Atlatl Advisers LLC raised its position in shares of Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) by 477.6% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 17,445 shares of the network equipment provider’s stock after buying an additional 14,425 shares during the quarter. Atlatl Advisers LLC’s holdings in Cisco Systems were worth $1,878,000 at the end of the most recent quarter.
Other institutional investors also recently modified their holdings of the company. BlackRock Inc. bought a new position in shares of Cisco Systems during the second quarter valued at approximately $42,129,647,000. Bank of America Corp DE purchased a new stake in shares of Cisco Systems in the 2nd quarter worth approximately $5,892,379,000. Bank of New York Mellon Corp purchased a new stake in shares of Cisco Systems in the 2nd quarter worth approximately $4,714,574,000. Deutsche Bank AG bought a new position in Cisco Systems during the 2nd quarter valued at approximately $1,997,004,000. Finally, State Street Corp increased its position in Cisco Systems by 7.0% during the 2nd quarter. State Street Corp now owns 207,106,569 shares of the network equipment provider’s stock valued at $25,278,492,000 after buying an additional 13,512,872 shares in the last quarter. 73.33% of the stock is currently owned by institutional investors.
Cisco Systems Trading Up 1.5% Cisco Systems stock opened at $106.50 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 one year low of $70.06 and a one year high of $130.37. The stock has a market capitalization of $419.89 billion, a PE ratio of 31.89, a price-to-earnings-growth ratio of 2.18 and a beta of 0.99. The business’s fifty day moving average is $110.18 and its 200 day moving average is $109.86.
Cisco Systems (NASDAQ:CSCO – Get Free Report) last announced its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (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 firm had revenue of $17.25 billion for the quarter, compared to the consensus estimate of $16.84 billion. During the same quarter last year, the firm posted $0.99 EPS. The business’s quarterly 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. On average, sell-side analysts predict that Cisco Systems, Inc. will post 4.42 EPS for the current year. Cisco Systems Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 21st. Investors of record on Friday, October 2nd were given a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date was Friday, October 2nd. Cisco Systems’s dividend payout ratio is 50.30%.
Wall Street Analyst Weigh In Several research firms have commented on CSCO. Rosenblatt Securities boosted their target price on Cisco Systems from $150.00 to $165.00 and gave the stock a “buy” rating in a report on Thursday, August 13th. Weiss Ratings reiterated a “buy (b)” rating on shares of Cisco Systems in a research note on Wednesday, August 26th. Piper Sandler dropped their price target on shares of Cisco Systems from $132.00 to $125.00 and set a “neutral” rating on the stock in a research note on Tuesday, September 22nd. Freedom Capital raised shares of Cisco Systems from a “hold” rating to a “strong-buy” rating in a research report on Sunday, August 16th. Finally, HSBC lowered shares of Cisco Systems from a “buy” rating to a “hold” rating and reduced their price objective for the company from $137.00 to $120.00 in a research note on Friday, August 14th. Three investment analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have given a Hold rating to the stock. According to MarketBeat, Cisco Systems currently has a consensus rating of “Moderate Buy” and a consensus price target of $128.52.
View Our Latest Stock Report on CSCO
Insider Buying and Selling In other Cisco Systems news, EVP Thimaya Subaiya sold 5,832 shares of the firm’s stock in a transaction dated 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 directly owned 128,382 shares of the company’s stock, valued at approximately $14,310,741.54. This trade represents a 4.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 transaction of $2,412,387.12. Following the sale, the chief executive officer directly owned 602,710 shares of the company’s stock, valued at $67,226,273.40. The trade was a 3.46% 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 44,869 shares of company stock valued at $5,005,620 in the last 90 days. Insiders own 0.01% of the company’s stock.
About Cisco Systems (Free Report)
Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration and observability solutions for businesses, government organizations and service providers. Its offerings include routers, switches, wireless networking equipment, data-center infrastructure, security software and services, as well as technologies that support cloud and hybrid IT environments.
The company also provides collaboration tools through its Webex portfolio, cloud-managed networking through Cisco Meraki and security and observability capabilities that include technologies from Splunk, which Cisco acquired in 2024.
Recommended Stories Five stocks we like better than Cisco Systems Spotify Soars After Earnings as the Company Touts AI Benefits and Moderating Costs Lockheed Martin’s Record $292 Billion Backlog Comes With a Delivery Test Palantir’s Next Big Test Isn’t a Partnership—It’s the Numbers Kinder Morgan’s $4.7 Billion Pipeline Bet Could Be Bigger Than Its Earnings Beat
Receive News & Ratings for Cisco Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cisco Systems and related companies with MarketBeat.com's FREE daily email newsletter.
Benin Management CORP grew its holdings in shares of Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) by 21.5% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 41,918 shares of the network equipment provider’s stock after buying an additional 7,430 shares during the period. Cisco Systems accounts for about 0.9% of Benin Management CORP’s investment portfolio, making the stock its 19th biggest holding. Benin Management CORP’s holdings in Cisco Systems were worth $4,512,000 at the end of the most recent quarter.
Several other hedge funds and other institutional investors have also made changes to their positions in the business. Halbert Hargrove Global Advisors LLC increased its position in Cisco Systems by 142.5% in the 3rd quarter. Halbert Hargrove Global Advisors LLC now owns 257 shares of the network equipment provider’s stock valued at $28,000 after acquiring an additional 151 shares during the period. Kings Path Partners LLC acquired a new position in Cisco Systems during the 3rd quarter worth $31,000. Blueline Advisors LLC acquired a new position in Cisco Systems during the 3rd quarter worth $32,000. Networth Advisors LLC boosted its position in Cisco Systems by 276.4% during the 1st quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider’s stock worth $26,000 after acquiring an additional 246 shares during the period. Finally, GK Wealth Management LLC bought a new position in shares of Cisco Systems in the third quarter worth $37,000. 73.33% of the stock is currently owned by institutional investors and hedge funds.
Insider Buying and Selling
In other Cisco Systems news, insider Jeetendra Patel sold 7,170 shares of Cisco Systems stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $111.57, for a total value of $799,956.90. Following the completion of the sale, the insider directly owned 230,593 shares in the company, valued at $25,727,261.01. The trade was a 3.02% 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, CEO Charles Robbins sold 21,628 shares of the stock in a transaction on Friday, August 14th. The stock was sold at an average price of $111.54, for a total transaction of $2,412,387.12. Following the transaction, the chief executive officer directly owned 602,710 shares in the company, valued at $67,226,273.40. The trade was a 3.46% 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. Over the last 90 days, insiders sold 44,869 shares of company stock worth $5,005,620. Insiders own 0.01% of the company’s stock.
Key Cisco Systems News
Here are the key news stories impacting Cisco Systems this week:
Positive Sentiment: Cisco unveiled high-density AI networking products, including Silicon One G302 switches and a planned 400Gb/s-per-lane optical module developed with NVIDIA, TE Connectivity and Amphenol. Expanded SONiC support and AI-operations security tools strengthen the company’s effort to capture spending across networking hardware, silicon, optics and software. Did AI Networking Expansion Just Shift Cisco’s Investment Narrative?
Positive Sentiment: Longer-term bullish commentary argues that Cisco can benefit from continued AI data-center investment and from software that helps customers monitor AI usage and control rising model-inference costs. Cisco: Can It Profit From Helping Customers Spend Less on AI?
Neutral Sentiment: ETF funds were net sellers of CSCO on October 20, adding a technical source of pressure that does not necessarily reflect a change in Cisco’s operating outlook. ETFs Are Net Sellers of Cisco
Neutral Sentiment: Analysts continue to debate whether Cisco’s AI opportunity represents a durable shift from its traditional enterprise networking business. Comparisons with Arista Networks highlight the importance of execution, data-center design wins and margins. Arista Networks Versus Cisco Systems
Negative Sentiment: The latest decline reflects Cisco falling more than the broader market, while commentary from Seeking Alpha characterized the stock’s AI narrative as overbought and maintained a Hold view. At a price-to-earnings ratio above 31, investors may be demanding substantial AI growth before awarding the shares a higher valuation. Here’s Why Cisco Systems Fell More Than the Broader Market
Cisco Systems Price Performance
NASDAQ:CSCO opened at $104.89 on Friday. 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 business’s 50-day moving average price is $110.28 and its 200 day moving average price is $109.88. Cisco Systems, Inc. has a 52-week low of $70.06 and a 52-week high of $130.37. The firm has a market cap of $413.54 billion, a P/E ratio of 31.40, a PEG ratio of 2.23 and a beta of 0.99.
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 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 analyst estimates of $16.84 billion. During the same quarter last year, the firm posted $0.99 EPS. The business’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, sell-side analysts predict that Cisco Systems, Inc. will post 4.42 earnings per share for the current fiscal year.
Cisco Systems Dividend Announcement
The business also recently announced a quarterly dividend, which was paid on Wednesday, October 21st. Shareholders of record on Friday, October 2nd were paid a dividend of $0.42 per share. The ex-dividend date of this dividend was Friday, October 2nd. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.6%. Cisco Systems’s dividend payout ratio (DPR) is 50.30%.
Analyst Upgrades and Downgrades
A number of equities research analysts recently weighed in on CSCO shares. Sanford C. Bernstein started coverage on shares of Cisco Systems in a research note on Wednesday, September 30th. They set a “market perform” rating and a $110.00 price objective on the stock. 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 report on Friday, August 14th. Zacks Research upgraded shares of Cisco Systems from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, September 30th. Morgan Stanley boosted their price target 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. Finally, Rosenblatt Securities upped 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. Three research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $128.52.
Get Our Latest Stock Analysis on Cisco Systems
Cisco Systems Profile
(Free Report)
Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration and observability solutions for businesses, government organizations and service providers. Its offerings include routers, switches, wireless networking equipment, data-center infrastructure, security software and services, as well as technologies that support cloud and hybrid IT environments.
The company also provides collaboration tools through its Webex portfolio, cloud-managed networking through Cisco Meraki and security and observability capabilities that include technologies from Splunk, which Cisco acquired in 2024.
Recommended Stories
Five stocks we like better than Cisco Systems
Is Texas Instruments Setting Up for Its Next Big Breakout?
Pegasystems’ Q3 Miss Exposed the Problem Standing Between AI and Cash Flow
Lam Research’s Earnings Beat Wasn’t the Real Story—Its 2027 Outlook Was
Tesla’s Flying-Car Hype Hits an Earnings Reality Check
Receive News & Ratings for Cisco Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cisco Systems and related companies with MarketBeat.com's FREE daily email newsletter.
AMF Tjanstepension AB grew its position in shares of Cisco Systems, Inc. (NASDAQ: CSCO) by 22.5% during the undefined quarter, according to the company in its most recent filing with the SEC. The firm owned 1,028,135 shares of the network equipment provider's stock after purchasing an additional 189,002 shares during the quarter. AMF
Cisco Systems (CSCO - Free Report) closed the most recent trading day at $104.89, moving -2.21% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 1.21% for the day. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, lost 2.6%.
The seller of routers, switches, software and services's shares have seen an increase of 0.78% over the last month, surpassing the Computer and Technology sector's loss of 3.87% and the S&P 500's loss of 0.03%.
Analysts and investors alike will be keeping a close eye on the performance of Cisco Systems in its upcoming earnings disclosure. The company is expected to report EPS of $1.33, up 33% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $18.09 billion, showing a 21.54% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $5.11 per share and a revenue of $73.03 billion, demonstrating changes of +18.01% and +15.33%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Cisco Systems. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. Right now, Cisco Systems possesses a Zacks Rank of #2 (Buy).
In terms of valuation, Cisco Systems is currently trading at a Forward P/E ratio of 20.98. This signifies a discount in comparison to the average Forward P/E of 22.37 for its industry.
We can additionally observe that CSCO currently boasts a PEG ratio of 1.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Computer - Networking stocks are, on average, holding a PEG ratio of 1.39 based on yesterday's closing prices.
The Computer - Networking industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 37, finds itself in the top 16% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CSCO in the coming trading sessions, be sure to utilize Zacks.com.
Cisco and NVIDIA's planned USFP module aims to quadruple bandwidth density within an OSFP-sized footprint. Summary
Cisco’s optics roadmap targets bandwidth density, but standardization and shipment timing remain open.
Cisco, a networking and security vendor CSCO, outlined plans with Nvidia for faster optical connections in AI data centers; shares traded at $103.885, down approximately 3.15%, around 11:40 a.m. ET Thursday. The pitch is straightforward: move more data through the same equipment footprint while using less energy per bit. For AI operators wrestling with power limits, that could matter as much as adding more chips.
The proposed USFP module targets 400 gigabits per second per lane and capacity of up to 12.8 terabits per second. According to Cisco's announcement, the design promises four times the bandwidth density and approximately 1.3 times the power efficiency of 200-gigabit-per-lane alternatives. TE Connectivity and Amphenol are helping develop the hardware ecosystem. The potential payoff: connect more computing equipment without piling on extra network layers, electricity demand and complexity.
The valuation leaves little room for a slow rollout. The GF Value comparison puts Cisco 37.45% above its $75.58 estimated fair value, suggesting investors already expect substantial growth. An open specification and multiple suppliers could help adoption, but plans still need to become products customers deploy. Watch production availability, customer uptake and revenue conversion. Better specifications strengthen the AI story. Commercial execution determines how much that story is worth.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Both Arista and Cisco just posted record AI-driven results, yet their stocks sold off hard. One company offers margin-rich focus while the other controls its own silicon, and the scale-across design wins separating them could define data center networking for…
Arista Networks (NYSE:ANET | ANET Price Prediction) and Cisco Systems (NASDAQ:CSCO) both reported in August, and both said AI networking powered record results. Arista posted its first $3B quarter on Ethernet AI fabrics. Cisco closed a record year on hyperscaler orders and a campus upgrade. Both now compete for the same scale-across traffic between data centers.
AI Fabrics Lift Arista While a Supercycle Lifts All of Cisco Arista’s revenue reached $3.04B, up 37.7% YoY and ahead of the $2.83B estimate. Arista’s focused product line benefited from strong AI demand. CEO Jayshree Ullal said EtherLink adoption “now exceeds 100 cumulative customers from the initial four to five customers I spoke of in 2024.” Management also raised its 2026 outlook to about $12.6 billion, which works out to 40% growth.
Cisco’s demand spreads much wider. Networking revenue rose 28% to $9.791B, and product orders climbed 35%, or 25% ex-hyperscalers. Growth that strong outside the cloud giants points to a real enterprise upgrade. Hyperscaler AI orders hit $4 billion in the quarter. CEO Chuck Robbins said: “We are not accidental recipients of what’s going on in this AI transition.”
Business Driver Arista Cisco Main Growth Engine EtherLink AI fabrics, campus AI infrastructure, campus upgrade, security Revenue Growth 37.7% 17.6% Non-GAAP Operating Margin 49.9% 35.9% Next-Quarter Revenue Guide ~$3.30B $18.0B-$18.2B Arista Sells Focused Switches, Cisco Sells the Whole Stack Arista competes on EOS software. Ullal said that buyers working against tight AI deployment timelines prefer integrated systems over white-box switches. Its 1.6 Tbps 7060XE7 needs liquid cooling, so trials run through the back half of 2026, with production expected in 2027. Concentration still concerns me: Ullal expects “one, maybe two, 10% customers” next to Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:META).
Cisco controls more of its own supply chain. It buys Silicon One chips directly from Taiwan Semiconductor Manufacturing (NYSE:TSM) and has secured three Scale Across design wins for the P200. That control weighs on margins. Non-GAAP gross margin slipped to 66.3% from 68.4% as hardware took a bigger share of the mix. Price increases also added about five points to revenue growth, which masks the volume picture.
Scale-Across Wins Will Decide Who Pulls Ahead I want to see whether Arista can hold its 62% to 64% gross margin target while Ullal warns of a supply crunch lasting “until 2028.” For Cisco, watch whether AI revenue moves toward $7.5B when the company reports on November 12, 2026. Both stocks fell last week: Arista dropped 11.41% and Cisco 7.27%. The declines came despite record results at both companies.
Arista Offers Faster Growth While Cisco Adds Dividends and Buybacks For research purposes, Arista offers the more focused exposure to AI networking. Its margins and customer momentum stand out, but a P/E near 65 leaves little room for a stumble. Cisco offers wider, steadier exposure. It pays a $0.42 quarterly dividend and has $8.1B left in buyback authorization. A key risk to monitor is whether Arista’s gross margin slips below its target range.
Contact [email protected] for any questions or corrections.
Diversify Advisory Services LLC grew its position in shares of Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) by 5.8% during the 3rd quarter, according to the company in its most recent filing with the SEC. The firm owned 186,326 shares of the network equipment provider’s stock after purchasing an additional 10,166 shares during the quarter. Diversify Advisory Services LLC’s holdings in Cisco Systems were worth $20,468,000 as of its most recent filing with the SEC.
Other hedge funds also recently modified their holdings of the company. Petredis Investment Advisors LLC boosted its position in shares of Cisco Systems by 0.3% during the 3rd quarter. Petredis Investment Advisors LLC now owns 62,778 shares of the network equipment provider’s stock valued at $6,757,000 after purchasing an additional 157 shares in the last quarter. Revisor Wealth Management LLC raised its holdings in shares of Cisco Systems by 10.4% in the 3rd quarter. Revisor Wealth Management LLC now owns 4,848 shares of the network equipment provider’s stock worth $523,000 after purchasing an additional 455 shares in the last quarter. Briaud Financial Planning Inc raised its holdings in shares of Cisco Systems by 5.1% in the 3rd quarter. Briaud Financial Planning Inc now owns 2,553 shares of the network equipment provider’s stock worth $275,000 after purchasing an additional 124 shares in the last quarter. West Branch Capital LLC lifted its stake in Cisco Systems by 1.7% during the third quarter. West Branch Capital LLC now owns 55,190 shares of the network equipment provider’s stock valued at $5,940,000 after purchasing an additional 915 shares during the last quarter. Finally, 55 North Private Wealth LLC lifted its stake in Cisco Systems by 4.8% during the third quarter. 55 North Private Wealth LLC now owns 10,107 shares of the network equipment provider’s stock valued at $1,088,000 after purchasing an additional 459 shares during the last quarter. 73.33% of the stock is currently owned by institutional investors and hedge funds.
Key Stories Impacting Cisco Systems Here are the key news stories impacting Cisco Systems this week:
Positive Sentiment: New AI networking platforms strengthen Cisco’s growth story. Cisco introduced 51.2-terabit and 102.4-terabit networking systems powered by its Silicon One chips, along with 1.6T optical modules and liquid-cooling technology for high-density data centers. Its collaboration with NVIDIA, TE Connectivity and Amphenol on next-generation optical connectivity could help Cisco capture more spending from the expanding AI infrastructure buildout. Cisco Systems Unveiled 102.4T AI Networking Platforms Positive Sentiment: AI demand is supporting an optimistic earnings setup. A preview article cited Cisco’s guidance for approximately 21% year-over-year revenue growth and 33% EPS growth, alongside recent revenue and earnings beats. Agentic AI adoption and infrastructure contracts, including international opportunities such as Bell Canada, are viewed as longer-term catalysts. Cisco Earnings Preview Positive Sentiment: Industry commentary supports continued AI capital spending. Strategist Tom Lee argued that the AI investment cycle may have substantial room to run, with networking, power, cooling and security among the beneficiaries. This reinforces the bullish case that Cisco’s AI order momentum could develop into a broader networking supercycle. Tom Lee on AI Stocks and Cisco Positive Sentiment: Splunk’s observability research highlights a potential software opportunity. Cisco reported that enterprises are struggling to monitor AI agents and control rising telemetry and AI costs. Growing demand for observability, security and operational predictability could support cross-selling through Cisco’s Splunk business. Splunk State of Observability 2026 Neutral Sentiment: World Wide Technology’s new Cisco Secure AI Infrastructure specialization adds partner validation, but the direct near-term revenue impact is unclear. World Wide Technology Achieves Cisco Specialization Negative Sentiment: Valuation and margin risks remain important headwinds. One analyst downgraded Cisco to Hold after a substantial year-to-date rally, arguing that the shares are near fair value and that hardware mix could pressure gross margins. Elevated price-to-sales levels may also reduce the stock’s sensitivity to positive AI news. Cisco Valuation and Technical Support Insider Transactions at Cisco Systems In other news, insider Jeetendra I. Patel sold 7,170 shares of the company’s stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $111.57, for a total value of $799,956.90. Following the transaction, the insider owned 230,593 shares in the company, valued at $25,727,261.01. This represents a 3.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,628 shares of the stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $111.54, for a total transaction of $2,412,387.12. Following the completion of the sale, the chief executive officer directly owned 602,710 shares of the company’s stock, valued at $67,226,273.40. This trade represents a 3.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 44,869 shares of company stock worth $5,005,620. 0.01% of the stock is currently owned by company insiders. Analysts Set New Price Targets CSCO has been the subject of a number of research reports. KeyCorp raised their target price on shares of Cisco Systems from $130.00 to $135.00 and gave the stock an “overweight” rating in a report on Thursday, August 13th. HSBC cut Cisco Systems from a “buy” rating to a “hold” rating and dropped their price target for the company from $137.00 to $120.00 in a report on Friday, August 14th. Truist Financial increased their price objective on Cisco Systems from $125.00 to $140.00 and gave the company a “buy” rating in a research report on Thursday, August 13th. Wall Street Zen raised Cisco Systems from a “hold” rating to a “buy” rating in a research note on Sunday, October 11th. Finally, Freedom Capital upgraded Cisco Systems from a “hold” rating to a “strong-buy” rating in a report on Sunday, August 16th. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $128.52.
