Cisco Systems (NASDAQ:CSCO) Trading Up 2.3% – Still a Buy?

Cisco Systems, Inc. (NASDAQ:CSCO) traded up 2.3% on Thursday . The company traded as high as $111.44 and last traded at $110.24. 15,796,919 shares changed hands during trading, a decline of 30% from the average daily volume of 22,593,549 shares. The stock had previously closed at $107.74.

Cisco Systems News Summary

Here are the key news stories impacting Cisco Systems this week:

• Positive Sentiment: AI networking demand remains a key catalyst. Cisco reportedly delivered 18% fiscal fourth-quarter revenue growth, while hyperscaler AI infrastructure orders increased 4.5 times during fiscal 2026. Accelerating remaining performance obligations and strong AI-related demand support the company’s growth outlook. Cisco Stock Could Soon Wake From Its Summer Slumber
• Positive Sentiment: Splunk is strengthening Cisco’s AI security strategy. New Splunk AI products, cloud alliances and tools designed to track AI usage and token costs could improve Cisco’s positioning in cybersecurity, observability and enterprise AI management. Analysts view the effort as a potential competitive response to Datadog and CrowdStrike. The Bull Case For Cisco Systems Could Change Following New Splunk AI POD And Cloud Alliances
• Positive Sentiment: Cybersecurity demand could attract investors seeking quality technology stocks. Cisco executives emphasized that security defenses must evolve alongside AI threats, reinforcing the strategic importance of Cisco’s security portfolio. A favorable analyst view also highlights cybersecurity as a possible source of durable growth. The Flight To Quality In Tech Will Run Through Cybersecurity
• Neutral Sentiment: Carbon 9 Defense received Splunk’s 2026 Public Sector Partner of the Year award, highlighting partner momentum around Splunk and AI solutions. The recognition is strategically supportive but has no disclosed direct financial impact for Cisco. Carbon 9 Defense Recognized in 2026 Splunk Regional Partner Awards
• Negative Sentiment: Market conditions and execution risks remain concerns. Cisco faced pressure alongside a 2.1% Nasdaq decline, while gross margin contracted to 66.3% because of memory costs and competition. An executive’s sale of 680 shares is a minor negative sentiment signal, though not a material change to the investment case. Cisco Systems Stock Heads Into the Open After a 2.1% Nasdaq Drop

Analyst Ratings Changes

Several analysts recently commented on the company. KeyCorp boosted their price target on Cisco Systems from $130.00 to $135.00 and gave the company an “overweight” rating in a research note on Thursday, August 13th. Rosenblatt Securities lifted their price objective on Cisco Systems from $150.00 to $165.00 and gave the company a “buy” rating in a report on Thursday, August 13th. Wall Street Zen downgraded Cisco Systems from a “buy” rating to a “hold” rating in a report on Saturday, September 12th. The Goldman Sachs Group increased their price target on Cisco Systems from $116.00 to $125.00 and gave the stock a “neutral” rating in a research report on Wednesday, June 3rd. Finally, Truist Financial raised their price target on Cisco Systems from $125.00 to $140.00 and gave the company a “buy” rating in a report on Thursday, August 13th. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $129.68.

Cisco Systems Stock Performance

The company has a market capitalization of $434.63 billion, a P/E ratio of 33.01, a P/E/G ratio of 2.29 and a beta of 1.00. The company has a debt-to-equity ratio of 0.39, a current ratio of 0.93 and a quick ratio of 0.79. The stock’s 50 day simple moving average is $113.42 and its two-hundred day simple moving average is $104.13.

Cisco Systems (NASDAQ:CSCO) last released its quarterly earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, beating the consensus estimate of $1.17 by $0.05. The business had revenue of $17.25 billion for the quarter, compared to analysts’ expectations of $16.84 billion. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. Cisco Systems’s revenue was up 17.6% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.99 earnings per share. Cisco Systems has set its FY 2027 guidance at 5.050-5.110 EPS and its Q1 2027 guidance at 1.320-1.340 EPS. As a group, research analysts expect that Cisco Systems, Inc. will post 4.43 earnings per share for the current year.

Cisco Systems Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 21st. Stockholders of record on Friday, October 2nd will be paid a $0.42 dividend. This represents a $1.68 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend is Friday, October 2nd. Cisco Systems’s dividend payout ratio (DPR) is 50.30%.

Insider Activity at Cisco Systems

In other news, EVP Oliver Tuszik sold 680 shares of the business’s stock in a transaction on Monday, September 14th. The stock was sold at an average price of $110.18, for a total transaction of $74,922.40. Following the completion of the sale, the executive vice president owned 163,337 shares in the company, valued at $17,996,470.66. The trade was a 0.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya Subaiya sold 312 shares of the firm’s stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $110.18, for a total value of $34,376.16. Following the completion of the transaction, the executive vice president owned 127,661 shares in the company, valued at approximately $14,065,688.98. This represents a 0.24% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 44,869 shares of company stock valued at $5,005,620 over the last quarter. 0.01% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Cisco Systems

Several large investors have recently bought and sold shares of CSCO. BlackRock Inc. acquired a new position in shares of Cisco Systems in the 2nd quarter valued at $42,129,647,000. Invesco Ltd. grew its stake in shares of Cisco Systems by 11.6% during the fourth quarter. Invesco Ltd. now owns 59,836,782 shares of the network equipment provider’s stock worth $4,609,227,000 after purchasing an additional 6,224,062 shares during the period. Norges Bank acquired a new stake in shares of Cisco Systems during the fourth quarter worth $4,473,272,000. Auto Owners Insurance Co increased its holdings in Cisco Systems by 8,718.3% in the fourth quarter. Auto Owners Insurance Co now owns 51,952,421 shares of the network equipment provider’s stock valued at $400,190,000 after purchasing an additional 51,363,281 shares during the last quarter. Finally, Franklin Resources Inc. lifted its stake in Cisco Systems by 18.0% in the fourth quarter. Franklin Resources Inc. now owns 50,320,905 shares of the network equipment provider’s stock valued at $3,876,219,000 after buying an additional 7,679,422 shares during the period. 73.33% of the stock is currently owned by institutional investors and hedge funds.

About Cisco Systems

Cisco Systems, Inc is a global technology company that provides networking, cybersecurity, collaboration, observability and other information technology solutions. Its offerings include routers, switches, wireless networking equipment, data center infrastructure, security platforms, unified communications tools and software designed to help organizations connect, manage and protect their digital environments.

Cisco serves businesses, government agencies, educational institutions, telecommunications providers and other organizations worldwide.