Cisco Systems Inc. (NASDAQ:CSCO) Faces Downgrade Amidst Stock Price Fluctuations

• David Vogt from UBS sets a price target of $88 for Cisco Systems, Inc. (NASDAQ:CSCO), indicating a potential upside of 20.37%.
• Cisco's stock has risen by 6.1% over the past month, outperforming the Zacks S&P 500 composite.
• Earnings estimate revisions are closely watched, highlighting Cisco's future earnings potential and stock direction.

Cisco Systems, Inc. (NASDAQ:CSCO) is a leading technology company specializing in networking hardware, software, and telecommunications equipment. It is a key player in the Computer - Networking industry, competing with companies like Juniper Networks and Arista Networks. Recently, David Vogt from UBS set a price target of $88 for Cisco, suggesting a potential upside of 20.37% from its current trading price of $73.11.

Cisco's stock has been trending on Zacks.com, reflecting increased investor interest. Over the past month, the stock rose by 6.1%, outperforming the Zacks S&P 500 composite's 3.8% increase. The Computer - Networking industry, which includes Cisco, gained 7.7% during the same period, highlighting Cisco's strong position within its sector.

Earnings estimate revisions are a key focus for Cisco, as they provide insights into the company's future earnings potential. These revisions are crucial for long-term investment decisions and can significantly influence stock performance. Investors and analysts closely monitor these projections to gauge Cisco's future stock direction.

Currently, Cisco's stock price is $73.11, showing a slight increase of 0.27% from the previous session. The stock has traded between $72.43 and $73.48 today, with a 52-week high of $73.48 and a low of $52.11. Cisco's market capitalization stands at approximately $289 billion, with a trading volume of 24,007,995 shares today.

Cisco Systems (NASDAQ:CSCO) reported fiscal fourth-quarter results on Wednesday that exceeded expectations, but its in-line guidance for fiscal 2026 failed to impress, sending shares down more than 2% in after-hours trading.

For the quarter ended July 26, the networking equipment maker posted adjusted earnings of $0.99 per share on revenue of $14.76 billion, topping analyst forecasts of $0.98 and $14.62 billion, respectively. Product revenue, which makes up the majority of total sales, rose 10% year-over-year, while services revenue remained unchanged.

For the first quarter of fiscal 2026, Cisco projected adjusted earnings between $0.97 and $0.99 per share on revenue of $14.65 billion to $14.85 billion, ahead of consensus estimates for $0.97 and $14.62 billion. Looking at the full fiscal year, the company guided for adjusted earnings of $4.00 to $4.06 per share and revenue of $59 billion to $60 billion, compared with analyst expectations of $4.03 and $59.55 billion.

• The consensus price target for Cisco Systems, Inc. (NASDAQ: CSCO) has increased from $65.12 a year ago to $74 last month, indicating analyst optimism.
• Cisco is expected to report an operating income of $4.97 billion, a 14% year-over-year growth, with strategic acquisitions like Splunk contributing to its future performance.
• Despite a conservative price target of $59 from Morgan Stanley, Cisco's AI segment shows potential for growth, exceeding expectations in fiscal Q3 2025.

Cisco Systems, Inc. (NASDAQ: CSCO) is a prominent player in the global technology sector, specializing in networking and communication solutions. The company offers a wide range of products, including switching, enterprise routing, and security solutions, serving a diverse clientele worldwide. Cisco's operations span across the Americas, Europe, the Middle East, Africa, and the Asia Pacific, making it a key player in the tech industry.

The consensus price target for Cisco has been on an upward trajectory, reflecting growing analyst confidence. A year ago, the average price target was $65.12, which increased to $71.5 last quarter and further to $74 last month. This positive trend suggests that analysts are optimistic about Cisco's future performance, as highlighted by the expected earnings of $0.98 per share on $14.6 billion in revenue.

Cisco's financial performance is under the spotlight as it approaches its all-time high stock price from April 2000. The company is projected to report an operating income of $4.97 billion, marking a year-over-year growth of 14%. This growth is supported by Cisco's strategic initiatives, including the acquisition of Splunk, which will be reflected in its fiscal Q4 2025 results.

Cisco's AI segment exceeded expectations in fiscal Q3 2025. This indicates potential for future growth in this area. However, Morgan Stanley analyst Meta Marshall has set a price target of $59 for Cisco, suggesting a more conservative outlook compared to the consensus.

Investors are keenly watching Cisco's upcoming fiscal fourth-quarter earnings report, scheduled for release after market hours on August 13. This report is expected to provide insights into Cisco's ability to generate a steady stream of passive income for investors. As the tech sector experiences a resurgence, Cisco's stock performance remains a focal point for analysts and investors alike.

Evercore ISI downgraded Cisco Systems (NASDAQ:CSCO) from “Outperform” to “In Line,” citing limited upside after a 46% rally over the past year and assigning a price target of $72.

Analysts noted that while Cisco benefited from a cyclical rebound in enterprise networking and growing interest in cloud and AI, the stock now trades near their target. Cisco's price-to-earnings multiple has expanded to approximately 18x, compared to a five-year average of 14x, supported in part by AI-related order disclosures.

However, Evercore expressed concern that Cisco has yet to provide AI revenue figures, limiting its ability to be fully recognized as an AI leader. They also pointed to challenging growth comparisons, underperformance in Security and Observability, and a maturing recovery in campus networking.

Additionally, the firm cited the recent CFO transition as a risk factor that could lead to more conservative fiscal 2026 guidance. Overall, Evercore views Cisco’s current valuation as reflecting most of the near-term upside.

Cisco Systems, Inc. (NASDAQ:CSCO) is a global leader in networking and IT solutions. The company provides a wide range of products and services, including networking hardware, software, and telecommunications equipment. Cisco is a key player in the technology sector, competing with other giants like Juniper Networks and Huawei.

On July 13, 2025, CICC initiated coverage on Cisco with a bullish outlook, assigning it an "Outperform" grade. At that time, the stock price was $67.95. This positive sentiment from CICC suggests confidence in Cisco's future performance, despite the stock's recent decrease of 1.18% or $0.81, as highlighted by TheFly.

Cisco is also recognized for its commitment to returning value to shareholders through dividends. On July 3, 2025, Cisco, along with American Express and Globe Life, traded ex-dividend. Cisco is set to pay a quarterly dividend of $0.41 on July 23, 2025. This positions Cisco as a "future dividend aristocrats contender," having increased its dividends for over 14 years.

Investors should note that Cisco's stock is expected to open approximately 0.59% lower on the ex-dividend date, assuming all other factors remain constant. This is a common occurrence as the stock price typically adjusts to reflect the dividend payout.

Cisco's market capitalization is approximately $269.08 billion, with a trading volume of 14,699,412 shares. The stock has traded between a low of $67.93 and a high of $68.50 today. Over the past year, it has reached a high of $69.78 and a low of $44.50, indicating some volatility in its price movements.