Read Our Latest Analysis on Cisco Systems
Cisco Systems Price Performance Shares of NASDAQ:CSCO opened at $106.71 on Wednesday. The company’s fifty day moving average is $110.78 and its two-hundred day moving average is $109.50. The company has a quick ratio of 0.79, a current ratio of 0.93 and a debt-to-equity ratio of 0.39. Cisco Systems, Inc. has a 12-month low of $69.85 and a 12-month high of $130.37. The company has a market cap of $420.71 billion, a P/E ratio of 31.95, a price-to-earnings-growth ratio of 2.22 and a beta of 0.99.
Cisco Systems (NASDAQ:CSCO – Get Free Report) last issued its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, topping the consensus estimate of $1.17 by $0.05. The business had revenue of $17.25 billion during the quarter, compared to analysts’ expectations of $16.84 billion. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%. Cisco Systems’s revenue was up 17.6% compared to the same quarter last year. During the same quarter last year, the firm posted $0.99 earnings per share. Cisco Systems has set its FY 2027 guidance at 5.050-5.110 EPS and its Q1 2027 guidance at 1.320-1.340 EPS. Equities analysts expect that Cisco Systems, Inc. will post 4.42 earnings per share for the current fiscal year.
Cisco Systems Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 21st. Investors of record on Friday, October 2nd will be paid a $0.42 dividend. This represents a $1.68 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend is Friday, October 2nd. Cisco Systems’s dividend payout ratio is currently 50.30%.
Cisco Systems Profile (Free Report)
Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration and observability solutions for businesses, government organizations and service providers. Its offerings include routers, switches, wireless networking equipment, data-center infrastructure, security software and services, as well as technologies that support cloud and hybrid IT environments.
The company also provides collaboration tools through its Webex portfolio, cloud-managed networking through Cisco Meraki and security and observability capabilities that include technologies from Splunk, which Cisco acquired in 2024.
Further Reading Five stocks we like better than Cisco Systems Aurora Rejects Curaleaf’s Higher Bid, But the Takeover Fight Isn’t Over Centrus Energy Is Building a Nuclear Fuel Powerhouse—Why Is Its Stock Struggling? Halliburton Gains Traction: Multiyear Upcycle Ahead Meta Platforms’ AI Comeback Faces an Earnings Test—And a $10 Billion Charge
Receive News & Ratings for Cisco Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cisco Systems and related companies with MarketBeat.com's FREE daily email newsletter.
Cisco spent years as the networking giant that growth investors ignored, but AI infrastructure spending is rewriting that story fast. Whether the rally has legs or a margin squeeze kills the momentum depends on one critical number.
Cisco Systems (NASDAQ:CSCO | CSCO Price Prediction) spent years as the networking giant that growth investors passed over. AI is pulling it back into the public eye.
The 24/7 Wall St. price target for Cisco is $125.51, which implies 16.87% upside from $107.39. The model is highly confident in its buy rating for the stock.
Metric
Value
Current Price
$107.39
Price Target from 24/7 Wall St.
$125.51
Upside/Downside
16.87%
Recommendation
BUY
Confidence Level
90%
The comeback case rests on AI infrastructure revenue. Cisco expects AI infrastructure revenue to reach $7.5 billion in FY2027, up from about $4 billion in FY2026. If that ramp holds, our model’s base case reaches $138.03 by October 2028.
Cisco is one of the names gaining as hyperscalers pour money into the picks-and-shovels side of AI (we featured seven of these non-chipmaker suppliers in a free report you can grab here).
A Sharp Weekly Pullback Follows a Strong 2026 Rally
Shares fell 9.29% over the past week and are about flat over one month (+0.05%). They are still up 41.96% year to date. The stock sits about 17% below its 52-week high of $129.38 and about 57% above its low of $68.58.
Fiscal Q4 revenue rose 17.58% to $17.25 billion, ahead of the $16.83 billion estimate. Non-GAAP EPS of $1.22 exceeded expectations of $1.17. Even so, the stock slipped after the report on margin concerns, and Piper Sandler cut its price target in September.
Why Bulls See $136 and Beyond
Management guides FY2027 revenue to $72.2 billion to $73.4 billion and non-GAAP EPS to $5.05 to $5.11. Q4 product orders rose 35%, and Cisco won three new hyperscaler design wins. Hyperscaler AI grew to about 6% of total revenue, up from under 2%.
Chuck Robbins said, “We believe we’re only at the beginning of this super cycle.” The consensus target is $136.16, supported by 19 bullish ratings and no sells. Our bull case is $136.52.
Margin Pressure and Hyperscaler Dependence Could Stall the Comeback
Non-GAAP gross margin slipped to 66.3% from 68.4% as hardware became a bigger share of sales. Price increases added about five points to Q4 growth, and FY2026 operating cash flow fell 0.11%. Restructuring charges continue through FY2027.
CFO Mark Patterson pushed back on the margin worry: lower-margin hardware “actually turns out to be highly profitable because we don’t have to add incremental expenses.” Our bear case is $106.37.
Cisco Trades at Half Arista’s Multiple
Arista Networks (NYSE:ANET) competes directly with Cisco for AI data center switching. Revenue grew 37.7% last quarter, which helps explain why the stock trades at a forward P/E of 39, about twice Cisco’s.
Hewlett Packard Enterprise (NYSE:HPE) now has Juniper Networks and posted 74.9% networking growth. However, its 4.8% operating margin is far below Cisco’s. With HPE at the low end and Arista at the high end, Cisco’s valuation looks reasonable, and our target leaves room for upside.
Company
Forward P/E
Quarterly Revenue Growth (YoY)
Cisco
20
17.6%
Arista
39
37.7%
HPE
14
33.7%
Cisco Earns a Buy Rating at These Levels
The 24/7 Wall St. price target of $125.51 carries a buy rating with 90% confidence. The forward valuation supports the rating: about 20 times earnings for a business that expects earnings growth to speed up in FY2027.
The bull case strengthens if hyperscaler orders keep turning into revenue on schedule. The case weakens if gross margin falls below the 65% low end of guidance. On balance, I think the comeback is real.
These longer-range figures extend the model’s base case:
Year
Price Target from 24/7 Wall St.
2026 (January 2027 milestone)
$109.93
2027
$125.51
2028
$138.03
2029
$149.74
2030
$162.45
These projections assume Cisco keeps executing on Silicon One and its optics strategy. A slowdown in hyperscaler spending or new tariff pressure could pull results well below this path.
Contact [email protected] for any questions or corrections.
New research reveals how observability restores financial predictability as enterprises navigate rising telemetry costs and unpredictable AI bills
News Summary
The global Splunk State of Observability 2026 report reveals agentic AI is creating unpredictable outcomes and costs, leaving observability practices to rein them in. Agent observability is increasingly important, with nearly 9 in 10 respondents saying monitoring AI is a priority, but over half still can't effectively measure agent quality. The AI cost crisis isn't just the size of the bill. It's about the surprise charges, with over half saying they cannot accurately control AI costs. Shared data across observability and security teams is essential to AI trust, with more than three quarters of respondents saying monitoring AI has increased their collaboration with security teams. , /PRNewswire/ -- Cisco (NASDAQ: CSCO) today released the Splunk State of Observability 2026: Restoring Predictability in the AI Era report, marking its sixth analysis of the observability industry. This year's research, which surveyed 2,050 ITOps and engineering respondents across 10 countries, exposes a significant disconnect: the urgency to deploy AI agents is rapidly outpacing the ability to monitor them.
With AI costs becoming more volatile, organizations are struggling to maintain both agent quality and fiscal predictability. This year's report highlights how observability is helping to restore stability and financial predictability of agentic AI systems, providing the governance to build trust with agents and ensure AI spend is tethered to business value.
In addition, with 83% of respondents saying they're concerned about the unintended consequences of AI agents, there's an urgent need for "agent observability," or the ability to monitor AI agents and put guardrails in place. This need is driving ITOps and engineering teams to collaborate more closely with security teams, as agents gain access to the entire tech stack.
"Most companies will soon have far more agents at work than people," said Jeetu Patel, President and Chief Product Officer at Cisco. "Managing agents at scale requires reimagining both security and observability. Have our agents been compromised? Are they doing their job well? In the world of agentic AI, these questions are inseparable, and they're moving at machine speed. This report shows that observability and security data are converging, and that teams need to collaborate more than ever. Common data platforms that help us detect and respond to issues in real-time are the key to deploying agents we can trust at scale."
"For today's enterprises, the excitement of AI is clashing with the reality of the bill," added Kamal Hathi, SVP and GM, Splunk at Cisco. "We believe observability is the essential bridge to restoring predictability and confidence to the agentic AI era. By providing the necessary guardrails and incorporating observability into an AI tokenomics framework, leaders can transform AI from an unpredictable expense into a measurable and strategic long-term business investment."
Agent observability emerges as a business priority and a gap
As organizations add AI agents into workflows like software development and customer experience, an incorrect agent action can evolve into a critical business failure. Unlike monitoring traditional applications, visibility into AI agent behavior requires a new class of behavioral metrics that are tied to business outcomes and agent decision-making. While many see the value of agent observability technology, respondents still struggle with how to execute or measure the tools effectively.
87% confirm monitoring AI is a priority for their organization; however 54% don't have clear business outcomes tied to it. 56% reveal they're unable to measure AI workload metrics like LLM response quality, a core metric to tracking the success of an AI agent. While 85% say it's important to have visibility into AI hallucinations, only 58% claim they're effective at doing so. AI is driving unpredictable costs
Observability is what makes AI spend visible, attributable, and controllable. When today's organizations run dozens of agents across multiple models, AI costs and usage can become convoluted. In addition, AI is exacerbating a data volume problem for many enterprises, making sifting through mountains of data almost impossible.
55% say they can't control AI costs, as AI use has become more complex with both consumption increasing and usage remaining hard to predict. 60% say unexpected billing spikes cause more operational strain than high baseline costs. 57% say their telemetry costs eclipsed the cost of the infrastructure being monitored, making financial predictability more critical than ever. 67% of respondents use a single observability platform, providing a unified view to pinpoint exactly where telemetry costs are coming from. The convergence of observability and security ensures AI trust
As AI agents gain more access to operations in every layer of a business, monitoring them requires collaboration between ITOps, engineering, and security teams, breaking down walls that have historically kept them apart.
81% say monitoring AI workloads has increased the collaboration between observability and security teams, and 73% can accurately trace performance issues to security root causes, up from 65% last year. More observability teams are troubleshooting (77%) with security teams, up from 62% in 2025. Data sharing between teams has climbed from 74% to 84%. The leader's edge: restoring predictability in the agentic era
In the research, an advanced group of organizations emerged as leaders who are achieving concrete business outcomes with their observability practices. These leaders follow three best practices:
Rely on AI agents to fix and prevent issues frequently. Leaders use agents to perform and execute key remediation tasks often. Closely monitor the factors that keep AI in check. Leaders focus closely on monitoring model quality, cost, usage, security, and privacy. Connect signals to business impact. These advanced respondents agree that telemetry is a key factor in their planning process and helping to shape strategic decisions. These leaders are seeing transformative results – they are far more likely to accurately attribute AI costs (91% of leaders vs. 69% of non-leaders), by pinpointing which agents, models, and workloads drive spend. They are also 2.4 times more likely than non-leaders to say the ROI of their observability platforms significantly exceeds expectations, and 54% say observability has yielded at least $5 million in annual business revenue (versus 28% of non-leaders). Leaders are realizing the benefits of observability and security teams working closely together – with 94% saying monitoring AI has increased collaboration with security teams (compared to 80% of non-leaders,) and 86% are more likely to accurately trace performance issues back to their security root causes (in contrast with 71% non-leaders).
Global highlights
This year's report showed the topics around prioritizing monitoring AI agents, unpredictable costs, and concern of agentic AI remained key themes of the 10 countries surveyed. Indian organizations stand out as advanced for their agent observability capabilities, with 51% calling their practice very effective at monitoring AI model quality, in contrast to 35% globally. The UK reflected both impressive adoption and concern of agentic AI, with 32% using AI agents all the time to diagnose root cause (vs. 20% globally), and 55% strongly worry about the unintended consequences of AI agents. Saudi Arabia stood out as more advanced and AI-forward, with 98% saying AI enabled them to focus more on innovation, well above the global average at 84%. Germany leads in data sensitivity, with 74% rating visibility into AI privacy as very important.
To learn more, explore the blogs and resources below:
Blog: State of Observability 2026 Reveals How Leaders Are Restoring Predictability to the Agentic Era Report: State of Observability 2026: Restoring Predictability to the Agentic Era Methodology
Oxford Economics researchers surveyed 2,050 ITOps and engineering professionals from practitioners to executives (including developers, SREs, systems engineers, infrastructure operations professionals, CTOs, and CIOs) from February through March 2026. Respondents resided in Australia, France, Germany, India, Japan, New Zealand, Singapore, Saudi Arabia, the United Kingdom, and the United States.
Respondents represented 16 industries: business services, construction and engineering, consumer packaged goods, education, financial services, government (federal/national, state, and local), healthcare, life sciences, manufacturing, technology, media, oil/gas, retail/wholesale, telecom, transportation/logistics, and utilities.
About Cisco
Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco.
Cisco and the Cisco logos are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco's trademarks can be found at http://www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word 'partner' does not imply a partnership relationship between Cisco and any other company.
Strategist Tom Lee says investors should not shrink from the pullback in stocks surrounding AI investment fears. He points to Cisco's history as one reason to buy.
By You're currently following this author! Click to unsubscribe from email alerts.
Cisco's president and product chief, Jeetu Patel, shared how he's used personal AI agents. Bloomberg/Getty Images If getting mysterious and surprising subscription bills are the bane of your existence, Cisco's president and product chief, Jeetu Patel, is in the same boat.
Patel told Business Insider that said he's been using four to five different personal AI agents, like Meta's Muse, Instinct, and OpenAI's Dots, for things like consolidating news, summarizing earnings calls, and even booking his daughter's concert tickets. But recently, he was impressed by how one agent could slash his subscription bills.
He said that the first time he gave a personal AI agent access to his email, the agent told him, "Hey, you've got $9,000 worth of subscriptions that you subscribe to per year. Are you sure you want all of these? It seems like a lot of subscriptions."
He told the agent to make him a table of all his subscriptions, how much he spends on each, and how long he's had each. After the agent presented him with the table, he picked out two subscriptions that he didn't need and made the agent cancel them, which it did without difficulty, and sent him cancellation emails.
"I'm like, OK, that was kind of creepy how easy it was to do that," Patel said. "And then it saved me 1,000, 1,200 bucks a year just over there. So basically, for the most part, I paid for that agent, at a $20-a-month plan, several times over."
The agent also managed to cancel part of his Dropbox subscription — an $11.95 plan he had accidentally subscribed to, even though he had already purchased a 2-terabyte plan.
Patel is a big fan of AI agents, both at work and outside it. He said he rarely starts any task now without asking an AI agent to do a "recon job" and give him research and context.
But the important thing to remember, he said, was not to give personal AI agents, which are not vetted by employers, access to work tools and resources. He hasn't linked his email or calendar to his personal agents, instead using his internal work agent for those tasks.
"These are common-sense things that I think most companies implement, which is, 'Don't give your crown jewels of your source code repository to Muse; it might not be a good idea,'" Patel said.
Rogue or not, AI agents have been causing a buzzPersonal AI agents have been all the rage in recent months, serving as personal assistants and handling mundane, repetitive tasks like paying bills and buying groceries for their users.
While they've been touted as productivity boosters, there have been several instances of users reporting that the agents have performed actions outside their permissions, such as posting bank balances to company Slack channels or misinterpreting instructions, such as ordering 20 pounds of chicken for a dinner for two.
Obedient or not, personal AI agents have been causing a buzz, especially for investors.
Ross Mayfield, an investment strategist at Baird, told Business Insider's William Edwards ahead of Meta's earnings that Muse is the first big app of the AI era and that it assuages some investors' fears about Big Tech's ballooning AI spending. And Instinct, founded by a 23-year-old, raised $1 billion in its Series C, bringing its valuation to $10 billion.
But these new products are coming in a year when there have been several instances of AI agents going rogue and performing unauthorized actions, such as breaking out of sandboxes during security tests and exploiting software vulnerabilities in external companies' websites.
This has led companies such as Bank of America to invest resources and hire additional personnel to address issues with their legacy software and prevent such hacks.
Former and current staffers at frontier AI labs like Anthropic and OpenAI have publicly raised concerns that AI development is progressing too rapidly, without adequate checks and balances. September was characterized by an air of doom and gloom over an "AI apocalypse," in which AI researchers estimated that the technology would kill all of humanity in the next decade.
Read next
Business Insider tells the innovative stories you want to know
Business Insider tells the innovative stories you want to know
Business Insider tells the innovative stories you want to know
Business Insider tells the innovative stories you want to know
Aditi Bharade You're currently following this author! Click to unsubscribe from email alerts.
Aditi is a news reporter at Business Insider’s Singapore bureau. She covers hustle culture and the future of work, focusing on how AI and technology are reshaping jobs, careers, and workplaces.She previously worked for The Straits Times, where she wrote breaking news stories for the Singapore desk. She studied communications and business at Nanyang Technological University.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.
Generali Investments Management Co LLC lessened its position in Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) by 79.0% during the 3rd quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 5,116 shares of the network equipment provider’s stock after selling 19,291 shares during the period. Generali Investments Management Co LLC’s holdings in Cisco Systems were worth $551,000 as of its most recent filing with the SEC.
Other large investors have also made changes to their positions in the company. BlackRock Inc. bought a new stake in Cisco Systems during the second quarter worth about $42,129,647,000. State Street Corp grew its position in Cisco Systems by 7.0% during the 2nd quarter. State Street Corp now owns 207,106,569 shares of the network equipment provider’s stock worth $25,278,492,000 after acquiring an additional 13,512,872 shares during the last quarter. Bank of America Corp DE bought a new stake in Cisco Systems during the 2nd quarter worth approximately $5,892,379,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in Cisco Systems by 2.7% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 43,450,141 shares of the network equipment provider’s stock valued at $5,103,654,000 after purchasing an additional 1,143,106 shares in the last quarter. Finally, Bank of New York Mellon Corp bought a new position in Cisco Systems in the 2nd quarter valued at $4,714,574,000. Institutional investors own 73.33% of the company’s stock.
Insider Buying and Selling at Cisco Systems In related news, EVP Deborah L. Stahlkopf sold 6,487 shares of the company’s stock in a transaction dated Friday, August 14th. The stock was 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. This represents a 3.74% 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, EVP Thimaya K. Subaiya sold 312 shares of the stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $110.18, for a total transaction of $34,376.16. Following the completion of the sale, the executive vice president owned 127,661 shares in the company, valued at $14,065,688.98. This represents a 0.24% 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. Insiders sold a total of 44,869 shares of company stock valued at $5,005,620 over the last 90 days. Company insiders own 0.01% of the company’s stock.
Cisco Systems Price Performance Cisco Systems stock opened at $107.39 on Monday. The business’s 50-day simple moving average is $111.38 and its 200 day simple moving average is $109.10. The stock has a market cap of $423.39 billion, a price-to-earnings ratio of 32.15, a P/E/G ratio of 2.24 and a beta of 0.99. Cisco Systems, Inc. has a 12-month low of $68.95 and a 12-month 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. Cisco Systems (NASDAQ:CSCO – Get Free Report) last announced 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 analyst estimates of $16.84 billion. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%. The company’s revenue 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, research analysts anticipate that Cisco Systems, Inc. will post 4.42 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 given a dividend of $0.42 per share. The ex-dividend date is Friday, October 2nd. This represents a $1.68 annualized dividend and a dividend yield of 1.6%. Cisco Systems’s payout ratio is currently 50.30%.
Analyst Ratings Changes CSCO has been the topic of several research analyst reports. Freedom Capital upgraded Cisco Systems from a “hold” rating to a “strong-buy” rating in a report on Sunday, August 16th. Weiss Ratings reissued a “buy (b)” rating on shares of Cisco Systems in a report on Wednesday, August 26th. Barclays boosted their target price on shares of Cisco Systems from $121.00 to $123.00 and gave the stock an “equal weight” rating in a research note on Thursday, August 13th. Wells Fargo & Company upped their target price on shares of Cisco Systems from $130.00 to $150.00 and gave the stock an “overweight” rating in a research report on Thursday, August 13th. Finally, KeyCorp raised their price target 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. Three investment analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, Cisco Systems has an average rating of “Moderate Buy” and a consensus target price of $128.52.
Check Out Our Latest Stock Analysis on Cisco Systems
Cisco Systems News Roundup Here are the key news stories impacting Cisco Systems this week:
Positive Sentiment: AI infrastructure collaboration: Cisco and NVIDIA are developing a 400G optical standard for AI data centers, designed to increase bandwidth density and support an open hardware ecosystem. The initiative could strengthen Cisco’s position in large-scale AI networking. Cisco Backs a New 400G Optical Standard for AI Data Centers Positive Sentiment: Strong demand and sales momentum: Cisco’s AI infrastructure spending and campus-network upgrades are supporting demand. Analysts also highlighted the company’s 17.6% year-over-year quarterly sales growth—the fastest pace in roughly a decade—as evidence of improving fundamentals. How Rare Is Cisco’s Record Sales Growth? Positive Sentiment: Relative valuation appeal: A comparison with Astera Labs argues that Cisco offers greater potential upside at a lower valuation while benefiting from robust networking demand, though Astera has delivered stronger recent stock performance. ALAB vs. CSCO: Which AI Infrastructure Stock Is a Better Buy? Neutral Sentiment: Recurring-revenue question: Investors are assessing whether Cisco can sustain software and support renewals after the current equipment-upgrade cycle slows. Recurring revenue would provide stability, but the articles do not offer new renewal data. Can Software Renewals Outlast the Networking Upgrade Cycle? Negative Sentiment: Competitive and headline risks: Arista Networks has outperformed Cisco in AI networking, underscoring competitive concerns. Separately, Cisco’s multimillion-dollar donation to a White House ballroom project could create reputational or political controversy, although it has no direct financial impact disclosed. Nvidia and Cisco Confirm Donations to White House Ballroom About Cisco Systems (Free Report)
Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration and observability solutions for businesses, government organizations and service providers. Its offerings include routers, switches, wireless networking equipment, data-center infrastructure, security software and services, as well as technologies that support cloud and hybrid IT environments.
