Cisco Systems (NASDAQ:CSCO) Stock Price Expected to Rise, UBS Group Analyst Says

Key Points

• UBS raised Cisco’s price target to $138 from $132 and maintained a “Buy” rating, implying 21.62% upside. The broader analyst consensus is “Moderate Buy,” with an average target of $130.24.
• Cisco reported quarterly revenue of $17.25 billion and EPS of $1.22, beating analyst estimates, while revenue increased 17.6% year over year. Management also issued fiscal 2027 EPS guidance of $5.05 to $5.11.
• Despite strong results and analyst support, Cisco shares fell 8.4% to $113.47. Investors remain concerned about elevated valuation, gross-margin pressure and whether AI-related networking growth can meet high expectations.

Cisco Systems (NASDAQ:CSCO - Get Free Report) had its target price boosted by stock analysts at UBS Group from $132.00 to $138.00 in a research report issued on Thursday,Benzinga reports. The brokerage presently has a "buy" rating on the network equipment provider's stock. UBS Group's target price would indicate a potential upside of 21.62% from the company's current price.

Several other brokerages have also recently issued reports on CSCO. CICC Research upped their price objective on Cisco Systems from $96.00 to $125.00 and gave the company an "outperform" rating in a research note on Monday, May 18th. New Street Research lifted 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. Argus boosted their price target on Cisco Systems from $100.00 to $150.00 and gave the company a "buy" rating in a report on Tuesday, May 19th. Wells Fargo & Company upped their price target on Cisco Systems from $130.00 to $150.00 and gave the company an "overweight" rating in a research report on Thursday. Finally, Citic Securities lifted their price objective on shares of Cisco Systems from $90.00 to $130.00 in a report on Friday, May 15th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have issued a Hold rating to the company's stock. According to data from MarketBeat, Cisco Systems currently has an average rating of "Moderate Buy" and a consensus target price of $130.24.

Cisco Systems Stock Down 8.4%

CSCO traded down $10.41 during trading on Thursday, hitting $113.47. The company had a trading volume of 61,232,058 shares, compared to its average volume of 23,772,275. The company has a market cap of $447.24 billion, a PE ratio of 36.84, a P/E/G ratio of 2.71 and a beta of 1.02. The company has a debt-to-equity ratio of 0.40, a current ratio of 0.92 and a quick ratio of 0.81. Cisco Systems has a 1-year low of $65.75 and a 1-year high of $130.37. The business has a 50-day moving average of $117.56 and a 200-day moving average of $98.72.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last issued its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.17 by $0.05. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The business had revenue of $17.25 billion for the quarter, compared to analyst estimates of $16.84 billion. During the same quarter in the prior year, the business posted $0.99 EPS. The company's revenue for the quarter was up 17.6% on a year-over-year basis. 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. As a group, analysts forecast that Cisco Systems will post 3.54 earnings per share for the current year.

Insider Buying and Selling at Cisco Systems

In related news, EVP Oliver Tuszik sold 2,607 shares of the firm'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 sale, the executive vice president owned 172,727 shares of the company's stock, valued at approximately $20,920,694.24. This trade represents a 1.49% decrease in their position. The sale 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 business's stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $120.03, for a total value of $2,568,642.00. Following the transaction, the chief executive officer owned 637,085 shares of the company's stock, valued at $76,469,312.55. This 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. In the last three months, insiders sold 47,650 shares of company stock worth $5,668,823. Corporate insiders own 0.01% of the company's stock.

Institutional Trading of Cisco Systems

A number of large investors have recently modified their holdings of CSCO. Vanguard Group Inc. boosted its position in shares of Cisco Systems by 1.0% during the fourth quarter. Vanguard Group Inc. now owns 398,943,293 shares of the network equipment provider's stock worth $30,730,602,000 after buying an additional 4,049,893 shares during the period. BlackRock Inc. acquired a new stake in Cisco Systems in the 2nd quarter valued at approximately $42,129,647,000. State Street Corp raised its stake in Cisco Systems by 0.5% during the 4th quarter. State Street Corp now owns 195,521,161 shares of the network equipment provider's stock valued at $15,060,995,000 after acquiring an additional 1,057,962 shares in the last quarter. Morgan Stanley raised its stake in Cisco Systems by 0.3% during the 4th quarter. Morgan Stanley now owns 75,326,258 shares of the network equipment provider's stock valued at $5,802,382,000 after acquiring an additional 206,352 shares in the last quarter. Finally, Invesco Ltd. boosted its position in Cisco Systems by 11.6% during the 4th quarter. Invesco Ltd. now owns 59,836,782 shares of the network equipment provider's stock worth $4,609,227,000 after acquiring an additional 6,224,062 shares during the period. Institutional investors and hedge funds own 73.33% of the company's stock.

Cisco Systems News Summary

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

• Positive Sentiment: Cisco reported record fiscal Q4 revenue of approximately $17.3 billion, up 18% year over year, while non-GAAP EPS of $1.22 surpassed the $1.17 consensus estimate. Networking revenue and product orders were strong, supported by AI infrastructure, data-center switching and campus demand. Cisco's Q4 Earnings Beat Estimates, Strong Networking Aids Revenues
• Positive Sentiment: Management forecast fiscal 2027 revenue of $72.2 billion to $73.4 billion and non-GAAP EPS of $5.05 to $5.11, above Wall Street expectations. Cisco also expects $7.5 billion of AI infrastructure revenue in fiscal 2027, following $9.3 billion of AI orders in fiscal 2026. Cisco Reports Fourth Quarter and Fiscal Year 2026 Earnings
• Positive Sentiment: Several analysts raised their price targets after the report, including Wells Fargo to $150, Rosenblatt to $165 and Truist to $140, indicating that longer-term analysts remain constructive on Cisco’s AI networking opportunity.
• Neutral Sentiment: Cisco declared a quarterly dividend of $0.42 per share, payable October 21 to shareholders of record October 2. The dividend provides ongoing income support but was not the primary market catalyst.
• Negative Sentiment: The earnings beat failed to clear an exceptionally high investor bar after CSCO’s strong 2026 rally. Analysts described the outlook as potentially conservative relative to current demand, while investors questioned how long AI-related growth can accelerate at the required pace. Cisco shares slide despite earnings beat and stronger-than-expected guidance
• Negative Sentiment: Gross-margin concerns weighed on the stock. Cisco’s AI networking expansion may pressure profitability through product mix, pricing and investment requirements; reports also cited weaker-than-expected services revenue. These concerns are particularly important given CSCO’s elevated valuation.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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