended after NVIDIA (NASDAQ:NVDA) guided to 70% annual revenue growth against a Street looking for 45%. Cisco (NASDAQ:CSCO) CEO Chuck Robbins has framed AI as a secular supercycle. Key Takeaways Musk’s $20-$30 trillion estimate represents the extreme bull case for AI, with productivity gains so large they materially expand the global economy. The question for investors is what happens between today’s massive infrastructure spending and that potential payoff.
Contact [email protected] for any questions or corrections.
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.
, /PRNewswire/ -- Cisco (NASDAQ: CSCO) will participate in the following events with the financial community in September:
Goldman Sachs Communacopia + Technology Conference 2026, San Francisco
Tuesday, September 8, 2026
Investor Meetings & Fireside Chat at 11:30am PDT
(Webcast & registration will be made available on investor.cisco.com)
Cisco Representatives:
Mark Patterson, EVP & Chief Financial Officer
Jeetu Patel, President & Chief Product Officer
Cisco Investor Relations
Citi 2026 Global TMT Conference, New York
Thursday, September 10, 2026
Investor Meetings & Fireside Chat at 9:35am PDT
(Webcast & registration will be made available on investor.cisco.com)
Cisco Representatives:
Sami Badri, SVP, Investor Relations & Strategic Finance
Truist Technology Symposium, New York
Tuesday, September 15, 2026
Investor Meetings Only
Cisco Representatives:
Sami Badri, SVP, Investor Relations & Strategic Finance
Piper Sandler 2026 Tech Conference, Nashville
Wednesday, September 16, 2026
Investor Meetings Only
Cisco Representatives:
Sami Badri, SVP, Investor Relations & Strategic Finance
European Conference on Optical Communication (ECOC) 2026, Málaga, Spain
Monday, September 21, 2026
Investor meetings only
Cisco Representatives:
Tom Williams, VP Product Management, Acacia
Lorenzo Ghioni, VP Product Management, Optical Systems
Ron Horan, VP, Product Management, Client Optics Group
Emily Hunt, Director, Investor Relations
JP Morgan US All Stars Conference, London
Wednesday, September 23, 2026
Investor Meetings Only
Cisco Representatives:
Emily Hunt, Director, Investor Relations
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.
Archer Investment Corp purchased a new position in shares of Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 5,588 shares of the network equipment provider’s stock, valued at approximately $656,000.
A number of other hedge funds have also recently bought and sold shares of CSCO. BlackRock Inc. purchased a new position in shares of Cisco Systems in the 2nd quarter worth approximately $42,129,647,000. Norges Bank purchased a new position in Cisco Systems in the fourth quarter worth $4,473,272,000. Auto Owners Insurance Co boosted its position in Cisco Systems by 8,718.3% in the fourth 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 last quarter. Bank of America Corp DE bought a new position in Cisco Systems in the 2nd quarter valued at $5,892,379,000. Finally, Bank of New York Mellon Corp purchased a new stake in shares of Cisco Systems during the 2nd quarter valued at $4,714,574,000. 73.33% of the stock is owned by hedge funds and other institutional investors.
Analysts Set New Price Targets A number of equities research analysts have recently commented on CSCO shares. KeyCorp lifted their target price on Cisco Systems from $130.00 to $135.00 and gave the stock an “overweight” rating in a research note on Thursday, August 13th. Bank of America raised their price objective on shares of Cisco Systems from $135.00 to $150.00 and gave the stock a “buy” rating in a report on Monday, June 8th. Piper Sandler lifted their price objective on shares of Cisco Systems from $86.00 to $132.00 and gave the stock a “neutral” rating in a research report on Thursday, May 14th. Rosenblatt Securities raised their price target on shares of Cisco Systems from $150.00 to $165.00 and gave the stock a “buy” rating in a research note on Thursday, August 13th. Finally, Truist Financial lifted their price target 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. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $129.43.
Get Our Latest Stock Report on CSCO Cisco Systems Trading Down 2.0% Cisco Systems stock opened at $109.93 on Friday. 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. The stock has a market cap of $433.28 billion, a P/E ratio of 32.91, a PEG ratio of 2.20 and a beta of 1.02. The firm’s fifty day moving average price is $115.21 and its 200-day moving average price is $101.24.
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 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%.During the same period in the previous year, the business earned $0.99 earnings per share. The firm’s 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 4.44 earnings per share for the current fiscal year.
Cisco Systems Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 21st. Shareholders of record on Friday, October 2nd will be paid a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend is Friday, October 2nd. Cisco Systems’s payout ratio is currently 50.30%.
Insider Transactions at Cisco Systems In related news, EVP Deborah L. Stahlkopf sold 6,487 shares of the stock in a transaction on Friday, August 14th. The stock was sold at an average price of $111.53, for a total value of $723,495.11. Following the transaction, the executive vice president owned 167,116 shares of the company’s stock, valued at $18,638,447.48. This represents a 3.74% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through 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 dated Tuesday, June 16th. The shares were sold at an average price of $119.91, for a total value of $854,598.57. Following the sale, the executive vice president owned 140,857 shares in the company, valued at $16,890,162.87. The trade was a 4.82% decrease in their position. 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 have sold 53,611 shares of company stock worth $6,066,680. Company insiders own 0.01% 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 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.
Read More Five stocks we like better than Cisco Systems 3 Financial Stocks Positioned for the Fed’s Next Move After Jackson Hole IREN’s AI Pivot Looks Real, But the Market Wanted a Faster Payoff After Earnings Boeing’s $131B F-15 Win: Mach 1 Momentum or Just Altitude? Okta Stock Surges 29%—Is $200 the Next Stop?
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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.
Featured Stories Five stocks we like better than Cisco Systems 3 Financial Stocks Positioned for the Fed’s Next Move After Jackson Hole IREN’s AI Pivot Looks Real, But the Market Wanted a Faster Payoff After Earnings Boeing’s $131B F-15 Win: Mach 1 Momentum or Just Altitude? Okta Stock Surges 29%—Is $200 the Next Stop?
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Beacon Pointe Advisors LLC bought a new position in Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor bought 510,885 shares of the network equipment provider’s stock, valued at approximately $60,009,000.
Several other large investors have also added to or reduced their stakes in CSCO. Cozad Asset Management Inc. increased its stake in shares of Cisco Systems by 0.3% in the first quarter. Cozad Asset Management Inc. now owns 26,203 shares of the network equipment provider’s stock worth $2,033,000 after purchasing an additional 87 shares in the last quarter. Dogwood Wealth Management LLC lifted its stake in shares of Cisco Systems by 3.9% during the 2nd quarter. Dogwood Wealth Management LLC now owns 2,413 shares of the network equipment provider’s stock valued at $283,000 after buying an additional 90 shares in the last quarter. August Group Capital Ltd boosted its holdings in Cisco Systems by 2.0% in the 2nd quarter. August Group Capital Ltd now owns 4,723 shares of the network equipment provider’s stock worth $555,000 after buying an additional 91 shares during the period. Financial Insights Inc. increased its stake in Cisco Systems by 1.5% in the 1st quarter. Financial Insights Inc. now owns 6,220 shares of the network equipment provider’s stock worth $483,000 after buying an additional 92 shares in the last quarter. Finally, CPA Asset Management Group LLC increased its stake in Cisco Systems by 1.8% in the 2nd quarter. CPA Asset Management Group LLC now owns 5,335 shares of the network equipment provider’s stock worth $627,000 after buying an additional 93 shares in the last quarter. Hedge funds and other institutional investors own 73.33% of the company’s stock.
Wall Street Analyst Weigh In Several equities analysts have recently commented on the company. JPMorgan Chase & Co. boosted their price objective on Cisco Systems from $95.00 to $96.00 in a research report on Monday, May 11th. Freedom Capital upgraded Cisco Systems from a “hold” rating to a “strong-buy” rating in a research report on Sunday, August 16th. Morgan Stanley boosted their price target on Cisco Systems from $130.00 to $135.00 and gave the stock an “overweight” rating in a report on Thursday, August 13th. Argus upped their price target on Cisco Systems from $100.00 to $150.00 and gave the stock a “buy” rating in a research note on Tuesday, May 19th. Finally, 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. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, Cisco Systems has a consensus rating of “Moderate Buy” and a consensus target price of $129.43.
View Our Latest Stock Report on Cisco Systems Cisco Systems Price Performance Shares of CSCO opened at $109.93 on Friday. The company has a 50 day moving average of $115.21 and a two-hundred day moving average of $101.24. The company has a market cap of $433.28 billion, a price-to-earnings ratio of 32.91, a price-to-earnings-growth ratio of 2.20 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 twelve month low of $66.13 and a twelve month high of $130.37.
Cisco Systems (NASDAQ:CSCO – Get Free Report) last announced its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share for the quarter, topping the consensus estimate of $1.17 by $0.05. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%.The firm had revenue of $17.25 billion for the quarter, compared to the consensus estimate of $16.84 billion. During the same period in the previous year, the business earned $0.99 EPS. The firm’s revenue for the quarter 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. As a group, analysts predict that Cisco Systems, Inc. will post 4.44 earnings per share for the current fiscal year.
Cisco Systems Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 21st. Shareholders of record on Friday, October 2nd will be given 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 payout ratio is currently 50.30%.
Key Stories Impacting Cisco Systems 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 Insider Transactions at Cisco Systems In other news, EVP Oliver Tuszik sold 2,760 shares of the company’s stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $112.46, for a total transaction of $310,389.60. Following the completion of the transaction, the executive vice president directly owned 165,276 shares of the company’s stock, valued at $18,586,938.96. This represents a 1.64% decrease in their position. The sale 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 21,628 shares of the business’s stock in a transaction that occurred on 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 sale, the chief executive officer owned 602,710 shares of the company’s stock, valued at approximately $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. Over the last 90 days, insiders sold 53,611 shares of company stock valued at $6,066,680. 0.01% of the stock is owned by company insiders.
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 3 Financial Stocks Positioned for the Fed’s Next Move After Jackson Hole IREN’s AI Pivot Looks Real, But the Market Wanted a Faster Payoff After Earnings Boeing’s $131B F-15 Win: Mach 1 Momentum or Just Altitude? Okta Stock Surges 29%—Is $200 the Next Stop? 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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I manage 10+ agents at Cisco. It doesn't mean longer hours, but the work can feel more intense. As told to You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Sergio Freitas said he manages 10 to 20 agents daily, which manage their own agents. Khanchit Khirisutchalual/Getty Images This as-told-to essay is based on a conversation with Sergio Freitas, senior director of engineering at Cisco, based in Lisbon, Portugal. His identity and employment have been verified by Business Insider. This story has been edited for length and clarity.
I started as a software engineer, became a manager, and currently work as a director of engineering at Cisco, with four teams based in Portugal.
Sergio Freitas said that AI agents have changed the pace of work. Sergio Freitas Software engineering has always gone through changes. There are always new technologies you have to learn, like programming languages or frameworks. Now, it's the way engineers work that's changing rapidly, and in the last year, it's changed significantly. People have to adapt to that, and that can cause stress.
The biggest change came after frontier models launched at the end of last year, like Anthropic's Claude Opus 4.5. That's when AI really started to be embedded in our workflows, and we began delegating and working with agents to do software engineering. We were using AI before, but more for autocomplete and prompting.
Agentic AI has changed our workOur work as software engineers has changed from crafting the code to be focused on architecture, design, managing workflows and agentic orchestration. Engineers are shifting from manual work to becoming system architects and workflow orchestrators, allowing them to solve larger, more complex architectural problems.
The agents are like teammates and I manage 10 to 20 agents daily, which manage other agents. The number of agents they manage depends on the complexity of the task. The main orchestrator agent can spawn sub-agents to complete specific tasks.
They're always running and they're aware of collaboration platform notifications, GitHub pull requests, and other integrations when given explicit permission. For example, based on the description of a ticket in Jira, which is our project management and issue-tracking tool, an agent creates the code, and then that has to be reviewed by the person who owns the agent. It then goes through a review process, where at least two engineers have to review the code.
About four months ago, we moved into loop engineering, where, instead of the agent asking questions, it loops, or keeps working until it gets the final response.
Sometimes, depending on what needs to be done, the agent can ask for authorization to connect to certain systems or perform certain operations. More and more, it's autonomous, but strict guardrails remain.
I'm reviewing more workThere's a lot of value in having AI work with engineers, but they need to be conscious about reviewing the code. Everything that gets delivered to production is the human's responsibility, not the agent's.
I'm not working more hours, but there is an aspect of AI that brings, in many occasions, more work to the table because it can do more.
Cisco focuses a lot on security. So there are a lot of security scans you need to run, and conversations with the legal team that need to happen.
It's a faster-paced jobAs engineers adapt to this new way of working, some initial fatigue comes from the ability to do more. You have to shift your attention a lot, which slows you down if you're not completing tasks end-to-end.
As engineers adapt to higher daily output and multi-threaded collaboration with agents, they need to build new mental habits around multitasking and asynchronous review, which is a different cognitive exercise from traditional coding.
It's a wider scope. At the end of the day, you feel you were more focused, but not in the way when you're coding and have to be in the zone for extended periods.