The company also provides collaboration tools through its Webex portfolio, cloud-managed networking through Cisco Meraki and security and observability capabilities that include technologies from Splunk, which Cisco acquired in 2024.
Featured Articles Five stocks we like better than Cisco Systems These 3 Green Stocks Have a Growth Story That Goes Far Beyond Washington Meta Claims Frontier-Class AI Status With New Muse Wonder Models Berkshire Just Backed This Little-Known Stock—Should You Chase It? Broadcom’s CEO Sees Years of AI Demand But Warns of a Bigger Threat to the Boom
Receive News & Ratings for Cisco Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cisco Systems and related companies with MarketBeat.com's FREE daily email newsletter.
Cisco's AI order book has management calling it a networking supercycle, and shareholders want to know if a $200 share price is the payoff. A fresh model breaks down exactly how far the rally can realistically run and what stands…
Cisco Systems (NASDAQ:CSCO | CSCO Price Prediction) has run hard on AI networking demand, and the obvious next question for shareholders is whether $200 a share is on the horizon. We modeled what a $1,000 investment could become by 2031, starting from a reference price of $113.64.
Shares were changing hands near $109.13 noon, down 3.97% on the session. With an AI order book that management calls a supercycle, Cisco deserves a fresh forward look.
Your $1,000 Could Reach About $1,563.50 by 2031 In the five-year base case, a $1,000 investment might reach roughly $1,563.50 by 2031, a total return of 56.35%. The estimate assumes a modeled share price of $177.67 on October 15, 2031, which works out to 9.35% a year.
Neither horizon in the model gets Cisco to $200. The highest target is the five-year bull case at $187.86. Getting to $200 from the reference price would take a gain of 75.9944%. That makes $200 an hypothetical stretch scenario beyond 2031. The model gives no date for it.
Bull, Base and Bear Scenarios for a $1,000 Stake Scenario Horizon Target Price Total Return Value of $1,000 Bull 2031 $187.86 65.31% $1,653.10 Base 2031 $177.67 56.35% $1,563.50 Bear 2031 $120.89 6.38% $1,063.80 Bull 2027 $138.12 21.54% $1,215.40 Base 2027 $130.14 14.52% $1,145.20 Bear 2027 $109.27 -3.84% $961.60 The model gives its forecast a confidence score of 0.9, which it rates as high. Wall Street’s consensus target is $136.16. The analyst count is 5 strong buys, 14 buys, 10 holds and 0 sells.
Three Drivers Behind Cisco’s Upside Case AI Orders Are Turning Into Revenue Cisco took in $9.30B of AI orders in fiscal 2026 and guided AI infrastructure revenue to about $7.5B in fiscal 2027, up from roughly $4 billion. Chief Executive Chuck Robbins called it “a multi-year, multi-billion dollar networking super cycle.” In the fourth quarter, networking product orders grew 40% year over year.
Guidance Points to Faster Earnings Growth Management expects fiscal 2027 revenue of $72.2B to $73.4B and non-GAAP EPS of $5.05 to $5.11, compared with $4.33 in fiscal 2026. The model works from forward EPS of $5.146 and a forward P/E of 22. A higher multiple on those earnings is how the long-term path gets built.
Consistent Beats and Steady Capital Returns Cisco has exceeded EPS estimates for 6 consecutive quarters. Its latest report showed $1.22 against a $1.17 estimate, on revenue of $17.25B. Shareholders collect a $0.42 quarterly dividend, and $8.1B remains on the buyback authorization.
Risks That Could Sink the Projection Margins are already under pressure. Non-GAAP gross margin fell to 66.3% from 68.4% as AI hardware took a larger share of the mix, and the CFO expects a slight drag in fiscal 2027. The AI growth story leans on hyperscaler capital spending, which can change fast (we covered seven of the suppliers riding that expansion, from power to networking, in a free report here).
Fiscal 2027 guidance already includes tariffs and a restructuring plan announced on May 13, 2026, and execution on both could fell. Geopolitics and supply constraints add further uncertainty.
The stock is also volatile. Shares are up 61.84% over the past year but down 7.04% over the past week, and the 52-week high is $129.38.
Retail view is also marked as bearish. The next test comes with the fiscal first-quarter earnings report on November 12, 2026, where guidance calls for revenue of $18.0B to $18.2B.
What Your $1,000 Could Become By 2031, the model puts a $1,000 Cisco investment somewhere between $1,063.80 and $1,653.10, with $1,563.50 as the base case. A $200 share price stands above even the bull case, so it remains outside the modeled outcomes. The modeled scenarios above do not constitute investment advice.
Contact [email protected] for any questions or corrections.
SummaryCisco is downgraded to Hold as shares approach fair value after a 46% YTD rally.AI-driven order momentum and robust FY 2026 results underpin strong revenue and earnings guidance into FY 2027.Valuation is no longer compelling, with margin risks from hardware mix and elevated price-to-sales ratios.Technical support near $100-105 offers a potential swing-trade entry; fundamentals suggest patience for long-term investors.Pixelbizz/iStock Editorial via Getty Images
AI winners continue to come off the boil. Shares of Cisco (CSCO) are now down 18% from their June 4 high of $130. Earnings don't hit until mid-November, so price action hinges on what AI hyperscalers report and
9.84K Followers
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.
Cisco's CEO is calling it a networking super cycle, and the numbers behind that claim are hard to ignore. But reaching $200 by 2030 requires three specific things to go right, and at least one of them sits outside the…
Cisco Systems (NASDAQ:CSCO | CSCO Price Prediction | CSCO Price Prediction) sits in the middle of what its CEO calls a networking super cycle. Last quarter, product revenue rose 24% to $13.46B and networking climbed 28% to $9.79B. AI orders reached $9.30B for fiscal 2026.
Shares are up 43.91% YTD, yet they trade at $108.87 after a 4.2% drop today. Chuck Robbins said it directly: “We believe we’re only at the beginning of this super cycle.” So can Cisco reach $200 by 2030?
What’s Holding Cisco Back Right Now
The stock has lost momentum. Shares fell 7.26% over the past week and 0.71% over the past month. They now trade below the 52-week high of $129.38. Investors are focused on margins.
Non-GAAP gross margin slipped to 66.3% from 68.4% as lower-margin AI hardware took a bigger share of sales. Management also highlighted memory costs and uneven hyperscaler order timing. With a beta of 0.979, Cisco usually tracks the broader market, which makes a sharp one-day drop a clear sign of investor nerves.
Wall Street Sees 25.1% Upside. Our Model Says 19.5%
The consensus target is $136.16, an upside of 25.1%. It rests on 5 Strong Buy, 14 Buy, 10 Hold and 0 Sell ratings. Our one-year base case is $130.14, a 19.5% gain. The scenarios run from $109.27 in the bear case to $138.12 in the bull case, and model confidence is high at 0.9.
In my view, both expectations underestimate Cisco’s earnings. Earnings grew 52.1% year over year, yet only 66% of analysts rate the stock bullish. Ten Holds on a company guiding to $5.05 to $5.11 in fiscal 2027 non-GAAP EPS strike me as too conservative.
Here’s What It Takes for Cisco to Reach $200
To get to $200 from today’s price of $108.87 would require a gain of 83.7%.
With forward EPS of $5.146, a price of $200 implies a forward P/E of 39x. Our base case of $130.14 already implies 26x, so the bold target requires 13x of additional multiple expansion.
Today’s valuation looks steep, but the math shifts over time. If EPS compounds at the 9.23% consensus growth rate through fiscal 2030, it reaches about $6.71, and $200 works out to roughly 30x.
Earnings growth does most of the lifting. An adjustment factor of 1.125 reflects technology sector momentum and strong earnings acceleration, with the five-year bull case already reaching $187.86.
The catalysts keep coming. Cisco expects AI infrastructure revenue of $7.5B in fiscal 2027, roughly double fiscal 2026. Recent releases highlighted Splunk advancements for trusted AI, new agentic collaboration experiences and scalability and openness at OCP 2026.
Robbins added: “The network remains an absolute critical factor as to whether AI deployments succeed or fail.” Cisco is one of several picks-and-shovels names gaining from the data-center expansion (we rounded up seven of these AI infrastructure suppliers, networking included, in a free report here).
A major risk is that hyperscaler AI spending cools before enterprise demand can fill the gap.
Where Cisco Trades Today vs Its Earnings Power
At $108.87, Cisco trades at 21x forward EPS. That’s a reasonable multiple for a company guiding to $72.2B to $73.4B in fiscal 2027 revenue, up from $63.33B in fiscal 2026.
Shares sit between a 52-week low of $67.32 and a high of $129.38. Over 10 years, the stock has returned 383.19%. A 21x multiple on accelerating earnings leaves room for the bull case to play out.
$200 Is a Stretch, But Here’s Why It’s Possible
Hitting $200 by 2030 would take an 83.7% gain. I see it as a stretch, though a reachable one. Three things need to go right. AI infrastructure revenue has to keep growing past $7.5B. Security growth needs to improve to high single digits, as management expects. Operating margins also have to hold near 35% while gross margin slips.
A sharp pullback in hyperscaler capex would undermine the thesis. Returns at this level shouldn’t be expected every year, but we’ve outlined the path for how Cisco could reach $200 in 2030.
Contact [email protected] for any questions or corrections.
Key Takeaways ALAB has surged 81.5% year to date, beating Cisco's 42.6% gain, but Cisco offers greater upside potential. ALAB expects third-quarter revenues of $540-$560 million, implying roughly 40% sequential growth. CSCO's $9.3 billion in AI orders and lower valuation make it a stronger pick. Astera Labs (ALAB - Free Report) and Cisco Systems (CSCO - Free Report) are major players in the AI infrastructure market. Astera Labs develops semiconductor-based connectivity solutions for cloud and AI infrastructure, while Cisco Systems specializes in high-performance networking, security, and connectivity that help AI workloads scale efficiently across enterprise and cloud environments.
So, ALAB or CSCO — Which of these AI Infrastructure stocks has the greater upside potential? Let’s find out.
The Case for ALAB StockALAB is rapidly expanding its portfolio to meet growing demand for AI infrastructure and connectivity solutions. The company’s product portfolio, including Scorpio, Aries and Taurus, has been a key catalyst. In the second quarter of 2026, PCIe 6 products, including the Scorpio AI Fabric Switches and Aries Retimers, accounted for more than 50% of total revenue, underscoring ALAB’s Gen 6 market leadership.
In the second quarter of 2026, the company reported record revenue growth, driven by strong adoption of its Scorpio AI Fabric Switches, Aries Retimers and Taurus Smart Cable Modules. The Leo CXL memory controller line is gaining traction, with new design wins at major U.S. hyperscalers and expectations for volume shipments in 2027.
Astera Labs is benefiting from strong demand for its expanding AI connectivity portfolio, which is expected to drive growth in the third quarter of 2026. For the same quarter, revenues are expected to be between $540 million and $560 million. The midpoint implies sequential growth of about 40%, driven by the Scorpio X-Series production ramp, continued strength in Aries PCIe 6 retimers, and preproduction Taurus shipments for 800-gigabit Ethernet applications.
However, ALAB faces stiff competition from other industry players also making strong efforts in the connectivity space. The company also incurred higher operating expenses in the second quarter of 2026 due to continued investment in its product roadmap.
The Case for CSCO StockCisco is benefiting from accelerating AI infrastructure investments, strong networking demand and an expanding portfolio of security and observability solutions. The growing adoption of agentic AI is driving demand for high-bandwidth, low-latency networking infrastructure across hyperscale data centers, enterprises and cloud environments, strengthening Cisco’s growth prospects.
Cisco’s AI infrastructure business continues to gain momentum. In the fourth quarter of fiscal 2026, the company secured $4 billion in hyperscaler AI infrastructure orders, bringing fiscal 2026 orders to $9.3 billion, approximately 4.5 times the previous year’s level. The company’s Silicon One architecture, particularly its P200 and G200-powered systems and Acacia optical solutions, is strengthening its competitive position. Cisco expects hyperscaler AI infrastructure revenues to reach $7.5 billion in fiscal 2027 compared with approximately $4 billion in fiscal 2026.
Strong networking demand has been noteworthy. In the fourth quarter of fiscal 2026, networking revenues surged 28% year over year, supported by triple-digit growth in AI infrastructure and double-digit growth in data center switching. Networking product orders increased 40%, marking the eighth consecutive quarter of double-digit growth. Data center networking orders grew more than 35%, while campus networking orders increased 20%, reflecting strong demand for infrastructure upgrades.
Price Performance and Valuation of ALAB and CSCOIn the year-to-date period, shares of ALAB and CSCO have surged 81.5% and 42.6%, respectively. ALAB’s outperformance can be attributed to its robust, diversified product portfolio that addresses growing demand for AI infrastructure and connectivity solutions, as well as its expanding partner base. Strong demand for its PCIe solutions has also been a major growth driver.
Despite CSCO’s expanding portfolio, a hardware-led revenue mix is expected to limit gross-margin expansion, while services recovery should remain gradual. Competition across networking and security still requires sustained product execution.
ALAB and CSCO Stock Performance
Image Source: Zacks Investment Research
Valuation-wise, ALAB and CSCO shares are currently overvalued, as suggested by a Value Score of F and D, respectively.
On a forward 12-month price-to-sales basis, ALAB shares trade at 18.67X, higher than CSCO’s 5.94X.
ALAB and CSCO Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for ALAB & CSCO?The Zacks Consensus Estimate for ALAB’s 2026 earnings is pegged at $3.98 per share, which has been unchanged over the past 30 days. This indicates a 116.30% increase year over year.
The Zacks Consensus Estimate for CSCO’s fiscal 2027 earnings is pegged at $5.11 per share, which has been unchanged over the past 30 days. This indicates an 18.01% increase year over year.
ConclusionWhile both ALAB and CSCO stand to benefit from the booming AI infrastructure market, Cisco offers greater upside potential, with strong AI infrastructure momentum and robust networking demand.
Astera Labs is well-positioned to benefit from strong AI infrastructure spending, supported by the rapid adoption of its Scorpio, Aries, Leo and Taurus product families. However, its rising operating expenses and intensifying competition remain concerns.
Currently, Cisco carries a Zacks Rank #2 (Buy), making the stock a stronger pick than ALAB, which has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Technology giants Nvidia and Cisco have committed millions to President Donald Trump's White House ballroom renovation project, CNBC confirmed on Thursday.
Nvidia and Apple each pledged $25 million to the project, according to a report from The Washington Post. Those were among the largest donations on the list, which totaled more than $330 million.
"As an American company, our support for the United States is paramount, and independent of any business interests," a Nvidia spokesperson told CNBC. "We were proud to be able to make a donation to a nonpartisan trust that serves all Americans and have said so publicly since the donation was made."
Amazon, Palantir, ServiceNow, Meta Platforms and Microsoft also contributed in the millions, according to The Post. Microsoft and Meta declined to comment on the report. Cisco confirmed its $5 million donation.
Amazon, Apple, HP Inc., Micron, Palantir, Salesforce, ServiceNow and Vast Space, which were all listed as major donors in the report, did not immediately respond to a request for comment.
The Post reported that the ballroom donations were sent through a nonprofit trust, and donors received a pledge form for donating to the "Donald J. Trump Ballroom."
Lawmakers and experts have repeatedly called out donations to the project, requesting information on the private donors. Some have also raised concerns over the potential influence these commitments could have on policy decisions or any federal contract awards.
Tech leaders have largely favored Trump's pro-business, light-touch approach to antitrust and regulation, and some companies have secured hundreds of millions in contracts through artificial intelligence infrastructure and defense deals during his second term.
Tech leaders like Meta CEO Mark Zuckerberg and Nvidia CEO Jensen Huang have been regulars at state dinners and meetings in Washington, and were central figures at the White House AI luncheon on Sept. 29.
The documents obtained by The Post showed 67 contributions above $10,000 as of late September.
Read the full story from The Washington Post here.
Read more CNBC tech newsAmazon launches new Bee 'personal AI' devices that listen to conversationsNvidia CEO Jensen Huang urges U.S.-China dialogue on 'potentially dangerous' AIOpenAI sued by 8 states over ChatGPT safety concernsAnthropic's third-quarter revenue is said to hit $16.8 billion ahead of IPOwatch now
Cliftonlarsonallen Wealth Advisors LLC lifted its holdings in shares of Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) by 26.9% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 54,771 shares of the network equipment provider’s stock after acquiring an additional 11,595 shares during the period. Cliftonlarsonallen Wealth Advisors LLC’s holdings in Cisco Systems were worth $5,895,000 at the end of the most recent reporting period.
A number of other hedge funds have also modified their holdings of CSCO. BlackRock Inc. acquired a new stake in Cisco Systems during the 2nd quarter worth $42,129,647,000. State Street Corp grew its position in Cisco Systems by 7.0% during the 2nd quarter. State Street Corp now owns 207,106,569 shares of the network equipment provider’s stock worth $25,278,492,000 after purchasing an additional 13,512,872 shares during the last quarter. Invesco Ltd. increased its stake in Cisco Systems by 11.6% in the fourth quarter. Invesco Ltd. now owns 59,836,782 shares of the network equipment provider’s stock valued at $4,609,227,000 after purchasing an additional 6,224,062 shares during the period. Auto Owners Insurance Co increased its stake 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 valued at $400,190,000 after purchasing an additional 51,363,281 shares during the period. Finally, Bank of America Corp DE acquired a new position in Cisco Systems in the second quarter valued at $5,892,379,000. 73.33% of the stock is currently owned by hedge funds and other institutional investors.
Insider Activity at Cisco Systems In other Cisco Systems news, EVP Oliver Tuszik sold 680 shares of the business’s stock in a transaction on Monday, September 14th. The shares were sold at an average price of $110.18, for a total transaction of $74,922.40. Following the sale, the executive vice president directly owned 163,337 shares in the company, valued at approximately $17,996,470.66. The trade was a 0.41% decrease in their position. The sale was disclosed in a document filed 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, CEO Charles Robbins sold 21,628 shares of the company’s stock in a transaction on Friday, August 14th. The stock was sold at an average price of $111.54, for a total transaction of $2,412,387.12. Following the transaction, the chief executive officer directly owned 602,710 shares in the company, valued at approximately $67,226,273.40. This trade represents a 3.46% 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. In the last ninety days, insiders sold 44,869 shares of company stock worth $5,005,620. 0.01% of the stock is currently owned by insiders.
Cisco Systems Stock Down 1.2% CSCO stock opened at $113.64 on Thursday. Cisco Systems, Inc. has a one year low of $68.57 and a one year high of $130.37. The stock has a market capitalization of $448.04 billion, a PE ratio of 34.02, a price-to-earnings-growth ratio of 2.40 and a beta of 0.99. 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 fifty day moving average of $111.88 and a 200-day moving average of $108.67. 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, 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 business had revenue of $17.25 billion for the quarter, compared to the consensus estimate of $16.84 billion. During the same quarter in the previous year, the firm earned $0.99 earnings per share. The business’s quarterly 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, analysts expect that Cisco Systems, Inc. will post 4.42 EPS for the current year.
Cisco Systems Dividend Announcement The firm also recently announced 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 dividend payout ratio (DPR) is 50.30%.
Wall Street Analyst Weigh In Several equities research analysts have recently weighed in on CSCO shares. Wall Street Zen upgraded shares of Cisco Systems from a “hold” rating to a “buy” rating in a research note on Sunday. Zacks Research raised Cisco Systems from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, September 30th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Cisco Systems in a research report on Wednesday, August 26th. KeyCorp lifted their target price on Cisco Systems from $130.00 to $135.00 and gave the company an “overweight” rating in a research note on Thursday, August 13th. Finally, Truist Financial lifted 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, August 13th. Three analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $128.52.
Read Our Latest Stock Analysis on CSCO
Cisco Systems News Roundup Here are the key news stories impacting Cisco Systems this week:
Positive Sentiment: AI infrastructure orders, network upgrades, and cybersecurity demand continue to support Cisco’s long-term growth outlook. The company’s latest reported quarter exceeded earnings and revenue expectations, with revenue up 17.6% year over year. Should You Buy, Sell, or Hold Cisco Stock After a 68% Rise in a Year? Positive Sentiment: Analysts and value-focused investors continue to view Cisco as a potentially durable business benefiting from networking, security, and AI infrastructure spending. Its dividend and cash-generation potential may also appeal to income-oriented investors. Cisco Stock And 2 Value Plays For an Overvalued Market Neutral Sentiment: Cisco’s earnings recovery is being tested by cash-flow conversion. Fiscal 2026 net income rose 30% to $13.3 billion, while operating cash flow remained around $14.2 billion; unrealized investment gains also boosted reported profit without producing operating cash. Investors will look for stronger recurring cash generation. Cisco Can Its Earnings Recovery Turn Into Lasting Cash Growth? Negative Sentiment: After a roughly 68% gain over the past year, valuation has become a headwind. Commentary citing Cisco as overvalued suggests investors may be taking profits because the stock’s elevated price-to-earnings multiple leaves less room for disappointment. Cisco Systems Shares Fall — GF Value Says Still Overvalued Cisco Systems Company Profile (Free Report)
Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration, observability and data center solutions. Its products and services help businesses, governments, educational institutions and other organizations connect users and devices, manage infrastructure, protect digital environments and support cloud-based operations.
