Cisco Systems, Inc. (NASDAQ:CSCO) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a Moderate Buy consensus: Of 23 analysts, 15 rate Cisco a buy, seven hold, and one strong buy, with an average 12-month price target of $129.43.
• Strong results and AI-driven outlook: Cisco reported quarterly revenue of $17.25 billion and adjusted EPS of $1.22, beating estimates, while AI infrastructure orders surged and fiscal 2027 guidance projects roughly 15% revenue growth.
• Risks remain despite the bullish outlook: Shares have pulled back as investors question elevated expectations, premium valuation and margin pressure from lower-margin AI hardware; HSBC downgraded the stock to Hold and cut its price target to $120.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) has been given an average recommendation of "Moderate Buy" by the twenty-three analysts that are currently covering the stock, Marketbeat Ratings reports. Seven research analysts have rated the stock with a hold rating, fifteen have given a buy rating and one has given a strong buy rating to the company. The average 12 month price objective among analysts that have issued ratings on the stock in the last year is $129.4286.

CSCO has been the topic of a number of research reports. UBS Group raised 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. BNP Paribas Exane increased their price target on shares of Cisco Systems from $87.00 to $132.00 and gave the stock an "outperform" rating in a research note on Thursday, May 14th. Wall Street Zen raised shares of Cisco Systems from a "hold" rating to a "buy" rating in a research report on Saturday. Wells Fargo & Company lifted their price objective on shares of Cisco Systems from $130.00 to $150.00 and gave the company an "overweight" rating in a research note on Thursday. Finally, Morgan Stanley upped their target price on shares of Cisco Systems from $130.00 to $135.00 and gave the company an "overweight" rating in a report on Thursday.

Cisco Systems News Summary

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

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

Insider Buying and Selling at Cisco Systems

In other news, EVP Oliver Tuszik sold 2,607 shares of the business's stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $121.12, for a total value of $315,759.84. Following the transaction, the executive vice president owned 172,727 shares of the company's stock, valued at approximately $20,920,694.24. The trade was a 1.49% decrease in their ownership of the stock. The transaction 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 21,400 shares of the company's stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $120.03, for a total value of $2,568,642.00. Following the sale, the chief executive officer owned 637,085 shares of the company's stock, valued at $76,469,312.55. This trade represents a 3.25% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 31,134 shares of company stock valued at $3,739,000 in the last ninety days. Insiders own 0.01% of the company's stock.

Hedge Funds Weigh In On Cisco Systems

Hedge funds and other institutional investors have recently bought and sold shares of the company. Jupiter Topco LLC acquired a new position in shares of Cisco Systems during the second quarter worth about $228,476,000. J. Goldman & Co LP purchased a new position in Cisco Systems during the second quarter worth about $348,000. PDT Partners LLC acquired a new stake in Cisco Systems in the second quarter valued at about $799,000. Palisade Capital Management LP lifted its position in Cisco Systems by 7.2% in the second quarter. Palisade Capital Management LP now owns 10,606 shares of the network equipment provider's stock valued at $1,246,000 after purchasing an additional 712 shares during the period. Finally, Jones Financial Companies Lllp boosted its holdings in Cisco Systems by 4.9% in the 2nd quarter. Jones Financial Companies Lllp now owns 2,149,133 shares of the network equipment provider's stock valued at $244,564,000 after purchasing an additional 100,899 shares in the last quarter. 73.33% of the stock is currently owned by hedge funds and other institutional investors.

Cisco Systems Stock Down 1.6%

Cisco Systems stock opened at $111.68 on Friday. The company has a market capitalization of $440.18 billion, a P/E ratio of 33.44, a PEG ratio of 2.56 and a beta of 1.02. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.81 and a current ratio of 0.93. Cisco Systems has a fifty-two week low of $65.75 and a fifty-two week high of $130.37. The stock has a 50-day simple moving average of $117.03 and a 200-day simple moving average of $99.09.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.17 by $0.05. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%.The 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 business posted $0.99 EPS. The firm'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. Equities research analysts expect that Cisco Systems will post 4 earnings per share for the current year.

Cisco Systems Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 21st. Investors of record on Friday, October 2nd will be given a $0.42 dividend. This represents a $1.68 annualized dividend and a yield of 1.5%. The ex-dividend date is Friday, October 2nd. Cisco Systems's payout ratio is 54.55%.

Cisco Systems Company Profile

Cisco Systems, Inc is a global technology company that designs, manufactures and sells networking hardware, software and telecommunications equipment. Its core business focuses on enabling enterprise and service-provider networks through products such as routers, switches, network security appliances and wireless systems. Over time Cisco has broadened its portfolio to emphasize software-defined networking, cybersecurity, cloud infrastructure and edge computing solutions that help organizations build and manage modern IT environments.

In addition to hardware, Cisco offers a growing range of software platforms and subscription services for network management, security, analytics and collaboration.

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