Crafting code was a skill that you built, and not many people had it. It kind of felt like a superpower of being able to create something from scratch and code it yourself. If you're really into the code-crafting piece, it's a big change that some engineers struggle with.
At the end of the day, it felt lighter. Now with the management of agents, it's faster-paced.
Read next
Ana Altchek You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Ana writes about workplace trends and how AI is reshaping the roles of software engineers. She also regularly interviews C-suite executives about their career trajectories and leadership insights.Ana hosts a weekly video series called "Work Shift," which breaks down the biggest workplace news of the week. She holds a master’s degree in multimedia journalism from NYU and has been featured on BBC, NPR, and other global media platforms.Have a tip? You can contact her via email at [email protected] or through the secure-messaging app Signal at aalt.19.
Cisco's full-stack architecture adds massive AI computing power, offering an NVIDIA Cloud Partner compliant reference architecture built for surging neocloud and sovereign cloud demand.
News Summary
Cisco, partnering with Supermicro, adds rack-scale AI computing solutions to its portfolio, delivering end-to-end infrastructure to run massive AI workloads, reduce deployment risk, and help customers run workloads with greater efficiency and control over data. With the addition of high-density server systems, Cisco extends its industry-leading Secure AI Factory architecture to any AI use case, from trillion parameter training models to edge inferencing. The full-stack architecture will address the quickly growing and evolving demands of neocloud and sovereign cloud customers with an NVIDIA Cloud Partner (NCP) compliant architecture featuring Cisco AI networking systems, backed by industry-leading support and services. , /PRNewswire/ -- AI models keep evolving, placing new performance demands on networks. Power and cooling dictate where infrastructure can be built. Customers are demanding AI capabilities that keep their data secure and private. The next era of AI infrastructure can't just deliver raw compute; it must harness that compute through validated, full-stack architectures customers can deploy quickly, run efficiently, and secure with confidence. Today, Cisco (Nasdaq: CSCO) is expanding the Secure AI Factory with NVIDIA through a partnership with Supermicro, bringing its leadership in high-density, liquid and air-cooled compute to Cisco's industry-leading full-stack, secure AI infrastructure architecture for enterprises, neoclouds and sovereign clouds.
"We are at the beginning of one of the largest datacenter buildouts in history," said Jeetu Patel, President and Chief Product Officer, Cisco. "Every organization is racing to scale AI — but speed only counts if it comes with control of data, managed token costs, and real ROI. It starts with the right infrastructure: compute and networking, delivered as an integrated solution that's easy to deploy and secure from day one."
"AI factories are revenue-generating infrastructure, where compute produces intelligence, and intelligence drives revenue," said Justin Boitano, vice president, Enterprise AI, NVIDIA. "By expanding the Cisco Secure AI Factory with NVIDIA, Cisco is providing enterprises and neoclouds full-stack infrastructure that can get into production faster and generate more value from every watt."
Simple, Secure, Scalable Infrastructure – with More Muscle
Cisco offers a full-stack approach spanning core data centers, local and edge environments, for the enterprise, neocloud and sovereign cloud markets. Through this new partnership, Cisco will offer Supermicro liquid- and air-cooled systems, giving customers access to rack-scale and dense GPU systems – validated and sold as part of the broader Cisco AI infrastructure portfolio. This expansion enables customers to easily manage complex, high-density AI clusters alongside non-AI workloads. Customers will also now be able to deploy rack-to-fabric liquid cooling, featuring Cisco liquid-cooled AI networking systems alongside Supermicro's liquid-cooled servers. This unlocks trillion-parameter training and high-throughput inference use cases with platforms including NVIDIA Vera Rubin NVL72 and NVIDIA HGX Rubin NVL8.
The expanded Cisco Secure AI Factory with NVIDIA offers NVIDIA Cloud Partner (NCP) compliant solutions for neocloud and sovereign cloud customers. Cisco Silicon One-based switches for the front-end and Cisco's NVIDIA Spectrum-X based switches for the back-end are unified by Cisco Nexus One, delivering a fully unified networking architecture for the full stack. Cisco is the only NVIDIA technology partner to utilize its own networking switches and network operating system in an NCP compliant solution. Cisco Secure AI Factory with NVIDIA is also expanding its Enterprise Reference Architectures to include the latest generation of NVIDIA AI infrastructure for enterprise deployments.
The Cisco Secure AI Factory with NVIDIA helps customers plan AI investments with confidence. Customer benefits include:
Less Risk: Cisco and Supermicro each bring industry-leading global supply chain expertise to help mitigate delivery timeline challenges, particularly in the face of GPU and memory access challenges. With Cisco Secure AI Factory solutions based on NVIDIA reference architectures, customers can have confidence that their infrastructure is pressure-tested for modern workloads, with security and resiliency built in from the silicon to the agents. Industry-leading global support with a broad partner ecosystem gives customers the confidence to invest. Faster Time to Value: Once delivered, Cisco and its partners will help customers certify infrastructure quickly. New Cisco Validated Infrastructure Services (CVIS) — aligned with the NVIDIA Infrastructure Services (NVIS) offer — certifies infrastructure is built exactly as it was designed and aligned with reference architectures. Cisco is investing in a dedicated large-scale AI Lab to develop tools and test software to advance CVIS. Simplified Operations: With NVIDIA AI Enterprise software and AgenticOps through Cisco Cloud Control, customers will use tools they already know, making AI deployment feel like an expansion rather than an overhaul. Customers will have the ability to correlate job health with compute, NIC, optics and network performance metrics, delivering true end-to-end observability. Availability
Cisco will begin offering Supermicro compute solutions as part of the Secure AI Factory with NVIDIA beginning in October 2026.
Supporting Quotes
"With Cisco Secure AI Factory with NVIDIA, we no longer have to choose between performance, reliability or ease of management. NCP validation gives us the confidence that our infrastructure is optimized from day one, while the platform's rack-scale capability provides a seamless path to scale our AI operations as our business grows." - James Manning, Co-founder and Chief Executive Officer, Sharon AI.
"Our deep partnership with Cisco is central to our growth, and we rely on their strategic foresight in bringing the right specialized technologies and partner ecosystem into their AI infrastructure portfolio. By combining our strengths with Cisco's secure AI architecture, we can deliver an even more comprehensive full-stack solution, which is exactly what our customers need now." - Neil Anderson, VP and CTO Cloud, Infrastructure, and AI Solutions, WWT
"Our customers span almost every vertical industry, and our priority is always to offer them solutions and services that right-fit their organization. This partnership enables us to offer a robust, full-stack infrastructure spanning high-performance AI compute, networking, power, liquid cooling, and rack-scale solutions that are necessary to provide high-impact, front-end value around AI initiatives. This enhances the focus we have on helping customers securely operate, observe and manage agentic workloads. We look forward to working with Cisco and the newly formed partnership as this solution will help customers meet their demands and desired outcome end-to-end." - Ken Farber, president, ePlus strategy, software and alliances
"This alliance strengthens our full-stack differentiation in the market, while offering customers the security of Cisco's AI infrastructure backed by a proven deployment and services model." - Vikesh Gumpalli, Executive Managing Director, Infrastructure Solutions, NTT DATA North America
Supporting Resources:
For more information on the Cisco Secure AI Factory with NVIDIA, click here Read the Announcement FAQ for more detail on today's announcement 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.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Cisco Systems (CSCO - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Cisco currently has an average brokerage recommendation (ABR) of 1.87, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 26 brokerage firms. An ABR of 1.87 approximates between Strong Buy and Buy.
Of the 26 recommendations that derive the current ABR, 14 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 53.9% and 3.9% of all recommendations.
Brokerage Recommendation Trends for CSCO
Check price target & stock forecast for Cisco here>>>
While the ABR calls for buying Cisco, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in CSCO?In terms of earnings estimate revisions for Cisco, the Zacks Consensus Estimate for the current year has increased 10.8% over the past month to $5.11.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Cisco. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Cisco may serve as a useful guide for investors.
For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Cisco Systems (CSCO - Free Report) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.
Cisco Systems is a member of the Computer and Technology sector. This group includes 614 individual stocks and currently holds a Zacks Sector Rank of #3. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Cisco Systems is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for CSCO's full-year earnings has moved 14.5% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the latest available data, CSCO has gained about 43.1% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 14.4% on average. As we can see, Cisco Systems is performing better than its sector in the calendar year.
Five9 (FIVN - Free Report) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 63.4%.
In Five9's case, the consensus EPS estimate for the current year increased 11.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).
Looking more specifically, Cisco Systems belongs to the Computer - Networking industry, a group that includes 7 individual stocks and currently sits at #83 in the Zacks Industry Rank. On average, stocks in this group have gained 42.6% this year, meaning that CSCO is performing better in terms of year-to-date returns.
Five9, however, belongs to the Internet - Software industry. Currently, this 174-stock industry is ranked #90. The industry has moved -4.5% so far this year.
Cisco Systems and Five9 could continue their solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to these stocks.
Nvidia Corp‘s (NASDAQ:NVDA) next AI breakthrough may not be inside its chips—it could be in how they’re cooled. Cisco Systems, Inc‘s (NASDAQ:CSCO) latest expansion of its AI infrastructure partnership with Nvidia highlights a growing industry shift toward liquid cooling. It reinforces forecasts that the technology is rapidly becoming the new standard for powering increasingly dense AI data centers.
Cisco’s Latest Nvidia Bet Highlights a Bigger AI Infrastructure ShiftCisco on Tuesday expanded its Secure AI Factory with Nvidia through a partnership with Super Micro Computer, Inc. (NASDAQ:SMCI), adding high-density liquid- and air-cooled GPU systems to its AI infrastructure portfolio.
The offering includes rack-to-fabric liquid cooling, pairing Cisco’s liquid-cooled networking systems with Supermicro’s liquid-cooled servers to support Nvidia’s next-generation Vera Rubin NVL72 and HGX Rubin NVL8 platforms.
Cisco framed the move as a response to the changing economics of AI infrastructure.
“Power and cooling dictate where infrastructure can be built,” the company said, adding that the next generation of AI infrastructure must deliver not only compute but also architectures capable of running efficiently at scale.
The announcement reflects a broader trend across the AI ecosystem. As GPU clusters become more powerful, managing heat is emerging as one of the industry’s biggest engineering challenges.
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Liquid Cooling Is Moving From Optional to EssentialThat shift is already showing up in industry forecasts.
Market research firm TrendForce expects liquid cooling penetration among AI chips to rise from 33% in 2025 to 53% in 2026, before reaching 60% in 2027. The firm attributes the rapid adoption to increasingly power-hungry processors from Nvidia, Advanced Micro Devices, Inc. (NASDAQ:AMD) and Alphabet Inc‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google, whose higher thermal requirements are pushing traditional air-cooling systems to their practical limits.
Rather than simply installing more GPUs, AI infrastructure providers are increasingly redesigning entire racks around cooling, networking and power delivery. Cisco’s latest announcement illustrates that evolution, with liquid cooling integrated into a full-stack AI infrastructure offering rather than treated as a standalone feature.
Investment TakeawayFor investors, the AI infrastructure story is expanding beyond semiconductors.
Nvidia’s increasingly powerful AI platforms are driving demand not only for GPUs but also for the networking, power management and cooling technologies needed to operate them efficiently.
Cisco’s latest move suggests liquid cooling is no longer a niche capability reserved for specialized deployments—it is becoming a foundational part of next-generation AI data centers, creating new opportunities across the broader AI infrastructure supply chain.
Key Takeaways Cisco expands Secure AI Factory to embed security across AI infrastructure, applications and agents.Cisco security revenue rose 14% to $2.23B, while firewall orders increased more than 30%.Palo Alto and Fortinet challenge Cisco with AI security, SASE and secure networking platforms. Cisco Systems (CSCO - Free Report) is strengthening its security business through the expansion of its Secure AI Factory with NVIDIA (NVDA - Free Report) , as the platform embeds security directly into the AI infrastructure stack rather than treating it as a separate layer. The expanded architecture combines Cisco networking, NVIDIA AI infrastructure and Supermicro rack-scale compute, with security and resiliency built from silicon through applications and AI agents. This should help Cisco address rising enterprise, neocloud and sovereign-cloud demand for AI infrastructure that protects sensitive data while supporting increasingly complex workloads. The expansion strengthens Cisco’s competitive prowess against the likes of Palo Alto Networks (PANW - Free Report) and Fortinet (FTNT - Free Report) .
The expansion is particularly important as agentic AI broadens the cyberattack surface. Cisco noted that agentic AI is increasing the threat landscape and driving demand for security and observability tools capable of monitoring agent behavior and mitigating evolving threats. The Secure AI Factory gives Cisco an opportunity to attach products such as AI Defense, Secure Access, Hypershield, firewalls and Splunk to customers' AI infrastructure deployments. Cisco is already seeing greater adoption of AI Defense and Secure Access guardrails as customers seek unified protection across users, applications and agents.