Cisco’s portfolio includes routers and switches, wireless networking equipment, network management software, firewalls, identity and access tools, endpoint security products, collaboration applications and observability platforms.
Further Reading Five stocks we like better than Cisco Systems Tesla Wants to Make Its Own Chips—What Could Go Wrong? IREN Limited’s AI Pivot Gains Traction—But Can Its Data Centers Deliver? PBF Energy’s Stunning Rally Faces a Critical Test Citi Stock Falls Despite Earnings Beat: What Investors Need to Know 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).
Receive News & Ratings for Cisco Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cisco Systems and related companies with MarketBeat.com's FREE daily email newsletter.
Cisco Systems (CSCO - Free Report) closed the most recent trading day at $113.64, moving -1.24% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 1.11%. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 1.88%.
The seller of routers, switches, software and services's shares have seen an increase of 4.54% over the last month, surpassing the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.06%.
The upcoming earnings release of Cisco Systems will be of great interest to investors. The company's earnings per share (EPS) are projected to be $1.33, reflecting a 33% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $18.09 billion, reflecting a 21.54% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.11 per share and a revenue of $73.03 billion, signifying shifts of +18.01% and +15.33%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Cisco Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. Cisco Systems is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 22.51. This expresses a discount compared to the average Forward P/E of 23.02 of its industry.
It is also worth noting that CSCO currently has a PEG ratio of 2.07. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Networking industry had an average PEG ratio of 1.48 as trading concluded yesterday.
The Computer - Networking industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 97, finds itself in the top 40% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
On October 13, 2026, Cisco Systems Inc CSCO shares fell 0.2% to a price of $115.07. This decline comes amidst a 52-week range of $66.81 to $130.37, highlighting the stock's volatility and growth potential.
GF Value™ verdict indicates that CSCO is currently 52.8% overvalued, with a fair value estimate of $75.30.With a GF Score™ of 86/100, the company is considered strong overall in its financial health and growth prospects.Insiders have sold $105.8 million worth of shares over the past 12 months, with no buying activity, suggesting caution among company leaders.Is CSCO Overvalued or Undervalued?The current price of Cisco Systems Inc CSCO at $115.07 significantly exceeds the GF Value™ estimate of $75.30, marking the stock as 52.8% overvalued. The GF Value™ is GuruFocus' proprietary estimate of the company's intrinsic value, which takes into account historical trading multiples, past business growth, and future performance expectations. This overvaluation presents a considerable margin of safety risk for potential investors, as they might be paying a premium for shares that do not reflect the company's underlying value.
Given the GF Valuation label of "Significantly Overvalued," there is a clear risk that the stock could face a correction if it fails to meet growth expectations or if market conditions shift unfavorably. Investors must remain vigilant and consider the implications of such a valuation discrepancy in their decision-making processes.
How Does CSCO's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)34.6x19.8x (5-Year Median)Forward P/E22.4xN/ACurrently, Cisco's P/E (TTM) of 34.6x is 75% above its 5-year median of 19.8x, indicating that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict of overvaluation, reinforcing the notion that CSCO shares may not present an attractive buying opportunity at this elevated price level.
What Does CSCO's GF Score™ Tell Us?The GF Score™ measures the overall strength of a company's financial health, growth potential, profitability, valuation, and momentum. Cisco's score of 86/100 suggests strong fundamentals, with notable strengths in profitability and growth, while the valuation rank is a relative weakness.
MetricRatingGF Score™86/100Financial Strength6/10Profitability9/10Growth9/10Valuation3/10Momentum6/10The strong scores in profitability and growth reflect Cisco's ability to generate earnings and expand, yet the low valuation rank indicates that the stock may be priced too high relative to its financial performance. This dichotomy suggests that while the company's operational efficiency is commendable, the valuation metrics raise concerns about the sustainability of current price levels.
What Are Gurus and Insiders Doing with CSCO?Currently, 19 gurus hold shares of Cisco, with 7 adding to their positions and 12 trimming their stakes in recent quarters. This mixed sentiment indicates that while some investors see value, others are cautious about the stock's future prospects. Such behavior can often signal a divergence in confidence regarding the company's direction and market conditions.
Moreover, insider activity has shown a concerning trend, with insiders selling $105.8 million worth of shares over the past year without any buying activity. This pattern suggests that those with the most intimate knowledge of the company may have reservations about its current valuation, which could indicate potential risks for external investors.
What This Means for InvestorsIn conclusion, Cisco Systems Inc CSCO appears to be overvalued based on the GF Value™ assessment, which places the fair value significantly lower than the current market price. Given the elevated P/E ratios and the lack of insider buying, investors may want to approach this stock with caution. For further details on CSCO's performance and metrics, please visit the Cisco Systems Inc (CSCO) stock page, along with the GF Value™ page for a deeper dive into its valuation.
Frequently Asked QuestionsWhat is CSCO's GF Score™?
CSCO has a GF Score™ of 86/100, indicating strong overall financial health and growth prospects.
Is CSCO overvalued or undervalued?
According to the GF Value™, CSCO is currently 52.8% overvalued, suggesting that the stock price exceeds its intrinsic value.
What is CSCO's P/E ratio?
CSCO's P/E (TTM) is 34.6x, which is significantly above its 5-year median P/E of 19.8x, confirming the overvaluation indicated by the GF Value™.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
NorthCrest Asset Manangement LLC grew its position in Cisco Systems, Inc. (NASDAQ: CSCO) by 26.4% during the undefined quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 130,235 shares of the network equipment provider's stock after acquiring an additional 27,173 shares during the
Cisco Systems (CSCO - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this seller of routers, switches, software and services have returned +4.8% over the past month versus the Zacks S&P 500 composite's +2.1% change. The Zacks Computer - Networking industry, to which Cisco belongs, has gained 2.8% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
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.
Cisco is expected to post earnings of $1.33 per share for the current quarter, representing a year-over-year change of +33%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.8%.
The consensus earnings estimate of $5.11 for the current fiscal year indicates a year-over-year change of +18%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $5.59 indicates a change of +9.4% from what Cisco is expected to report a year ago. Over the past month, the estimate has changed +0.2%.
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
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Cisco, the consensus sales estimate of $18.09 billion for the current quarter points to a year-over-year change of +21.5%. The $73.03 billion and $77.87 billion estimates for the current and next fiscal years indicate changes of +15.3% 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.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
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.
ConclusionThe 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.
Ultra-Dense Small Form Factor Pluggable (USFP) is designed to be the first module to support 400Gb/s-per-lane electrical signals, enabling capacity up to 12.8Tb/s so AI factory builders can scale Ethernet AI fabrics, while extending a proven deployment model across multiple generations of data center networks.USFP delivers 4x the bandwidth density and 1.3x the power efficiency of 200Gb/s-per-lane optics so AI factories can connect more computing systems without adding network tiers, while using less power to move each bit of data.NVIDIA and Cisco are working with TE Connectivity and Amphenol to build a multi-source hardware ecosystem around USFP. SAN FRANCISCO, Oct. 12, 2026 (GLOBE NEWSWIRE) -- OCP -- NVIDIA and Cisco today announced plans for Ultra-Dense Small Form Factor Pluggable (USFP), a new high-density 400Gb/s-per-lane optical module designed to equip the hardware ecosystem for the next generation of AI factories using pluggable transceivers.
As AI models grow and inference demand expands, AI factories must connect more computing systems while managing network complexity, power and costs. Moving more data per watt and per switch helps operators make better use of their infrastructure investments.
Scaling AI factories requires more bandwidth per connection and more connections per switch. When a switch reaches its capacity, further network expansion can require additional switch layers and optical links, increasing latency, power consumption and costs.
USFP is designed to enable AI factory builders to scale from 200 Gb/s per lane to 400Gb/s-per-lane Ethernet AI fabrics, while extending a deployment model proven at scale across multiple generations of data center networks. With USFP, customers can embrace next-generation optical technology and meet the performance demand of AI workloads without overhauling their data center infrastructure.
The first planned USFP-based transceivers will pack 16 full-duplex lanes in an octal small form factor (OSFP)-sized footprint supporting both switches and SuperNICs, with the ability to expand to 32 and more lanes in the future. By doubling both the lane count and bandwidth per lane, USFP enables AI fabrics to connect more 1.6Tb/s endpoints without adding network tiers. Customers will be able to achieve 12.8Tb/s of overall capacity with USFP.
Comparable with an OSFP-sized module, it delivers 4x the bandwidth and front-panel bandwidth density, with approximately 1.3x the power efficiency, versus 200Gb/s-per-lane pluggable modules. This means AI builders can increase their compute scale within the same network footprint, while decreasing networking’s share of the overall AI factory power budget.
“Building the world’s largest AI factories starts with rethinking the smallest of connections,” said Gilad Shainer, senior vice president NVIDIA. “With USFP, NVIDIA and Cisco are building an ecosystem to reinvent pluggable optics — connecting more computing with greater efficiency to power the next generation of AI factories.”
“AI builders need an interconnect architecture that can scale performance without locking them into a more complex operating model,” said Bill Gartner, senior vice president and general manager of optical systems and optics at Cisco. “Cisco and NVIDIA recognized that scaling pluggable optics to 400Gb/s per lane would require more than another incremental extension of today’s module designs. Through our collaboration, USFP is designed to deliver a new level of bandwidth density while preserving the serviceability, deployment flexibility and operational simplicity of pluggable optics. By taking a full-stack approach — from silicon and systems to optics and the network operating system — we can optimize every layer to deliver the performance and scale the next generation of AI networks will require.”
More AI Infrastructure From Every Switch
Designed for electrical signals of 400Gb/s per lane, USFP uses a new two-dimensional array connector with a two-step insertion design that engages high-speed contacts after the module is inserted, reducing contact wear, improving signal integrity and making insertion force more predictable. The connector technology allows for further scaling of lane count to 32 full duplex lanes and more in the future. Because the connector is designed for 400Gb/s performance, it also offers improved performance at 200Gb/s per lane.
USFP supports power dissipation of up to 100 watts without needing a separate, dedicated embedded cooling circuit within the transceiver, reducing switch design complexity and improving reliability. Together, these capabilities enable higher-bandwidth fabrics while preserving the mature deployment, serviceability and manufacturability of existing pluggable transceivers.
All USFP configurations support optical designs that reduce latency and power consumption by simplifying signal processing. Support for a broad range of optical technologies and connection distances gives system designers the flexibility to meet unique AI factory deployment needs.
A Hardware Ecosystem for Next-Generation AI Factories
NVIDIA and Cisco are collaborating with TE Connectivity and Amphenol to build USFP cages, connectors and modules, with additional partners expected to join. The shared form factor gives suppliers a common foundation for developing high-density pluggable infrastructure for 400Gb/s-per-lane fabrics to build a robust ecosystem for AI factory builders.
The collaboration builds on NVIDIA and Cisco’s existing work to ensure NVIDIA Spectrum-X™ Ethernet networking and Cisco Silicon One-based Ethernet networks work together seamlessly, simplifying AI infrastructure deployment for enterprises, neoclouds and sovereign clouds.
NVIDIA and Cisco plan to create an open industry specification for USFP through an upcoming community-led multi-source project.
About Cisco
Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco.
Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco's trademarks can be found at www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company.
About NVIDIA
NVIDIA (NASDAQ: NVDA) is the world leader in AI and accelerated computing.
For further information, contact:
Alex Shapiro
Corporate Communications
NVIDIA Corporation [email protected]
Cisco Forward-Looking Statements
This press release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding establishment of a USFP MSA and expected benefits thereof.
Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including: business and economic conditions and growth trends in the networking industry, our customer markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; overall information technology spending; the growth and evolution of the Internet and levels of capital spending on Internet-based systems; reliance on new product introductions and acceptable market acceptance of those new products; and other factors listed in Cisco's most recent reports on Form 10-K and Form 10-Q filed with the SEC. Any forward-looking statements in this release are based on limited information currently available to Cisco, which is subject to change, and Cisco will not necessarily update the information.
NVIDIA Forward-Looking Statements
Certain statements in this press release including, but not limited to, statements as to: the benefits, performance and capabilities of USFP and NVIDIA Spectrum-X Ethernet networking; NVIDIA’s collaborations with Cisco, TE Connectivity and Amphenol; plans for a community-led multi-source project and additional partners; and the impact of AI on data center demand are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections based on management’s beliefs and assumptions and on information currently available to management and are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic and political conditions; NVIDIA’s reliance on third parties to manufacture, assemble, package and test NVIDIA’s products; the impact of technological development and competition; development of new products and technologies or enhancements to NVIDIA’s existing product and technologies; market acceptance of NVIDIA’s products or NVIDIA’s partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of NVIDIA’s products or technologies when integrated into systems; and changes in applicable laws and regulations, as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of reports filed with the SEC are posted on the company’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.
Cisco is partnering with Nvidia on a new generation of optical networking technology designed to handle the exploding amount of data moving through AI data centers. Cisco President and Chief Product Officer Jeetu Patel explains why increasingly powerful AI agents could consume far more network bandwidth than humans performing the same tasks, and how faster, more power-efficient connections could help hundreds of thousands of GPUs operate together while lowering the cost of AI.
Delivers the resilient, open Ethernet foundations required to connect and scale massive, distributed AI factories
News Summary
Cisco and NVIDIA plan to develop an open industry specification for a next-generation 400G-per-lane pluggable optics design, increasing bandwidth density while preserving serviceability and customer choice. Cisco advances open infrastructure across silicon, systems and optics to meet the demands of AI workloads, spanning high-density scale-out and distributed scale-across networks. The Cisco Silicon One portfolio continues to expand to serve all AI builders, with the first G300-powered systems shipping to customers, new 1.6T G302 silicon, and P200-powered systems now deployed in production hyperscale environments. , /PRNewswire/ -- Today at the Open Compute Project (OCP) Global Summit 2026, Cisco (Nasdaq: CSCO) introduced new silicon, systems and optical innovations that advance open AI infrastructure from rack-scale compute to distributed AI capacity. Together, the announcements demonstrate how Cisco is engineering the network as a coherent, programmable architecture while preserving the openness and choice customers expect in the super intelligence era. The new capabilities deepen Cisco's continued commitment to deliver an open stack from silicon to Kubernetes, required to connect the AI foundations for hyperscalers, neoclouds and enterprises. Strong market adoption validates Cisco's leadership and underscores deep customer trust as demand for AI compute capacity rapidly accelerates.
"AI is redefining what it means to scale infrastructure. It's no longer just about individual data centers or clusters, but how we connect compute at massive scale without compromising performance or resilience. Cisco's strength across silicon, networking, optics,systems and security puts us in a unique position to deliver the open infrastructure customers need as AI continues to evolve," said Kevin Wollenweber, SVP and General Manager of Data Center and Internet Infrastructure, Cisco.
"Scale-Across" Connects the World's AI Capacity
Scale-across extends coordinated AI workloads across facilities, building on traditional data center interconnect (DCI) technologies while introducing significantly different workload requirements. When accelerators across sites participate in the same coordinated job, congestion, latency and recovery can directly affect compute utilization and job progress. Cisco draws on its silicon, routing and optical networking leadership to address those requirements as one packet-to-optical architecture.
Cisco's scale-across architecture brings together Silicon One P200, deep-buffered systems and coherent optics to connect AI fabrics across locations to act as a unified cluster. It provides customers a single, unified compute fabric enabled by the performance, deep programmability and embedded security of the Silicon One architecture. Cisco is the first in the industry to announce its 51.2T systems, powered by the Silicon One P200, are deployed in a production environment by leading hyperscalers.
"Microsoft and Cisco share a longstanding partnership rooted in engineering collaboration and innovation. We are pleased to announce that today, Microsoft has moved into production on systems powered by the Cisco Silicon One P200. As our infrastructure demands grow, the P200's robust architecture provides the speed and enhanced buffering capabilities necessary to address the increasing scale of our cloud and high-performance services. This milestone reflects the next stage in our long-term collaboration, ensuring we continue to deliver the performance and reliability required for the modern digital era," said Anand Ramakrishna, Corporate Vice President, Engineering, Microsoft.
"Alibaba is proud to announce a major milestone for our next-generation backbone network, eCORE. We have deployed our in-house Quantum Cat router at massive scale, powered by the Cisco Silicon One P200. These routers bring 51.2 Tbps of routing capacity to our infrastructure. They feature a fully shared deep-buffer architecture, high programmability, and excellent power efficiency. This setup provides the exact performance and scale needed for today's heavy cloud and AI workloads. We paired Cisco's silicon with Alibaba's custom systems and the SONiC operating system. This combination proves the true value of open networking. It delivers the flexibility and operational power required for some of the world's most demanding networks. We look forward to deepening our work with Cisco, the Open Compute Project (OCP), and the SONiC community. Together, we will continue to advance open, high-performance networking for the AI era," said Dennis Cai, Vice President, Head of Network Infrastructure, Alibaba Cloud Intelligence Group
Scaling AI from Rack to Fabric for the 1.6T Era
Inside the data center, AI scale is driving the same need for greater bandwidth, density and power efficiency across silicon, systems and optics. To meet the radical bandwidth requirements of the next generation of AI, Cisco's Silicon One portfolio is delivering the next level of network performance designed for massive AI scale. As a member of OCP's ESUN, Cisco is committed to advancing open, interoperable, high-performance AI networking at scale and collaborating actively with ESUN on the 1.0 and future specifications for scale-up workloads.
Announced earlier this year, the 102.4T Silicon One G300 is now available for customer sampling, and the first G300-powered systems are currently shipping to customers. Cisco is also expanding the Silicon One portfolio with the first 51.2T switching silicon with 200G SerDes designed for top-of-rack (ToR) deployments. The new Silicon One G302 delivers 51.2T capacity and features Cisco 1.6T optics and direct-to-chip liquid cooling integration to drive efficiency gains. The G302 is built to power ToR switch systems, which sit at the rack level and gather traffic from servers and connect it efficiently to the larger data center network. This optimizes how servers are linked and integrated, delivering unprecedented front-end scale, density, and throughput for hyperscalers. The G302 is planned to begin shipping to customers before the end of 2026.
Cisco and NVIDIA Introduce New Pluggable Optics
Together with NVIDIA, Cisco also unveiled plans to develop the Ultra-Dense Small Form Factor Pluggable (USFP), a new high density 400Gb/s-per-lane capable optical module. Compared to other approaches to increasing the bandwidth of optical modules, USFP relies on a proven operating model to scale to 400Gb/s-per-lane. USFP is expected to deliver 4x the bandwidth density and 1.3x the power efficiency of 200Gb/s-per-lane optics, improving the efficiency and scalability of AI factories without sacrificing serviceability, deployment flexibility or the operational simplicity of today's pluggable optics. To drive broad industry engagement and adoption, Cisco and NVIDIA plan to create an open industry specification for USFP through an upcoming community-led multi-source project.
Expanding Secure AI Networking
SONiC (Software for Open Networking in the Cloud) is the open-source operating system that forms the foundation of many hyperscaler and now neoclouds, service providers and enterprise deployments, across the AI builder ecosystem. Cisco customers can adopt Cisco-validated SONiC with Nexus One, a next generation data center architecture, embracing an open approach for multi-site to rack-scale environments. This support will be extended with Live Protect for customers starting mid-year 2027. Utilizing Cisco runtime technology, Live Protect reduces the exposure customers would typically face between a vulnerability disclosure and a patch on supported Cisco products and releases. Live Protect will give Cisco SONiC customers time to test and deploy the permanent software fix without disrupting operations.
Control and Recovery at AI Scale
Out-of-band management systems form a network operators rely on to provide remote access even when the production network is down, allowing for fixes during a blackout or cyber incident. But at AI scale, out-of-band management systems can become a patchwork of legacy systems, tools and proprietary interfaces, making thousands of GPU nodes harder to manage and fix. The Cisco 8001, a new Silicon One A100-powered management system available as 10G or 1G , solves this challenge by upgrading performance and bringing SONiC to this critical network. Operators can use familiar APIs, automation and operating practices from the fabric to the rack, without building and maintaining a separate management environment. Customers can now deploy a simpler, programmable management network that scales with AI infrastructure, and remains available when it is needed most.
Cisco Silicon One: The Industry's Most Scalable and Programmable Unified Networking Architecture
Cisco Silicon One is the industry's most scalable and programmable unified networking architecture, offering a complete portfolio of networking devices across AI, hyperscaler, data center, enterprise, and service provider use cases. Introduced in 2019, Cisco Silicon One is playing critical roles in major networks around the world. With today's innovations, Silicon One proves its ability to scale from 100G to 100T with a single, unified silicon architecture.
Supporting Resources:
Executive Blog Post: Cisco and NVIDIA Announce USFP: Expanding the Path to AI Connectivity Executive Blog Post: SONiC's Next Chapter with Cisco: Open Choice, Production Confidence About Cisco
Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco.
Disclaimer: Some products or features described may be in various stages of development and offered on a when-and-if available basis. Cisco reserves the right to change delivery timelines and will have no liability for any delays or failures to deliver.
