Cisco Systems (NASDAQ:CSCO) Rating Lowered to "Hold" at Zacks Research

Key Points

• Zacks Research downgraded Cisco from a "strong-buy" to a Hold rating in a note issued Monday.
• Cisco beat the quarter—$1.04 EPS vs. $1.02 est. and $15.35B revenue (+9.7% y/y)—and disclosed about $2.1B of hyperscaler orders for AI infrastructure, reinforcing investor talk of AI tailwinds.
• Analyst opinions are mixed but largely positive, with a consensus rating of Moderate Buy and a $89.76 average target, while several firms have raised targets into the $95–$100 range.

Cisco Systems (NASDAQ:CSCO - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Monday,Zacks.com reports.

Several other equities research analysts have also commented on the stock. Argus upgraded shares of Cisco Systems to a "strong-buy" rating in a research report on Friday, February 13th. JPMorgan Chase & Co. lifted their price target on Cisco Systems from $90.00 to $95.00 and gave the stock an "overweight" rating in a research note on Monday, February 9th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Cisco Systems in a research note on Tuesday, January 27th. UBS Group lifted their price target on Cisco Systems from $90.00 to $95.00 and gave the stock a "buy" rating in a research note on Thursday, February 12th. Finally, Evercore raised Cisco Systems from an "in-line" rating to an "outperform" rating and lifted their price target for the stock from $80.00 to $100.00 in a research note on Monday, January 26th. Three research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and eight have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Cisco Systems currently has a consensus rating of "Moderate Buy" and a consensus target price of $89.76.

Cisco Systems Price Performance

Shares of NASDAQ CSCO opened at $82.61 on Monday. The firm has a market capitalization of $326.30 billion, a P/E ratio of 28.99, a PEG ratio of 3.11 and a beta of 0.83. Cisco Systems has a one year low of $53.83 and a one year high of $88.18. The company's fifty day moving average is $79.76 and its two-hundred day moving average is $76.44. 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 (NASDAQ:CSCO - Get Free Report) last issued its earnings results on Wednesday, February 11th. The network equipment provider reported $1.04 EPS for the quarter, topping the consensus estimate of $1.02 by $0.02. The company had revenue of $15.35 billion for the quarter, compared to analyst estimates of $15.11 billion. Cisco Systems had a net margin of 19.22% and a return on equity of 27.88%. The business's revenue was up 9.7% on a year-over-year basis. During the same period in the previous year, the firm earned $0.94 EPS. Analysts forecast that Cisco Systems will post 3.04 EPS for the current fiscal year.

Insider Transactions at Cisco Systems

In related news, EVP Deborah L. Stahlkopf sold 7,981 shares of the business's stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $79.50, for a total value of $634,489.50. Following the completion of the transaction, the executive vice president owned 187,097 shares of the company's stock, valued at approximately $14,874,211.50. The trade was a 4.09% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Charles Robbins sold 19,545 shares of the business's stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $76.00, for a total transaction of $1,485,420.00. Following the completion of the transaction, the chief executive officer directly owned 671,095 shares of the company's stock, valued at $51,003,220. The trade was a 2.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 46,431 shares of company stock worth $3,574,820 in the last ninety days. Company insiders own 0.01% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of CSCO. Brighton Jones LLC increased its stake in shares of Cisco Systems by 49.5% during the 4th quarter. Brighton Jones LLC now owns 74,187 shares of the network equipment provider's stock valued at $4,392,000 after acquiring an additional 24,562 shares during the last quarter. Revolve Wealth Partners LLC increased its stake in shares of Cisco Systems by 37.0% during the 4th quarter. Revolve Wealth Partners LLC now owns 9,156 shares of the network equipment provider's stock valued at $542,000 after acquiring an additional 2,474 shares during the last quarter. Sivia Capital Partners LLC grew its holdings in shares of Cisco Systems by 7.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 10,178 shares of the network equipment provider's stock worth $706,000 after purchasing an additional 712 shares during the period. Schnieders Capital Management LLC. grew its holdings in shares of Cisco Systems by 3.9% during the 2nd quarter. Schnieders Capital Management LLC. now owns 13,974 shares of the network equipment provider's stock worth $969,000 after purchasing an additional 519 shares during the period. Finally, Marshall Wace LLP grew its holdings in shares of Cisco Systems by 118.1% during the 2nd quarter. Marshall Wace LLP now owns 90,650 shares of the network equipment provider's stock worth $6,289,000 after purchasing an additional 590,650 shares during the period. Institutional investors and hedge funds own 73.33% of the company's stock.

Key Cisco Systems News

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

• Positive Sentiment: Reports say Cisco is in talks to acquire Israeli AI/cybersecurity startup Astrix for $250M–$350M, which would bolster Cisco’s capabilities for securing AI agents and signal active M&A to accelerate product gaps. M&A News: Cisco (CSCO) in Talks to Acquire Israeli Cybersecurity Startup Astrix for up to $350M
• Positive Sentiment: Analysts and investors point to AI tailwinds: Cisco reported ~10% revenue growth, surge in networking orders and $2.1B of AI infrastructure orders from hyperscalers, supporting raised guidance and a bullish view on its AI/NW positioning. Cisco Remains A Buy As AI Tailwinds Broaden
• Neutral Sentiment: Long-form analysis frames Cisco’s re-rating as a transition from a mature networking/dividend name to a critical AI-era infrastructure play, noting momentum but also execution/friction risks that keep some investors cautious. Cisco: The Stock Is Building 'Cause' While Fundamentals Pivot To AI Networking And Campus Refresh
• Neutral Sentiment: Comparative pieces position Cisco favorably vs. CrowdStrike on valuation and expanding security portfolio, which may attract value-oriented security investors but doesn’t change growth-profile debate. CRWD vs. CSCO: Which Cybersecurity Stock Should You Buy Right Now?
• Neutral Sentiment: Articles assessing whether CSCO is fairly priced note a strong 1‑year run (near +47%) but still modest valuation relative to growth, leaving room for debate on near-term upside vs. mean reversion. Is Cisco Systems (CSCO) Fairly Priced After Strong 1 Year Share Price Run?
• Neutral Sentiment: Zacks and other trending-stock rundowns highlight investor attention and key metrics to watch (orders, gross margin, AI spend), but offer no single catalyst. Here is What to Know Beyond Why Cisco Systems, Inc. (CSCO) is a Trending Stock
• Negative Sentiment: Competitive moves in data-center and device-management (e.g., Ciena’s DCOM demand and Inlayer’s strong growth) highlight intense competition and potential margin pressure in parts of Cisco’s TAM. How is Ciena's DCOM Unlocking a New Growth Engine Inside Data Centers?

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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