Free Trial

Cisco Stock Eyes New Highs in 2025 on AI, Earnings, Upgrades

Cisco Worldwide network connectivity

Key Points

  • Cisco Systems' stock price is set to hit a new high after strong results and improved guidance. 
  • AI drives strength in all segments, geographies, and end markets.
  • Analysts are lifting their price targets; this upgrade cycle could last for several quarters
  • Want stock alerts on Cisco Systems? Get 5 Weeks of MarketBeat All Access for $5. Get My Stock Alerts.

Cisco Systems Today

Cisco Systems, Inc. stock logo
CSCOCSCO 90-day performance
Cisco Systems
$68.44 +0.06 (+0.08%)
As of 01:58 PM Eastern
This is a fair market value price provided by Polygon.io. Learn more.
52-Week Range
$47.85
$72.55
Dividend Yield
2.40%
P/E Ratio
26.14
Price Target
$74.53

For numerous reasons, Cisco Systems' NASDAQ: CSCO stock price will reach new highs in 2025 and continue to trend higher into 2026. Those include outperformance in FQ3, guidance for FQ4, AI, the analysts, and capital returns. The takeaway is that AI drives business strength, leading to improved guidance and a high likelihood of strong performance in F2026. The analysts are paying attention, lifting their price targets, and leading this market higher. 

How high Cisco’s stock price can go depends on how long the AI boost and the analyst upgrade cycle last, and it could be a considerable amount of time. Demand in existing markets is robust, and the new deals with Saudi Arabia’s HUMAIN will drive strength for Cisco, along with NVIDIA NASDAQ: NVDA, Advanced Micro Devices NASDAQ: AMD, and Super Micro Computers NASDAQ: SMCI.

As it is, the post-release activity includes nothing but price target increases, with the bulk leading to the $70-$75 range, a 15% upside sufficient to set a new all-time high. Other analysts' trends supporting Cisco’s stock price outlook include increased coverage and firming sentiment. 

Cisco Stock price

Cisco’s Business Is Firing on All Cylinders in 2025, Aided by AI

Cisco’s Q3 results are solid, with strengths in all segments, geographies, and end markets supported by AI demand. The company reported $14.15 billion in net revenue, up 11.4% YOY and 65 basis points ahead of MarketBeat’s consensus. The Americas was strongest with a 14% gain, followed by 8% and 9% gains in EMEA and APJC.

Product sales led segmentally, up 15%, trailed by a 3% increase in services. All end markets produced growth, led by a 54% increase in Security, a positive sign for cybersecurity leaders like Palo Alto Networks. Large clients were also a driver, with web-scale businesses leaning hard into data center builds and the required networking. 

Cisco Systems Dividend Payments

Dividend Yield
2.40%
Annual Dividend
$1.64
Dividend Increase Track Record
13 Years
Dividend Payout Ratio
62.60%
Next Dividend Payment
Oct. 22
CSCO Dividend History

Margin news is also good. Depending on the comparison, the details are mixed on a GAAP and adjusted basis, but the net result is generally flat compared to last year. That left adjusted earnings at $0.96, about 200 bps above consensus, and a 9% investor gain. More importantly, cash flow and free cash flow remain solid to sustain balance sheet health and capital returns. 

The guidance is equally strong. The Q4 and FY targets have been lifted to ranges, and the analysts' consensus is at or below their low ends. 

Cisco is a capital-returning machine that pays an above-average dividend while trading at a below-average valuation and repurchasing significant shares. The dividend distribution annualizes to roughly 2.7% with shares near $65.50, about 16x current year earnings.

That’s about half the valuation of leading AI infrastructure names, suggesting a robust upside potential. The share repurchases are aggressive, reducing the count by an average of 1.4% in Q3 and are expected to continue at that pace for the foreseeable future. The company has $15 billion left under its current authorization, or enough to last for about 10 quarters at the Q3 pace. 

Institutional Trends Provide Tailwind for CSCO Stock Price Action

Cisco Systems Stock Forecast Today

12-Month Stock Price Forecast:
$74.53
8.59% Upside
Moderate Buy
Based on 24 Analyst Ratings
Current Price$68.63
High Forecast$87.00
Average Forecast$74.53
Low Forecast$63.00
Cisco Systems Stock Forecast Details

The institutional trends provide a tailwind for Cisco’s stock price action in 2025 and will likely continue to do so as the year progresses. The trends include reverting to buying on balance at the end of 2024 and accelerating the bullish activity in 2025. Given the outperformance and outlook for continued business strength, they own nearly 75% of the stock and are a solid support base unlikely to sell. 

The stock price action following the release was favorable. CSCO stock surged more than 5% to a closing high. Cisco’s stock price will continue to increase over the coming weeks and months, assuming the market follows through on this signal. If not, the CSCO market risks becoming range-bound at current levels until later in the year. 

Should You Invest $1,000 in Cisco Systems Right Now?

Before you consider Cisco Systems, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Cisco Systems wasn't on the list.

While Cisco Systems currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

7 Stocks to Ride The A.I. Megaboom Cover


We are about to experience the greatest A.I. boom in stock market history...

Thanks to a pivotal economic catalyst, specific tech stocks will skyrocket just like they did during the "dot com" boom in the 1990s.

That’s why, we’ve hand-selected 7 tiny tech disruptor stocks positioned to surge.

  1. The first pick is a tiny under-the-radar A.I. stock that's trading for just $3.00. This company already has 98 registered patents for cutting-edge voice and sound recognition technology... And has lined up major partnerships with some of the biggest names in the auto, tech, and music industry... plus many more.
  2. The second pick presents an affordable avenue to bolster EVs and AI development…. Analysts are calling this stock a “buy” right now and predict a high price target of $19.20, substantially more than its current $6 trading price.
  3. Our final and favorite pick is generating a brand-new kind of AI. It's believed this tech will be bigger than the current well-known leader in this industry… Analysts predict this innovative tech is gearing up to create a tidal wave of new wealth, fueling a $15.7 TRILLION market boom.

Right now, we’re staring down the barrel of a true once-in-a-lifetime moment. As an investment opportunity, this kind of breakthrough doesn't come along every day.

And the window to get in on the ground-floor — maximizing profit potential from this expected market surge — is closing quickly...

Simply enter your email below to get the names and tickers of the 7 small stocks with potential to make investors very, very happy.

Get This Free Report
Thomas Hughes
About The Author

Thomas Hughes

Contributing Author

Technical and Fundamental Analysis, S&P 500, Retail and Consumer Sectors, Dividends

Like this article? Share it with a colleague.

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Cisco Systems (CSCO)
4.8185 of 5 stars
$68.500.2%2.39%26.17Moderate Buy$74.53
Compare These Stocks  Add These Stocks to My Watchlist 

Featured Articles and Offers

Recent Videos

3 Quiet Growth Stocks With Major Momentum
The Market’s Next Big Winners? Start Here
5 High Short Interest Stocks to Buy Before November

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines