Cisco Systems (NASDAQ:CSCO) Shares Down 1.3% - Here's Why

Key Points

• Cisco shares fell 1.3% on the day, trading as low as $118.36 after closing at $120.36, with volume running below its average. The pullback came despite no major company-specific negative catalyst in the report.
• Recent industry data was supportive, as Dell’Oro Group reported double-digit growth in campus switch shipments for a second straight quarter, along with rising prices from component shortages. That points to healthier demand for networking equipment, which is positive for Cisco’s core business.
• Cisco’s latest results were solid, with Q1 earnings of $1.06 per share beating estimates and revenue of $15.84 billion topping forecasts; the company also raised guidance for fiscal 2026. However, the stock may face some caution after insider sales and comments that it is looking stretched near a 52-week high.

Shares of Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) were down 1.3% on Wednesday . The company traded as low as $118.36 and last traded at $118.80. Approximately 19,606,657 shares traded hands during trading, a decline of 17% from the average daily volume of 23,738,979 shares. The stock had previously closed at $120.36.

Cisco Systems News Summary

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

• Positive Sentiment: Industry data from Dell’Oro Group showed campus switch shipments rose double digits for the second straight quarter, with prices also climbing due to component shortages. That supports the case for stronger networking equipment demand, a favorable backdrop for Cisco’s core business. 1Q 2026 Campus Switch Shipments Grow Double Digits as Prices Rise Due to Component Shortages, According to Dell'Oro Group
• Positive Sentiment: Several market roundups highlighted CSCO as a stock with AI-driven upside potential and a solid name to own as the S&P 500 hit a record high, which may be helping keep longer-term investor sentiment constructive. 4 Solid Stocks to Buy as S&P 500 Hits Fresh All-Time Closing High
• Neutral Sentiment: Cisco was also mentioned in a note about a large increase in short interest, but the filing showed zero shares reported, so the data appears unreliable and does not clearly change the outlook.
• Neutral Sentiment: Coverage suggesting Cisco is overvalued or nearing a 52-week high points to a stretched valuation after a strong run, which can make investors more cautious and limit near-term upside. Cisco: Stock Price Overvalued But More Justified Than Dot-Com Era Cisco Stock Nearing 52-Week High: Buy, Sell or Hold?
• Negative Sentiment: Broader tech weakness also pressured sentiment, as the Nasdaq fell to a five-week low amid a sector pullback. That can weigh on Cisco even if company-specific fundamentals remain intact. Nasdaq Composite Falls to 5-Week Low Amid Tech Pullback

Analyst Ratings Changes

A number of brokerages have recently issued reports on CSCO. UBS Group raised their target price on shares of Cisco Systems from $95.00 to $132.00 and gave the stock a "buy" rating in a research report on Thursday, May 14th. Wall Street Zen lowered shares of Cisco Systems from a "buy" rating to a "hold" rating in a research report on Saturday, March 14th. Weiss Ratings upgraded shares of Cisco Systems from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, May 29th. KeyCorp raised their target price on shares of Cisco Systems from $87.00 to $125.00 and gave the stock an "overweight" rating in a research report on Thursday, May 14th. Finally, HSBC upgraded shares of Cisco Systems from a "hold" rating to a "buy" rating and raised their target price for the stock from $77.00 to $137.00 in a research report on Friday, May 15th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, Cisco Systems currently has an average rating of "Moderate Buy" and an average price target of $120.18.

Cisco Systems Trading Down 1.3%

The business's 50-day moving average is $99.70 and its two-hundred day moving average is $85.63. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.81 and a current ratio of 0.92. The stock has a market capitalization of $468.24 billion, a PE ratio of 38.57, a price-to-earnings-growth ratio of 3.16 and a beta of 1.01.

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 for the quarter, beating analysts' consensus estimates of $1.03 by $0.03. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The firm had revenue of $15.84 billion for the quarter, compared to analyst estimates of $15.56 billion. During the same period last year, the firm posted $0.96 EPS. Cisco Systems's quarterly revenue was up 12.0% on a year-over-year basis. 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, Inc. will post 3.54 earnings per share for the current year.

Cisco Systems Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 22nd. Investors of record on Monday, July 6th will be given a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date is Monday, July 6th. Cisco Systems's dividend payout ratio (DPR) is 54.55%.

Insider Transactions at Cisco Systems

In related news, insider Jeetendra I. Patel sold 7,169 shares of Cisco Systems stock in a transaction on Friday, May 15th. The shares were sold at an average price of $117.28, for a total value of $840,780.32. Following the transaction, the insider directly owned 246,737 shares in the company, valued at $28,937,315.36. This trade represents a 2.82% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,400 shares of Cisco Systems stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $120.03, for a total transaction of $2,568,642.00. Following the completion of the transaction, the chief executive officer owned 637,085 shares in the company, valued at approximately $76,469,312.55. This trade represents a 3.25% 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. Insiders sold a total of 50,773 shares of company stock worth $5,517,109 over the last quarter. 0.01% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Cisco Systems

Several institutional investors have recently made changes to their positions in the stock. FAS Wealth Partners Inc. boosted its position in shares of Cisco Systems by 195.7% during the 1st quarter. FAS Wealth Partners Inc. now owns 46,604 shares of the network equipment provider's stock worth $3,616,000 after purchasing an additional 30,841 shares in the last quarter. Farmers National Bank boosted its position in shares of Cisco Systems by 3.8% during the 1st quarter. Farmers National Bank now owns 100,212 shares of the network equipment provider's stock worth $7,775,000 after purchasing an additional 3,671 shares in the last quarter. Evansbrook LLC boosted its position in shares of Cisco Systems by 3.9% during the 1st quarter. Evansbrook LLC now owns 5,324 shares of the network equipment provider's stock worth $413,000 after purchasing an additional 200 shares in the last quarter. Wealthquest Corp boosted its position in shares of Cisco Systems by 7.6% during the 1st quarter. Wealthquest Corp now owns 3,262 shares of the network equipment provider's stock worth $253,000 after purchasing an additional 230 shares in the last quarter. Finally, Stillwater Private Wealth LLC purchased a new stake in shares of Cisco Systems during the 1st quarter worth $283,000. 73.33% of the stock is currently owned by hedge funds and other institutional investors.

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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