Cisco Systems, Inc. (NASDAQ:CSCO) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts remain moderately bullish on Cisco: Of 25 firms covering the stock, 16 rate it a buy, two rate it a strong buy and seven recommend holding. The average 12-month price target is approximately $129.68, above the reported share price of $109.17.
• Recent results exceeded expectations: Quarterly revenue rose 17.6% year over year to $17.25 billion, while adjusted EPS of $1.22 beat estimates. Cisco also issued fiscal 2027 EPS guidance of $5.05 to $5.11, with AI-driven networking demand identified as a potential catalyst.
• Supply constraints remain a risk despite shareholder returns: Component shortages are limiting campus-switch availability, potentially delaying networking growth. Cisco announced a quarterly dividend of $0.42 per share, or $1.68 annualized, representing a 1.5% yield.

Shares of Cisco Systems, Inc. (NASDAQ:CSCO - Get Free Report) have been given an average recommendation of "Moderate Buy" by the twenty-five research firms that are covering the company, MarketBeat reports. Seven research analysts have rated the stock with a hold rating, sixteen have assigned a buy rating and two have issued a strong buy rating on the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $129.6818.

A number of brokerages have commented on CSCO. The Goldman Sachs Group increased their price objective on Cisco Systems from $116.00 to $125.00 and gave the company a "neutral" rating in a research report on Wednesday, June 3rd. CICC Research lifted their price objective on Cisco Systems from $96.00 to $125.00 and gave the stock an "outperform" rating in a research report on Monday, May 18th. BNP Paribas Exane raised their target price on shares of Cisco Systems from $87.00 to $132.00 and gave the company an "outperform" rating in a research note on Thursday, May 14th. Barclays boosted their price target on shares of Cisco Systems from $121.00 to $123.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 13th. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Cisco Systems in a research note on Wednesday, August 26th.

Trending Headlines about Cisco Systems

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

• Positive Sentiment: AI-related networking demand remains a key potential catalyst. Commentary comparing today’s AI buildout with the internet boom argues that current spending is supported by real infrastructure investment, which could benefit Cisco’s data-center networking and software businesses. Why Today's AI Boom Differs From the Internet Bubble
• Positive Sentiment: Industry data showed campus-switch average selling prices increased 19% in the second quarter of 2026, helping the market return to revenue growth. Higher pricing and continued demand could support Cisco’s sales and margins, although shortages also limited product availability. Market Prices Skyrocket, Driving Campus Switch Market to Growth in 2Q 2026
• Positive Sentiment: Cisco’s recent results provide a favorable fundamental backdrop: revenue rose 17.6% year over year to $17.25 billion, and adjusted earnings of $1.22 per share exceeded estimates. The company also issued fiscal 2027 earnings guidance of $5.05 to $5.11 per share.
• Neutral Sentiment: At the Goldman Sachs Communacopia + Technology Conference, Cisco presented its latest business and technology outlook. The transcript keeps attention on the company’s AI, networking and recurring-revenue strategy, but the supplied report does not identify a major new announcement likely to materially change estimates. Cisco Systems Presents at Goldman Sachs Communacopia + Technology Conference 2026
• Neutral Sentiment: Repeated “buy now” coverage from Zacks reflects increased investor interest, rather than a new corporate catalyst. Cisco’s roughly 33 forward-looking earnings multiple makes continued growth execution important for further upside. Is Trending Stock Cisco Systems a Buy Now?
• Negative Sentiment: Component shortages are limiting campus-switch supply even as prices rise. A similar decline in Ciena shares highlights investor concern that supply constraints could delay industry growth or pressure customer spending, creating a near-term risk for Cisco’s networking outlook. Ciena Stock Down 14% in the Past Month

Insider Activity at Cisco Systems

In other news, EVP Deborah Stahlkopf sold 6,487 shares of the company's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $111.53, for a total value of $723,495.11. Following the completion of the sale, the executive vice president directly owned 167,116 shares of the company's stock, valued at $18,638,447.48. This represents a 3.74% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,760 shares of Cisco Systems stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $112.46, for a total transaction of $310,389.60. Following the transaction, the executive vice president directly owned 165,276 shares in the company, valued at $18,586,938.96. The trade was a 1.64% 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. In the last three months, insiders sold 53,611 shares of company stock worth $6,066,680. 0.01% of the stock is owned by company insiders.

Hedge Funds Weigh In On Cisco Systems

Several institutional investors have recently modified their holdings of the business. MidAtlantic Capital Management Inc. bought a new stake in shares of Cisco Systems during the fourth quarter worth $25,000. Intesa Sanpaolo Wealth Management bought a new position in Cisco Systems during the 4th quarter worth about $25,000. Networth Advisors LLC raised its stake in shares of Cisco Systems by 276.4% in the 1st quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider's stock valued at $26,000 after purchasing an additional 246 shares during the period. Financial Life Planners acquired a new position in shares of Cisco Systems during the first quarter worth about $27,000. Finally, Manning & Napier Advisors LLC grew its holdings in shares of Cisco Systems by 137.0% during the first quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider's stock worth $27,000 after buying an additional 200 shares in the last quarter. Institutional investors own 73.33% of the company's stock.

Cisco Systems Stock Performance

Cisco Systems stock opened at $109.17 on Wednesday. The stock has a 50-day simple moving average of $113.93 and a 200 day simple moving average of $102.82. The stock has a market capitalization of $430.29 billion, a price-to-earnings ratio of 32.69, a P/E/G ratio of 2.28 and a beta of 1.00. The company has a quick ratio of 0.79, a current ratio of 0.93 and a debt-to-equity ratio of 0.39. Cisco Systems has a 12-month low of $66.13 and a 12-month high of $130.37.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last issued its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, topping analysts' consensus estimates of $1.17 by $0.05. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The firm 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 firm earned $0.99 EPS. The company's revenue 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. On average, research analysts anticipate that Cisco Systems will post 4.43 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 21st. Shareholders of record on Friday, October 2nd will be paid a $0.42 dividend. The ex-dividend date of this dividend is Friday, October 2nd. This represents a $1.68 annualized dividend and a yield of 1.5%. Cisco Systems's dividend payout ratio is presently 50.30%.

About Cisco Systems

Cisco Systems, Inc is a global technology company that provides networking, cybersecurity, collaboration, observability and other information technology solutions. Its offerings include routers, switches, wireless networking equipment, data center infrastructure, security platforms, unified communications tools and software designed to help organizations connect, manage and protect their digital environments.

Cisco serves businesses, government agencies, educational institutions, telecommunications providers and other organizations worldwide.

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