Cisco can also benefit from tighter integration between networking and security. The expanded Secure AI Factory uses Cisco Silicon One-based front-end switches and NVIDIA Spectrum-X-based back-end switches, unified through Cisco Nexus One. The expansion comes as Cisco’s security business is gaining momentum. Security revenues increased 14% year over year to $2.23 billion in the fourth quarter of fiscal 2026, while firewall orders grew more than 30%. Cisco also added more than 6,400 net new customers for products such as Secure Access, XDR, Hypershield and AI Defense since launch. The company expects security and observability growth to improve to high single digits in fiscal 2027.
CSCO Faces Tough CompetitionFortinet is challenging Cisco’s Secure AI Factory strategy by combining high-performance network security, SASE and AI-driven security operations on a unified FortiOS platform. Fortinet’s SASE Firewall business grew 34% to more than $2 billion in the second quarter of 2026, while secure networking billings also increased 34%. Fortinet’s FortiGate appliances, proprietary FortiASIC technology and hybrid/on-premise sovereign SASE capabilities provide strong price-performance and local security enforcement, potentially competing with Cisco for enterprises and cloud providers building secure AI infrastructure.
Palo Alto poses an even broader challenge through its AI-focused platformization strategy. PANW’s Prisma AIRS platform secures AI models, applications and agents from development through runtime, while XSIAM provides automated security operations and Cortex Cloud strengthens cloud protection. Prisma AIRS surpassed 300 customers in the third quarter of fiscal 2026, while Palo Alto’s next-generation firewall bookings increased nearly 40% year over year amid early AI data-center deployments. Palo Alto also operates more than 125 million sensors across network, endpoint and cloud environments, processing over 17 petabytes of telemetry daily, strengthening its ability to detect and respond to AI-driven attacks in real time.
CSCO’s Share Price Performance, Valuation & EstimatesCisco shares have appreciated 44.2% year to date, outperforming the broader Zacks Computer and Technology sector’s rise of 15.4%.
CSCO Stock Outperforms Sector
Image Source: Zacks Investment Research
The Cisco stock is trading at a premium, with a forward 12-month price/earnings of 22.73X compared with the broader sector’s 20.83X. CSCO has a Value Score of F.
CSCO’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2027 earnings is currently pegged at $5.11 per share, up 7% over the past 30 days, suggesting 18.01% growth from the fiscal 2025 reported figure.
Cisco currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Supermicro logo is displayed on a smartphone screen placed on a reflective surface projecting an abstract illustration of colorful printed circuits, in Creteil, France, on July 23, 2026, as Super Micro Computer Inc. attracted investor attention after releasing a preliminary business update highlighting stronger-than-expected demand for AI servers and data center infrastructure. (Photo by Samuel Boivin/NurPhoto via Getty Images)
NurPhoto via Getty Images
This article was written by Doug Nathman, with research by his team at Trefis.
Super Micro Computer (SMCI) shares climbed 9.4% on Tuesday, August 25, 2026, finishing at $38.46 following a stretch of mostly declining sessions that concluded with a 5.6% drop on August 24. The record order book supporting the bull case had been public for two weeks at that point, yet it had not halted the decline. What shifted on Tuesday was that another vendor attached its name to Super Micro’s hardware.
Cisco Added Super Micro Servers To Its Secure AI FactoryCisco incorporated Super Micro’s liquid-cooled servers into its Secure AI Factory product portfolio, and coverage that day attributed the endorsement to easing corporate governance concerns that had reappeared the prior day and have trailed the company for two years.
The scale of the arrangement is not what matters; the identity of the party making it does. Super Micro sells the data center rather than merely the box: direct liquid cooling, high-speed switches, and its own management software are combined in a single build, and a vendor only places its own badge on a build that complex when it trusts the supplier behind it.
The Order Book Had Been Public For Two Weeks And Peers TrailedSuper Micro had preannounced more than $60 billion in new orders, with roughly 70% tied to AI infrastructure, and projected fiscal 2027 revenue in a range of $65 billion to $72 billion versus the $39.1 billion it recorded in fiscal 2026. None of this was new on Tuesday. The hardware group did receive a lift, but nothing comparable to this: the S&P 500 gained 0.3% during the day, while Dell (DELL) advanced 4.2% and Hewlett Packard Enterprise (HPE) 1.9%. Whatever the group received on Tuesday, it was not worth 9.4% to anyone else.
Cash Is The More Difficult Half To FixNon-GAAP gross margin reached 17.6% in fiscal Q4 2026, with roughly three-quarters of the gain resulting from a favorable customer and product mix, and management has already guided it back down to 10.4% to 10.8% for fiscal Q1 2027. Cash is the tougher half. Super Micro generated $2.23 billion in fiscal 2026 while burning $6.81 billion in free cash flow to do so, because orders of that scale must be purchased as inventory well before any are billed – the cash conversion cycle expanded from 106 days in fiscal Q3 2026 to 149 days in fiscal Q4 2026.
The Guide Must Support The Stock From HereOne strong session does not erase two years of uncertainty, and the shares remain about a third below the $58.68 they hit within the past year, although far above the $20.53 low of the same period. What narrows the remaining gap to that high is fiscal 2027 revenue coming in within the range management has already published, rather than another endorsement.
The Magnificent Seven barely budged this year, yet markets keep hitting new highs. A JPMorgan strategist points to a quieter group of companies now driving the AI rally, and their order backlogs suggest the real gains may just be getting…
Speaking on CNBC, JPMorgan Private Bank’s Stephen Parker pushed back against the idea that this year’s rally is being carried entirely by the largest Magnificent-7 companies: “I think we are seeing a broadening in market leadership. For a long time it was all about the Mag-7. This year the Mag-7 is barely up. And yet markets are continuing to push to new highs. And while tech continues to be a leader, we’re seeing other sectors like industrials and utilities taking the lead as well.”
Parker framed the rotation towards infrastructure providers: “You’ve seen a transition in market leadership around this AI story. For a number of years it was all about the hyperscalers. This year it’s transitioned to more about the infrastructure providers.”
Infrastructure Companies Are Crushing the Market Quanta Services (NYSE:PWR | PWR Price Prediction) embodies Parker’s infrastructure thesis. Q2 adjusted EPS of $4.24 beat the $3.03 consensus by 39.93%, revenue reached $9.56 billion, up 41.1% year-over-year, and backlog hit a record $53.44 billion. CEO Duke Austin said Quanta is compounding “as our customers accelerate investment in the electric grid, power generation and mission-critical infrastructure that underpin the economy.” Shares are up 43.14% year to date.
GE Vernova (NYSE:GEV) posted Q2 orders of $24.2 billion, up 88% organically, with total backlog at $176 billion and data-center orders exceeding $5 billion year-to-date, more than double full-year 2025. CEO Scott Strazik called the electric power industry “in the early stages of a multi-decade growth opportunity” and expects at least 125 gigawatts of gas equipment under contract by year-end 2026. GEV is up 42.06% YTD.
Eaton (NYSE:ETN) grew Q2 revenue 21.4% to $8.53 billion, with data-center sales up about 65%. Management sized US data-center backlog at 307 gigawatts, or 15 years of backlog at 2025 build rates. CEO Paulo Ruiz said “data centers remain a key growth driver” across broad end markets. Eaton shares have gained 29.53% YTD.
Networking players like Cisco Systems (NYSE:CSCO) show the opportunity on the connectivity side. CEO Chuck Robbins described a “multi-year, multi-billion dollar networking super cycle“ and booked $4 billion in AI infrastructure orders in Q4 and $9.3 billion for FY2026. Cisco guided FY2027 AI infrastructure revenue to $7.5 billion. Shares are up 46.33% YTD.
AI Is Driving Profitability Outside the Tech Sector Parker noted how AI is driving legitimate business results across the market: “It’s not just about AI as the driver from a capital spending perspective, but it’s AI as a driver for growth and efficiency in companies and other industries.”
Walmart (NYSE:WMT) exemplifies this. Q2 FY27 adjusted EPS of $0.81 beat the $0.74 consensus, gross profit rate expanded 96 basis points to 25.4%, and global advertising grew 38%. CEO John Furner said Walmart believes “AI will improve nearly every part of our business by making shopping better and our associates work easier.” Walmart also flagged competitive pressures from AI technologies as a risk.
Consumer Spending Driving Broad Strength Parker also drew a line between consumer sentiment and behavior: “When you actually look at what the consumers are doing rather than what they’re saying, spending continues to be robust. The banks are talking about continued loan demand.”
JPMorgan’s (NYSE:JPM) Q2 backed him up, with CCB revenue at $20.3 billion, up 8% year-on-year, average loans up 10%, and net new checking growth above 500,000 accounts.
Key Takeaways The strongest evidence for Parker’s broadening thesis is the record backlogs building across power, grid, and networking companies. If those orders continue converting into revenue while consumer spending remains resilient, the next stage of the AI rally could extend into the broader market.
Contact [email protected] for any questions or corrections.
Key Takeaways Cisco's networking revenues rose 28%, with product orders up 40% in fiscal 2026.Hyperscaler AI orders reached $9.3 billion, while fiscal 2027 AI revenues are expected at $7.5 billion.HPE's networking growth accelerated after Juniper, but Cisco offers a stronger competitive position. Hewlett Packard Enterprise (HPE - Free Report) and Cisco Systems (CSCO - Free Report) are increasingly competing for enterprise and data center networking spending as artificial intelligence (AI) accelerates demand for high-performance infrastructure. HPE strengthened its position with the acquisition of Juniper Networks, while Cisco is benefiting from rising hyperscaler demand, campus networking upgrades and a broad security portfolio.
With both companies positioned to benefit from the networking cycle, investors must weigh growth, profitability, risks and valuation. Let’s dig deeper into the fundamentals of both stocks and see which is worth investing in.
The Case for HPE StockHPE’s networking business includes wired and wireless local area networks, data center switching, software-defined wide-area-networks, cellular network software, network security and HPE Aruba Networking. HPE provides comprehensive solutions for AIOps, enterprise connectivity, SASE and next-generation firewalls, data center and AI-native networking.
The networking business has become a more potent growth and margin driver following the Juniper acquisition. In the second quarter of fiscal 2026, Networking revenues reached $2.7 billion, up 148% year over year, while operating profit margin was 21.6%. Campus & Branch revenues increased 50.2%, Data Center Networking grew 233.3%, and Security rose 155.1%. Routing also expanded sharply following the Juniper combination.
The integration is progressing ahead of schedule, with management highlighting record campus and branch orders and normalized growth of nearly 20% in enterprise data center switching orders and nearly 30% in routing orders. HPE also raised its cumulative Networks for AI order target to at least $2 billion by the end of fiscal 2026 and expects $450 million of annual run-rate cost synergies within three years of the acquisition.
Beyond networking, HPE is benefiting from AI infrastructure and hybrid cloud adoption. Cloud & AI revenues rose 22.9% in the second quarter to $7.7 billion, while GreenLake now manages more than 6.7 million systems for approximately 50,000 customers. HPE raised its fiscal 2026 revenue growth outlook to 29-33% and expects non-GAAP earnings per share of $3.35-$3.45. The Zacks Consensus Estimate for HPE’s fiscal 2026 earnings reflects year-over-year growth of 77%. The estimates have been revised upward in the past 30 days.
Image Source: Zacks Investment Research
The Case for CSCO StockCisco has established its dominance in the networking space with strong hyperscaler AI momentum, a large security business and significant operating leverage. Cisco Systems’ offerings cover a full-stack portfolio of switching, routing, wireless, servers, software and SaaS services designed to support on-prem, cloud-managed and hybrid systems. The company, with its deep expertise, supports the networking requirements of campus, branch, mobile and data center networks.
Cisco retains a broad networking, security, collaboration and observability portfolio, giving it exposure to both infrastructure upgrades and recurring software-led opportunities. The company closed fiscal 2026 with networking revenues of $9.79 billion in the fourth quarter, up 28% year over year. Networking product orders rose 40%, marking the eighth consecutive quarter of double-digit growth, while campus networking orders increased 20% and data center networking orders rose more than 35%.
AI is becoming a major growth engine for Cisco. Hyperscaler AI infrastructure orders reached $9.3 billion in fiscal 2026, about 4.5 times the prior-year level, and management expects related revenues to reach $7.5 billion in fiscal 2027. Cisco also secured three new hyperscaler design wins involving P200, G200 and optical line systems. Its Silicon One and Acacia optics portfolio further strengthens its position in high-performance AI networking.
Cisco is also expanding its security opportunity through Splunk and newer products. Security revenues increased 14% in the fourth quarter, while firewall orders rose more than 30%. For fiscal 2027, Cisco projects revenues of $72.2-$73.4 billion and non-GAAP earnings of $5.05-$5.11 per share. The Zacks Consensus Estimate for fiscal 2027 earnings has been pegged at $4.09 per share, indicating a year-over-year decline of 7.4%.
Image Source: Zacks Investment Research
HPE vs. CSCO: Price Performance and ValuationYear to date, HPE shares have appreciated 130% compared with the 45.9% rise in CSCO shares.
YTD Performance Chart
Image Source: Zacks Investment Research
On the valuation front, HPE trades at a forward 12-month P/S multiple of 1.47X, higher than its median of 0.80X. Cisco has a forward 12-month P/S multiple of 6.17X, significantly higher than its median of 5.02X.
Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Conclusion: HPE vs. CSCOWhile HPE is benefiting from the Juniper acquisition, strong AI infrastructure demand and rapid networking growth, CSCO appears to offer a more compelling investment opportunity. Cisco’s strong hyperscaler AI orders, accelerating data center networking, campus refresh cycle and expanding security portfolio provide multiple avenues for sustained growth. Its operating leverage and robust cash generation further strengthen the investment case. Although CSCO’s valuation is higher than HPE’s, the premium appears justified by its scale, diversified portfolio and stronger competitive position. Therefore, despite valuation risks and margin pressure from higher hardware costs, CSCO looks more lucrative for investors seeking long-term exposure to the networking and AI infrastructure opportunity. HPE and CSCO carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cisco President and Chief Product Officer Jeetu Patel explains how artificial intelligence will benefit the education system on "Bloomberg The Close." -------- More on Bloomberg Television and Markets Like this video?
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While NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) soaks up the AI infrastructure headlines, Cisco Systems (NASDAQ:CSCO) is quietly becoming one of the more compelling picks-and-shovels plays in the AI buildout.
Cisco just closed a record fiscal year, hyperscaler AI orders more than quadrupled, and management is guiding for another leg higher in fiscal 2027. Our proprietary model sees more upside from here.
Our 24/7 Wall St. price target for Cisco is $131.07, implying 18.04% upside from the current $111.04 price. We rate CSCO a buy with high (90%) confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $111.04 24/7 Wall St. Price Target $131.07 Implied Upside 18.04% Recommendation BUY Confidence Level 90% A Record Year Meets a Networking Supercycle Cisco is up 69.09% over the past year and 46.24% year to date, though shares have cooled 1.04% over the last month. The stock sits just off its 52-week high of $129.88.
Q4 FY2026 delivered revenue of $17.3 billion, up 17.58% year over year, with non-GAAP EPS of $1.22 topping consensus by 4.38%. CEO Chuck Robbins told investors the company believes “the accelerating adoption of agentic AI is fueling a networking super cycle”, and the numbers back him up: hyperscaler AI orders totaled $9.3 billion for FY2026, roughly 4.5 times the prior year.
Why Bulls See a Breakout Ahead The bull case rests on three pillars. First, hyperscaler AI infrastructure revenue is guided to $7.5 billion in FY2027, roughly double FY2026.
Second, Q4 total product orders jumped 35%, with networking orders up 40% and hyperscaler orders growing in triple digits.
Third, Cisco has won three new hyperscaler design wins in Q4 alone and sees a “Scale Across” opportunity where AI traffic could be 14x traditional data center interconnect.
If Cisco simply hits the high end of its FY2027 EPS guide of $5.11 and re-rates to a 28x multiple, shares clear $138.78, our bull-case target.
What Could Go Wrong Non-GAAP gross margin fell to 66.3% in Q4, down 210 basis points year over year, as AI hardware mix pressured product margins. Bulls counter that hyperscaler AI is “highly profitable” at the operating line because Cisco is not adding proportional opex.
Other risks include hyperscaler demand concentration, tariff exposure, and restructuring charges tied to the May 2026 plan. Our bear-case target sits at $109.24, essentially flat with today.
How Cisco Compares to Arista and HPE Arista Networks (NYSE:ANET) is Cisco’s cleanest AI networking pure-play. It posted Q2 FY2026 revenue growth of 37.7% and trades at a trailing P/E near 68x, more than double Cisco’s 33x. Arista grows faster, but Cisco’s forward P/E of 21x looks conservative on the same AI narrative.
Hewlett Packard Enterprise (NYSE:HPE) is the direct competitor post-Juniper. HPE guided FY2026 non-GAAP EPS to $3.35 to $3.45 with networking revenue growth of 72% to 75%. HPE’s forward P/E near 16x is cheaper, but its GAAP profitability has been weighed down by acquisition charges. Against both peers, our 24/7 Wall St. price target looks reasonable rather than aggressive.
Bull Case Favors Buyers on This Dip Our 24/7 Wall St. price target of $131.07 and buy rating reflect 90% confidence in Cisco’s AI networking story.
The bull thesis holds if hyperscalers keep spending and the FY2027 AI revenue guide of $7.5 billion proves conservative. The thesis weakens if gross margin compression accelerates below 65%. The setup favors the bulls.
Year 24/7 Wall St. Price Target 2026 $117 2027 $134 2028 $154 2029 $168 2030 $177 These projections assume Cisco executes on the Silicon One roadmap and the AI supercycle broadens beyond hyperscalers. Significant upside could come from enterprise on-prem AI, while a hyperscaler capex pause is the primary downside risk.
Cisco is one of the clearer picks-and-shovels names benefiting from that capex, and we profiled seven more suppliers, from power to cooling to networking, in a free AI infrastructure report.
Contact [email protected] for any questions or corrections.
Beutel Goodman & Co Ltd. lowered its holdings in Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) by 55.5% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 45,100 shares of the network equipment provider’s stock after selling 56,360 shares during the period. Beutel Goodman & Co Ltd.’s holdings in Cisco Systems were worth $5,297,000 as of its most recent SEC filing.
A number of other hedge funds have also made changes to their positions in the business. MidAtlantic Capital Management Inc. purchased a new stake in Cisco Systems during the 4th quarter worth $25,000. Intesa Sanpaolo Wealth Management purchased a new position in Cisco Systems in the fourth quarter valued at about $25,000. Networth Advisors LLC lifted its stake in shares of Cisco Systems by 276.4% during the first quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider’s stock worth $26,000 after purchasing an additional 246 shares in the last quarter. Financial Life Planners acquired a new position in shares of Cisco Systems during the first quarter worth about $27,000. Finally, Manning & Napier Advisors LLC boosted its position in shares of Cisco Systems by 137.0% in the first quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider’s stock worth $27,000 after buying an additional 200 shares during the period. Hedge funds and other institutional investors own 73.33% of the company’s stock.
Cisco Systems Trading Up 1.3% Shares of CSCO opened at $111.04 on Friday. Cisco Systems, Inc. has a one year low of $66.13 and a one year high of $130.37. The stock has a 50-day moving average price of $116.02 and a 200 day moving average price of $100.24. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.79 and a current ratio of 0.93. The company has a market capitalization of $437.66 billion, a P/E ratio of 33.25, a P/E/G ratio of 2.36 and a beta of 1.02.
Cisco Systems (NASDAQ:CSCO – Get Free Report) last posted its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.17 by $0.05. The company had revenue of $17.25 billion for the quarter, compared to the consensus estimate 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 in the previous year, the business earned $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. Sell-side analysts forecast that Cisco Systems, Inc. will post 4.51 EPS for the current fiscal year. Cisco Systems Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 21st. Investors 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 annualized dividend and a yield of 1.5%. Cisco Systems’s dividend payout ratio is currently 50.30%.
Key Stories Impacting Cisco Systems 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. Insider Activity In other Cisco Systems news, CEO Charles Robbins sold 21,628 shares of the stock in a transaction on Friday, August 14th. The shares were sold at an average price of $111.54, for a total transaction of $2,412,387.12. Following the transaction, the chief executive officer directly owned 602,710 shares in the company, valued at $67,226,273.40. This represents a 3.46% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Deborah L. Stahlkopf sold 6,487 shares of the business’s stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $111.53, for a total transaction of $723,495.11. Following the completion of the sale, the executive vice president directly owned 167,116 shares of the company’s stock, valued at $18,638,447.48. The trade was a 3.74% 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 sold a total of 53,611 shares of company stock worth $6,066,680 over the last ninety days. Insiders own 0.01% of the company’s stock.
Analyst Upgrades and Downgrades Several brokerages recently commented on CSCO. The Goldman Sachs Group raised their target price on Cisco Systems from $116.00 to $125.00 and gave the company a “neutral” rating in a report on Wednesday, June 3rd. UBS Group upped their price target on Cisco Systems from $132.00 to $138.00 and gave the stock a “buy” rating in a report on Thursday, August 13th. 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 research report on Thursday, August 13th. Weiss Ratings upgraded shares of Cisco Systems from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, May 29th. Finally, Zacks Research cut shares of Cisco Systems from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 4th. Two analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $129.43.
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Cisco Systems Company Profile (Free Report)
Cisco Systems, Inc is a global technology company that designs, manufactures and sells networking hardware, software and telecommunications equipment. Its core business focuses on enabling enterprise and service-provider networks through products such as routers, switches, network security appliances and wireless systems. Over time Cisco has broadened its portfolio to emphasize software-defined networking, cybersecurity, cloud infrastructure and edge computing solutions that help organizations build and manage modern IT environments.
In addition to hardware, Cisco offers a growing range of software platforms and subscription services for network management, security, analytics and collaboration.
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Blue Capital Inc. boosted its position in Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) by 753.0% during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 22,911 shares of the network equipment provider’s stock after acquiring an additional 20,225 shares during the period. Cisco Systems accounts for 1.7% of Blue Capital Inc.’s investment portfolio, making the stock its 17th biggest position. Blue Capital Inc.’s holdings in Cisco Systems were worth $2,691,000 at the end of the most recent reporting period.
Other hedge funds and other institutional investors have also bought and sold shares of the company. Patron Partners LLC lifted its position in Cisco Systems by 6.8% during the 2nd quarter. Patron Partners LLC now owns 19,608 shares of the network equipment provider’s stock valued at $2,303,000 after acquiring an additional 1,253 shares during the period. OneAscent Wealth Management LLC purchased a new position in Cisco Systems during the second quarter valued at $255,000. OneAscent Family Office LLC grew its stake in shares of Cisco Systems by 56.1% in the second quarter. OneAscent Family Office LLC now owns 9,660 shares of the network equipment provider’s stock worth $1,135,000 after acquiring an additional 3,470 shares during the last quarter. Greenspring Advisors LLC increased its holdings in shares of Cisco Systems by 1.9% during the second quarter. Greenspring Advisors LLC now owns 7,865 shares of the network equipment provider’s stock valued at $924,000 after acquiring an additional 150 shares in the last quarter. Finally, LaSalle St. Investment Advisors LLC bought a new position in shares of Cisco Systems during the second quarter valued at $251,000. Institutional investors own 73.33% of the company’s stock.
Insider Transactions at Cisco Systems In other Cisco Systems news, EVP Deborah L. Stahlkopf sold 6,487 shares of the stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $111.53, for a total transaction of $723,495.11. Following the completion of the transaction, the executive vice president owned 167,116 shares of the company’s stock, valued at $18,638,447.48. This represents a 3.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 5,832 shares of Cisco Systems stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $111.47, for a total value of $650,093.04. Following the transaction, the executive vice president owned 128,382 shares in the company, valued at approximately $14,310,741.54. The trade was a 4.35% decrease in their position. 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 owned by corporate insiders.
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. Analyst Ratings Changes Several research analysts have issued reports on the stock. 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 report on Monday, June 8th. HSBC cut Cisco Systems from a “buy” rating to a “hold” rating and lowered their price objective for the company from $137.00 to $120.00 in a research report on Friday, August 14th. Truist Financial upped their price target on Cisco Systems from $125.00 to $140.00 and gave the company a “buy” rating in a report on Thursday, August 13th. Morgan Stanley boosted their target price on Cisco Systems from $130.00 to $135.00 and gave the stock an “overweight” rating in a research report on Thursday, August 13th. Finally, Piper Sandler lifted their price target on shares of Cisco Systems from $86.00 to $132.00 and gave the stock a “neutral” rating in a research note on Thursday, May 14th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $129.43.
Check Out Our Latest Stock Analysis on Cisco Systems
Cisco Systems Price Performance Shares of CSCO stock opened at $111.04 on Friday. The company has a market capitalization of $437.66 billion, a P/E ratio of 33.25, a P/E/G ratio of 2.33 and a beta of 1.02. The company’s 50-day simple moving average is $116.02 and its two-hundred day simple moving average is $100.24. Cisco Systems, Inc. has a one year low of $66.13 and a one year high of $130.37. 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 posted its earnings results 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. The business 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 company’s revenue for the quarter was up 17.6% on a year-over-year basis. During the same quarter last year, the firm 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, equities analysts anticipate that Cisco Systems, Inc. will post 4.09 EPS for the current year.
Cisco Systems Announces Dividend 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 issued a dividend of $0.42 per share. The ex-dividend date of this dividend is Friday, October 2nd. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.5%. Cisco Systems’s payout ratio 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.
Further Reading Five stocks we like better than Cisco Systems Blueprint for a Boom: SEC Clears the Crypto Runway Ross Stores Just Flipped the Off-Price Retail Story After TJX’s Marmaxx Miss Advance Auto Parts Plunged, But Its Turnaround Is Still Working Is Palo Alto Networks Priced for Perfection Again as AI Security Demand Accelerates?
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Cisco Systems (NASDAQ:CSCO | CSCO Price Prediction) has quietly become one of the most compelling AI infrastructure stories on the Dow. After booking $9.30 billion in AI infrastructure orders for FY2026 and guiding to $7.50 billion in AI revenue for FY2027, Cisco is a hyperscaler supplier trading at a reasonable multiple.
