Cisco Systems (NASDAQ:CSCO) Raised to Buy at HSBC

Key Points

• HSBC upgraded Cisco Systems from “hold” to “buy” and set a $137 price target, implying about 18.6% upside from the current share price.
• Cisco’s recent earnings beat expectations, with Q3 revenue of $15.84 billion and adjusted EPS of $1.06, while the company also raised its FY2026 guidance.
• Analyst sentiment around Cisco remains broadly positive, with multiple firms lifting price targets after the earnings report and the stock carrying a Moderate Buy consensus rating.

Cisco Systems (NASDAQ:CSCO - Get Free Report) was upgraded by stock analysts at HSBC from a "hold" rating to a "buy" rating in a research report issued on Friday. The firm presently has a $137.00 target price on the network equipment provider's stock. HSBC's target price points to a potential upside of 18.58% from the stock's current price.

A number of other research analysts have also weighed in on the stock. Evercore raised their price target on shares of Cisco Systems from $110.00 to $150.00 and gave the company an "outperform" rating in a research note on Thursday. Morgan Stanley increased their target price on Cisco Systems from $91.00 to $120.00 and gave the company an "overweight" rating in a report on Thursday. Zacks Research downgraded Cisco Systems from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 13th. Citigroup boosted their price target on Cisco Systems from $90.00 to $112.00 and gave the stock a "buy" rating in a research report on Thursday. Finally, New Street Research increased their price objective on Cisco Systems from $82.00 to $122.00 and gave the company a "neutral" rating in a research note on Thursday. Three research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $112.73.

Cisco Systems Price Performance

Cisco Systems stock opened at $115.53 on Friday. The stock has a market capitalization of $456.33 billion, a P/E ratio of 37.51, a P/E/G ratio of 3.82 and a beta of 0.92. The company's fifty day moving average price is $84.66 and its 200 day moving average price is $79.68. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.85 and a current ratio of 0.96. Cisco Systems has a 1 year low of $62.30 and a 1 year high of $119.36.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its quarterly earnings data on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.03 by $0.03. Cisco Systems had a net margin of 20.14% and a return on equity of 28.70%. The business had revenue of $15.84 billion for the quarter, compared to the consensus estimate of $15.56 billion. During the same period last year, the firm posted $0.96 earnings per share. The company's revenue was up 12.0% compared to the same quarter last year. Cisco Systems has set its Q4 2026 guidance at 1.160-1.180 EPS and its FY 2026 guidance at 4.270-4.290 EPS. As a group, equities research analysts anticipate that Cisco Systems will post 3.42 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, EVP Deborah L. Stahlkopf sold 7,981 shares of the stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $79.50, for a total value of $634,489.50. Following the completion of the sale, the executive vice president owned 187,097 shares of the company's stock, valued at approximately $14,874,211.50. This trade represents a 4.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Thimaya K. Subaiya sold 1,744 shares of the business's stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $77.07, for a total value of $134,410.08. Following the transaction, the executive vice president directly owned 156,693 shares in the company, valued at $12,076,329.51. This trade represents a 1.10% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 15,587 shares of company stock valued at $1,230,765 over the last ninety days. 0.01% of the stock is currently owned by company insiders.

Institutional Trading of Cisco Systems

Hedge funds have recently made changes to their positions in the company. Intesa Sanpaolo Wealth Management acquired a new stake in Cisco Systems during the fourth quarter worth $25,000. MidAtlantic Capital Management Inc. acquired a new position in shares of Cisco Systems in the 4th quarter valued at $25,000. Networth Advisors LLC grew its holdings in shares of 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 during the period. Manning & Napier Advisors LLC increased its position in shares of Cisco Systems by 137.0% during the 1st quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider's stock worth $27,000 after purchasing an additional 200 shares during the last quarter. Finally, Financial Life Planners acquired a new stake in shares of Cisco Systems during the 1st quarter worth about $27,000. Hedge funds and other institutional investors own 73.33% of the company's stock.

Key Headlines Impacting Cisco Systems

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

• Positive Sentiment: Multiple analysts lifted their price targets on Cisco after the earnings beat, including Evercore, Wells Fargo, BNP Paribas Exane, Piper Sandler, KeyCorp, Morgan Stanley, Citi, UBS, Goldman Sachs, Barclays, and Bank of America, reinforcing a broadly bullish outlook for CSCO. BNP Paribas Exane Issues Positive Forecast for Cisco Systems NASDAQ: CSCO Stock Price
• Positive Sentiment: Cisco reported fiscal Q3 revenue of $15.84 billion and adjusted EPS of $1.06, both ahead of estimates, while also raising FY2026 guidance; the update suggests stronger demand trends and better near-term earnings power. CISCO REPORTS THIRD QUARTER EARNINGS
• Positive Sentiment: Management said AI infrastructure orders are accelerating, including roughly $9 billion in hyperscaler AI infrastructure orders for FY2026, fueling investor optimism that Cisco is becoming a key beneficiary of the AI buildout. Cisco CEO says tech is entering a 'networking supercycle' as stock pops 14% on strong AI demand
• Neutral Sentiment: Cisco also announced a quarterly dividend, which supports the stock’s income appeal but is not the main driver behind today’s move. Cisco Systems Stock Performance
• Negative Sentiment: The restructuring includes nearly 4,000 job cuts and up to $1 billion in related charges, which introduces execution risk and near-term cost pressure even as the market focuses on the AI growth opportunity. Cisco to Cut Jobs in Shift to Capture More AI Demand

About Cisco Systems

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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