Delivers the resilient, open Ethernet foundations required to connect and scale massive, distributed AI factories
News Summary
Cisco and NVIDIA plan to develop an open industry specification for a next-generation 400G-per-lane pluggable optics design, increasing bandwidth density while preserving serviceability and customer choice. Cisco advances open infrastructure across silicon, systems and optics to meet the demands of AI workloads, spanning high-density scale-out and distributed scale-across networks. The Cisco Silicon One portfolio continues to expand to serve all AI builders, with the first G300-powered systems shipping to customers, new 1.6T G302 silicon, and P200-powered systems now deployed in production hyperscale environments. , /PRNewswire/ -- Today at the Open Compute Project (OCP) Global Summit 2026, Cisco (Nasdaq: CSCO) introduced new silicon, systems and optical innovations that advance open AI infrastructure from rack-scale compute to distributed AI capacity. Together, the announcements demonstrate how Cisco is engineering the network as a coherent, programmable architecture while preserving the openness and choice customers expect in the super intelligence era. The new capabilities deepen Cisco's continued commitment to deliver an open stack from silicon to Kubernetes, required to connect the AI foundations for hyperscalers, neoclouds and enterprises. Strong market adoption validates Cisco's leadership and underscores deep customer trust as demand for AI compute capacity rapidly accelerates.
"AI is redefining what it means to scale infrastructure. It's no longer just about individual data centers or clusters, but how we connect compute at massive scale without compromising performance or resilience. Cisco's strength across silicon, networking, optics,systems and security puts us in a unique position to deliver the open infrastructure customers need as AI continues to evolve," said Kevin Wollenweber, SVP and General Manager of Data Center and Internet Infrastructure, Cisco.
"Scale-Across" Connects the World's AI Capacity
Scale-across extends coordinated AI workloads across facilities, building on traditional data center interconnect (DCI) technologies while introducing significantly different workload requirements. When accelerators across sites participate in the same coordinated job, congestion, latency and recovery can directly affect compute utilization and job progress. Cisco draws on its silicon, routing and optical networking leadership to address those requirements as one packet-to-optical architecture.
Cisco's scale-across architecture brings together Silicon One P200, deep-buffered systems and coherent optics to connect AI fabrics across locations to act as a unified cluster. It provides customers a single, unified compute fabric enabled by the performance, deep programmability and embedded security of the Silicon One architecture. Cisco is the first in the industry to announce its 51.2T systems, powered by the Silicon One P200, are deployed in a production environment by leading hyperscalers.
"Microsoft and Cisco share a longstanding partnership rooted in engineering collaboration and innovation. We are pleased to announce that today, Microsoft has moved into production on systems powered by the Cisco Silicon One P200. As our infrastructure demands grow, the P200's robust architecture provides the speed and enhanced buffering capabilities necessary to address the increasing scale of our cloud and high-performance services. This milestone reflects the next stage in our long-term collaboration, ensuring we continue to deliver the performance and reliability required for the modern digital era," said Anand Ramakrishna, Corporate Vice President, Engineering, Microsoft.
"Alibaba is proud to announce a major milestone for our next-generation backbone network, eCORE. We have deployed our in-house Quantum Cat router at massive scale, powered by the Cisco Silicon One P200. These routers bring 51.2 Tbps of routing capacity to our infrastructure. They feature a fully shared deep-buffer architecture, high programmability, and excellent power efficiency. This setup provides the exact performance and scale needed for today's heavy cloud and AI workloads. We paired Cisco's silicon with Alibaba's custom systems and the SONiC operating system. This combination proves the true value of open networking. It delivers the flexibility and operational power required for some of the world's most demanding networks. We look forward to deepening our work with Cisco, the Open Compute Project (OCP), and the SONiC community. Together, we will continue to advance open, high-performance networking for the AI era," said Dennis Cai, Vice President, Head of Network Infrastructure, Alibaba Cloud Intelligence Group
Scaling AI from Rack to Fabric for the 1.6T Era
Inside the data center, AI scale is driving the same need for greater bandwidth, density and power efficiency across silicon, systems and optics. To meet the radical bandwidth requirements of the next generation of AI, Cisco's Silicon One portfolio is delivering the next level of network performance designed for massive AI scale. As a member of OCP's ESUN, Cisco is committed to advancing open, interoperable, high-performance AI networking at scale and collaborating actively with ESUN on the 1.0 and future specifications for scale-up workloads.
Announced earlier this year, the 102.4T Silicon One G300 is now available for customer sampling, and the first G300-powered systems are currently shipping to customers. Cisco is also expanding the Silicon One portfolio with the first 51.2T switching silicon with 200G SerDes designed for top-of-rack (ToR) deployments. The new Silicon One G302 delivers 51.2T capacity and features Cisco 1.6T optics and direct-to-chip liquid cooling integration to drive efficiency gains. The G302 is built to power ToR switch systems, which sit at the rack level and gather traffic from servers and connect it efficiently to the larger data center network. This optimizes how servers are linked and integrated, delivering unprecedented front-end scale, density, and throughput for hyperscalers. The G302 is planned to begin shipping to customers before the end of 2026.
Cisco and NVIDIA Introduce New Pluggable Optics
Together with NVIDIA, Cisco also unveiled plans to develop the Ultra-Dense Small Form Factor Pluggable (USFP), a new high density 400Gb/s-per-lane capable optical module. Compared to other approaches to increasing the bandwidth of optical modules, USFP relies on a proven operating model to scale to 400Gb/s-per-lane. USFP is expected to deliver 4x the bandwidth density and 1.3x the power efficiency of 200Gb/s-per-lane optics, improving the efficiency and scalability of AI factories without sacrificing serviceability, deployment flexibility or the operational simplicity of today's pluggable optics. To drive broad industry engagement and adoption, Cisco and NVIDIA plan to create an open industry specification for USFP through an upcoming community-led multi-source project.
Expanding Secure AI Networking
SONiC (Software for Open Networking in the Cloud) is the open-source operating system that forms the foundation of many hyperscaler and now neoclouds, service providers and enterprise deployments, across the AI builder ecosystem. Cisco customers can adopt Cisco-validated SONiC with Nexus One, a next generation data center architecture, embracing an open approach for multi-site to rack-scale environments. This support will be extended with Live Protect for customers starting mid-year 2027. Utilizing Cisco runtime technology, Live Protect reduces the exposure customers would typically face between a vulnerability disclosure and a patch on supported Cisco products and releases. Live Protect will give Cisco SONiC customers time to test and deploy the permanent software fix without disrupting operations.
Control and Recovery at AI Scale
Out-of-band management systems form a network operators rely on to provide remote access even when the production network is down, allowing for fixes during a blackout or cyber incident. But at AI scale, out-of-band management systems can become a patchwork of legacy systems, tools and proprietary interfaces, making thousands of GPU nodes harder to manage and fix. The Cisco 8001, a new Silicon One A100-powered management system available as 10G or 1G , solves this challenge by upgrading performance and bringing SONiC to this critical network. Operators can use familiar APIs, automation and operating practices from the fabric to the rack, without building and maintaining a separate management environment. Customers can now deploy a simpler, programmable management network that scales with AI infrastructure, and remains available when it is needed most.
Cisco Silicon One: The Industry's Most Scalable and Programmable Unified Networking Architecture
Cisco Silicon One is the industry's most scalable and programmable unified networking architecture, offering a complete portfolio of networking devices across AI, hyperscaler, data center, enterprise, and service provider use cases. Introduced in 2019, Cisco Silicon One is playing critical roles in major networks around the world. With today's innovations, Silicon One proves its ability to scale from 100G to 100T with a single, unified silicon architecture.
Supporting Resources:
Executive Blog Post: Cisco and NVIDIA Announce USFP: Expanding the Path to AI Connectivity Executive Blog Post: SONiC's Next Chapter with Cisco: Open Choice, Production Confidence About Cisco
Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco.
Disclaimer: Some products or features described may be in various stages of development and offered on a when-and-if available basis. Cisco reserves the right to change delivery timelines and will have no liability for any delays or failures to deliver.
Cisco Systems, Inc. (NASDAQ:CSCO – Get Free Report) shares traded up 3% during mid-day trading on Friday. The stock traded as high as $118.65 and last traded at $118.39. 11,323,404 shares traded hands during mid-day trading, a decline of 50% from the average session volume of 22,441,438 shares. The stock had previously closed at $114.89.
Cisco Systems News Summary Here are the key news stories impacting Cisco Systems this week:
Positive Sentiment: AI networking growth is driving optimism: Cisco is being positioned as a potential leader in AI cloud networking, supported by rising hyperscaler orders, AI infrastructure demand and a solid fiscal 2027 outlook. Buy Cisco Systems as Leader of the AI Cloud Networking Space for 2027 Positive Sentiment: New AI products expand Cisco’s growth story: The company introduced agentic AI tools for Webex, workplace automation and customer experience, along with Google Meet compatibility for Cisco devices and upcoming RoomOS updates. These initiatives could support longer-term software and collaboration growth. Cisco unveils agentic AI tools across Webex, workplace and CX Positive Sentiment: Analyst sentiment remains favorable: Coverage highlights Cisco’s recent momentum, fifth consecutive earnings beat and optimistic average brokerage recommendation, helping reinforce the bullish case for CSCO. Is Cisco a Buy as Wall Street Analysts Look Optimistic? Positive Sentiment: Board appointment adds technology expertise: Cisco appointed Girish Rishi to its board, bringing experience in data, AI, product development, supply chain and mergers and acquisitions. The appointment is strategically aligned with Cisco’s AI and networking priorities. Cisco Appoints Girish Rishi to its Board of Directors Neutral Sentiment: Revenue growth is concentrated in products: Recent quarterly product revenue rose sharply to $13.459 billion, while services revenue was nearly flat at $3.793 billion. Strong product demand is encouraging, but limited services growth may constrain recurring-revenue expansion. Cisco’s Product Sales Surged. Why Were Services Almost Flat? Negative Sentiment: Valuation and cooled momentum remain risks: After a substantial year-to-date advance, recent performance has weakened, while commentary questions whether Cisco’s valuation already reflects much of the AI opportunity. Cisco Could Be Entering a New Growth Phase Analysts Set New Price Targets A number of research firms have issued reports on CSCO. HSBC cut Cisco Systems from a “buy” rating to a “hold” rating and cut their price target for the stock from $137.00 to $120.00 in a report on Friday, August 14th. Barclays lifted their price objective on shares of Cisco Systems from $121.00 to $123.00 and gave the company an “equal weight” rating in a research note on Thursday, August 13th. UBS Group boosted their target price on shares of Cisco Systems from $132.00 to $138.00 and gave the company a “buy” rating in a research report on Thursday, August 13th. Wells Fargo & Company boosted their target price on shares of Cisco Systems from $130.00 to $150.00 and gave the company an “overweight” rating in a research report on Thursday, August 13th. Finally, KeyCorp increased their target price on shares of Cisco Systems from $130.00 to $135.00 and gave the stock an “overweight” rating in a research note on Thursday, August 13th. Three research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $128.52.
Get Our Latest Stock Report on Cisco Systems Cisco Systems Trading Up 3.0% The business has a 50 day moving average of $112.18 and a two-hundred day moving average of $107.77. The firm has a market capitalization of $466.76 billion, a price-to-earnings ratio of 35.45, a P/E/G ratio of 2.46 and a beta of 0.99. 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 (NASDAQ:CSCO – Get Free Report) last announced 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. The firm 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%. The company’s revenue for the quarter was up 17.6% compared to the same quarter last year. During the same quarter last year, the firm posted $0.99 earnings per share. Cisco Systems has set its FY 2027 guidance at 5.050-5.110 EPS and its Q1 2027 guidance at 1.320-1.340 EPS. Equities analysts predict that Cisco Systems, Inc. will post 4.42 EPS for the current year.
Cisco Systems Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 21st. Investors of record on Friday, October 2nd will be given 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 1.4%. Cisco Systems’s dividend payout ratio (DPR) is presently 50.30%.
Insider Buying and Selling at Cisco Systems In other Cisco Systems news, EVP Deborah Stahlkopf sold 6,487 shares of the business’s stock in a transaction on Friday, August 14th. The shares were 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 owned 167,116 shares in the company, valued at approximately $18,638,447.48. The trade was a 3.74% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,628 shares of the company’s stock in a transaction on Friday, August 14th. The stock was sold at an average price of $111.54, for a total transaction of $2,412,387.12. Following the 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. 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 44,869 shares of company stock worth $5,005,620 in the last ninety days. 0.01% of the stock is currently owned by corporate insiders.
Institutional Investors Weigh In On Cisco Systems Several hedge funds and other institutional investors have recently made changes to their positions in the business. Networth Advisors LLC increased its holdings in Cisco Systems by 276.4% during 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 in the last quarter. Financial Life Planners purchased a new stake in shares of Cisco Systems in the first quarter worth approximately $27,000. Manning & Napier Advisors LLC raised its stake 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 purchasing an additional 200 shares during the last quarter. Osbon Capital Management LLC purchased a new stake in shares of Cisco Systems in the fourth quarter worth approximately $32,000. Finally, RMG Wealth Management LLC lifted its holdings in shares of Cisco Systems by 308.7% in the first quarter. RMG Wealth Management LLC now owns 425 shares of the network equipment provider’s stock valued at $33,000 after purchasing an additional 321 shares in the last quarter. 73.33% of the stock is owned by institutional investors.
Cisco Systems Company Profile (Get Free Report)
Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration, observability and data center solutions. Its products and services help businesses, governments, educational institutions and other organizations connect users and devices, manage infrastructure, protect digital environments and support cloud-based operations.
Cisco’s portfolio includes routers and switches, wireless networking equipment, network management software, firewalls, identity and access tools, endpoint security products, collaboration applications and observability platforms.
Further Reading Five stocks we like better than Cisco Systems The Grocery Shelf Battle Is Changing—Who Comes Out Ahead? 3 Unique ETFs With Strong Momentum for the End of the Year 3 Beaten-Down Biotech Stocks With Triple-Digit Upside and Big Catalysts Ahead Schneider Just Paid Up for PTC—Is the SaaSpocalypse Overdone? Receive News & Ratings for Cisco Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cisco Systems and related companies with MarketBeat.com's FREE daily email newsletter.
Cisco appoints Girish Rishi to its board of directors effective October 9, 2026. Rishi brings three decades of technology leadership and deep expertise across data and AI, product development, supply chain and M&A to Cisco's board. Rishi is Chairman and Chief Executive Officer of Cognite. , /PRNewswire/ -- Cisco (NASDAQ: CSCO) today announced the appointment of Girish Rishi to its board of directors, effective today.
"I'm delighted to welcome Girish to Cisco's board," said Chuck Robbins, Chair and CEO of Cisco. "He has helped many of the world's most complex organizations and industries harness the power of data and AI. His expertise will be invaluable as Cisco provides organizations around the world with the critical infrastructure required to lead in the AI era."
Girish Rishi, Chairman and Chief Executive Officer, Cognite Rishi has spent three decades leading technology businesses across hardware, software and systems. He currently serves as Chairman and Chief Executive Officer of Cognite, a leading industrial AI company that helps energy and industrial organizations turn their data into actionable insights, and he is a Senior Advisor to Blackstone. Prior to joining Cognite, Rishi served as Chief Executive Officer of Blue Yonder, a provider of supply chain management software and consulting services. He previously held executive leadership positions at Tyco International, Zebra Technologies, Motorola Solutions and Symbol Technologies, where he served customers in the government and commercial sectors.
"Every organization is racing to turn its data into a competitive advantage with AI, and that depends on secure, resilient infrastructure, which is exactly what Cisco delivers," Rishi said. "I'm honored to join Cisco's board and look forward to working with Chuck and the team as the company continues to help customers unlock the full potential of AI."
In addition to Cisco, Rishi currently serves on the board of directors of Insight Enterprises, where he has been a director since 2017. He previously served on the board of Digi International. Rishi is a member of the Council on Foreign Relations and an executive board member of the Arizona Commerce Authority. He holds a master's degree in public policy from Johns Hopkins University, an MBA from the University of Hartford and an undergraduate degree from the University of Mumbai.
For more information about Cisco's board of directors, visit here.
About Cisco
Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco.
Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco's trademarks can be found at http://www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word 'partner' does not imply a partnership relationship between Cisco and any other company.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Cisco Systems (CSCO - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Cisco Systems currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if CSCO is a promising momentum pick, let's examine some Momentum Style elements to see if this seller of routers, switches, software and services holds up.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For CSCO, shares are up 5.15% over the past week while the Zacks Computer - Networking industry is up 0.58% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 6.93% compares favorably with the industry's 5.95% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Shares of Cisco Systems have increased 4.77% over the past quarter, and have gained 64.22% in the last year. On the other hand, the S&P 500 has only moved 4.06% and 16.15%, respectively.
Investors should also take note of CSCO's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now CSCO is averaging 19,397,276 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with CSCO.
Over the past two months, 8 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost CSCO's consensus estimate, increasing from $4.78 to $5.11 in the past 60 days. Looking at the next fiscal year, 5 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that CSCO is a #1 (Strong Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Cisco Systems on your short list.
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?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Cisco Systems (CSCO - Free Report) .
Cisco currently has an average brokerage recommendation (ABR) of 1.80, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 28 brokerage firms. An ABR of 1.80 approximates between Strong Buy and Buy.
Of the 28 recommendations that derive the current ABR, 16 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 57.1% and 3.6% 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.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
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.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in CSCO?In terms of earnings estimate revisions for Cisco, the Zacks Consensus Estimate for the current year has increased 0% 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 #1 (Strong 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.
Key Takeaways Cisco Systems closed fiscal 2026 with $9.3 billion in hyperscaler AI infrastructure orders.Hyperscaler AI revenues are expected to reach $7.5 billion in fiscal 2027, up from $4 billion.Networking product orders rose 40% year over year in the fourth quarter of fiscal 2026. Cisco Systems Inc. (CSCO - Free Report) has been benefiting from strong product orders from hyperscalers, enterprises, service providers, the public sector and cloud customers. In fiscal 2026, CSCO generated record-high revenues primarily due to its networking portfolio, powered by Silicon One, AI-native security solutions and operating systems. Increasing AI workloads at the network edge and the emergence of physical AI are benefiting the industrial IoT portfolio.
The chart below shows the price performance of CSCO year to date.
Image Source: Zacks Investment Research
CSCO Rides on AI Networking StrengthCisco closed fiscal 2026 with $9.3 billion in hyperscaler AI infrastructure orders, about 4.5 times fiscal 2025, and roughly $4 billion in related revenues. CSCO expects hyperscaler AI revenues to reach $7.5 billion in fiscal 2027. In the fourth quarter of fiscal 2026, networking product orders rose 40% year over year, the eighth straight quarter of double-digit growth.
Company-wide orders excluding hyperscalers rose 25% in the fourth quarter of fiscal 2026. CSCO links this demand to AI traffic, infrastructure modernization and security requirements, reinforcing its view of a multi-year networking cycle.
AI hyperscaler behemoths like Amazon.com Inc. (AMZN - Free Report) , Microsoft Corp. (MSFT - Free Report) , Meta Platforms Inc. (META - Free Report) and Alphabet Inc. (GOOGL - Free Report) are using CSCO’s AI-enabled networking infrastructure and switching equipment for their data centers.
Silicon & Optics PositioningCisco’s vertically integrated networking stack is expanding across scale-out and scale-across AI architectures. In the fourth quarter of fiscal 2026, the company won three new hyperscaler designs, covering a P200 scale-across system, a G200 scale-out system and an optical line system. Fiscal 2026 hyperscaler AI orders were about 60% Silicon One-based systems and 40% optics, while Acacia generated more than $1 billion in orders in the last reported quarter.
Security and Collaboration BusinessIn the fourth quarter of fiscal 2026, security revenues increased 14% year over year. More than 1,500 customers bought newer security products, while firewall orders grew more than 30% for the second consecutive quarter. CSCO expects security growth to move from low single digits in fiscal 2026 to high single digits in fiscal 2027 and reach double-digit growth as the year progresses.
Cisco is extending AI into operations. Nearly 4,500 enterprises had signed up for Cisco Cloud Control by the end of the fourth quarter of fiscal 2026, while Cisco IQ had more than 8,600 customers. Management said AI use across customer experience is raising renewal rates. In September 2026, management said services should turn positive in fiscal 2027 and reach mid-single-digit growth by the year-end as hardware-related services attach.
Solid GuidanceFor the first quarter of fiscal 2027, CSCO expects revenues between $18 billion and $18.2 billion. Non-GAAP earnings are projected at $1.32-$1.34 per share, with a non-GAAP gross margin of 65-66% and an operating margin of 35.5-36.5%.
For fiscal 2027, Cisco projects revenues of $72.2-$73.4 billion and non-GAAP earnings of $5.05-$5.11 per share. Hyperscaler AI infrastructure revenues are expected to reach $7.5 billion, up from approximately $4 billion in fiscal 2026.
Image Source: Zacks Investment Research
Impressive Estimate RevisionsFor first-quarter fiscal 2027 (ending July 2027), the Zacks Consensus Estimate currently shows revenues of $18.09 billion, suggesting an improvement of 21.5% year over year and earnings per share of $1.32, indicating an increase of 32% year over year. The Zacks Consensus Estimate for the current year has improved 14.8% in the last 60 days.
For 2027 (ending July 2027), the Zacks Consensus Estimate currently shows revenues of $73.03 billion, suggesting an improvement of 15.3% year over year and earnings per share of $5.11, indicating an increase of 18% year over year. The Zacks Consensus Estimate for the current year has improved 6.9% in the last 60 days.
Image Source: Zacks Investment Research
Strong Price Upside PotentialThe stock price has rallied 49.2% year to date. Despite this, the stock is currently trading at a forward P/E of 22.97X compared with 23.35X of the industry. The short-term average price target of brokerage firms represents an increase of 16.2% from the last closing price of $114.89. The brokerage target price is currently in the range of $100-$165. This indicates a maximum upside of 43.6% and a downside of 13%.
