San Jose, California-based Cisco Systems, Inc. (CSCO) is an IP-based networking company offering products and services to service providers, companies, commercial users, and individuals. With a market cap of $273.6 billion, Cisco’s operations span the Americas, Indo-Pacific, Europe, the Middle East, and Africa.
Cisco Systems’ stock has outperformed the broader market over the past year. CSCO stock has gained 20.5% on a YTD basis, outpacing the S&P 500 Index’s ($SPX) 17.2% gains in 2025. Over the past 52 weeks, CSCO is up 28.1% compared to SPX’s 18.1% returns during the same time frame.
Narrowing the focus, Cisco has slightly underperformed the Technology Select Sector SPDR Fund’s (XLK) 30.8% gains on a YTD basis and 30.4% surge over the past 52 weeks.
Despite reporting better-than-expected results, Cisco Systems’ stock prices declined 1.6% in the trading session following the release of its Q4 results on Aug. 13. While the company’s service revenues remained mostly flat, its product revenues observed a notable uptick. Overall, Cisco’s revenues for the quarter increased 7.6% year-over-year to $14.7 billion, exceeding Street expectations by a thin margin. Further, its non-GAAP EPS grew 13.8% year-over-year to $0.99, surpassing the consensus estimates by 2.1%.
Cisco’s stock prices have soared in recent months due to market expectations of high revenue growth driven by a boost in AI infrastructure investments.
For fiscal 2026, ending in July next year, analysts expect Cisco Systems’ adjusted EPS to grow 8.1% year-over-year to $3.32. The company has a robust earnings surprise history. It has surpassed Wall Street’s bottom-line estimates in each of the past four quarters.
Among the 24 analysts covering the CSCO stock, the consensus rating is a “Moderate Buy,” based on 11 “Strong Buys,” one “Moderate Buy,” and 12 “Hold” ratings.
This configuration is slightly less bullish than three months ago, when 13 analysts gave “Strong Buy” recommendations.
On Aug. 15, HSBC (HSBC) analyst Stephen Bersey downgraded Cisco from “Buy” to “Hold” and reduced the price target from $73 to $69.
While CSCO’s mean price target of $76.58 represents a 7.4% premium to current price levels, the street-high target of $87 suggests a 22% potential upside.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions 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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