Our 24/7 Wall St. price target for Cisco is $139.67, implying 25.03% upside from the current price of $111.69. Our recommendation is buy, with high confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $111.69 24/7 Wall St. Price Target $139.67 Upside 25.03% Recommendation BUY Confidence Level 90% A Blowout Q4 Reset the AI Narrative Cisco reported Q4 FY2026 on August 12, 2026, delivering revenue of $17.25 billion, up 17.58% year over year, and non-GAAP EPS of $1.22, the fifth consecutive beat. Networking revenue jumped 28% to $9.79 billion, and Q4 networking orders grew 40% year over year. Hyperscaler AI orders hit $4 billion in the quarter.
The stock gained 44.33% year to date and 66.66% over the past year, though shares cooled 3.42% in the past week as investors digested tariff commentary and margin mix. Shares sit near the $129.88 52-week high.
Why Bulls See a Breakout Ahead CEO Chuck Robbins stated: “We believe the accelerating adoption of agentic AI is fueling a networking super cycle.” The numbers support him. AI infrastructure was less than 2% of revenue in FY2025 and is guided to $7.5 billion in FY2027.
Four of the top hyperscalers each grew AI infrastructure orders in the triple digits in Q4. FY2027 guidance calls for revenue of $72.2 billion to $73.4 billion and non-GAAP EPS of $5.05 to $5.11.
The consensus analyst target sits at $136.05, with 4 Strong Buys and 13 Buys. Our bull case points to $145.26 within 12 months if AI order momentum extends and campus refresh accelerates.
What Could Go Wrong Non-GAAP gross margin compressed to 66.3% from 68.4% as AI hardware carries lower margins than software. Operating margin still expanded, and management framed AI hardware as generating outsized operating leverage.
Risks include tariff exposure baked into FY2027 guidance, hyperscaler concentration, and restructuring charges from the May 13, 2026 plan. Our bear case pegs downside at $115.26, still slightly positive.
How Cisco Compares to Arista and HPE Arista Networks (NYSE:ANET) is the purest data-center networking competitor for hyperscaler AI fabric wins. Arista trades at a materially higher forward earnings multiple than Cisco’s 22x forward P/E, reflecting faster top-line growth but narrower product footprint. Cisco’s Silicon One and Acacia optics give it a broader stack, making our 24/7 Wall St. price target reasonable rather than aggressive.
Hewlett Packard Enterprise (NYSE:HPE) is the direct comp after its Juniper acquisition. HPE trades at a discount to Cisco but lacks Cisco’s Splunk-powered observability and security cross-sell. Cisco added 280 new logos to Splunk in Q4 alone. Against HPE, our target looks conservative given Cisco’s diversified revenue mix.
Cisco Price Prediction 2026-2030 The 24/7 Wall St. price target of $139.67, a buy rating, and 90% confidence reflect a clear thesis: Cisco monetizes the AI networking supercycle at a mega-cap valuation with room to run.
The thesis hinges on whether FY2027’s $7.50 billion AI revenue target is achievable. The setup weakens if hyperscaler capex rolls over in 2027.
Here is where our model projects Cisco could trade over the coming years, assuming the AI supercycle plays out and margins normalize.
Year 24/7 Wall St. Price Target 2026 $139.67 2027 $162.04 2028 $185.97 2029 $200.93 2030 $215.74 These projections assume Cisco continues executing on hyperscaler AI wins and Splunk cross-sell. Significant upside or downside could result from tariff shifts or a hyperscaler capex reset. Cisco is one of several picks-and-shovels names riding the buildout, and we profiled seven of them, from power to cooling to networking, in a free AI infrastructure report.
Contact [email protected] for any questions or corrections.
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.
Featured Articles Five stocks we like better than Cisco Systems Blueprint for a Boom: SEC Clears the Crypto Runway Ross Stores Just Flipped the Off-Price Retail Story After TJX’s Marmaxx Miss Advance Auto Parts Plunged, But Its Turnaround Is Still Working Is Palo Alto Networks Priced for Perfection Again as AI Security Demand Accelerates? 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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B. Metzler seel. Sohn & Co. AG trimmed its position in shares of Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) by 14.9% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 809,027 shares of the network equipment provider’s stock after selling 141,659 shares during the period. Cisco Systems makes up 0.8% of B. Metzler seel. Sohn & Co. AG’s portfolio, making the stock its 28th biggest position. B. Metzler seel. Sohn & Co. AG’s holdings in Cisco Systems were worth $95,028,000 at the end of the most recent quarter.
Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. MidAtlantic Capital Management Inc. purchased a new position in Cisco Systems in the 4th quarter valued at about $25,000. Intesa Sanpaolo Wealth Management acquired a new position in shares of Cisco Systems in the fourth quarter worth about $25,000. Networth Advisors LLC boosted its holdings in Cisco Systems by 276.4% in the first quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider’s stock valued at $26,000 after purchasing an additional 246 shares during the last quarter. Financial Life Planners purchased a new position in Cisco Systems in the first quarter valued at about $27,000. Finally, Manning & Napier Advisors LLC grew its stake in Cisco Systems by 137.0% during the 1st quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider’s stock valued at $27,000 after purchasing an additional 200 shares in the last quarter. Hedge funds and other institutional investors own 73.33% of the company’s stock.
Insider Transactions at Cisco Systems In other Cisco Systems news, EVP Oliver Tuszik sold 2,760 shares of Cisco Systems stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $112.46, for a total value of $310,389.60. Following the completion of the transaction, the executive vice president directly owned 165,276 shares in the company, valued at $18,586,938.96. The trade was a 1.64% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Deborah L. Stahlkopf sold 6,487 shares of the company’s stock in a transaction that occurred 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 transaction, the executive vice president directly owned 167,116 shares of the company’s stock, valued at $18,638,447.48. This trade represents a 3.74% 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 have sold a total of 53,611 shares of company stock valued at $6,066,680 over the last ninety days. Insiders own 0.01% of the company’s stock.
Analyst Upgrades and Downgrades A number of equities analysts have issued reports on CSCO shares. Wells Fargo & Company upped their target price on Cisco Systems from $130.00 to $150.00 and gave the company an “overweight” rating in a research report on Thursday, August 13th. Zacks Research lowered shares of Cisco Systems from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 4th. Rosenblatt Securities upped their price target on shares of Cisco Systems from $150.00 to $165.00 and gave the company a “buy” rating in a report on Thursday, August 13th. Bank of America increased their price objective on shares of Cisco Systems from $135.00 to $150.00 and gave the company a “buy” rating in a research note on Monday, June 8th. Finally, Morgan Stanley boosted their target price on shares of Cisco Systems from $130.00 to $135.00 and gave the stock an “overweight” rating in a research report on Thursday, August 13th. Two analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $129.43. Check Out Our Latest Stock Analysis on Cisco Systems
Cisco Systems Stock Performance Cisco Systems stock opened at $109.59 on Friday. 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, Inc. has a 12 month low of $66.13 and a 12 month high of $130.37. The company has a fifty day moving average price of $116.22 and a two-hundred day moving average price of $100.16. The company has a market cap of $431.94 billion, a PE ratio of 32.81, a P/E/G ratio of 2.35 and a beta of 1.02.
Cisco Systems (NASDAQ:CSCO – Get Free Report) last issued its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share for the quarter, topping 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 analysts’ expectations of $16.84 billion. During the same period in the prior year, the company earned $0.99 earnings per share. The firm’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. Research analysts expect that Cisco Systems, Inc. will post 4.09 earnings per share for the current year.
Cisco Systems Dividend Announcement 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 dividend of $0.42 per share. The ex-dividend date is Friday, October 2nd. This represents a $1.68 annualized dividend and a yield of 1.5%. Cisco Systems’s dividend payout ratio is 50.30%.
Cisco Systems News Summary Here are the key news stories impacting Cisco Systems this week:
Positive Sentiment: AI infrastructure demand remains a major growth catalyst. Cisco reported $4 billion in AI infrastructure orders during the quarter, helping drive record fiscal-year results. Product revenue increased 24% year over year, while total quarterly revenue rose 18% to $17.25 billion and adjusted earnings exceeded consensus estimates. Cisco Q4 2026 Earnings Call Transcript Positive Sentiment: Analysts see additional upside potential. Bank of America reiterated a Buy rating and a $150 price target, indicating confidence in Cisco’s AI networking opportunity, although execution on a key business issue will remain important. BofA makes bold call on Cisco stock after earnings Positive Sentiment: Expansion into streaming infrastructure could broaden Cisco’s opportunity. Demand for low-latency live video, AI-enabled media workflows and expanded content-delivery capacity is highlighting Cisco’s networking equipment as a potential beneficiary. What Could Cisco Systems Gain From The Streaming Infrastructure Boom? Neutral Sentiment: An executive sold 5,832 shares worth approximately $650,000 under a pre-arranged Rule 10b5-1 trading plan. Because the sale represented only 4.35% of the executive’s holdings and was scheduled in advance, it may have limited fundamental significance. Cisco executive SEC filing Negative Sentiment: The market is concerned that strong AI orders may not fully translate into near-term earnings growth. Analysts cited margin pressure, softer recurring revenue growth and Cisco’s premium valuation as reasons to remain cautious, producing a “hold” view from some commentators despite the revenue beat. Cisco Drops 10% Post Q4 Earnings Cisco Systems Company Profile (Free Report)
Cisco Systems, Inc is a global technology company that designs, manufactures and sells networking hardware, software and telecommunications equipment. Its core business focuses on enabling enterprise and service-provider networks through products such as routers, switches, network security appliances and wireless systems. Over time Cisco has broadened its portfolio to emphasize software-defined networking, cybersecurity, cloud infrastructure and edge computing solutions that help organizations build and manage modern IT environments.
In addition to hardware, Cisco offers a growing range of software platforms and subscription services for network management, security, analytics and collaboration.
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Bank of New York Mellon Corp purchased a new stake in Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the SEC. The firm purchased 40,137,695 shares of the network equipment provider’s stock, valued at approximately $4,714,574,000. Cisco Systems accounts for about 0.8% of Bank of New York Mellon Corp’s holdings, making the stock its 19th biggest holding. Bank of New York Mellon Corp owned about 1.02% of Cisco Systems at the end of the most recent quarter.
A number of other institutional investors and hedge funds have also made changes to their positions in the stock. Cozad Asset Management Inc. grew its position in Cisco Systems by 0.3% during the first quarter. Cozad Asset Management Inc. now owns 26,203 shares of the network equipment provider’s stock worth $2,033,000 after buying an additional 87 shares during the period. Dogwood Wealth Management LLC grew its position in shares of Cisco Systems by 3.9% in the second quarter. Dogwood Wealth Management LLC now owns 2,413 shares of the network equipment provider’s stock valued at $283,000 after purchasing an additional 90 shares during the last quarter. Financial Insights Inc. increased its position in Cisco Systems by 1.5% during the first quarter. Financial Insights Inc. now owns 6,220 shares of the network equipment provider’s stock worth $483,000 after buying an additional 92 shares in the last quarter. CPA Asset Management Group LLC increased its position in Cisco Systems by 1.8% during the 2nd quarter. CPA Asset Management Group LLC now owns 5,335 shares of the network equipment provider’s stock worth $627,000 after purchasing an additional 93 shares in the last quarter. Finally, Southern Financial Group LLC grew its holdings in shares of Cisco Systems by 1.1% during the first quarter. Southern Financial Group LLC now owns 9,159 shares of the network equipment provider’s stock worth $711,000 after buying an additional 102 shares in the last quarter. 73.33% of the stock is owned by institutional investors and hedge funds.
Analyst Upgrades and Downgrades Several research firms recently commented on CSCO. Wall Street Zen upgraded Cisco Systems from a “hold” rating to a “buy” rating in a research note on Saturday, August 15th. New Street Research raised their target price on shares of Cisco Systems from $82.00 to $122.00 and gave the company a “neutral” rating in a research note on Thursday, May 14th. HSBC downgraded Cisco Systems from a “buy” rating to a “hold” rating and dropped their target price for the company from $137.00 to $120.00 in a report on Friday, August 14th. Piper Sandler boosted their price objective 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. Finally, JPMorgan Chase & Co. upped their target price on Cisco Systems from $95.00 to $96.00 in a research report on Monday, May 11th. Two 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 stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $129.43.
Check Out Our Latest Analysis on Cisco Systems Insider Activity at Cisco Systems In other 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 completion of the transaction, the insider owned 230,593 shares of the company’s stock, valued at approximately $25,727,261.01. This represents a 3.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through 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 dated Friday, August 14th. The shares were sold at an average price of $111.54, for a total transaction of $2,412,387.12. Following the completion of the transaction, the chief executive officer owned 602,710 shares of the company’s stock, valued at $67,226,273.40. This represents a 3.46% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 69,179 shares of company stock worth $7,985,229 in the last ninety days. 0.01% of the stock is currently owned by corporate insiders.
Cisco Systems Stock Performance Shares of NASDAQ CSCO opened at $110.55 on Thursday. The stock has a market capitalization of $435.73 billion, a P/E ratio of 33.10, a P/E/G ratio of 2.38 and a beta of 1.02. Cisco Systems, Inc. has a 52-week low of $66.13 and a 52-week high of $130.37. The company has a quick ratio of 0.79, a current ratio of 0.93 and a debt-to-equity ratio of 0.39. The firm’s 50-day moving average price is $116.47 and its two-hundred day moving average price is $99.94.
