Cisco Systems (NASDAQ:CSCO) Stock Jumps 4.5% – Here’s Why

Cisco Systems, Inc. (NASDAQ:CSCO) traded up 4.5% during trading on Tuesday. The company traded as high as $118.40 and last traded at $117.94. Approximately 20,939,342 shares traded hands during trading, a decline of 7% from the average session volume of 22,576,039 shares. The stock had previously closed at $112.82.

Cisco Systems News Summary

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

• Positive Sentiment: AI networking demand is supporting Cisco, alongside gains in Arista Networks and Ciena. Investors appear to view Cisco as a beneficiary of rising spending on data-center connectivity and infrastructure required for artificial intelligence. Arista Networks Advances 4% While Ciena Soars 11% on AI Networking Demand
• Positive Sentiment: Coverage of Cisco’s sovereign-AI strategy highlights the company’s opportunity to provide networking, security and infrastructure for governments and organizations seeking greater control over AI systems and data. How to Play CSCO Stock as Cisco Bets on Sovereign AI
• Positive Sentiment: Webex is expanding into governed client communications through a LeapXpert integration that lets enterprise users message customers on WhatsApp while maintaining compliance controls and conversation archiving. The move could strengthen Cisco’s collaboration offering and support recurring software revenue. Cisco’s Collaboration Unit Adds WhatsApp to Webex
• Positive Sentiment: Quantum XChange joined Cisco’s networking marketplace as a technology partner, adding FIPS-validated post-quantum cryptography and quantum-safe security capabilities to Cisco networks. This enhances Cisco’s cybersecurity value proposition. Quantum XChange Joins the Cisco Networking App Marketplace
• Neutral Sentiment: A market report projects rapid growth in hybrid IT management, AIOps and cloud services, areas where Cisco participates with Dell, Oracle, ServiceNow and Datadog. The report indicates favorable industry demand but is not a Cisco-specific financial update. Hybrid Information Technology Management Market Global Report 2026
• Neutral Sentiment: Cisco’s sustainability team said customers are increasingly using environmental data in purchasing decisions. The discussion may support Cisco’s enterprise positioning, but it provided no new earnings or guidance. Cisco: How Sustainability Data Is Informing Customer Decisions
• Negative Sentiment: Investor Steve Weiss disclosed selling his Cisco position as rising Treasury yields made him more cautious about technology valuations. This is an individual portfolio decision rather than a change in Cisco’s fundamentals, but it may weigh on sentiment. Analyst Sells Cisco Amid Rising Yields

Analyst Ratings Changes

A number of equities analysts recently commented on CSCO shares. Deutsche Bank Aktiengesellschaft initiated coverage on shares of Cisco Systems in a research note on Tuesday, September 1st. They issued a “buy” rating and a $135.00 price objective for the company. KeyCorp upped their price objective on Cisco Systems from $130.00 to $135.00 and gave the stock an “overweight” rating in a research note on Thursday, August 13th. Morgan Stanley lifted their target price on Cisco Systems from $130.00 to $135.00 and gave the company an “overweight” rating in a research note on Thursday, August 13th. Weiss Ratings restated a “buy (b)” rating on shares of Cisco Systems in a report on Wednesday, August 26th. Finally, UBS Group increased their price target on Cisco Systems from $132.00 to $138.00 and gave the company a “buy” rating in a research note on Thursday, August 13th. Three equities research 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. Based on data from MarketBeat.com, Cisco Systems currently has an average rating of “Moderate Buy” and a consensus target price of $128.52.

Cisco Systems Trading Up 4.5%

The company has a market cap of $464.99 billion, a price-to-earnings ratio of 35.31, a price-to-earnings-growth ratio of 2.35 and a beta of 0.99. The company has a quick ratio of 0.79, a current ratio of 0.93 and a debt-to-equity ratio of 0.39. The company’s 50-day moving average is $111.96 and its 200 day moving average is $106.88.

Cisco Systems (NASDAQ:CSCO) last posted its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share for the quarter, topping analysts’ consensus estimates of $1.17 by $0.05. The company had revenue of $17.25 billion during 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%. The firm’s revenue for the quarter was up 17.6% on a year-over-year basis. During the same period in the prior year, the business posted $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. Research analysts predict that Cisco Systems, Inc. will post 4.41 EPS for the current year.

Cisco Systems Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 21st. Investors of record on Friday, October 2nd will be paid a $0.42 dividend. This represents a $1.68 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Friday, October 2nd. Cisco Systems’s dividend payout ratio is currently 50.30%.

Insider Transactions at Cisco Systems

In other Cisco Systems news, insider Jeetendra I. Patel sold 7,170 shares of the company’s stock in a transaction on Friday, August 14th. The stock was sold at an average price of $111.57, for a total value of $799,956.90. Following the completion of the sale, the insider directly owned 230,593 shares in the company, valued at $25,727,261.01. This represents a 3.02% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Deborah L. Stahlkopf sold 6,487 shares of the firm’s stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $111.53, for a total transaction of $723,495.11. Following the sale, 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 disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 44,869 shares of company stock valued at $5,005,620. Company insiders own 0.01% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Bridgewater Advisors Inc. acquired a new position in Cisco Systems in the second quarter valued at approximately $6,442,000. Beacon Pointe Advisors LLC purchased a new stake in shares of Cisco Systems during the second quarter worth approximately $60,009,000. Western Wealth Management LLC raised its position in shares of Cisco Systems by 60.5% in the first quarter. Western Wealth Management LLC now owns 76,372 shares of the network equipment provider’s stock valued at $5,926,000 after buying an additional 28,792 shares during the last quarter. ABN AMRO Bank N.V. purchased a new position in Cisco Systems in the 2nd quarter worth approximately $19,114,000. Finally, USS Investment Management Ltd boosted its stake in Cisco Systems by 1.8% during the first quarter. USS Investment Management Ltd now owns 686,466 shares of the network equipment provider’s stock worth $53,253,000 after buying an additional 12,251 shares during the last quarter. 73.33% of the stock is currently owned by hedge funds and other institutional investors.

About Cisco Systems

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.