Cisco (CSCO) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
It is a bold statement to say Cisco NASDAQ: CSCO stock will advance by $100 to $182, but there are forces at play and precedents that suggest just that. Cisco's share price crossed a significant threshold in early February, rising above the $82 level to set a fresh all-time high.
Sometimes favored but other times reviled, Cisco Systems (NASDAQ:CSCO) is a technology firm that never ceases to garner interest.
Cisco Systems, Inc. delivered a Q2 double beat and raised 2026 guidance, yet shares sold off over 11%, creating a compelling entry point. CSCO is a direct beneficiary of the AI infrastructure buildout, with $2.1B in Q2 AI orders and a forecast to exceed $5B in hyperscaler AI orders. Recurring revenue from services and security is expanding, with RPO at $43.4B (+5% YoY) and ARR at $31B (+3% YoY), supporting long-term growth.
Cisco Systems, Inc. benefits from AI-driven network upgrade demand, but revenue and EPS growth will materialize more clearly in Fiscal Q4 2026. CSCO faces near-term headwinds from memory supply constraints and Splunk's cloud transition, yet these are not expected to impact long-term fundamentals. Despite increased orders and a strong dividend, CSCO stock trades at a higher PEG ratio than faster-growing peers like Arista, making it less attractive on a relative basis.
Arista's stock is dropping ahead of earnings, after Cisco's report sparked renewed fears about the impact of high memory prices.
Cisco shares plunged 12% Thursday as the company's margins face pressure from rising memory prices. The drop is the company's largest in four years.
The company highlighted $2.1 billion in AI infrastructure orders for the quarter, signaling robust demand from hyperscalers.
Networking giant Cisco Systems is the latest tech firm to see its stock drop after revealing it's grappling with the impacts of a global memory shortage.
Shares in networking company Cisco Systems, Inc., traded lower following the release of its Q2 results. The declines were despite results that landed above expectations on both the top and bottom lines. Higher costs and the likelihood of lower margins in the periods ahead were likely factors driving the negative sentiment.
CSCO beats Q2 estimates with 10% EPS growth and 9.7% revenue rise, but shares slide 7% despite strong AI orders and upbeat fiscal 2026 outlook.
CSCO slides 7% after Q2 beat as fiscal 2026 outlook disappoints, but AI demand and strong networking orders keep ETFs in focus.