Cisco Systems (NASDAQ:CSCO) Shares Up 3.4% - Should You Buy?

Key Points

• Cisco shares rose 3.4% on Thursday, trading as high as $118.60 as investors continued to favor the stock’s AI-related infrastructure exposure and recent technical momentum.
• Analysts remain broadly bullish after Cisco’s strong earnings and raised guidance, with several firms lifting price targets; the consensus rating is now Moderate Buy with an average target of about $118.14.
• Cisco’s latest quarter beat expectations, with EPS of $1.06 on revenue of $15.84 billion, and the company also announced a $0.42 quarterly dividend payable July 22.

Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) shares shot up 3.4% on Thursday . The stock traded as high as $118.60 and last traded at $118.20. 22,616,853 shares were traded during trading, a decline of 4% from the average session volume of 23,446,787 shares. The stock had previously closed at $114.35.

More Cisco Systems News

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

• Positive Sentiment: Investors continue to view Cisco as an AI “pick-and-shovel” winner, since its switches, routers, and connectivity products are essential for AI data centers. Cisco Systems (CSCO): The AI Winner in 2026
• Positive Sentiment: Wall Street sentiment remains supportive after Cisco’s strong quarterly report and raised outlook, with multiple firms lifting price targets and reiterating bullish ratings. HSBC nearly doubles Cisco stock price target for 2026
• Positive Sentiment: Cisco’s recent AI-agent and data-center connectivity initiatives are strengthening the market’s long-term growth narrative around the stock. Cisco Ties AI Agent Push To Data Center Connectivity Standards
• Positive Sentiment: Technical momentum is also favorable, with the stock attracting attention after a powerful rally and strong relative strength. Cisco's AI Infrastructure Push Drives Stock Momentum Score Up As Rosenblatt Sees 30% Upside
• Positive Sentiment: Insider and institutional activity remains supportive overall, as Cisco is still widely held by large investors and insiders sold under pre-arranged plans rather than on a sudden negative catalyst. Oliver Tuszik Sells 2,761 Shares of Cisco Systems NASDAQ: CSCO Stock

Wall Street Analysts Forecast Growth

Several analysts have recently commented on the company. Weiss Ratings cut Cisco Systems from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, May 15th. Morgan Stanley raised their target price on Cisco Systems from $91.00 to $120.00 and gave the stock an "overweight" rating in a research report on Thursday, May 14th. New Street Research raised their target price on Cisco Systems from $82.00 to $122.00 and gave the stock a "neutral" rating in a research report on Thursday, May 14th. Citigroup raised their target price on Cisco Systems from $90.00 to $112.00 and gave the stock a "buy" rating in a research report on Thursday, May 14th. Finally, Argus raised their target price on Cisco Systems from $100.00 to $150.00 and gave the stock a "buy" rating in a research report on Tuesday. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and eight have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Cisco Systems has an average rating of "Moderate Buy" and an average price target of $118.14.

Cisco Systems Trading Up 3.4%

The company has a debt-to-equity ratio of 0.40, a current ratio of 0.92 and a quick ratio of 0.81. The company has a fifty day moving average of $87.68 and a 200-day moving average of $80.93. The firm has a market capitalization of $466.88 billion, a PE ratio of 38.38, a price-to-earnings-growth ratio of 3.51 and a beta of 0.92.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last posted its earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 EPS for the quarter, topping the consensus estimate of $1.03 by $0.03. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The firm had revenue of $15.84 billion for the quarter, compared to the consensus estimate of $15.56 billion. During the same period in the prior year, the business posted $0.96 earnings per share. The business'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. On average, sell-side analysts anticipate that Cisco Systems, Inc. will post 3.44 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

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

Insider Buying and Selling

In other Cisco Systems news, insider Jeetendra I. Patel sold 7,169 shares of the business's stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $117.28, for a total value of $840,780.32. Following the completion of the sale, the insider owned 246,737 shares of the company's stock, valued at $28,937,315.36. The trade was a 2.82% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,761 shares of the business's stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $114.61, for a total value of $316,438.21. Following the completion of the sale, the executive vice president directly owned 180,877 shares of the company's stock, valued at $20,730,312.97. This represents a 1.50% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 32,103 shares of company stock valued at $3,160,587. 0.01% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Cisco Systems

Several large investors have recently made changes to their positions in the business. Financial Insights Inc. lifted its position in shares of Cisco Systems by 1.5% during the 1st quarter. Financial Insights Inc. now owns 6,220 shares of the network equipment provider's stock worth $483,000 after purchasing an additional 92 shares during the last quarter. Signature Resources Capital Management LLC lifted its position in shares of Cisco Systems by 2.3% during the 1st quarter. Signature Resources Capital Management LLC now owns 5,061 shares of the network equipment provider's stock worth $393,000 after purchasing an additional 116 shares during the last quarter. Smithfield Trust Co lifted its position in shares of Cisco Systems by 0.3% during the 4th quarter. Smithfield Trust Co now owns 33,666 shares of the network equipment provider's stock worth $2,596,000 after purchasing an additional 117 shares during the last quarter. Pacific Sage Partners LLC lifted its position in shares of Cisco Systems by 0.7% during the 1st quarter. Pacific Sage Partners LLC now owns 16,185 shares of the network equipment provider's stock worth $1,256,000 after purchasing an additional 118 shares during the last quarter. Finally, Capstone Wealth Management Group LLC increased its stake in Cisco Systems by 3.2% during the fourth quarter. Capstone Wealth Management Group LLC now owns 3,818 shares of the network equipment provider's stock valued at $294,000 after acquiring an additional 120 shares during the period. Institutional investors and hedge funds own 73.33% of the company's stock.

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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