Cisco Systems, Inc.

(NASDAQ Global Select)
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Slightly Bullish +25

Piper Sandler cuts target for Cisco Systems stock to USD 125.00

Analyst downgrade Earnings report AI-generated analysis

πŸ“‰ Piper Sandler cut its Cisco Systems price target from USD 132.00 to USD 125.00 while keeping a neutral rating.

πŸ’° Fiscal 2026 revenue surged to USD 63.33 billion, up from USD 56.65 billion in the prior year.

πŸ“ˆ Net income reached USD 13.27 billion, representing a significant increase from USD 10.18 billion.

πŸ’Ή Diluted earnings per share rose to USD 3.33 compared to USD 2.55 in fiscal 2025.

πŸš€ The latest quarter delivered USD 17.25 billion in revenue, beating the consensus of USD 16.84 billion.

πŸ€– Cisco secured USD 9.3 billion in AI infrastructure orders from hyperscalers during fiscal 2026.

βš™οΈ Product revenue expanded to USD 48.3 billion while services revenue remained flat at USD 15.0 billion.

πŸ’» The hardware-heavy mix of recent orders may pressure margins before software attach rates improve.

πŸ“Š CSCO stock traded at USD 107.63 as of September 30, 2026, within a 52-week range of USD 66.81 to USD 130.37.

🏒 The company operates in the Technology sector with a focus on Communication Equipment.

Bullish Signals
  • Cisco Systems generated USD 63.33 billion in revenue for fiscal 2026, a substantial increase from USD 56.65 billion in fiscal 2025.
  • Net income climbed to USD 13.27 billion, up from USD 10.18 billion, while diluted earnings per share rose to USD 3.33.
  • The latest quarter saw revenue of USD 17.25 billion exceed the consensus estimate of USD 16.84 billion.
  • Adjusted earnings per share in the most recent quarter came in at USD 1.22, beating the expected USD 1.17.
  • The company secured USD 9.3 billion in AI infrastructure orders from hyperscalers during fiscal 2026.
Risk Factors
  • Piper Sandler reduced its price target to USD 125.00, suggesting the current valuation may not fully reflect the stock's fundamentals.
  • The mix shift toward product revenue expansion while services revenue stays flat could pressure margins in the near term.
  • The hardware-heavy order base from hyperscalers may constrain profitability before recurring software and services attach to deployments.
Full Analysis
Piper Sandler has lowered its price target for Cisco Systems stock from USD 132.00 to USD 125.00 while maintaining a neutral rating, citing the need for valuation discipline despite strong underlying demand for AI infrastructure. Cisco reported robust financial performance for fiscal 2026 with revenue rising to USD 63.33 billion and net income increasing to USD 13.27 billion. Diluted earnings per share grew significantly to USD 3.33, driven by a latest quarter where revenue beat consensus estimates at USD 17.25 billion. The company secured substantial AI infrastructure orders totaling USD 9.3 billion from hyperscalers during the fiscal year, though the current mix remains heavily weighted toward hardware. This product-heavy approach is expected to pressure margins in the near term before recurring software and services revenue can fully attach to these deployments. Trading data indicates Cisco's stock moved modestly around EUR 95.59 on October 1, 2026, with a market capitalization of USD 424.2 billion as of late September. The recent analyst downgrade contrasts with the reported beat in quarterly revenue and earnings, highlighting a divergence between operational results and valuation expectations.