Image Source: Zacks Investment Research
Investment ThesisCisco Systems currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. CSCO offers an opportunity to invest in a company with substantial unrealized potential in the AI revolution. The astonishing growth potential of the global AI-powered data centers and management’s business visibility offer near-term potential.
In the latest close session, Cisco Systems (CSCO - Free Report) was down 2.13% at $114.89. This change lagged the S&P 500's daily loss of 0.47%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq decreased by 1.25%.
Shares of the seller of routers, switches, software and services have appreciated by 7.27% over the course of the past month, outperforming the Computer and Technology sector's gain of 6.08%, and the S&P 500's gain of 1.15%.
Market participants will be closely following the financial results of Cisco Systems in its upcoming release. The company is expected to report EPS of $1.32, up 32% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $18.09 billion, indicating a 21.52% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.11 per share and a revenue of $73.03 billion, representing changes of +18.01% and +15.32%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Cisco Systems. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Cisco Systems boasts a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Cisco Systems is holding a Forward P/E ratio of 22.97. This signifies a discount in comparison to the average Forward P/E of 23.35 for its industry.
It's also important to note that CSCO currently trades at a PEG ratio of 2.12. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Computer - Networking industry stood at 1.53 at the close of the market yesterday.
The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 107, this industry ranks in the top 44% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Cisco just posted its fifth straight earnings beat while AI infrastructure orders piled up, but the real question is whether the valuation still leaves room to run or whether this rally has already priced in the upside.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
The 24/7 Wall St. price target for Cisco Systems (NASDAQ:CSCO | CSCO Price Prediction) is $132.90 over the next 12 months. Shares trade at $117.71 this morning, so the target means 12.9% upside. The model gives Cisco a buy rating with high confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $117.71 Price Target from 24/7 Wall St. $132.90 Upside 12.9% Recommendation BUY Confidence Level 90% Cisco has changed from a slow-growth dividend payer into one of the cleaner ways to own AI networking. Our target sits a bit below the consensus analyst target of $136.16 because the model reduces mega-cap upside on purpose. Even so, it points higher from here.
AI Orders Fueled a 55.6% Rally This Year Cisco is up 10.48% over the past week, 8.2% over the past month and 55.6% year to date. Shares sit 9% below the 52-week high of $129.38 and 79.4% above the low of $65.60.
Fiscal Q4 revenue came in at $17.25 billion, up 17.6% and ahead of the $16.83 billion estimate. Non-GAAP EPS of $1.22 exceeded the $1.17 consensus, Cisco’s fifth straight beat. AI infrastructure orders reached $9.3 billion for fiscal 2026. Management forecast fiscal 2027 revenue to $72.2 billion to $73.4 billion and EPS to $5.05 to $5.11.
Why Bulls See $139 and Beyond Our bull case reaches $139.29. Hyperscaler AI revenue is expected to hit $7.5 billion in fiscal 2027. Cisco also holds three P200 scale-across design wins, and Wi-Fi 7 now makes up more than 50% of wireless orders.
CEO Chuck Robbins said, “We believe we’re only at the beginning of this super cycle.” Analysts agree: 5 rate Cisco a Strong Buy, 14 a Buy and 9 a Hold, and none rate it a Sell.
Margin Pressure Is the Risk to Watch Our bear case comes to at $110.74. Non-GAAP gross margin slid to 66.3% from 68.4%, and the CFO warned of “a slight gross margin headwind” through fiscal 2027.
Price increases added about five points to Q4 growth, which flatters volume. To be fair, operating margin still rose to 35.9% from 34.3%. Cash fell 23.8%, but that reflects $12.7 billion returned to shareholders.
Cisco Looks Cheap Next to Arista and HPE Arista Networks (NYSE:ANET) is Cisco’s most direct AI data-center rival. Arista increased revenue 37.69% last quarter but trades at 77x earnings. Cisco trades at an implied 27x trailing and 23x forward earnings.
Hewlett Packard Enterprise (NYSE:HPE) is now a larger enterprise networking rival after buying Juniper Networks. Its networking revenue increased 74.9%, a figure raised by the deal, while its non-GAAP operating margin was 16.2%. The 24/7 Wall St. price target looks conservative against both peers.
Company P/E Latest Qtr Revenue Growth Non-GAAP Op. Margin Cisco 27 17.6% 35.9% Arista 77 37.69% 49.9% HPE 1,643 32.72% 16.2% Cisco Price Prediction 2026-2030 The 24/7 Wall St. price target of $132.90 comes with a buy rating and 90% confidence. What tips the scale for me is AI growth at a valuation far below Arista’s (we rounded up seven companies driving the AI data-center expansion, from power to networking, which you can find here).
The setup strengthens if hyperscaler AI revenue tracks toward $7.5 billion while operating margin holds near 35%. It weakens if gross margin compression speeds up or hyperscaler orders stall. On the current data, Cisco’s new growth phase looks real.
The 24/7 Wall St. price target model projects where Cisco could trade, assuming current growth and market conditions hold.
Year Price Target from 24/7 Wall St. 2026 $121.63 2027 $133.14 2028 $146.53 2029 $160.22 2030 $171.46 The projections assume Cisco keeps executing on Silicon One, optics and security. Big moves either way could come from changes in hyperscaler capital spending or tariff policy.
Contact [email protected] for any questions or corrections.
New updates bring people, digital teammates, and enterprise context together across work, workplaces and customer experience
News Summary
Cisco evolves Webex to empower digital teammates and people to work seamlessly across collaboration to understand what matters and move work forward. Teams will benefit from Claude in Webex to analyze data, generate content, and execute work using shared enterprise context, all without leaving Webex, built with Claude Managed Agents. Intelligent Workplace Experiences unify secure networking, collaboration technology, and physical spaces to create more engaging and inclusive experiences for people in the workplace. Dialog, an all-new agentic harness for the Webex AI Agent platform, turns fragmented interactions into continuous customer relationships and works on their behalf until issues are resolved. , /PRNewswire/ -- WebexOne 2026 -- Cisco (NASDAQ: CSCO) today introduced agentic collaboration innovations that transform how people and agents work together. This approach addresses three connected dimensions of work for the AI era: how people work, how the workplace adapts, and how businesses engage with customers.
Organizations face a critical challenge: as the workforce evolves, teams need a way to unlock the potential of digital teammates, while maximizing the impact of work that requires the human touch. Cisco is uniting conversations, physical workspaces, and customer touchpoints into shared context. This transforms AI from reactive chatbots into digital teammates that drive complex work forward.
"The next era of work isn't about bolting chatbots onto yesterday's tools," said Jeetu Patel, President and Chief Product Officer, Cisco. "It's about AI agents working alongside people and teams, being deeply embedded in their workspaces, and collaborating on a secure, trusted foundation. When people and agents share the same context, work keeps moving and every customer relationship gets stronger."
The New Webex: Built for People and AI Agents Working Together
Cisco is moving enterprise AI beyond reactive, prompt-based assistants into proactive digital teammates that participate directly in the flow of work. New capabilities include:
Claude Managed Agents | intelligent teammates and multi-step actions in Webex: Soon, turn shared team context into deeper analysis, strategic recommendations, and coordinated action across approved agents. New AI agents that work alongside teams: Collaborative AI agents can be invited directly into spaces, meetings, and calls to execute complex, multi-step work across Webex and third-party applications. For example, a team member can @mention an analytics agent in a Webex space to pull usage statistics, then ask a presentation agent to update a PowerPoint deck to reflect those numbers. OpenAI dots | rich context and personal intelligence: The Webex Suite Model Context Protocol (MCP) integration brings Webex context directly into dots. In the future, dots will also be available within Webex as an always-on personal agent. Built for enterprise trust: Cisco brings identity, security, governance and visibility together so organizations can control what AI can access, what it can do and how it acts. A New Workplace for the AI Era
To support the vital moments of the agentic era that require the human touch—critical judgment, strategic alignment, and relationship-building—today's workplace must become an intelligent ecosystem that senses, reasons, and acts. Through Intelligent Workplace Experiences, Cisco is unifying secure networking, collaboration devices, digital experience assurance and physical spaces into a single architecture. Managed through Cisco Cloud Control, this foundation enables organizations to create flawless in-office environments, streamline IT operations, and unlock actionable insights to drive efficiency across physical spaces and technology. New innovations include:
Visual planning for IT and facilities: Workplace Designer extends Cisco's visual planning experience from individual rooms to the entire workplace, spanning networking, collaboration and workplace intelligence. It can, for example, turn a street address into a tailored blueprint to help teams align decisions and prepare for deployment, resulting in a simpler and better employee experience. Pinpoint and resolve workplace disruptions faster: Extending Experience Metrics into the workplace helps IT move beyond simple connectivity alerts to reveal exactly where issues occur and how they affect employees. By correlating network and device assurance with floor plans, Wi-Fi coverage, and occupancy, IT teams can prioritize and troubleshoot issues based on business impact, remediate problems faster, and ensure reliable workplace experiences. Optimize space and capacity planning: Workplace Insights in Cisco Cloud Control delivers a clear, unified view of how physical offices are utilized across locations and floors. By tracking activity patterns over time and comparing booked spaces against real-world occupancy, it empowers workplace leaders to move beyond isolated snapshots, right-size real estate investments, and adapt environments to how people collaborate every day. Cisco is also introducing RoomOS 27, the operating system for Collaboration Devices. Built for a new era of AI in physical spaces, RoomOS 27 advances the workplace experience across AI, platform choice, and intelligent management—helping spaces understand context, adapt to what's happening and increasingly take action, including:
Comprehensive interoperability: Through a new partnership with Google, Cisco devices now offer support for fully featured Google Meet natively, joining Webex, Microsoft Teams, and Zoom — making Cisco the most open collaboration hardware on the market. This gives customers complete freedom to choose their preferred meeting and AI environments, while retaining Cisco device intelligence and management. Advanced AI at the edge: The new Cisco AI Assistant on Collaboration Devices brings natural-language interaction to the room. With greater intelligence, AI Assistant can now engage in 32 languages. A prompt that the room is too warm, for example, automatically results in adjusting the temperature and lowering the blinds. Intelligent workplace management: Optimize workspaces with new intelligence in RoomOS 27 and Cisco Cloud Control. Workspace Advisor, Smart Room Assurance, Divisible Rooms, Splunk and agent integrations give IT greater visibility into how spaces are used with new ways to investigate, operate and continuously improve them at scale. Available in November, RoomOS 27 brings intelligence to where work happens—making the workplace more natural for people and easier for IT to secure, manage and improve.
Cisco Ceiling Speaker Pro completes Cisco's vision for fully integrated, IP-connected meeting spaces, ensuring every voice is heard clearly and naturally no matter where people join from. It integrates into the same intelligent system as Cisco cameras, microphones, and room devices, using AI to adapt audio across the space so even quiet voices carry naturally. Connected directly from the network to central management, Ceiling Speaker Pro replaces complex, multi-vendor audio setups with a single Ethernet cable that is simple to deploy and scale.
A New Approach to Customer Relationships
Customer experience today is constrained by treating engagements as isolated, atomic interactions. Advances in agentic AI now make it possible to connect interactions across customer journeys, systems and time into a single, continuous relationship. To help organizations evolve from an interaction-based approach to a relationship-based approach, Cisco is introducing Dialog, an agentic harness that enables personalized, long lasting customer relationships. New capabilities in Dialog include:
Long-horizon execution: Agents keep working on the customer's behalf after a conversation ends, coordinating across people, agents, and backend systems until the desired outcome is achieved. Persistent relationship context: Unifies customer history with enterprise data to maintain continuous context across all channels and time, powering absolute personalization at scale. Self-learning with every interaction: Continuously refines agent performance with every interaction, learning from customer journeys and human agent judgment while adhering to enterprise policy. Rapid onboarding: Enables organizations to onboard AI agents like new teammates, indexing existing employee handbooks, knowledge bases, and operating procedures. To ensure enterprise trust and scale, Webex AI Agents operate within active safety guardrails from Cisco AI Defense, with live telemetry and operational observability powered by Splunk.
Bringing It All Together
Cisco brings together collaboration, networking, workplace intelligence, customer experience, security, and observability on one integrated foundation. Together with Connected Intelligence, this foundation turns fragmented context into coordinated action across work, workplaces, and customer experiences.
Forward-Looking Statements
This press release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors. Any forward-looking statements in this release are based on limited information currently available to Cisco, which is subject to change, and Cisco will not necessarily update the information.
About Cisco
Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry-leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco.
Three networking and optical stocks are surging well past the broader market today, but the gaps between their gains reveal something specific about where AI infrastructure demand is hitting a wall.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
AI networking demand is lifting Arista Networks (NYSE:ANET | ANET Price Prediction), Cisco Systems (NASDAQ:CSCO) and Ciena (NYSE:CIEN), with shares of the optical supplier pulling far ahead of the two switching vendors. No company announcement accounts for the gain in Arista stock, which sits inside a broader bid across networking and optical equipment. That leaves the relative size of the three moves as the clearest signal of where the market sees demand outrunning supply.
Ciena stock is at $431.18, up 11% in midday trading, the largest gain of the three by a wide margin. Meanwhile, Arista Networks stock is at $214.34, up 4%, the smallest advance in the group. Cisco stock trades at $115.83, up 3%, landing between the other two.
For context, the iShares U.S. Technology ETF (NYSEARCA:IYW) is up 0.63%, a modest gain for the broader tech sector. At the same time, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.76%. Against those benchmarks, shares of Ciena, Arista and Cisco are each running well ahead of both the tech sector and the overall market, a sign that the buying is targeted at network equipment.
Bernstein Note Ties Networking to Optical On October 1, Bernstein initiated coverage of Arista Networks with an Outperform rating and a price target of $250, arguing that networking and optical suppliers both benefit from AI infrastructure spending, with demand still running ahead of supply. That note is several days old and serves as background to the session. The detail that matters now is the note’s pairing of networking with optical, since shares of Ciena, the optical name in this group, are running hardest.
Arista Networks reported its second-quarter 2026 results in early August, with revenue growth of 37.7% from a year earlier. Demand across AI networking, data centers, campus and routing drove that growth, giving the company several engines working at once, and such breadth underpins Arista’s longer-term story, though the August report isn’t fresh news for the stock and doesn’t explain the latest buying on its own.
Transport Layer Shows Where Scarcity Sits Inside data centers, Arista and Cisco sell the switches and routers that move traffic, while Ciena supplies the optical transport layer that carries traffic between those facilities. A buildout that adds computing capacity in more locations lifts transport demand before it lifts switching demand. That sequencing is the structural reason Ciena, Arista and Cisco shares don’t move in lockstep, even when the same AI theme is driving all three.
Ciena stock running several times harder than Arista stock points to the transport layer as the place where the market currently sees scarcity. Bernstein’s note collapsed exactly that distinction by grouping networking and optical suppliers together under one spending thesis. Arista stock is the smallest mover of the three, which complicates reading the session as a story about Arista itself.
Between those extremes, Cisco stock is advancing solidly, which suggests the bid extends across the equipment layer as a whole. The middle slot held by Cisco stock also gives the market a useful reference point, since a broad rally lifts the diversified networking giant while the sharpest gains collect in optical transport. Such a pattern fits a market rewarding AI infrastructure broadly. It reserves its biggest premium for the scarcest piece (we profiled seven of these non-chip AI suppliers, from networking to power and cooling, in a free report you can grab here).
What to Watch Next Evidence that switching demand is tightening the way transport demand appears to be would tie the next move in Arista stock to the company specifically, and this session doesn’t supply it. Traders could look for signs that Arista faces the same supply pressure Bernstein described across networking and optical suppliers. Until then, Ciena stock remains a clearer expression of the transport scarcity the market is pricing.
Shareholders may want to keep an eye on whether Cisco stock continues advancing alongside Ciena and Arista, since a sustained broad rally would support the view that AI networking spending is lifting every tier of the equipment stack. A fade in CSCO stock while CIEN stock holds its gains would point to a narrower trade concentrated in optical transport. Either outcome may clarify whether the equipment rally has staying power beyond the optical names.
Ciena stock carries the most risk of the three if transport scarcity eases, since it is running so far ahead of the group, while Arista and Cisco shares are riding the same spending wave with smaller swings. Investors weighing their exposure should calibrate their holdings carefully given that a sector-wide bid across networking and optical equipment is driving all three stocks. Keeping their positions in any one of these names moderate limits how much their portfolios lean on a single tier of the AI networking buildout.
Contact [email protected] for any questions or corrections.
Central Pacific Bank Trust Division decreased its position in shares of Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) by 17.9% in the 3rd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 43,025 shares of the network equipment provider’s stock after selling 9,394 shares during the quarter. Central Pacific Bank Trust Division’s holdings in Cisco Systems were worth $4,631,000 as of its most recent SEC filing.
Other hedge funds and other institutional investors have also recently modified their holdings of the company. BlackRock Inc. acquired a new stake in Cisco Systems during the 2nd quarter worth about $42,129,647,000. State Street Corp grew its position in Cisco Systems by 7.0% during the second quarter. State Street Corp now owns 207,106,569 shares of the network equipment provider’s stock valued at $25,278,492,000 after buying an additional 13,512,872 shares during the period. Invesco Ltd. raised its position in Cisco Systems by 11.6% in the fourth quarter. Invesco Ltd. now owns 59,836,782 shares of the network equipment provider’s stock worth $4,609,227,000 after acquiring an additional 6,224,062 shares during the period. Auto Owners Insurance Co grew its position in shares of Cisco Systems by 8,718.3% during the 4th 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. Finally, Franklin Resources Inc. lifted its stake in Cisco Systems by 18.0% in the fourth quarter. Franklin Resources Inc. now owns 50,320,905 shares of the network equipment provider’s stock valued at $3,876,219,000 after purchasing an additional 7,679,422 shares during the last quarter. Institutional investors and hedge funds own 73.33% of the company’s stock.
Cisco Systems Trading Up 0.6% Shares of Cisco Systems stock opened at $112.82 on Tuesday. The company’s 50-day moving average price is $111.96 and its 200-day moving average price is $106.88. 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, Inc. has a 12-month low of $66.81 and a 12-month high of $130.37. The company has a market cap of $444.80 billion, a price-to-earnings ratio of 33.78, a PEG ratio of 2.35 and a beta of 0.99.
Cisco Systems (NASDAQ:CSCO – Get Free Report) last posted its earnings results 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 business had revenue of $17.25 billion for the quarter, compared to analysts’ expectations of $16.84 billion. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The business’s revenue for the quarter was up 17.6% compared to the same quarter last year. During the same period in the prior 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. On average, equities analysts expect that Cisco Systems, Inc. will post 4.41 earnings per share for the current fiscal year. Cisco Systems Announces Dividend 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 given 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 is Friday, October 2nd. Cisco Systems’s dividend payout ratio (DPR) is 50.30%.
Insider Activity at Cisco Systems In related news, EVP Oliver Tuszik sold 2,760 shares of the company’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $112.46, for a total value of $310,389.60. Following the transaction, the executive vice president directly owned 165,276 shares in the company, valued at approximately $18,586,938.96. This represents a 1.64% decrease in their ownership of the stock. The transaction was disclosed in a document filed 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, 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 transaction of $2,412,387.12. Following the completion of the transaction, the chief executive officer directly owned 602,710 shares of the company’s stock, valued at approximately $67,226,273.40. This represents a 3.46% 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 44,869 shares of company stock valued at $5,005,620 in the last ninety days. Insiders own 0.01% of the company’s stock.
Analysts Set New Price Targets Several analysts have issued reports on the company. HSBC lowered Cisco Systems from a “buy” rating to a “hold” rating and lowered their target price for the company from $137.00 to $120.00 in a research note on Friday, August 14th. UBS Group upped their price objective on shares of Cisco Systems from $132.00 to $138.00 and gave the company a “buy” rating in a report on Thursday, August 13th. Barclays lifted their target price on shares of Cisco Systems from $121.00 to $123.00 and gave the stock an “equal weight” rating in a research note on Thursday, August 13th. Piper Sandler dropped their price target on shares of Cisco Systems from $132.00 to $125.00 and set a “neutral” rating on the stock in a research note on Tuesday, September 22nd. Finally, Wall Street Zen lowered shares of Cisco Systems from a “buy” rating to a “hold” rating in a research note on Saturday. Three 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 company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $128.52.
View Our Latest Report on CSCO
Cisco Systems Profile (Free Report)
Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration, observability and data center solutions. Its products and services help businesses, governments, educational institutions and other organizations connect users and devices, manage infrastructure, protect digital environments and support cloud-based operations.
Cisco’s portfolio includes routers and switches, wireless networking equipment, network management software, firewalls, identity and access tools, endpoint security products, collaboration applications and observability platforms.
See Also Five stocks we like better than Cisco Systems NVIDIA’s Record High Raises a Bigger Question About How Far the Rally Can Run A Manufacturing Surprise Could Be a Big Win for These 2 Companies What a $1 Billion Chip Deal Says About Amazon’s AI Ambitions 3 Stocks Benefiting From AI Demand Just Announced Major Buybacks
Receive News & Ratings for Cisco Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cisco Systems and related companies with MarketBeat.com's FREE daily email newsletter.
Park National Corp OH cut its position in shares of Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) by 1.7% during the 3rd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 717,564 shares of the network equipment provider’s stock after selling 12,336 shares during the quarter. Cisco Systems comprises 2.1% of Park National Corp OH’s investment portfolio, making the stock its 11th biggest holding. Park National Corp OH’s holdings in Cisco Systems were worth $77,231,000 at the end of the most recent reporting period.
