Cisco Systems (NASDAQ:CSCO) Shares Climb 1% – Should You Buy?

Cisco Systems, Inc. (NASDAQ:CSCO)’s stock price was up 1% during mid-day trading on Thursday. The stock traded as high as $109.08 and last traded at $108.76. 12,611,487 shares were traded during trading, a decline of 44% from the average session volume of 22,604,877 shares. The stock had previously closed at $107.63.

Trending Headlines about Cisco Systems

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

• Positive Sentiment: AI demand and earnings momentum: Cisco reportedly delivered its fifth consecutive earnings beat, while AI-infrastructure orders accumulated faster than Wall Street expected. Its latest quarter also showed revenue growth of 17.6% year over year to $17.25 billion and EPS of $1.22, above the $1.17 consensus. The stock remains below its 52-week high, giving investors potential recovery upside. The Boring Tech Stock With an AI Tailwind Has 17% Upside
• Positive Sentiment: Sovereign AI expansion: Cisco and Bell Canada agreed to collaborate on a Canadian sovereign-AI infrastructure platform using Cisco networking, security, observability and critical-infrastructure technologies. The arrangement could strengthen Cisco’s position in regulated markets requiring domestic data residency and control. Bell Canada Cisco Ink MoU
• Positive Sentiment: Income support: Cisco is scheduled to distribute a quarterly dividend of $0.42 per share on October 21, supporting its appeal to dividend-focused investors while the company participates in AI networking growth. Cisco Quarterly Dividend
• Neutral Sentiment: Cybersecurity market opportunity: The industrial-control-system security market is projected to expand from $17.91 billion in 2026 to $38.48 billion by 2031, potentially benefiting Cisco’s security business alongside Fortinet and Palo Alto Networks. Industrial Control System Security Market Forecast
• Negative Sentiment: Analyst and valuation caution: Bernstein initiated coverage at “market perform” with a $110 target, while Piper Sandler lowered its target to $125. Cisco trades at a premium earnings multiple, and analysts note that AI represented only about 6% of fiscal 2026 revenue; growth in its broader networking and security businesses must continue to justify the valuation.
• Negative Sentiment: Competitive risk: Commentary highlighted potential pressure from cheaper Chinese competitors and open-weight AI models, while reported demand and operational alerts do not necessarily translate into booked platform revenue.

Analysts Set New Price Targets

A number of equities analysts have recently commented on the stock. Rosenblatt Securities raised their price objective on shares of Cisco Systems from $150.00 to $165.00 and gave the stock a “buy” rating in a report on Thursday, August 13th. Barclays increased their target price on Cisco Systems from $121.00 to $123.00 and gave the stock an “equal weight” rating in a report on Thursday, August 13th. Sanford C. Bernstein started coverage on shares of Cisco Systems in a report on Wednesday. They issued a “market perform” rating and a $110.00 price target for the company. Weiss Ratings reiterated a “buy (b)” rating on shares of Cisco Systems in a research report on Wednesday, August 26th. Finally, HSBC cut shares of Cisco Systems from a “buy” rating to a “hold” rating and dropped their target price for the company from $137.00 to $120.00 in a research report on Friday, August 14th. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and eight have issued 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 $128.52.

Cisco Systems Stock Performance

The firm has a market cap of $428.80 billion, a P/E ratio of 32.56, a PEG ratio of 2.24 and a beta of 1.00. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.79 and a current ratio of 0.93. The stock’s 50-day moving average is $112.12 and its 200 day moving average is $106.19.

Cisco Systems (NASDAQ:CSCO) last posted its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.17 by $0.05. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%.The firm had revenue of $17.25 billion during the quarter, compared to analysts’ expectations of $16.84 billion. During the same period in the previous year, the firm earned $0.99 earnings per share. The company’s revenue was up 17.6% on a year-over-year basis. 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. On average, research analysts predict that Cisco Systems, Inc. will post 4.41 earnings per share for the current year.

Cisco Systems Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 21st. Investors of record on Friday, October 2nd will be paid a dividend of $0.42 per share. This represents a $1.68 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date of this dividend is Friday, October 2nd. Cisco Systems’s dividend payout ratio is presently 50.30%.

Insider Activity

In other Cisco Systems news, EVP Deborah Stahlkopf sold 6,487 shares of Cisco Systems stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $111.53, for a total value of $723,495.11. Following the transaction, the executive vice president owned 167,116 shares of the company’s stock, valued at approximately $18,638,447.48. The trade was a 3.74% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya Subaiya sold 312 shares of the company’s stock in a transaction that occurred on Monday, September 14th. The shares were sold at an average price of $110.18, for a total transaction of $34,376.16. Following the completion of the transaction, the executive vice president owned 127,661 shares of the company’s stock, valued at $14,065,688.98. This trade represents a 0.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 44,869 shares of company stock worth $5,005,620. Corporate insiders own 0.01% of the company’s stock.

Institutional Trading of Cisco Systems

A number of institutional investors have recently modified their holdings of the company. Bridgewater Advisors Inc. bought a new position in shares of Cisco Systems during the second quarter worth approximately $6,442,000. WCG Wealth Advisors LLC grew its position in Cisco Systems by 101.8% during the fourth quarter. WCG Wealth Advisors LLC now owns 107,306 shares of the network equipment provider’s stock worth $8,266,000 after buying an additional 54,141 shares in the last quarter. Beacon Pointe Advisors LLC bought a new position in Cisco Systems during the 2nd quarter worth $60,009,000. Vise Technologies Inc. raised its holdings in Cisco Systems by 47.1% in the 4th quarter. Vise Technologies Inc. now owns 200,341 shares of the network equipment provider’s stock valued at $15,432,000 after acquiring an additional 64,144 shares in the last quarter. Finally, ABN AMRO Bank N.V. acquired a new position in Cisco Systems in the 2nd quarter valued at $19,114,000. 73.33% of the stock is currently owned by institutional investors.

Cisco Systems Company Profile

Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration, observability and data center solutions. Its products and services help businesses, governments, educational institutions and other organizations connect users and devices, manage infrastructure, protect digital environments and support cloud-based operations.

Cisco’s portfolio includes routers and switches, wireless networking equipment, network management software, firewalls, identity and access tools, endpoint security products, collaboration applications and observability platforms.