Cisco Systems (NASDAQ:CSCO – Get Free Report) last issued its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, topping analysts’ consensus estimates of $1.17 by $0.05. The firm had revenue of $17.25 billion during the quarter, compared to the consensus estimate of $16.84 billion. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%.The firm’s revenue was up 17.6% on a year-over-year basis. During the same period in the prior year, the business earned $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 4.09 earnings per share for the current year.
Cisco Systems Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 21st. Stockholders of record on Friday, October 2nd will be issued a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend is Friday, October 2nd. Cisco Systems’s payout ratio is 50.30%.
Key Cisco Systems News Here are the key news stories impacting Cisco Systems this week:
Positive Sentiment: Cisco reported approximately $17.3 billion in quarterly revenue, up 18% year over year, and adjusted EPS of $1.22, exceeding the $1.17 consensus estimate. Management’s fiscal 2027 outlook was also optimistic, reinforcing expectations for continued growth. Strong AI Infrastructure Orders Drive Confidence in Cisco Systems Positive Sentiment: AI infrastructure demand remains a major growth driver. Cisco recorded $4 billion of AI infrastructure orders in the latest quarter, $9.3 billion for fiscal 2026, and expects $7.5 billion of AI infrastructure revenue in fiscal 2027. Bank of America reiterated its Buy rating and $150 price target, indicating substantial potential upside if execution continues. BofA makes bold call on Cisco stock after earnings Neutral Sentiment: Analysts questioned how sustainable the AI-led growth surge will be and whether Cisco can convert strong orders into durable, profitable recurring revenue. A recent Freedom Capital upgrade to Strong Buy provides a counterpoint to the more cautious views. What Kept Coming Up When Analysts Grilled CSCO Negative Sentiment: Gross-margin pressure was the key earnings concern. Margins fell to about 66.3% and are expected to remain around 65%–66% in the next quarter, partly because of higher memory costs, hardware pricing, and an unfavorable product mix. Soft recurring growth and a premium valuation have led some analysts to recommend holding the stock despite strong revenue growth. Cisco: Buy The AI Pullback, But Watch The Margin Pressure Negative Sentiment: HSBC downgraded Cisco to Hold, while CEO Charles Robbins and other executives disclosed share sales. The transactions were conducted under pre-arranged Rule 10b5-1 plans, making them a modest negative signal rather than clear evidence of deteriorating management confidence. Cisco Systems Company Profile (Free Report)
Cisco Systems, Inc is a global technology company that designs, manufactures and sells networking hardware, software and telecommunications equipment. Its core business focuses on enabling enterprise and service-provider networks through products such as routers, switches, network security appliances and wireless systems. Over time Cisco has broadened its portfolio to emphasize software-defined networking, cybersecurity, cloud infrastructure and edge computing solutions that help organizations build and manage modern IT environments.
In addition to hardware, Cisco offers a growing range of software platforms and subscription services for network management, security, analytics and collaboration.
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Addison Advisors LLC trimmed its position in shares of Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) by 87.7% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 2,074 shares of the network equipment provider’s stock after selling 14,812 shares during the quarter. Addison Advisors LLC’s holdings in Cisco Systems were worth $244,000 as of its most recent SEC filing.
Other institutional investors and hedge funds also recently made changes to their positions in the company. MidAtlantic Capital Management Inc. bought a new position in shares of Cisco Systems during the fourth quarter valued at $25,000. Intesa Sanpaolo Wealth Management acquired a new stake in shares of Cisco Systems in the fourth quarter valued at about $25,000. Networth Advisors LLC lifted its position in shares of Cisco Systems by 276.4% in the 1st quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider’s stock worth $26,000 after purchasing an additional 246 shares during the period. Financial Life Planners bought a new position in Cisco Systems during the first quarter worth $27,000. Finally, Manning & Napier Advisors LLC boosted its position in shares of Cisco Systems by 137.0% during the 1st quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider’s stock valued at $27,000 after purchasing an additional 200 shares in the last quarter. Institutional investors and hedge funds own 73.33% of the company’s stock.
Key Headlines Impacting Cisco Systems Here are the key news stories impacting Cisco Systems this week:
Positive Sentiment: Cisco reported approximately $17.3 billion in quarterly revenue, up 18% year over year, and adjusted EPS of $1.22, exceeding the $1.17 consensus estimate. Management’s fiscal 2027 outlook was also optimistic, reinforcing expectations for continued growth. Strong AI Infrastructure Orders Drive Confidence in Cisco Systems Positive Sentiment: AI infrastructure demand remains a major growth driver. Cisco recorded $4 billion of AI infrastructure orders in the latest quarter, $9.3 billion for fiscal 2026, and expects $7.5 billion of AI infrastructure revenue in fiscal 2027. Bank of America reiterated its Buy rating and $150 price target, indicating substantial potential upside if execution continues. BofA makes bold call on Cisco stock after earnings Neutral Sentiment: Analysts questioned how sustainable the AI-led growth surge will be and whether Cisco can convert strong orders into durable, profitable recurring revenue. A recent Freedom Capital upgrade to Strong Buy provides a counterpoint to the more cautious views. What Kept Coming Up When Analysts Grilled CSCO Negative Sentiment: Gross-margin pressure was the key earnings concern. Margins fell to about 66.3% and are expected to remain around 65%–66% in the next quarter, partly because of higher memory costs, hardware pricing, and an unfavorable product mix. Soft recurring growth and a premium valuation have led some analysts to recommend holding the stock despite strong revenue growth. Cisco: Buy The AI Pullback, But Watch The Margin Pressure Negative Sentiment: HSBC downgraded Cisco to Hold, while CEO Charles Robbins and other executives disclosed share sales. The transactions were conducted under pre-arranged Rule 10b5-1 plans, making them a modest negative signal rather than clear evidence of deteriorating management confidence. Wall Street Analyst Weigh In CSCO has been the subject of a number of research analyst reports. Wall Street Zen upgraded Cisco Systems from a “hold” rating to a “buy” rating in a report on Saturday, August 15th. Argus upped their price objective on shares of Cisco Systems from $100.00 to $150.00 and gave the company a “buy” rating in a report on Tuesday, May 19th. Evercore boosted their price target on shares of Cisco Systems from $110.00 to $150.00 and gave the company an “outperform” rating in a research note on Thursday, May 14th. Freedom Capital raised shares of Cisco Systems from a “hold” rating to a “strong-buy” rating in a research note on Sunday. Finally, Zacks Research lowered Cisco Systems from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 4th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $129.43. Read Our Latest Report on CSCO
Cisco Systems Stock Performance Shares of CSCO opened at $110.55 on Thursday. The stock has a 50 day moving average of $116.47 and a 200 day moving average of $99.94. The company has a market capitalization of $435.73 billion, a price-to-earnings ratio of 33.10, a PEG ratio of 2.38 and a beta of 1.02. Cisco Systems, Inc. has a 12 month low of $66.13 and a 12 month high of $130.37. The company has a current ratio of 0.93, a quick ratio of 0.79 and a debt-to-equity ratio of 0.39.
Cisco Systems (NASDAQ:CSCO – Get Free Report) last posted its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share for the quarter, topping the consensus estimate of $1.17 by $0.05. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%.The business had revenue of $17.25 billion for the quarter, compared to analysts’ expectations of $16.84 billion. During the same quarter in the previous year, the firm earned $0.99 earnings per share. The business’s 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. As a group, sell-side 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 announced a quarterly dividend, which will be paid on Wednesday, October 21st. Shareholders of record on Friday, October 2nd will be given a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend is Friday, October 2nd. Cisco Systems’s dividend payout ratio (DPR) is currently 50.30%.
Insider Transactions at Cisco Systems In other news, EVP Oliver Tuszik sold 2,760 shares of the company’s stock in a transaction on Friday, August 14th. The stock was 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 of the company’s stock, valued at $18,586,938.96. This represents a 1.64% decrease in their position. The sale was disclosed in a filing 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, EVP Thimaya K. Subaiya sold 7,127 shares of the business’s stock in a transaction dated Tuesday, June 16th. The shares were sold at an average price of $119.91, for a total value of $854,598.57. Following the completion of the sale, the executive vice president owned 140,857 shares in the company, valued at $16,890,162.87. This represents a 4.82% 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. Over the last 90 days, insiders sold 69,179 shares of company stock valued at $7,985,229. 0.01% of the stock is currently owned by insiders.
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.
Recommended Stories Five stocks we like better than Cisco Systems Bloom Energy’s AI Surge Meets a Valuation Reality Check Target Is Winning Shoppers Back—Can the Rally Reach $180? IonQ’s Space Contract Points to a New Frontier for Quantum Investors Is Apple’s AI Strategy Smarter Than Skeptics Think? 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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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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Auxano Advisors LLC purchased a new position in Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 14,837 shares of the network equipment provider’s stock, valued at approximately $1,743,000.
A number of other institutional investors and hedge funds also recently added to or reduced their stakes in CSCO. Brighton Jones LLC lifted its position in Cisco Systems by 49.5% in the 4th quarter. Brighton Jones LLC now owns 74,187 shares of the network equipment provider’s stock valued at $4,392,000 after acquiring an additional 24,562 shares in the last quarter. Revolve Wealth Partners LLC boosted its position in shares of Cisco Systems by 37.0% during the fourth quarter. Revolve Wealth Partners LLC now owns 9,156 shares of the network equipment provider’s stock valued at $542,000 after buying an additional 2,474 shares during the last quarter. Sivia Capital Partners LLC increased its holdings in Cisco Systems by 7.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 10,178 shares of the network equipment provider’s stock worth $706,000 after buying an additional 712 shares in the last quarter. Schnieders Capital Management LLC. increased its holdings in Cisco Systems by 3.9% in the 2nd quarter. Schnieders Capital Management LLC. now owns 13,974 shares of the network equipment provider’s stock worth $969,000 after buying an additional 519 shares in the last quarter. Finally, Marshall Wace LLP raised its position in Cisco Systems by 118.1% in the 2nd quarter. Marshall Wace LLP now owns 90,650 shares of the network equipment provider’s stock worth $6,289,000 after buying an additional 590,650 shares during the last quarter. Institutional investors own 73.33% of the company’s stock.
Analyst Ratings Changes CSCO has been the topic of a number of recent analyst reports. Wall Street Zen raised shares of Cisco Systems from a “hold” rating to a “buy” rating in a report on Saturday. Weiss Ratings upgraded shares of Cisco Systems from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, May 29th. The Goldman Sachs Group raised their target price on shares of Cisco Systems from $116.00 to $125.00 and gave the stock a “neutral” rating in a report on Wednesday, June 3rd. Argus lifted their target price on shares of Cisco Systems from $100.00 to $150.00 and gave the stock a “buy” rating in a research report on Tuesday, May 19th. Finally, HSBC lowered shares of Cisco Systems from a “buy” rating to a “hold” rating and decreased their target price for the company from $137.00 to $120.00 in a research note on Friday. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $129.43.
Check Out Our Latest Report on Cisco Systems Cisco Systems Price Performance NASDAQ CSCO opened at $112.90 on Tuesday. The company has a market capitalization of $444.99 billion, a PE ratio of 33.80, a price-to-earnings-growth ratio of 2.38 and a beta of 1.02. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.79 and a current ratio of 0.93. The business’s fifty day moving average is $116.81 and its 200 day moving average is $99.48. Cisco Systems, Inc. has a fifty-two week low of $65.75 and a fifty-two week high of $130.37.
Cisco Systems (NASDAQ:CSCO – Get Free Report) last issued its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, topping analysts’ consensus estimates of $1.17 by $0.05. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%.The business had revenue of $17.25 billion during the quarter, compared to analysts’ expectations of $16.84 billion. During the same quarter in the prior year, the business posted $0.99 earnings per share. The business’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. Sell-side analysts predict that Cisco Systems, Inc. will post 4.09 earnings per share for the current year.
Cisco Systems Announces Dividend The company also recently declared 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. The ex-dividend date of this dividend is Friday, October 2nd. This represents a $1.68 annualized dividend and a yield of 1.5%. Cisco Systems’s payout ratio is currently 50.30%.