A number of other institutional investors have also added to or reduced their stakes in CSCO. BlackRock Inc. bought a new stake in Cisco Systems in the second quarter worth $42,129,647,000. Auto Owners Insurance Co boosted its position in shares of Cisco Systems by 8,718.3% during 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 buying an additional 51,363,281 shares during the last quarter. Bank of America Corp DE bought a new stake in Cisco Systems in the 2nd quarter worth about $5,892,379,000. Bank of New York Mellon Corp purchased a new position in Cisco Systems in the 2nd quarter worth about $4,714,574,000. Finally, Deutsche Bank AG bought a new position in Cisco Systems during the 2nd quarter valued at about $1,997,004,000. 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 business’s 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 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 ownership of the stock. The sale 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, CEO Charles Robbins sold 21,628 shares of the company’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $111.54, for a total value of $2,412,387.12. Following the sale, the chief executive officer owned 602,710 shares in the company, valued at approximately $67,226,273.40. This trade represents a 3.46% 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 90 days, insiders sold 44,869 shares of company stock worth $5,005,620. 0.01% of the stock is currently owned by corporate insiders.
Analysts Set New Price Targets A number of brokerages have recently issued reports on CSCO. KeyCorp raised their price target 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. Morgan Stanley lifted 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. Wells Fargo & Company increased their price target on Cisco Systems from $130.00 to $150.00 and gave the company an “overweight” rating in a report on Thursday, August 13th. Bank of America lifted their price objective on Cisco Systems from $135.00 to $150.00 and gave the stock a “buy” rating in a report on Monday, June 8th. Finally, Truist Financial upped their price target on Cisco Systems from $125.00 to $140.00 and gave the stock a “buy” rating in a research report on Thursday, August 13th. Three analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have given a Hold rating to the company’s stock. Based on data from MarketBeat, Cisco Systems currently has a consensus rating of “Moderate Buy” and an average price target of $128.52. View Our Latest Analysis on CSCO
Cisco Systems Price Performance Shares of CSCO stock traded up $0.02 during trading hours on Monday, hitting $112.22. The stock had a trading volume of 5,799,816 shares, compared to its average volume of 22,516,551. Cisco Systems, Inc. has a one year low of $66.81 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. The stock’s 50-day moving average price is $112.00 and its two-hundred day moving average price is $106.64. The stock has a market capitalization of $442.44 billion, a price-to-earnings ratio of 33.59, a PEG ratio of 2.35 and a beta of 0.99.
Cisco Systems (NASDAQ:CSCO – Get Free Report) last announced its quarterly 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. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%.The company had revenue of $17.25 billion during the quarter, compared to analyst estimates 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% 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 analysts forecast that Cisco Systems, Inc. will post 4.41 EPS for the current year.
Cisco Systems Announces Dividend The firm also recently disclosed 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 dividend yield of 1.5%. The ex-dividend date of this dividend is Friday, October 2nd. Cisco Systems’s dividend payout ratio (DPR) is presently 50.30%.
Cisco Systems Company Profile (Free Report)
Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration, observability and data center solutions. Its products and services help businesses, governments, educational institutions and other organizations connect users and devices, manage infrastructure, protect digital environments and support cloud-based operations.
Cisco’s portfolio includes routers and switches, wireless networking equipment, network management software, firewalls, identity and access tools, endpoint security products, collaboration applications and observability platforms.
See Also Five stocks we like better than Cisco Systems A Manufacturing Surprise Could Be a Big Win for These 2 Companies What a $1 Billion Chip Deal Says About Amazon’s AI Ambitions 3 Stocks Benefiting From AI Demand Just Announced Major Buybacks Insiders Are Selling These 3 Stocks, Should You?
Receive News & Ratings for Cisco Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cisco Systems and related companies with MarketBeat.com's FREE daily email newsletter.
Argent Capital Management LLC raised its stake in Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) by 2,132.9% during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 91,750 shares of the network equipment provider’s stock after purchasing an additional 87,641 shares during the period. Argent Capital Management LLC’s holdings in Cisco Systems were worth $9,875,000 at the end of the most recent quarter.
Several other large investors also recently modified their holdings of the stock. BlackRock Inc. acquired a new position in Cisco Systems in the 2nd quarter valued at about $42,129,647,000. State Street Corp lifted its position in Cisco Systems by 7.0% during the second quarter. State Street Corp now owns 207,106,569 shares of the network equipment provider’s stock worth $25,278,492,000 after acquiring an additional 13,512,872 shares during the last quarter. Invesco Ltd. lifted its position in Cisco Systems by 11.6% during the fourth quarter. Invesco Ltd. now owns 59,836,782 shares of the network equipment provider’s stock worth $4,609,227,000 after acquiring an additional 6,224,062 shares during the last quarter. Auto Owners Insurance Co boosted its holdings in shares of Cisco Systems by 8,718.3% during 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 acquiring an additional 51,363,281 shares during the period. Finally, Franklin Resources Inc. grew its position in shares of Cisco Systems by 18.0% in the fourth quarter. Franklin Resources Inc. now owns 50,320,905 shares of the network equipment provider’s stock valued at $3,876,219,000 after purchasing an additional 7,679,422 shares during the last quarter. 73.33% of the stock is owned by institutional investors.
Cisco Systems Price Performance NASDAQ CSCO traded down $0.10 during midday trading on Monday, hitting $112.11. The company had a trading volume of 4,887,689 shares, compared to its average volume of 22,511,689. The company has a market capitalization of $441.98 billion, a PE ratio of 33.60, a P/E/G ratio of 2.35 and a beta of 0.99. The company has a current ratio of 0.93, a quick ratio of 0.79 and a debt-to-equity ratio of 0.39. The firm has a 50-day moving average price of $112.00 and a 200-day moving average price of $106.64. Cisco Systems, Inc. has a twelve month low of $66.81 and a twelve month high of $130.37.
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 (EPS) 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 company had revenue of $17.25 billion for the quarter, compared to analyst estimates of $16.84 billion. During the same period in the prior year, the firm posted $0.99 EPS. 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. As a group, analysts anticipate that Cisco Systems, Inc. will post 4.41 earnings per share for the current fiscal 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 issued a $0.42 dividend. 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 (DPR) is currently 50.30%.
Insider Transactions at Cisco Systems In related news, EVP Oliver Tuszik sold 2,760 shares of the stock in a transaction that occurred 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 sale, the executive vice president owned 165,276 shares in the company, valued at approximately $18,586,938.96. This trade represents a 1.64% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible 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 business’s stock in a transaction that occurred on Friday, August 14th. The shares were 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 of the company’s stock, valued at approximately $25,727,261.01. This represents a 3.02% 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 quarter, insiders sold 44,869 shares of company stock worth $5,005,620. Corporate insiders own 0.01% of the company’s stock.
Analyst Upgrades and Downgrades Several research firms recently weighed in on CSCO. KeyCorp lifted 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. Deutsche Bank Aktiengesellschaft started coverage on Cisco Systems in a research report on Tuesday, September 1st. They set a “buy” rating and a $135.00 price objective on the stock. Freedom Capital raised Cisco Systems from a “hold” rating to a “strong-buy” rating in a report on Sunday, August 16th. Truist Financial upped their price target on shares of Cisco Systems from $125.00 to $140.00 and gave the company a “buy” rating in a research note on Thursday, August 13th. Finally, Sanford C. Bernstein assumed coverage on shares of Cisco Systems in a research note on Wednesday, September 30th. They issued a “market perform” rating and a $110.00 price objective for the company. Three research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, Cisco Systems currently has a consensus rating of “Moderate Buy” and an average target price of $128.52.
Check Out Our Latest Research Report on Cisco Systems
About Cisco Systems (Free Report)
Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration, observability and data center solutions. Its products and services help businesses, governments, educational institutions and other organizations connect users and devices, manage infrastructure, protect digital environments and support cloud-based operations.
Cisco’s portfolio includes routers and switches, wireless networking equipment, network management software, firewalls, identity and access tools, endpoint security products, collaboration applications and observability platforms.
Read More Five stocks we like better than Cisco Systems What a $1 Billion Chip Deal Says About Amazon’s AI Ambitions 3 Stocks Benefiting From AI Demand Just Announced Major Buybacks Insiders Are Selling These 3 Stocks, Should You? Datadog’s Rally Has Insiders Selling—Can It Keep Climbing?
Receive News & Ratings for Cisco Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cisco Systems and related companies with MarketBeat.com's FREE daily email newsletter.
Ferguson Wellman Capital Management Inc. lifted its holdings in shares of Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) by 0.4% during the third quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 1,568,413 shares of the network equipment provider’s stock after acquiring an additional 6,185 shares during the quarter. Cisco Systems accounts for about 2.0% of Ferguson Wellman Capital Management Inc.’s investment portfolio, making the stock its 15th biggest position. Ferguson Wellman Capital Management Inc.’s holdings in Cisco Systems were worth $168,808,000 as of its most recent SEC filing.
Several other institutional investors also recently made changes to their positions in CSCO. Cozad Asset Management Inc. raised its stake in 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 in the last quarter. Dogwood Wealth Management LLC raised its holdings in shares of Cisco Systems by 3.9% during the second quarter. Dogwood Wealth Management LLC now owns 2,413 shares of the network equipment provider’s stock valued at $283,000 after acquiring an additional 90 shares during the period. August Group Capital Ltd boosted its position in Cisco Systems by 2.0% during the 2nd quarter. August Group Capital Ltd now owns 4,723 shares of the network equipment provider’s stock worth $555,000 after acquiring an additional 91 shares during the period. Financial Insights Inc. boosted 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 valued at $483,000 after purchasing an additional 92 shares during the last quarter. Finally, CPA Asset Management Group LLC lifted its stake in shares of 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 valued at $627,000 after purchasing an additional 93 shares during the last quarter. 73.33% of the stock is owned by institutional investors.
Insider Buying and Selling In other Cisco Systems news, insider Jeetendra I. Patel sold 7,170 shares of Cisco Systems 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 sale, the insider owned 230,593 shares of the company’s stock, valued at approximately $25,727,261.01. This trade represents a 3.02% decrease in their position. The transaction was disclosed in a document filed 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, 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 value of $2,412,387.12. Following the completion of the transaction, the chief executive officer directly owned 602,710 shares in the company, valued at approximately $67,226,273.40. This represents a 3.46% 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 sold 44,869 shares of company stock valued at $5,005,620 over the last 90 days. 0.01% of the stock is currently owned by company insiders.
Cisco Systems Stock Down 0.0% NASDAQ CSCO traded down $0.05 on Monday, hitting $112.15. 5,702,146 shares of the company were exchanged, compared to its average volume of 22,512,555. 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, Inc. has a 12 month low of $66.81 and a 12 month high of $130.37. The stock has a fifty day moving average of $112.00 and a 200-day moving average of $106.64. The company has a market cap of $442.17 billion, a PE ratio of 33.58, a PEG ratio of 2.35 and a beta of 0.99. 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 company had revenue of $17.25 billion during 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 firm’s revenue for the quarter was up 17.6% on a year-over-year basis. During the same period in the previous year, the firm posted $0.99 earnings per share. Cisco Systems has set its FY 2027 guidance at 5.050-5.110 EPS and its Q1 2027 guidance at 1.320-1.340 EPS. As a group, analysts forecast that Cisco Systems, Inc. will post 4.41 earnings per share for the current year.
Cisco Systems Announces Dividend The business also recently disclosed 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 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 presently 50.30%.
Wall Street Analyst Weigh In A number of analysts have weighed in on CSCO shares. UBS Group increased their price target on shares of Cisco Systems from $132.00 to $138.00 and gave the company a “buy” rating in a report on Thursday, August 13th. Wells Fargo & Company lifted their price objective on shares of Cisco Systems from $130.00 to $150.00 and gave the stock an “overweight” rating in a research note on Thursday, August 13th. HSBC cut Cisco Systems from a “buy” rating to a “hold” rating and reduced their price objective for the stock from $137.00 to $120.00 in a research report on Friday, August 14th. Piper Sandler lowered their price objective on shares of Cisco Systems from $132.00 to $125.00 and set a “neutral” rating on the stock in a research note on Tuesday, September 22nd. Finally, Rosenblatt Securities boosted their price objective 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. Three analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat.com, Cisco Systems has a consensus rating of “Moderate Buy” and a consensus price target of $128.52.
Get Our Latest Report on Cisco Systems
About Cisco Systems (Free Report)
Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration, observability and data center solutions. Its products and services help businesses, governments, educational institutions and other organizations connect users and devices, manage infrastructure, protect digital environments and support cloud-based operations.
Cisco’s portfolio includes routers and switches, wireless networking equipment, network management software, firewalls, identity and access tools, endpoint security products, collaboration applications and observability platforms.
Further Reading Five stocks we like better than Cisco Systems A Manufacturing Surprise Could Be a Big Win for These 2 Companies What a $1 Billion Chip Deal Says About Amazon’s AI Ambitions 3 Stocks Benefiting From AI Demand Just Announced Major Buybacks Insiders Are Selling These 3 Stocks, Should You?
Receive News & Ratings for Cisco Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cisco Systems and related companies with MarketBeat.com's FREE daily email newsletter.
Rockland Trust Co. increased its stake in shares of Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) by 1,193.6% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 218,003 shares of the network equipment provider’s stock after buying an additional 201,150 shares during the quarter. Rockland Trust Co.’s holdings in Cisco Systems were worth $23,464,000 at the end of the most recent quarter.
Several other large investors have also bought and sold shares of the stock. BlackRock Inc. purchased a new stake in shares of Cisco Systems during the second quarter valued at approximately $42,129,647,000. State Street Corp boosted its position in Cisco Systems by 7.0% in the second quarter. State Street Corp now owns 207,106,569 shares of the network equipment provider’s stock worth $25,278,492,000 after purchasing an additional 13,512,872 shares during the last quarter. Bank of America Corp DE purchased a new position in Cisco Systems in the second quarter worth $5,892,379,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in Cisco Systems by 2.7% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 43,450,141 shares of the network equipment provider’s stock valued at $5,103,654,000 after purchasing an additional 1,143,106 shares during the period. 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 currently owned by institutional investors.
Analysts Set New Price Targets A number of equities research analysts have recently commented on CSCO shares. Wells Fargo & Company lifted their target price on Cisco Systems from $130.00 to $150.00 and gave the stock an “overweight” rating in a research note on Thursday, August 13th. Weiss Ratings restated a “buy (b)” rating on shares of Cisco Systems in a research report on Wednesday, August 26th. Deutsche Bank Aktiengesellschaft started coverage on shares of Cisco Systems in a report on Tuesday, September 1st. They set a “buy” rating and a $135.00 price objective for the company. Freedom Capital upgraded shares of Cisco Systems from a “hold” rating to a “strong-buy” rating in a research note on Sunday, August 16th. Finally, Zacks Research upgraded shares of Cisco Systems from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, September 30th. Three investment analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $128.52.
Get Our Latest Stock Report on CSCO Insider Transactions at Cisco Systems In other news, EVP Thimaya Subaiya sold 5,832 shares of the business’s stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $111.47, for a total value of $650,093.04. Following the sale, the executive vice president owned 128,382 shares of the company’s stock, valued at $14,310,741.54. The trade was a 4.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,760 shares of the company’s stock in a transaction that occurred 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 sale, the executive vice president 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 44,869 shares of company stock valued at $5,005,620. 0.01% of the stock is currently owned by insiders.
Cisco Systems Stock Performance Shares of NASDAQ CSCO traded down $0.01 during trading on Monday, reaching $112.19. 5,702,146 shares of the stock traded hands, compared to its average volume of 22,512,555. 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 stock has a market capitalization of $442.30 billion, a P/E ratio of 33.58, a price-to-earnings-growth ratio of 2.35 and a beta of 0.99. Cisco Systems, Inc. has a 52-week low of $66.81 and a 52-week high of $130.37. The company has a 50-day moving average of $112.00 and a 200-day moving average of $106.64.
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 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 company had revenue of $17.25 billion during the quarter, compared to analyst estimates of $16.84 billion. During the same quarter last year, the firm posted $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. Analysts forecast that Cisco Systems, Inc. will post 4.41 EPS for the current fiscal year.
Cisco Systems Dividend Announcement The firm 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 annualized dividend and a dividend yield of 1.5%. Cisco Systems’s dividend payout ratio (DPR) is presently 50.30%.
Cisco Systems Company Profile (Free Report)
Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration, observability and data center solutions. Its products and services help businesses, governments, educational institutions and other organizations connect users and devices, manage infrastructure, protect digital environments and support cloud-based operations.
Cisco’s portfolio includes routers and switches, wireless networking equipment, network management software, firewalls, identity and access tools, endpoint security products, collaboration applications and observability platforms.
See Also Five stocks we like better than Cisco Systems A Manufacturing Surprise Could Be a Big Win for These 2 Companies What a $1 Billion Chip Deal Says About Amazon’s AI Ambitions 3 Stocks Benefiting From AI Demand Just Announced Major Buybacks Insiders Are Selling These 3 Stocks, Should You? 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).
Receive News & Ratings for Cisco Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cisco Systems and related companies with MarketBeat.com's FREE daily email newsletter.
Tompkins Financial Corp decreased its holdings in shares of Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) by 2.6% during the third quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 219,578 shares of the network equipment provider’s stock after selling 5,803 shares during the quarter. Cisco Systems comprises approximately 1.7% of Tompkins Financial Corp’s portfolio, making the stock its 15th biggest holding. Tompkins Financial Corp’s holdings in Cisco Systems were worth $23,633,000 as of its most recent SEC filing.
Other institutional investors have also recently made changes to their positions in the company. Ferguson Wellman Capital Management Inc. boosted its holdings in Cisco Systems by 0.4% in the 3rd quarter. Ferguson Wellman Capital Management Inc. now owns 1,568,413 shares of the network equipment provider’s stock valued at $168,808,000 after purchasing an additional 6,185 shares during the period. Bright Rock Capital Management LLC purchased a new position in Cisco Systems during the third quarter worth about $6,458,000. Argent Capital Management LLC increased its stake in Cisco Systems by 2,132.9% in the 3rd quarter. Argent Capital Management LLC now owns 91,750 shares of the network equipment provider’s stock worth $9,875,000 after acquiring an additional 87,641 shares during the last quarter. Heartwood Wealth Advisors LLC increased its stake in Cisco Systems by 9.9% in the 3rd quarter. Heartwood Wealth Advisors LLC now owns 7,897 shares of the network equipment provider’s stock worth $850,000 after acquiring an additional 712 shares during the last quarter. Finally, Rockland Trust Co. raised its holdings in shares of Cisco Systems by 1,193.6% in the 3rd quarter. Rockland Trust Co. now owns 218,003 shares of the network equipment provider’s stock valued at $23,464,000 after acquiring an additional 201,150 shares in the last quarter. Hedge funds and other institutional investors own 73.33% of the company’s stock.
Insiders Place Their Bets In related news, 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 value of $2,412,387.12. Following the completion of the transaction, the chief executive officer directly 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 Securities & Exchange Commission, which is available at 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 Cisco Systems stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $111.57, for a total value of $799,956.90. Following the sale, the insider directly owned 230,593 shares in the company, valued at approximately $25,727,261.01. The trade was a 3.02% 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. In the last ninety days, insiders sold 44,869 shares of company stock worth $5,005,620. Company insiders own 0.01% of the company’s stock.
Analysts Set New Price Targets CSCO has been the subject of several recent analyst reports. Deutsche Bank Aktiengesellschaft began coverage on Cisco Systems in a report on Tuesday, September 1st. They set a “buy” rating and a $135.00 price objective for the company. Weiss Ratings reissued a “buy (b)” rating on shares of Cisco Systems in a research note on Wednesday, August 26th. Rosenblatt Securities raised their price objective on shares of Cisco Systems from $150.00 to $165.00 and gave the company a “buy” rating in a research report on Thursday, August 13th. UBS Group upped their target price 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. Finally, Bank of America lifted their price target on Cisco Systems from $135.00 to $150.00 and gave the stock a “buy” rating in a research note on Monday, June 8th. Three research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, Cisco Systems presently has a consensus rating of “Moderate Buy” and an average price target of $128.52. Read Our Latest Stock Report on CSCO
Cisco Systems Trading Down 0.0% Shares of Cisco Systems stock traded down $0.02 during trading on Monday, reaching $112.18. 5,734,133 shares of the stock were exchanged, compared to its average volume of 22,516,551. 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 has a market cap of $442.27 billion, a price-to-earnings ratio of 33.59, a price-to-earnings-growth ratio of 2.35 and a beta of 0.99. Cisco Systems, Inc. has a 1 year low of $66.81 and a 1 year high of $130.37. The stock’s fifty day moving average is $112.00 and its 200 day moving average is $106.64.
Cisco Systems (NASDAQ:CSCO – Get Free Report) last announced its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, beating 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 company had revenue of $17.25 billion for the quarter, compared to the consensus estimate of $16.84 billion. During the same quarter in the previous year, the business 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, equities research analysts expect that Cisco Systems, Inc. will post 4.41 earnings per share for the current fiscal year.
Cisco Systems Announces Dividend The business also recently disclosed 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 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 presently 50.30%.
Cisco Systems Company Profile (Free Report)
Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration, observability and data center solutions. Its products and services help businesses, governments, educational institutions and other organizations connect users and devices, manage infrastructure, protect digital environments and support cloud-based operations.
Cisco’s portfolio includes routers and switches, wireless networking equipment, network management software, firewalls, identity and access tools, endpoint security products, collaboration applications and observability platforms.
