Cisco just posted its fifth straight earnings beat while AI infrastructure orders piled up faster than Wall Street expected, yet the stock sits nearly 18% below its 52-week high.
A pullback just handed income investors a lower entry price than Cisco paid for its own shares, and the October record date is closing fast.
Cisco shares have surged nearly 40% this year on an AI-driven networking boom, but one valuation figure will determine whether the rally has room to run or has already priced in the good news.
Qualcomm and Cisco both raise their dividends every year and both are racing into AI infrastructure, but their capital allocation priorities point in completely different directions for a retiree who needs the income to be reliable.
Investors seeking steady capital appreciation often overlook older technology sector names, assuming their prime growth years are over. Looking beneath the surface shows how foundational hardware suppliers adapt, and how established balance sheets can capture substantial value during infrastructure transitions.
‘Everybody forgot about them for 20 years. And now suddenly they're important again.
CSCO's 8% three-month drop reflects margin and recurring-growth concerns, but surging AI demand and networking refresh opportunities support its outlook.
Cisco Systems is upgraded from hold to buy after a 10% price decline and strong business acceleration, restoring margin of safety. CSCO delivered record FY26 results, with 18% YoY revenue growth in Q4, robust AI infrastructure orders, and a bullish FY27 outlook for 15% revenue and 17% EPS growth. Networking and security segments are driving a super cycle, with vertical integration, design wins, and a $100B+ upgrade opportunity supporting long-term growth.
Cisco delivered FY2026 Q4 revenue growth of 18% YoY, reaching multiyear highs and beating analyst top-line expectations by $424.73 million. AI-driven networking demand is robust, with hyperscaler AI infrastructure orders up 4.5x in FY2026 and Q4 RPO growth accelerating, supporting a bullish outlook. Gross margin contracted to 66.3% due to memory costs and competition, but operating margin expanded as expense control offset headwinds, keeping profitability healthy.
Cisco Systems is gaining Splunk momentum with new AI security and observability tools as Datadog and CrowdStrike expand rival capabilities.
Cisco (CSCO) reported earnings 30 days ago. What's next for the stock?
Here is how Cisco Systems (CSCO) and Five9 (FIVN) have performed compared to their sector so far this year.