Key Headlines Impacting Cisco Systems Here are the key news stories impacting Cisco Systems this week:
Positive Sentiment: Cisco reported record quarterly revenue of approximately $17.3 billion, up 18% year over year, while non-GAAP earnings per share reached $1.22 and surpassed consensus estimates. Management also issued an optimistic fiscal 2027 outlook, supporting the growth case. Why Cisco Stock Is Down Today Positive Sentiment: Analysts and market commentators characterize the roughly 8% post-earnings decline as an overreaction, arguing that Cisco’s improving AI networking opportunity and strong results may provide support for the shares. Cisco: This 8% Selloff Looks Like An Overreaction Neutral Sentiment: The latest quarter benefited from higher hardware prices, a heavier product mix and pricing actions intended to offset rising memory costs. However, those same memory expenses and the hardware mix pressured product margins, creating a key profitability concern for investors. Cisco Grew Faster By Selling Hardware and Charging More for It Neutral Sentiment: Several reports highlighted exchange-traded funds that provide exposure to Cisco’s AI-driven growth while reducing the risk of holding the individual stock, indicating continued interest in the company but also investor caution after the selloff. ETFs to Buy as Cisco Shares Sink Negative Sentiment: HSBC downgraded Cisco to Hold, which may limit near-term upside and reflects caution regarding the stock’s valuation and post-earnings performance. Cisco Systems Cut to Hold at HSBC Negative Sentiment: CEO Charles Robbins and three other insiders sold a combined 38,045 shares for approximately $4.25 million. Because the transactions were executed under pre-arranged Rule 10b5-1 plans and the executives retained substantial holdings, the sales are a modest negative signal rather than a clear change in management’s outlook. Insider Buying and Selling at Cisco Systems In related news, CEO Charles Robbins sold 21,628 shares of Cisco Systems stock in a transaction on Friday, August 14th. The shares were sold at an average price of $111.54, for a total transaction of $2,412,387.12. Following the transaction, the chief executive officer owned 602,710 shares in the company, valued at approximately $67,226,273.40. The trade was a 3.46% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 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 on Friday, August 14th. The stock was sold at an average price of $111.57, for a total transaction 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. This represents a 3.02% decrease in their position. 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 69,179 shares of company stock valued at $7,985,229. 0.01% of the stock is currently owned by company insiders.
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.
Read More Five stocks we like better than Cisco Systems Commodities Are Booming, But These 3 ETFs Tell Different Stories 3 Active ETFs Making Big Moves in August This ETF Is Outperforming by Avoiding the S&P 500’s Biggest Problem Birkenstock Beats the Skeptics—But Not on EPS 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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Buckland Partners Management Co LLC bought a new position in shares of Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) in the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor bought 15,000 shares of the network equipment provider’s stock, valued at approximately $1,762,000.
Other institutional investors have also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in Cisco Systems during the second quarter worth $42,129,647,000. Norges Bank acquired a new stake in shares of Cisco Systems in the fourth quarter valued at about $4,473,272,000. Auto Owners Insurance Co grew its position in shares of Cisco Systems by 8,718.3% in the fourth quarter. Auto Owners Insurance Co now owns 51,952,421 shares of the network equipment provider’s stock valued at $400,190,000 after purchasing an additional 51,363,281 shares during the period. Bank of New York Mellon Corp purchased a new stake in shares of Cisco Systems during the second quarter worth about $4,714,574,000. Finally, Deutsche Bank AG purchased a new stake in shares of Cisco Systems during the second quarter worth about $1,997,004,000. Institutional investors and hedge funds own 73.33% of the company’s stock.
Insider Transactions at Cisco Systems
In other Cisco Systems news, CEO Charles Robbins sold 21,628 shares of the company’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $111.54, for a total value of $2,412,387.12. Following the transaction, the chief executive officer owned 602,710 shares of the company’s stock, valued at $67,226,273.40. This represents a 3.46% 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, EVP Deborah L. Stahlkopf sold 6,487 shares of the stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $111.53, for a total transaction of $723,495.11. Following the transaction, the executive vice president directly owned 167,116 shares of the company’s stock, valued at approximately $18,638,447.48. This trade represents a 3.74% decrease in their position. 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. Insiders have sold a total of 69,179 shares of company stock valued at $7,985,229 in the last three months. 0.01% of the stock is currently owned by corporate insiders.
Cisco Systems Stock Performance
CSCO opened at $112.90 on Tuesday. The firm has a market capitalization of $444.99 billion, a PE ratio of 33.80, a PEG ratio of 2.38 and a beta of 1.02. Cisco Systems, Inc. has a twelve month low of $65.75 and a twelve month high of $130.37. The firm’s 50-day moving average price is $116.81 and its 200 day moving average price is $99.48. The company has a current ratio of 0.93, a quick ratio of 0.79 and a debt-to-equity ratio of 0.39.
Cisco Systems (NASDAQ:CSCO – Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate 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 during the quarter, compared to analysts’ expectations of $16.84 billion. During the same quarter in the prior year, the company earned $0.99 EPS. Cisco Systems’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, sell-side analysts expect that Cisco Systems, Inc. will post 4.09 EPS for the current fiscal year.
Cisco Systems Dividend Announcement
The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 21st. Investors 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 dividend yield of 1.5%. Cisco Systems’s dividend payout ratio is currently 50.30%.
Cisco Systems News Roundup
Here are the key news stories impacting Cisco Systems this week:
Positive Sentiment: Cisco reported record quarterly revenue of approximately $17.3 billion, up 18% year over year, while non-GAAP earnings per share reached $1.22 and surpassed consensus estimates. Management also issued an optimistic fiscal 2027 outlook, supporting the growth case. Why Cisco Stock Is Down Today
Positive Sentiment: Analysts and market commentators characterize the roughly 8% post-earnings decline as an overreaction, arguing that Cisco’s improving AI networking opportunity and strong results may provide support for the shares. Cisco: This 8% Selloff Looks Like An Overreaction
Neutral Sentiment: The latest quarter benefited from higher hardware prices, a heavier product mix and pricing actions intended to offset rising memory costs. However, those same memory expenses and the hardware mix pressured product margins, creating a key profitability concern for investors. Cisco Grew Faster By Selling Hardware and Charging More for It
Neutral Sentiment: Several reports highlighted exchange-traded funds that provide exposure to Cisco’s AI-driven growth while reducing the risk of holding the individual stock, indicating continued interest in the company but also investor caution after the selloff. ETFs to Buy as Cisco Shares Sink
Negative Sentiment: HSBC downgraded Cisco to Hold, which may limit near-term upside and reflects caution regarding the stock’s valuation and post-earnings performance. Cisco Systems Cut to Hold at HSBC
Negative Sentiment: CEO Charles Robbins and three other insiders sold a combined 38,045 shares for approximately $4.25 million. Because the transactions were executed under pre-arranged Rule 10b5-1 plans and the executives retained substantial holdings, the sales are a modest negative signal rather than a clear change in management’s outlook.
Wall Street Analyst Weigh In
A number of research analysts recently weighed in on the stock. Bank of America raised their price target on shares of Cisco Systems from $135.00 to $150.00 and gave the company a “buy” rating in a research note on Monday, June 8th. UBS Group increased their target price on Cisco Systems from $132.00 to $138.00 and gave the company a “buy” rating in a report on Thursday, August 13th. JPMorgan Chase & Co. raised their target price on Cisco Systems from $95.00 to $96.00 in a research report on Monday, May 11th. Piper Sandler lifted their price target on Cisco Systems from $86.00 to $132.00 and gave the stock a “neutral” rating in a research note on Thursday, May 14th. Finally, Citic Securities boosted their price target on Cisco Systems from $90.00 to $130.00 in a research report on Friday, May 15th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $129.43.
Check Out Our Latest Report on Cisco Systems
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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B and T Capital Management DBA Alpha Capital Management bought a new stake in Cisco Systems, Inc. (NASDAQ: CSCO) during the undefined quarter, according to its most recent Form 13F filing with the SEC. The firm bought 4,543 shares of the network equipment provider's stock, valued at approximately $534,000. A number of other
Aegis Wealth Management LLC acquired a new position in shares of Cisco Systems, Inc. (NASDAQ: CSCO) in the undefined quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 5,138 shares of the network equipment provider's stock, valued at approximately $604,000. A number of other
Cisco Systems, Inc. delivered strong Q4 FY2026 results, with revenue up 18% sequentially and non-GAAP EPS up 23%, confirming its AI infrastructure momentum. CSCO reported $4B in Q4 AI infrastructure orders, totaling $9.3B for FY2026, and guided to $7.5B in AI infrastructure revenue for FY2027. Despite robust results and guidance, the stock sold off due to concerns over declining gross margins, which fell to 66.3% and are forecast at 65–66% for Q1 FY2027.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of CSCO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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.
Global Retirement Partners LLC purchased a new position in Cisco Systems, Inc. (NASDAQ: CSCO) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 139,686 shares of the network equipment provider's stock, valued at approximately $16,408,000. Several other institutional investors also recently
Bank Hapoalim BM purchased a new stake in Cisco Systems, Inc. (NASDAQ: CSCO) during the second quarter, according to the company in its most recent filing with the SEC. The firm purchased 71,784 shares of the network equipment provider's stock, valued at approximately $8,432,000. Cisco Systems comprises 0.6% of Bank Hapoalim BM's investment
Bellars Harris Wealth Management LLC bought a new position in shares of Cisco Systems, Inc. (NASDAQ: CSCO) in the undefined quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund bought 112,851 shares of the network equipment provider's stock, valued at approximately $13,255,000.
Bridgewater Advisors Inc. purchased a new position in Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 55,600 shares of the network equipment provider’s stock, valued at approximately $6,442,000.
Other institutional investors also recently added to or reduced their stakes in the company. Cozad Asset Management Inc. grew its position in shares of Cisco Systems by 0.3% during the 1st quarter. Cozad Asset Management Inc. now owns 26,203 shares of the network equipment provider’s stock valued at $2,033,000 after acquiring an additional 87 shares during the period. Dogwood Wealth Management LLC raised its holdings in shares of Cisco Systems by 3.9% in the 2nd quarter. Dogwood Wealth Management LLC now owns 2,413 shares of the network equipment provider’s stock worth $283,000 after purchasing an additional 90 shares during the period. Financial Insights Inc. lifted its stake in Cisco Systems by 1.5% in the first quarter. Financial Insights Inc. now owns 6,220 shares of the network equipment provider’s stock valued at $483,000 after purchasing an additional 92 shares during the last quarter. CPA Asset Management Group LLC grew its holdings in Cisco Systems by 1.8% during the second quarter. CPA Asset Management Group LLC now owns 5,335 shares of the network equipment provider’s stock valued at $627,000 after purchasing an additional 93 shares during the period. Finally, Southern Financial Group LLC grew its holdings in Cisco Systems by 1.1% during the first quarter. Southern Financial Group LLC now owns 9,159 shares of the network equipment provider’s stock valued at $711,000 after purchasing an additional 102 shares during the period. Institutional investors own 73.33% of the company’s stock.
Analyst Upgrades and Downgrades Several analysts have issued reports on the company. Truist Financial boosted their target price on Cisco Systems from $125.00 to $140.00 and gave the company a “buy” rating in a research note on Thursday. Barclays increased their price target on Cisco Systems from $121.00 to $123.00 and gave the stock an “equal weight” rating in a research note on Thursday. Piper Sandler lifted their price objective on Cisco Systems from $86.00 to $132.00 and gave the stock a “neutral” rating in a 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. Finally, Morgan Stanley upped 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. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $129.43.
View Our Latest Research Report on Cisco Systems
Insider Activity In other news, CEO Charles Robbins sold 21,400 shares of the company’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $120.03, for a total transaction of $2,568,642.00. Following the sale, the chief executive officer directly owned 637,085 shares in the company, valued at $76,469,312.55. This represents a 3.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya K. Subaiya sold 7,127 shares of the stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $119.91, for a total transaction of $854,598.57. Following the completion of the sale, the executive vice president directly owned 140,857 shares in the company, valued at approximately $16,890,162.87. The trade was a 4.82% 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 have sold a total of 31,134 shares of company stock worth $3,739,000 over the last ninety days. Company insiders own 0.01% of the company’s stock.
Cisco Systems News Roundup 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 Trading Down 1.6% Shares of CSCO stock opened at $111.68 on Friday. The stock has a market capitalization of $440.18 billion, a price-to-earnings ratio of 33.44, a PEG ratio of 2.52 and a beta of 1.02. The company’s fifty day simple moving average is $117.03 and its two-hundred day simple moving average is $99.09. Cisco Systems, Inc. has a 1 year low of $65.75 and a 1 year high of $130.37. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.93 and a quick ratio of 0.81.
Cisco Systems (NASDAQ:CSCO – Get Free Report) last posted its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, topping analysts’ consensus estimates of $1.17 by $0.05. The firm had revenue of $17.25 billion during 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%.The business’s revenue for the quarter was up 17.6% on a year-over-year basis. 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. As a group, analysts anticipate that Cisco Systems, Inc. will post 4.09 earnings per share for the current year.
Cisco Systems Announces Dividend The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 21st. Shareholders 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 annualized dividend and a 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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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.
See Also Five stocks we like better than Cisco Systems Is Best Buy the AI Winner Hiding in the Electronics Aisle? Applied Materials Beat Everything but Wall Street’s Expectations for Margins Back From Orbit, Intuitive Machines’ Share Price Enters the Buy Zone Texas Roadhouse and Brinker International Have the Recipe Rivals Are Missing
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BIP Wealth LLC acquired a new position in shares of Cisco Systems, Inc. (NASDAQ: CSCO) during the undefined quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund acquired 24,560 shares of the network equipment provider's stock, valued at approximately $2,885,000. A number of other institutional investors
Cisco Systems, Inc. is seizing a core role in AI infrastructure, driving robust growth across both AI and traditional networking markets. CSCO delivered 18% YoY revenue growth in fiscal Q4 2026, with AI infrastructure orders rising 4.5x to $9.3 billion. Management guides for 15% revenue growth in FY27, underpinned by hyperscaler demand and scale-across networking opportunities.
