Cisco Systems, Inc. (CSCO) is a technology company that helps businesses and organizations connect and protect their digital systems. It makes networking equipment, security software, collaboration tools, cloud services, and technical support. Headquartered in San Jose, California, Cisco serves customers worldwide, helping them run networks, communicate securely, and manage their technology operations. The company has a market capitalization of $405.97 billion.
Over the past 52 weeks, Cisco’s stock has gained 38.3% as the business shifted from steady networking demand to a much stronger AI-driven growth story. It is also up 33.7% year-to-date (YTD). The stock reached a 52-week high of $130.37 on June 4, but is down 21% from that level.
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The broader S&P 500 index ($SPX) has increased 10.5% over the past 52 weeks and is up 10.6% YTD, indicating that the stock has outperformed the broader market over these periods. Compared with its sector, the State Street Technology Select Sector SPDR ETF (XLK) has increased 16.9% over the past 52 weeks and 22.6% YTD. Therefore, Cisco has outperformed its sector over these periods.
www.barchart.com As Cisco pushes deeper into AI, the company’s fortunes depend on turning AI demand into profitable growth. In the fourth quarter of fiscal 2026 (quarter ended July 25), the company took $4 billion in AI-infrastructure orders from hyperscalers, bringing the total for FY2026 to $9.3 billion. On top of that, Cisco has been undergoing a networking supercycle. As a result, its networking product orders grew 40% y/y in Q4, marking the eighth consecutive quarter of double-digit growth.
For the first quarter of fiscal 2027 (to be reported soon), Wall Street analysts expect Cisco’s EPS to grow 42% YOY to $1.15 on a diluted basis. Moreover, EPS is expected to increase 21.4% annually to $4.42 in fiscal 2027, followed by an 8.6% improvement to $4.80 in fiscal 2028. The company has a solid history of surpassing consensus estimates, topping them in each of the four trailing quarters.
Among the 27 Wall Street analysts covering Cisco’s stock, the consensus is a “Moderate Buy.” That’s based on 16 “Strong Buy” ratings, one “Moderate Buy,” and 10 “Holds.” The ratings configuration has become more bullish over the past two months, with 16 “Strong Buy” ratings, up from 15.
www.barchart.com In late September, Bernstein initiated coverage of Cisco with a “Market Perform” and a $110 price target. The firm’s analysts believe that there is more upside to expectations about AI spending than downsides. However, an overbuild is still possible, although demand continues to outpace supply.
Cisco’s mean price target of $133.08 indicates a 29.2% upside over current market prices. The Street-high price target of $165 implies a 60.2% upside.
On the date of publication, Anushka Dutta did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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