Cisco Systems (NASDAQ:CSCO) Trading Up 1.9% - Time to Buy?

Key Points

• Cisco shares rose 1.9% on Friday, trading as high as $120.79 as investors continued to bid up the stock after a strong recent run.
• Recent coverage has been bullish on Cisco’s AI networking exposure, citing surging hyperscaler orders, campus upgrade demand, and the company’s strategic position in AI infrastructure.
• Cisco also reported solid quarterly results, with earnings and revenue beating estimates, revenue up 12% year over year, and management issuing FY 2026 guidance above analyst expectations.

Shares of Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) were up 1.9% during mid-day trading on Friday . The company traded as high as $120.79 and last traded at $120.41. Approximately 22,159,468 shares changed hands during trading, a decline of 5% from the average daily volume of 23,433,922 shares. The stock had previously closed at $118.20.

Key Headlines Impacting Cisco Systems

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

• Positive Sentiment: Cisco is being viewed as an AI networking winner, with multiple reports citing surging hyperscaler orders and stronger campus upgrade activity that could support revenue growth and the company’s AI outlook. Cisco Gains From AI Networking Boom : More Upside Ahead?
• Positive Sentiment: Another bullish article said Cisco has climbed sharply over the past month because investors are rewarding its exposure to AI networking demand, even though margin pressure remains a concern. Cisco Rises 33% in a Month: Here's Why You Should Buy the Stock
• Positive Sentiment: Coverage also emphasized Cisco’s strong recent financial results, pointing to solid top- and bottom-line growth that reinforces its role as a core tech holding for long-term investors. Impressive Financial Results Assert Cisco Systems, Inc. (CSCO) as a Top Tech Stock in Ken Fisher’s Portfolio
• Neutral Sentiment: Wall Street commentary remained broadly constructive, with articles noting bullish analyst views on Cisco, but these pieces did not add a new catalyst beyond reinforcing existing optimism. Should You Invest in Cisco (CSCO) Based on Bullish Wall Street Views?
• Neutral Sentiment: Cisco was also mentioned as part of a broader AI optics alliance focused on standardizing optical connectivity for AI infrastructure, which supports the company’s strategic positioning but is not a direct company-specific development. 3M Joins AI Optics Alliance As Shares Screen Undervalued
• Negative Sentiment: Recent insider selling by a Cisco executive could create some caution, even though it is not necessarily a sign of deteriorating fundamentals. Cisco Systems NASDAQ: CSCO EVP Sells $772,603.66 in Stock
• Negative Sentiment: Another report flagged additional insider selling, which may weigh on sentiment at the margin after the stock’s recent strong run. Insider Selling: Cisco Systems NASDAQ: CSCO Insider Sells $840,780.32 in Stock

Analysts Set New Price Targets

A number of equities research analysts have issued reports on CSCO shares. Zacks Research cut shares of Cisco Systems from a "strong-buy" rating to a "hold" rating in a report on Monday, April 13th. BNP Paribas Exane boosted their target price on shares of Cisco Systems from $87.00 to $132.00 and gave the company an "outperform" rating in a report on Thursday, May 14th. Barclays boosted their target price on shares of Cisco Systems from $76.00 to $121.00 and gave the company an "equal weight" rating in a report on Thursday, May 14th. Weiss Ratings cut shares of Cisco Systems from a "buy (b)" rating to a "buy (b-)" rating in a report on Friday, May 15th. Finally, Rosenblatt Securities reissued a "buy" rating and set a $100.00 target price on shares of Cisco Systems in a report on Thursday, February 12th. Two analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat.com, Cisco Systems presently has a consensus rating of "Moderate Buy" and a consensus target price of $118.14.

Cisco Systems Price Performance

The business's 50-day moving average price is $88.49 and its 200 day moving average price is $81.25. The stock has a market capitalization of $474.59 billion, a PE ratio of 39.09, a price-to-earnings-growth ratio of 3.47 and a beta of 0.92. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.81 and a current ratio of 0.92.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its quarterly earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 EPS for the quarter, beating analysts' consensus estimates of $1.03 by $0.03. The firm had revenue of $15.84 billion during the quarter, compared to analyst estimates of $15.56 billion. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The business's revenue for the quarter was up 12.0% on a year-over-year basis. During the same period in the previous year, the business earned $0.96 EPS. 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. Research analysts forecast that Cisco Systems, Inc. will post 3.44 earnings per share for the current year.

Cisco Systems Announces Dividend

The business also recently announced 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. The ex-dividend date is Monday, July 6th. This represents a $1.68 annualized dividend and a yield of 1.4%. Cisco Systems's payout ratio is 54.55%.

Insider Buying and Selling

In related news, SVP Maria Victoria Wong sold 2,179 shares of the company's stock in a transaction on Tuesday, February 24th. The shares were sold at an average price of $77.74, for a total value of $169,395.46. Following the completion of the transaction, the senior vice president directly owned 28,807 shares in the company, valued at approximately $2,239,456.18. The trade was a 7.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Thimaya K. Subaiya sold 1,744 shares of the company's stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $77.07, for a total transaction of $134,410.08. Following the completion of the transaction, the executive vice president owned 156,693 shares of the company's stock, valued at $12,076,329.51. This trade represents a 1.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 32,103 shares of company stock valued at $3,160,587 in the last three months. 0.01% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its position in Cisco Systems by 1.0% in 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 acquiring an additional 4,049,893 shares in the last quarter. State Street Corp lifted its stake in Cisco Systems by 0.5% in the fourth quarter. State Street Corp now owns 195,521,161 shares of the network equipment provider's stock worth $15,060,995,000 after purchasing an additional 1,057,962 shares during the last quarter. Morgan Stanley lifted its stake in Cisco Systems by 0.3% in the fourth quarter. Morgan Stanley now owns 75,326,258 shares of the network equipment provider's stock worth $5,802,382,000 after purchasing an additional 206,352 shares during the last quarter. Invesco Ltd. lifted its stake in Cisco Systems by 11.6% in the fourth quarter. Invesco Ltd. now owns 59,836,782 shares of the network equipment provider's stock worth $4,609,227,000 after purchasing an additional 6,224,062 shares during the last quarter. Finally, Norges Bank bought a new stake in Cisco Systems in the fourth quarter worth $4,473,272,000. 73.33% of the stock is currently owned by hedge funds and other institutional investors.

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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