Featured Stories Five stocks we like better than Cisco Systems A Manufacturing Surprise Could Be a Big Win for These 2 Companies What a $1 Billion Chip Deal Says About Amazon’s AI Ambitions 3 Stocks Benefiting From AI Demand Just Announced Major Buybacks Insiders Are Selling These 3 Stocks, Should You? 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).
Receive News & Ratings for Cisco Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cisco Systems and related companies with MarketBeat.com's FREE daily email newsletter.
MassMutual Private Wealth & Trust FSB cut its holdings in shares of Cisco Systems, Inc. (NASDAQ:CSCO – Free Report) by 5.4% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 483,007 shares of the network equipment provider’s stock after selling 27,611 shares during the quarter. Cisco Systems makes up approximately 1.3% of MassMutual Private Wealth & Trust FSB’s portfolio, making the stock its 17th largest holding. MassMutual Private Wealth & Trust FSB’s holdings in Cisco Systems were worth $52,088,000 at the end of the most recent quarter.
A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in CSCO. Cozad Asset Management Inc. boosted its holdings in Cisco Systems by 0.3% in the 1st 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 increased 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 buying an additional 90 shares during the last quarter. August Group Capital Ltd raised its position in shares of Cisco Systems by 2.0% during the 2nd quarter. August Group Capital Ltd now owns 4,723 shares of the network equipment provider’s stock valued at $555,000 after buying an additional 91 shares in the last quarter. Financial Insights Inc. grew its position 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 worth $483,000 after acquiring 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 second quarter. CPA Asset Management Group LLC now owns 5,335 shares of the network equipment provider’s stock valued at $627,000 after acquiring an additional 93 shares during the last quarter. Institutional investors own 73.33% of the company’s stock.
Insider Buying and Selling at Cisco Systems In other Cisco Systems news, EVP Thimaya K. Subaiya sold 312 shares of the business’s stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $110.18, for a total value of $34,376.16. Following the completion of the transaction, the executive vice president owned 127,661 shares of the company’s stock, valued at approximately $14,065,688.98. The trade was a 0.24% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Deborah L. Stahlkopf sold 6,487 shares of the firm’s 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 completion of the transaction, the executive vice president owned 167,116 shares in the company, valued at approximately $18,638,447.48. This trade represents a 3.74% 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. Insiders sold 44,869 shares of company stock worth $5,005,620 in the last 90 days. Insiders own 0.01% of the company’s stock.
Key Stories Impacting Cisco Systems Here are the key news stories impacting Cisco Systems this week: Positive Sentiment: Zacks Research upgraded Cisco Systems from “hold” to “strong buy,” providing a notable near-term sentiment boost. Investors Heavily Search Cisco Systems Positive Sentiment: Cisco is scheduled to distribute approximately $1.66 billion in dividends on October 21. The payout reinforces the company’s shareholder-return appeal and may support demand for the stock. Cisco Dividend Payouts Positive Sentiment: Cisco’s AI infrastructure momentum remains a key catalyst: product orders increased 35% year over year in fiscal fourth-quarter 2026, while AI infrastructure orders reportedly exceeded Wall Street expectations. The company also announced a sovereign AI infrastructure partnership with Bell Canada, potentially expanding its networking, security and observability products in regulated markets. Bell Cisco Sovereign AI Pact Positive Sentiment: The industrial-control-system security market is projected to grow at a 16.5% annual rate through 2031, creating a favorable backdrop for Cisco’s cybersecurity business. Industrial Control System Security Market Forecast Neutral Sentiment: Bernstein initiated coverage with a “market perform” rating, suggesting balanced expectations despite Cisco’s AI opportunity. Bernstein Cisco Coverage Negative Sentiment: Piper Sandler lowered its price target to $125, indicating reduced upside expectations. Management’s cautious fiscal 2027 AI revenue outlook and the fact that AI represented only about 6% of fiscal 2026 revenue also highlight execution and valuation risks. Piper Sandler Cisco Price Target Analyst Ratings Changes A number of research firms have recently issued reports on CSCO. Sanford C. Bernstein assumed coverage on Cisco Systems in a report on Wednesday, September 30th. They issued a “market perform” rating and a $110.00 price objective for the company. Deutsche Bank Aktiengesellschaft began coverage on Cisco Systems in a research note on Tuesday, September 1st. They issued a “buy” rating and a $135.00 target price for the company. HSBC downgraded shares of Cisco Systems from a “buy” rating to a “hold” rating and decreased their price target for the stock from $137.00 to $120.00 in a research note on Friday, August 14th. Freedom Capital raised shares of Cisco Systems from a “hold” rating to a “strong-buy” rating in a report on Sunday, August 16th. Finally, 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. Three analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $128.52.
Check Out Our Latest Analysis on Cisco Systems
Cisco Systems Price Performance Shares of Cisco Systems stock opened at $112.20 on Monday. 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’s 50 day simple moving average is $112.00 and its two-hundred day simple moving average is $106.64. The stock has a market capitalization of $442.36 billion, a P/E ratio of 33.59, a price-to-earnings-growth ratio of 2.35 and a beta of 0.99. Cisco Systems, Inc. has a one year low of $66.81 and a one year high of $130.37.
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 for the quarter, beating 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 during the quarter, compared to the consensus estimate of $16.84 billion. During the same quarter in the previous year, the company posted $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. Analysts forecast that Cisco Systems, Inc. will post 4.41 EPS for the current year.
Cisco Systems Dividend Announcement The company also recently declared 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 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%.
Cisco Systems Company Profile (Free Report)
Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration, observability and data center solutions. Its products and services help businesses, governments, educational institutions and other organizations connect users and devices, manage infrastructure, protect digital environments and support cloud-based operations.
Cisco’s portfolio includes routers and switches, wireless networking equipment, network management software, firewalls, identity and access tools, endpoint security products, collaboration applications and observability platforms.
See Also Five stocks we like better than Cisco Systems Could Nike’s Brutal Sell-Off Finally Be Running Out of Steam? The AI Buildout Needs Power It Cannot Get: 4 Energy Stocks Already Have It McDonald’s Is Undergoing a Massive New Growth Strategy. Can It Win Back Consumers? MGM Resorts Stock Sinks After Diller Deal Collapse: Overreaction or Warning? 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).
Receive News & Ratings for Cisco Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Cisco Systems and related companies with MarketBeat.com's FREE daily email newsletter.
Cisco Systems (CSCO - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this seller of routers, switches, software and services have returned +0.1%, compared to the Zacks S&P 500 composite's +0.6% change. During this period, the Zacks Computer - Networking industry, which Cisco falls in, has lost 0.8%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
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.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Cisco is expected to post earnings of $1.32 per share for the current quarter, representing a year-over-year change of +32%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $5.11 for the current fiscal year indicates a year-over-year change of +18%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $5.59 indicates a change of +9.4% from what Cisco is expected to report a year ago. Over the past month, the estimate has changed +0.1%.
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 GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Cisco, the consensus sales estimate for the current quarter of $18.09 billion indicates a year-over-year change of +21.5%. For the current and next fiscal years, $73.03 billion and $77.85 billion estimates indicate +15.3% and +6.6% changes, 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.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
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.
Cisco just posted its fifth straight earnings beat while AI infrastructure orders piled up faster than Wall Street expected, yet the stock sits nearly 18% below its 52-week high. Something does not add up, and the answer could mean serious…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Our 24/7 Wall St. price target for Cisco Systems (NASDAQ:CSCO | CSCO Price Prediction) is $125.42 over the next 12 months. That is 17.6% above today’s price, and our model rates the stock a buy.
24/7 Wall St. Price Target Summary Metric Value Current Price $106.63 Price Target from 24/7 Wall St. $125.42 Upside/Downside 17.62% Recommendation BUY Confidence Level 90% For years, investors owned Cisco mainly for the dividend. Now the company is booking AI infrastructure orders fast enough to drive revenue growth into the high teens. The stock trades at about 21x forward earnings, well below pure-play AI networking stocks.
Record Earnings Collide With a September Pullback Shares are up 40.98% year to date and 61.02% over the past year. They fell 2.25% over the past week and 4.73% over the past month, partly after Piper Sandler cut its price target (CNBC). The stock sits 17.9% below its 52-week high of $129.88.
The fundamentals point the other way. Fiscal fourth-quarter revenue came in at $17.25B, up 17.6% and ahead of the $16.83B consensus. Non-GAAP EPS of $1.22 exceeded the $1.17 estimate, Cisco’s fifth consecutive EPS beat.
AI infrastructure orders reached $4B in the quarter and $9.3B for the fiscal year. Management raised fiscal 2027 guidance to $72.2B–$73.4B in revenue and $5.05–$5.11 in non-GAAP EPS.
Why Bulls See $137 and Beyond Management expects AI infrastructure revenue of about $7.5B in fiscal 2027, up from roughly $4B this year. Cisco also added three new hyperscaler design wins in the quarter. CEO Chuck Robbins said on the call, “We believe we’re only at the beginning of this super cycle.” CFO Mark Patterson added that orders should be “meaningfully higher” in fiscal 2027.
Wall Street agrees. Covering analysts count 5 Strong Buys, 14 Buys, 9 Holds and zero Sells. The bull case lands at $137.26.
Margin Squeeze and Hyperscaler Dependence Could Cap Gains Non-GAAP gross margin slipped to 66.3% from 68.4% as the sales mix shifted toward AI hardware. Price increases added about five points to fourth-quarter growth. Management warned comparisons get harder in the second half of fiscal 2027. Our bear case is $105.57.
There is a counterpoint. Management says lower-margin hyperscaler hardware still earns attractive operating profits because it adds little extra expense. Guidance calls for an operating margin of about 35%, and $8.1B remains on the buyback authorization.
Cisco Trades at a Deep Discount to Faster-Growing Rivals Arista Networks (NYSE:ANET) competes directly with Cisco in AI data center switching. Last quarter it grew revenue 37.69%, but the stock trades at 74x trailing earnings.
Hewlett Packard Enterprise (NYSE:HPE) now owns Juniper, and its networking revenue rose 74.9%. HPE guides to 16%-20% non-GAAP EPS growth in fiscal 2027, close to Cisco’s rate, but with much lower margins.
Company P/E Latest Quarter Revenue Growth Non-GAAP Operating Margin Cisco 21x forward 17.6% 35.9% Arista 74x trailing 37.69% 49.9% HPE Not meaningful 32.72% 16.2% Compared with these peers, our 24/7 Wall St. price target looks reasonable and arguably conservative.
Cisco’s AI Order Book Tips the Scale Toward Upside My 24/7 Wall St. price target is $125.42, with a buy rating and 90% confidence. Cisco trades at a discount even though AI infrastructure revenue is on track to nearly double.
I would turn cautious if AI orders stall or gross margins keep sliding. On the evidence so far, the AI boost looks stronger than the market is giving it credit for.
Year Price Target from 24/7 Wall St. 2026 $111.04 2027 $125.42 2028 $136.83 2029 $149.28 2030 $162.86 Cisco would need to keep executing its AI networking strategy for these projections to hold. A lasting cut in hyperscaler capital spending would be the biggest risk to that path. Cisco is one of several non-chip names riding the data-center expansion, and we covered seven of them, from power to networking, in a free report you can grab here.
Contact [email protected] for any questions or corrections.
A pullback just handed income investors a lower entry price than Cisco paid for its own shares, and the October record date is closing fast. Here is why this AI networking play keeps beating consumer staples for a dividend portfolio…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
MyCisco (NASDAQ:CSCO | CSCO Price Prediction) position keeps growing, and I plan to buy again before the Oct. 2 record date locks in the next 42-cent quarterly dividend, payable on Oct. 21. When I shop for income, my reflex says grab a consumer staple. Every time, I end up back at Cisco because I want my next dollar in a company that pays me while its core business speeds up.
My thesis fits in one sentence: every AI data center needs a network, and Cisco sells the switches, silicon, optics, and security that run it. CEO Chuck Robbins said it on the August call: “The network remains an absolute critical factor as to whether AI deployments succeed or fail.”
Reason #1: Growth That Speeds Up Every Quarter Fiscal 2026 revenue reached $63.33 billion, up 11.77%. The quarterly path tells the real story: growth of 7.53% in Q1, 9.71% in Q2, 11.96% in Q3 and 17.58% in Q4. Networking orders rose 40% in Q4, the eighth consecutive quarter of double-digit growth. AI infrastructure orders hit $9.3 billion for the year, roughly 4.5 times fiscal 2025. Management guides fiscal 2027 non-GAAP EPS to $5.05 to $5.11, up from $4.33.
Reason #2: 15 Straight Years of Raises Cisco raised its dividend for the 15th consecutive year in fiscal 2026, and the quarterly payout has climbed from 6 cents in 2011 to 42 cents. Fifteen years is a streak worth respecting, though the true blue chips of income investing have run it more than three times as long (we ranked ten of those Dividend Kings by valuation in a free report for readers building income portfolios). Coverage looks solid to me: dividends cost $6.553 billion against operating cash flow of $14.177 billion. Total capital returned reached $12.7 billion, which management estimated at 99% of free cash flow, with $8.1B of buyback authorization still open.
Reason #3: A Pullback Hands Me a Better Entry Shares traded around $106.49 on Sept. 29, down 3.62% over the past month and below the 52-week high of $129.88, after Piper Sandler cut its price target on growth concerns. Cisco itself bought about 13M shares in Q4 at an average of $111.53. I get a lower price than the company paid, at roughly 20x forward earnings and a PEG ratio of 0.981. Year to date, the stock is up more than 40%.
Why My Money Skips Arista Arista Networks (NASDAQ:ANET) is the AI networking pure play most readers reach for first, and it pays no dividend. For an income portfolio built for retirement, that decides it. Cisco gives me AI networking exposure plus a quarterly check that has grown every year for 15 years.
Risks That Could Make Me Stop Buying Margins are contracting. Q4 non-GAAP gross margin fell to 66.3% from 68.4% on AI hardware mix, and the CFO warned of “a slight gross margin headwind as we move through FY27.” Cash and equivalents dropped 23.8% to $7.22 billion, and hyperscaler orders arrive in chunks. My thesis lasts because operating income still rose 38.13% in Q4. I stop adding if AI orders roll over and management cuts fiscal 2027 guidance, or if capital returns exceed free cash flow and threaten the raise streak.
What Keeps My Buy Button Active Cisco reports again on Nov. 12, guiding Q1 revenue to $18 billion to $18.2 billion. Robbins says “we’re only at the beginning of this super cycle,” and I intend to collect a rising dividend every quarter while it plays out.
Contact [email protected] for any questions or corrections.
Key Takeaways CSCO's security portfolio, including Splunk, posted double-digit order growth in fiscal Q4 2026.More than 1,500 customers bought CSCO's newer security offerings in fiscal Q4 2026.CSCO's fiscal Q4 Security revenues rose 14%, while Observability revenues increased 6%. Cisco Systems (CSCO - Free Report) is benefiting from growing enterprise adoption of integrated security and observability solutions as artificial intelligence (AI), distributed applications and increasingly sophisticated cyberattacks expand IT complexity. CSCO is combining networking with security through Secure Access, XDR, Hypershield and AI Defense, while Splunk and ThousandEyes strengthen its observability and network-assurance capabilities. The integrated approach enhances CSCO’s ability to address customers seeking unified visibility and protection across networks, applications, users, and AI agents, while reinforcing its competitive positioning against Datadog (DDOG - Free Report) and CrowdStrike (CRWD - Free Report) .
Customer adoption is gaining momentum. CSCO’s entire security portfolio, including Splunk, recorded double-digit order growth in the fourth quarter of fiscal 2026. More than 1,500 customers purchased newer offerings such as Secure Access, XDR, Hypershield and AI Defense during the quarter, taking total net new customers since launch to more than 6,400. Firewall orders increased more than 30% year over year, while management highlighted that customers are increasingly seeking unified protection across users, applications and AI agents.
CSCO is also broadening its AI-driven operations capabilities. In the fourth quarter of fiscal 2026, nearly 4,500 enterprises had signed up for Cisco Cloud Control, while Resilient Infrastructure Services, powered by Cisco IQ, had more than 8,600 customers. CSCO also launched Antares, a family of open-weight small language models designed to identify known code vulnerabilities.
The momentum is beginning to support financial growth. In the fourth quarter of fiscal 2026, Security revenues rose 14% year over year to $2.23 billion, while Observability revenues increased 6% to $275 million. For fiscal 2026, Security revenues grew 2% to $8.23 billion, while Observability revenues increased 4% to $1.10 billion. Observability growth was driven by network assurance, partly offset by weakness in CSCO’s observability-suite offerings.
CSCO Faces Tough CompetitionDatadog is expanding from traditional cloud observability into AI-focused monitoring and security. More than 750 AI customers use DDOG, including all 10 top AI leaders. Its portfolio includes GPU Monitoring, Agent Observability, Agent Console, Data Observability and AI Guard. Datadog is also pushing deeper into security through AI Guard and Bits Security Analyst, which can operate with non-Datadog SIEM platforms. In the second quarter of fiscal 2026, platform adoption continued to deepen, with 58% of customers using four or more products and 37% using six or more products.
CrowdStrike is challenging CSCO through the continued expansion of its Falcon platform. The company reported next-generation SIEM annual recurring revenues (ARR) of more than $695 million, cloud security ARR above $905 million and identity ARR exceeding $585 million in the second quarter of fiscal 2027. Falcon Flex ARR surpassed $2.29 billion, up 101% year over year. CRWD is also seeing deeper platform consolidation, with 51% of subscription customers using six modules, 35% using seven and 26% using eight or more. This growing adoption across SIEM, endpoint, cloud, identity and AI security is increasing competitive pressure on CSCO’s integrated security and observability strategy.
CSCO’s Share Price Performance, Valuation & EstimatesShares of Cisco Systems have appreciated 38.5% year to date, outperforming the broader Zacks Computer and Technology sector’s 22.6% growth.
CSCO Stock’s Price Performance
Image Source: Zacks Investment Research
CSCO stock is trading at a premium, with forward 12-month price/earnings of 20.56X compared with the broader sector’s 21.27X. Cisco Systems has a Value Score of F.
CSCO’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Cisco Systems’ earnings is currently pegged at $1.32 per share, down by a penny over the past 30 days, suggesting 32% growth.
Cisco Systems currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cisco shares have surged nearly 40% this year on an AI-driven networking boom, but one valuation figure will determine whether the rally has room to run or has already priced in the good news.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Cisco Systems (NASDAQ: CSCO | CSCO Price Prediction) has had a landmark 2026. Shares are up 39.07% year to date and 59.57% over the past year, powered by what CEO Chuck Robbins calls a “networking super cycle” tied to agentic AI. The stock recently cooled, falling 4.2% in the past month after Piper Sandler trimmed its price target on growth concerns.
With hyperscaler AI orders exploding and a multi-year campus refresh underway, the question is how much upside remains. Let’s look at what it would take for Cisco to hit $130 per share in 2027.
Wall Street Warms to Cisco’s AI Story The Street is unusually engaged. The FY2027 EPS consensus has jumped from $4.7599 ninety days ago to $5.1426 today, with 22 upward revisions and zero downward revisions in the trailing 30 days.
Revenue estimates for the fiscal year cluster around $73.16 billion, in line with management’s own guidance of $72.2 billion to $73.4 billion. Cisco has also extended its EPS beat streak to five consecutive quarters, meaning actual results have a habit of running ahead of the model.
Path to $130: Here’s the Math At today’s price of roughly $105.60, Cisco trades at about 21x the FY2027 EPS midpoint of $5.08. Push shares to $130 and the multiple expands to roughly 25x forward earnings.
That is a modest premium to the S&P 500’s forward P/E around 21x to 23x, and it is well within range for a large-cap networking leader guiding to 15% revenue growth and 17% EPS growth.
What could push Cisco to $130?
The AI infrastructure ramp. Hyperscale AI revenue is guided to $7.5 billion in FY2027, roughly double FY2026’s $4 billion. Q4 alone booked $4 billion in AI orders, and full-year AI orders of $9.3 billion ran about 4.5 times FY2025. Rising estimates. FY2028 consensus climbed from $5.2338 to $5.6023 in three months, giving analysts room to keep marking targets higher. Order breadth. Q4 total product orders rose 35%, with enterprise up 21%, public sector up 30%, and networking marking its eighth consecutive quarter of double-digit growth. Capital returns. Cisco returned $12.7 billion to shareholders in FY2026 and raised its dividend for the 15th consecutive year, with $8.1 billion remaining on the buyback. Platform leverage. Robbins argues the super cycle rests on integrating “systems, silicon, optics, security, observability” into one stack, a bundle rivals struggle to match. History Says a 23% Move Is in Range Getting from $105.60 to $130 requires roughly a 23% gain.
Cisco has already delivered 39.07% year to date in 2026 and 114.15% over five years, so a mid-20s move over the next twelve months would extend the current trend. It is a stretch for a $416 billion company, but not the kind of leap that requires a market miracle.
Bottom Line on $130 Hitting $130 would require Cisco to gain about 23% and trade near 25x FY2027 earnings.
The setup is credible: guidance calls for record revenue between $72.2 billion and $73.4 billion, AI infrastructure revenue is set to nearly double (we profiled seven companies powering that same data-center buildout, from power to networking, in a free report you can grab here), analyst estimates keep climbing, and the beat streak is intact.
Risks are real, including margin pressure from a hardware-heavy mix (gross margin slipped to 66.3% from 68.4%) and dependence on hyperscaler spending. Returns at this level should not be expected every year, but we’ve outlined the blueprint for how Cisco could see outsized returns in 2027.
Contact [email protected] for any questions or corrections.