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Cisco Systems (NASDAQ:CSCO | CSCO Price Prediction) just closed the books on a record fiscal year, and the setup heading into FY2027 is arguably the strongest the networking giant has offered investors in more than a decade.
Our 24/7 Wall St. price target for Cisco is $148.75, implying 31.09% upside from the current $113.47 quote. We rate shares a buy with a 90% confidence level, our highest tier.
24/7 Wall St. Price Target Summary
Metric
Value
Current Price
$113.47
24/7 Wall St. Price Target
$148.75
Upside
31.09%
Recommendation
BUY
Confidence Level
90%
A Post-Earnings Pullback That Looks Like a Gift
Cisco is up 64.5% over the past year and 49.44% year to date, yet shares fell 8.4% the day after the Q4 FY2026 report despite the strongest surprise in the dataset. That pushed the stock 2% below its 52-week high of $129.88 and well above the $64.42 low. The reaction reflects a market repricing lofty expectations even as the underlying business kept its momentum.
Q4 revenue of $17.252 billion beat consensus by 2.52% and grew 17.6% year over year, while non-GAAP EPS of $1.22 topped estimates by 4.38%, the fifth consecutive beat.
Why Bulls See a Breakout Ahead
Three catalysts underpin the bull case. First, AI infrastructure orders hit $9.30 billion in FY2026, roughly 4.5x FY2025, and management guides AI revenue to $7.50 billion in FY2027.
Second, CEO Chuck Robbins called this a “multi-year, multi-billion dollar networking super cycle” tied to agentic AI adoption, with Q4 networking orders up 40% YoY and hyperscaler orders up 95% YoY.
Third, the FY2027 revenue guide of $72.2 billion to $73.4 billion implies 15% growth at the midpoint, a step-change from the 11.77% FY2026 pace. Our bull scenario projects $167.52 within twelve months.
What Could Go Wrong
Non-GAAP gross margin slipped to 66.3%, down 210 basis points YoY, as AI hardware and memory costs pressured mix. Bulls would counter that operating margin still expanded to 35.9% because incremental hyperscaler revenue carries almost no added OPEX.
Additional risks include tariff uncertainty, hyperscaler concentration, and a net insider selling pattern across 23 recent transactions. Our bear case lands at $121.52, still slightly above today’s price.
How Cisco Compares to Arista and HPE
Arista Networks (NYSE:ANET) is the purest AI networking comparable. Arista posted 37.7% Q2 revenue growth to $3.04 billion with a 73x trailing P/E. Cisco’s 41x multiple looks cheap against that yardstick, which makes our target look conservative.
Hewlett Packard Enterprise (NYSE:HPE) became a direct rival after acquiring Juniper. HPE’s Q2 FY2026 networking segment grew 148.2% to $2.69 billion, but a 28.8% gross margin highlights how much more profitable Cisco’s stack remains at 66.3%. The peer set frames our $148.75 target as reasonable, potentially conservative.
Company
Forward P/E
Revenue Growth
Cisco
26x
17.6%
Arista
73x trailing
37.7%
HPE
n/m
40%
Cisco Price Prediction 2026 to 2030
The 24/7 Wall St. price target of $148.75 and buy recommendation carry 90% confidence because Cisco just delivered its fifth straight beat, guided FY2027 well above the Street, and doubled AI revenue expectations.
The bullish thesis holds as long as hyperscaler order momentum sustains through Q1 FY2027. The setup weakens if gross margins slip below 65% without offsetting operating leverage.
Year
24/7 Wall St. Price Target
2026
$129
2027
$148.75
2028
$180
2029
$215
2030
$246
These projections assume Cisco continues converting the AI order backlog into revenue at the rate management guided. Significant upside could come from enterprise AI infrastructure acceleration; downside would follow any hyperscaler capex pause.
Contact [email protected] for any questions or corrections.
Cisco Systems (NASDAQ:CSCO | CSCO Price Prediction) just wrapped up what management called its best year ever, and the stock is finally being treated like an AI infrastructure winner rather than a legacy networking name.
With shares at $123.88 after a 63.15% year-to-date run, the numbers still support meaningful upside from here.
24/7 Wall St. Price Target Summary Metric Value Current Price $123.88 24/7 Wall St. Price Target $151.13 Upside 22.0% Recommendation BUY Confidence Level 90% A Record Close to Fiscal 2026 Cisco posted Q4 revenue of $17.25 billion, up 17.58% year over year, with non-GAAP EPS of $1.22 beating consensus for the fifth straight quarter. Full-year revenue reached $63.33 billion and net income jumped 30.32%. Networking product orders climbed 40% in Q4, the eighth consecutive quarter of double-digit growth.
CEO Chuck Robbins framed the year plainly: “We delivered a very strong close to fiscal 2026, marking another record year for Cisco.” Shares sit just 2% below the 52-week high of $129.88, with a 77.12% one-year gain.
The Case for $170+ The bull case rests on FY2027 guidance that most models have not fully digested. Management guided revenue to $72.2 billion to $73.4 billion and non-GAAP EPS to $5.05 to $5.11. AI infrastructure revenue is expected to roughly double to $7.5 billion as Silicon One and Acacia coherent optics win hyperscaler design slots.
Q4 AI orders alone hit $4 billion, and FY2026 AI orders totaled $9.3 billion. Analyst consensus sits at $132.59 with 17 buy ratings versus 1 sell. A bull scenario points to $171.62, a 38.5% return, if AI hyperscale revenue exceeds the $7.5 billion target.
What Could Go Wrong Non-GAAP gross margin fell to 66.3% from 68.4% as AI mix shifts toward lower-margin systems. Trailing P/E is 40, elevated for a company that grew revenue 11.77% for the full year. Hyperscaler concentration is a concern, and Goldman Sachs flagged that a reversal of AI-related investments could pressure AI-linked wealth gains.
Insider activity has trended toward selling across 23 recent transactions. Bulls argue margin compression reflects the product mix shift toward faster-growing AI silicon, and forward P/E of 26 is reasonable. A bear scenario lands at $123.18, essentially flat.
How Cisco Compares to Arista and HPE Arista Networks (NYSE:ANET) is the pure-play Ethernet AI networking rival. Arista posted Q2 2026 revenue of $3.04 billion, up 37.7%, but trades at a trailing P/E of 75 with a market cap of $265 billion. That premium makes Cisco’s forward P/E of 26 look reasonable for a business growing AI orders at similar magnitudes.
Hewlett Packard Enterprise (NYSE:HPE) offers integrated networking-plus-compute after its Juniper acquisition, with fiscal Q2 2026 revenue of $10.68 billion, up 40%. HPE carries a cheaper multiple but faces integration risk and lower margins. Against both, our $151.13 target for Cisco looks reasonable, positioned between HPE’s value discount and Arista’s growth premium.
Cisco Price Prediction 2026-2030 My 24/7 Wall St. price target for Cisco is $151.13, a buy with 90% confidence. The tipping factor is the FY2027 AI revenue guide of $7.5 billion.
The thesis is confirmed if Q1 FY2027 revenue lands in or above the guided $18 billion to $18.2 billion range. The thesis weakens if gross margin drops below 65% or hyperscaler order growth cools.
Year 24/7 Wall St. Price Target 2026 $151 2027 $170 2028 $190 2029 $208 2030 $225 These projections assume Cisco continues executing on AI infrastructure and maintains networking share. Upside could come from accelerated enterprise AI adoption; downside risk centers on hyperscaler spending pauses.
Contact [email protected] for any questions or corrections.
Cisco Systems (CSCO -8.40%) delivered about as strong a close to fiscal 2026 as investors could have asked for. Fourth-quarter revenue rose 18% year over year to a record $17.3 billion, and full-year revenue climbed 12% to a record $63.3 billion. Management also guided fiscal 2027 revenue to grow about 15% at the midpoint -- a second straight year of accelerating growth for a company that grew 5% in fiscal 2025.
CEO Chuck Robbins put a name on what's driving it. "We believe the accelerating adoption of agentic AI is fueling a Networking Supercycle," he said on Wednesday's fiscal fourth-quarter earnings call.
And yet shares fell 8.4% Thursday, closing at about $113.
The sell-off has little to do with growth. It's about what the growth costs, and to me the place to see it is Cisco's gross margin.
Image source: The Motley Fool.
For the past two years, Cisco's artificial intelligence (AI) story lived mostly in its order book.
In fiscal 2026, the company took $9.3 billion of AI infrastructure orders from hyperscalers (the giant cloud companies building AI data centers), including $4 billion in the fourth quarter alone. Orders from customers beyond the hyperscalers (smaller AI-focused clouds, governments, and enterprises) topped $1 billion for the year. And the demand reaches well past AI. Total product orders rose 35% year over year in the fourth quarter, while networking product orders grew 40%, the eighth straight quarter of double-digit growth for that portfolio.
Now the orders are showing up in revenue. AI infrastructure for hyperscalers produced about 6% of Cisco's total revenue in fiscal 2026, up from less than 2% in fiscal 2025. Management expects that revenue to reach $7.5 billion in fiscal 2027, roughly a tenth of the $72.2 billion to $73.4 billion it guided for.
Put another way, in two years the business will have gone from a sliver of Cisco's revenue to about a tenth of it, if the guide holds.
The margin bill That revenue arrives with a different profit profile than the one Cisco investors are used to. Non-GAAP (adjusted) gross margin came in at 66.3% in the fourth quarter, down 210 basis points year over year. Product gross margin fell 270 basis points to 64.8%. Management attributed the drop primarily to a higher hardware mix and memory costs.
However, the pressure isn't guided to ease. For the fiscal first quarter, Cisco expects gross margin of 65% to 66%, below what it just reported and likely a preview of the mix ahead.
The reason is the hardware itself. Hyperscaler AI infrastructure is physical equipment (the orders behind it ran roughly 60% Silicon One-based systems and 40% optics in fiscal 2026, per management), and equipment carries lower margins than the software Cisco sells. Software revenue was $6.2 billion in the fourth quarter, up 11% -- growing far slower than the hardware wave around it.
The bottom line is absorbing the pressure so far. Non-GAAP earnings per share rose 23% in the fourth quarter to $1.22 and 14% for the full year to $4.33. Management guided fiscal 2027 earnings per share of $5.05 to $5.11, up about 17% at the midpoint -- faster than revenue. The offset is coming from operating costs: Full-year non-GAAP operating margin expanded 40 basis points to 34.8%.
Today's Change
(
-8.40
%) $
-10.41
Current Price
$
113.47
What the sell-off changes So, is the $7.5 billion a business or a label? Cisco booked $9.3 billion of hyperscaler orders in fiscal 2026 and won three new hyperscaler design wins in the fourth quarter. AI infrastructure's share of revenue has gone from less than 2% to about 6%, with about 10% guided next.
That looks like a business to me. But it's arguably a lower-quality one, dollar for dollar, than the software that drives much of Cisco's profitability.
At about $113, the stock trades at about 22 times the midpoint of the new earnings guidance, down from about 24 times on Wednesday's close. The dividend, at $1.68 per share annually, yields about 1.5%. Cisco also returned $12.7 billion to shareholders in fiscal 2026 through dividends and buybacks, and it raised the dividend for the 15th consecutive year.
I don't think Thursday's sell-off contradicts the supercycle. Cisco is growing faster than it has in years, and earnings are guided to grow faster than revenue even with the margin pressure. But gross margin could keep drifting lower as the hardware mix grows, and at about 22 times forward earnings, shares still assume the erosion stays modest.
Cisco Systems (CSCO -8.40%), a global networking hardware and security provider, closed at $113.47, down 8.40%. The stock fell after better-than-expected fiscal fourth-quarter results and guidance, but investors are focusing on margin pressure, even as the stock is still up nearly 50% this year.
Trading volume reached 61.1 million shares, coming in about 137% above its three-month average of 25.7 million shares.
How the markets moved todayThe S&P 500 (^GSPC +0.65%) rose 0.65% to 7,799, and the Nasdaq Composite (^IXIC +0.81%) gained 0.81% to 26,803. In networking equipment and enterprise communications technology, Arista Networks (ANET -3.27%) fell 3.27% to $203.62, while Hewlett Packard Enterprise (HPE +1.75%) rose 1.75% to $59.82 as investors weighed Cisco Systems' earnings reaction and broader spending trends.
What this means for investorsInvestors approached Cisco’s fiscal fourth-quarter earnings with high expectations for the company. Cisco stock was up 60% year-to-date entering today’s trading. While the company delivered record top and bottom-line results, total (non-GAAP) gross margin for the quarter dropped to 66.3% from last year's 68.4%. This decline was partly attributed to the increased cost of components used in AI hardware, such as memory.
AI-related demand remains strong, however. Some analysts also noted the decline in gross margin, but suggested that operating margins would expand in fiscal 2027. This expansion could result in profits growing faster than revenue.
That may make today’s plunge a good opportunity to at least begin a position in Cisco stock.
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Arista Networks, Cisco Systems, and Hewlett Packard Enterprise. The Motley Fool has a disclosure policy.
