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Cisco Systems Inc

Cisco Systems Inc

CSCO
$111.94USD↑+2.08%+2.28 today

MARKET CAP

441.2B

P/E (TTM)

27.4x

FWD P/E

23.3x

DAY RANGE

$109 – $113

52W RANGE

$66
$130

AI Summary

Stalk
TrimHigh

CSCO is in Stage 3 distribution after a decisive Support Failure breakdown. The active Support Failure pattern indicates buyers can no longer defend supply and downside may accelerate. Medium-term bias is bearish with confirmed lower highs and selling pressure, and short-term momentum remains weak below declining EMAs. We will defer execution and trim exposure on strength into the 9/21/50 EMA resistance zone.

  • ↑Q3 revenue hit $15.8B (+12% YoY) and non-GAAP EPS rose to $1.06 (+10% YoY)
  • ↑Product orders grew 35% YoY, driven by strong enterprise AI demand
  • ↓Negative earnings yield suggests shares may be overvalued
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The case for & against

Bull & Bear analysis

Bullish

Cisco Systems, Inc. (NASDAQ: CSCO) is a leading technology company specializing in networking hardware, telecommunications equipment, and cybersecurity solutions. The company is well-positioned in the rapidly expanding sectors of AI infrastructure and cloud services, targeting enterprises and service providers globally. Cisco's strategic focus seeks to capitalize on the ongoing digitization and modernization trends, particularly as businesses increasingly require robust network capabilities intertwined with AI technologies.

Bull says

  • ↑Q3 revenue hit $15.8B (+12% YoY) and non-GAAP EPS rose to $1.06 (+10% YoY)
  • ↑Product orders grew 35% YoY, driven by strong enterprise AI demand
  • ↑AI infrastructure orders projected at $9B for FY26 (vs. $5B prior estimate)
  • ↑Returned $2.9B in Q3 via dividends and buybacks, underscoring cash-flow strength
  • ↑Analysts raised price targets post-results, consensus rating: Moderate Buy
  • ↑Robust profitability, healthy dividend yield and positive price momentum

Bear says

  • ↓Negative earnings yield suggests shares may be overvalued
  • ↓Non-AI segments growing slower, raising sustainability concerns
  • ↓Gross margin fell 260bp YoY to 66% on higher memory costs
  • ↓Supply chain constraints and material costs could hamper scalability
  • ↓Heavy AI CapEx needs ($6B revenue expected FY27) may limit returns
  • ↓Weaker liquidity and balance-sheet flexibility could pressure funding

Investment themes with CSCO

Cybersecurity↓ -2.52%

Solutions securing IT infrastructure and sensitive data

AVGO · CRWD · PANW
Networking & Connectivity Infrastructure↑ +0.56%

INTC · CIEN · MU
Telecommunications↑ +0.98%

CSCO · VZ · T
High Dividend Yield↑ +0.32%

Companies paying above-average dividends

AVGO · JPM · XOM

Earnings Call · Q3 2026 · Mgmt. Guidance

Updated 05-14-2026neutral

Transcript signals

Bull points

  • Q3 was a great quarter for Cisco with our momentum accelerating and revenue and earnings per share both growing double digits and coming in above the high end of our guidance ranges.
  • 15.8 billion in Q3, up 12% year-over-year. Product revenue was up 17%, once again driven by robust demand for our AI infrastructure and campus networking solutions.
  • Overall, total product orders grew 35% year over year. Excluding hyperscaler orders, which grew triple digits, product orders were up 19% year over year, demonstrating the continued broad-based demand we see for our technology globally.

Bear points

  • Turning to Splunk, as expected, we continue to see an acceleration in the shift to cloud subscriptions and away from on-premise deals, creating a near-term drag on revenue growth, as we've previously outlined.
  • Total non-GAAP gross margin came in at 66%, down 260 basis points year over year. Non-GAAP product gross margin was 64.3%, down 330 basis points, primarily driven by negative impacts from mix and higher memory costs, partially offset by productivity improvements.
  • Cisco's next quarterly call outlining our fourth quarter FY26 results will be on Wednesday, August 12th, 2026 at 1 30 PM Pacific time, 4 30 PM Eastern time.
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