Cisco Systems is rated Sell, with fair value estimated at $69, well below its current price. The $28B Splunk acquisition tripled CSCO's debt and structurally compressed free cash flow, which still has not recovered to pre-Splunk levels. An annual penny increase to the quarterly dividend per share is not likely to get boosted anytime soon.
Zacks.com users have recently been watching Cisco (CSCO) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Cisco Systems remains a buy as AI infrastructure momentum remains strong and valuation stays discounted versus the IT sector. Q2 revenue grew 9.71% YoY, with networking orders up 20% and AI infrastructure orders from hyperscalers surging to $2.1 billion. Gross margin contracted due to memory costs, but strong OPEX control and raised full-year EPS guidance support resilient profitability.
Cisco's most recent quarter reads like more than a routine beat-and-raise cycle. Revenue grew roughly 10% year over year to $15.35B. The way to frame Cisco today is that it's being repriced from “mature networking plus dividend” into something closer to “critical AI-era infrastructure with platform optionality.”. The reason Cisco isn't universally treated as the next AI infrastructure compounder is that the market can see the friction points.
All the Magnificent 7 stocks that absolutely ruled the S&P 500 for three years are down in 2026, and with their decline, a tidy $ 2.1 trillion in market capitalization has been removed and is gone with the wind.
CSCO rides AI-driven security demand as FTNT and FFIV gain from cloud and enterprise spending, making all three stocks compelling buys.
From a technical perspective, Cisco Systems (CSCO) is looking like an interesting pick, as it just reached a key level of support. CSCO recently overtook the 50-day moving average, and this suggests a short-term bullish trend.
Cisco Systems (CSCO) closed the most recent trading day at $80.44, moving +1.79% from the previous trading session.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Zacks.com users have recently been watching Cisco (CSCO) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
CSCO's gross margin slides, with Q3 guidance pointing lower as memory costs and AI revenues mix weigh on results.
Cisco Systems (NASDAQ:CSCO | CSCO Price Prediction) shares are trading around $77, down 4.7% over the past week, even as the business story looks stronger than it has in years.