Cisco Systems (NASDAQ:CSCO) Shares Up 3.4% – Should You Buy?

Cisco Systems, Inc. (NASDAQ:CSCO)’s share price shot up 3.4% during trading on Thursday . The stock traded as high as $118.60 and last traded at $118.20. 22,616,853 shares traded hands during mid-day trading, a decline of 4% from the average session volume of 23,446,787 shares. The stock had previously closed at $114.35.

Trending Headlines about Cisco Systems

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

• Positive Sentiment: Investors continue to view Cisco as an AI “pick-and-shovel” winner, since its switches, routers, and connectivity products are essential for AI data centers. Cisco Systems (CSCO): The AI Winner in 2026
• Positive Sentiment: Wall Street sentiment remains supportive after Cisco’s strong quarterly report and raised outlook, with multiple firms lifting price targets and reiterating bullish ratings. HSBC nearly doubles Cisco stock price target for 2026
• Positive Sentiment: Cisco’s recent AI-agent and data-center connectivity initiatives are strengthening the market’s long-term growth narrative around the stock. Cisco Ties AI Agent Push To Data Center Connectivity Standards
• Positive Sentiment: Technical momentum is also favorable, with the stock attracting attention after a powerful rally and strong relative strength. Cisco’s AI Infrastructure Push Drives Stock Momentum Score Up As Rosenblatt Sees 30% Upside
• Positive Sentiment: Insider and institutional activity remains supportive overall, as Cisco is still widely held by large investors and insiders sold under pre-arranged plans rather than on a sudden negative catalyst. Oliver Tuszik Sells 2,761 Shares of Cisco Systems (NASDAQ:CSCO) Stock

Wall Street Analysts Forecast Growth

Several research firms have commented on CSCO. JPMorgan Chase & Co. upped their price target on Cisco Systems from $95.00 to $96.00 in a report on Monday, May 11th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $100.00 price target on shares of Cisco Systems in a report on Thursday, February 12th. DZ Bank raised Cisco Systems to a “strong-buy” rating in a report on Friday, February 13th. Bank of America upped their price target on Cisco Systems from $95.00 to $114.00 and gave the company a “buy” rating in a report on Thursday, May 14th. Finally, Truist Financial began coverage on Cisco Systems in a research note on Tuesday, March 31st. They issued a “buy” rating and a $94.00 price objective on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat.com, Cisco Systems currently has a consensus rating of “Moderate Buy” and a consensus price target of $118.14.

Cisco Systems Stock Performance

The company has a market capitalization of $466.88 billion, a P/E ratio of 38.38, a price-to-earnings-growth ratio of 3.51 and a beta of 0.92. The firm has a 50 day moving average price of $87.68 and a two-hundred day moving average price of $80.93. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.81 and a current ratio of 0.92.

Cisco Systems (NASDAQ:CSCO) last released its quarterly earnings data on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share for the quarter, beating the consensus estimate of $1.03 by $0.03. Cisco Systems had a return on equity of 28.44% and a net margin of 20.14%.The company had revenue of $15.84 billion for the quarter, compared to analyst estimates of $15.56 billion. During the same period in the prior year, the company posted $0.96 EPS. The company’s revenue was up 12.0% compared to the same quarter last year. Cisco Systems has set its Q4 2026 guidance at 1.160-1.180 EPS and its FY 2026 guidance at 4.270-4.290 EPS. On average, research analysts expect that Cisco Systems, Inc. will post 3.44 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 22nd. Stockholders of record on Monday, July 6th will be issued a $0.42 dividend. This represents a $1.68 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend is Monday, July 6th. Cisco Systems’s payout ratio is presently 54.55%.

Insiders Place Their Bets

In other news, EVP Deborah L. Stahlkopf sold 7,981 shares of the business’s stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $79.50, for a total value of $634,489.50. Following the transaction, the executive vice president directly owned 187,097 shares of the company’s stock, valued at $14,874,211.50. The trade was a 4.09% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Jeetendra I. Patel sold 7,169 shares of the business’s stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $117.28, for a total value of $840,780.32. Following the completion of the transaction, the insider directly owned 246,737 shares in the company, valued at $28,937,315.36. The trade was a 2.82% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 32,103 shares of company stock worth $3,160,587 over the last ninety days. 0.01% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Arete Wealth Advisors LLC boosted its holdings in shares of Cisco Systems by 0.3% in the 1st quarter. Arete Wealth Advisors LLC now owns 34,878 shares of the network equipment provider’s stock worth $2,706,000 after acquiring an additional 121 shares in the last quarter. FinArc Investments Inc. acquired a new position in Cisco Systems during the 1st quarter worth $3,493,000. Boothe Investment Group Inc. lifted its holdings in Cisco Systems by 6.0% during the 1st quarter. Boothe Investment Group Inc. now owns 32,547 shares of the network equipment provider’s stock worth $2,525,000 after buying an additional 1,841 shares in the last quarter. Western Wealth Management LLC lifted its holdings in Cisco Systems by 60.5% during the 1st quarter. Western Wealth Management LLC now owns 76,372 shares of the network equipment provider’s stock worth $5,926,000 after buying an additional 28,792 shares in the last quarter. Finally, Orographic Financial Advisors LLC acquired a new position in Cisco Systems during the 1st quarter worth $3,847,000. 73.33% of the stock is owned by institutional investors and hedge funds.

About Cisco Systems

Cisco Systems, Inc is a global technology company that designs, manufactures and sells networking hardware, software and telecommunications equipment. Its core business focuses on enabling enterprise and service-provider networks through products such as routers, switches, network security appliances and wireless systems. Over time Cisco has broadened its portfolio to emphasize software-defined networking, cybersecurity, cloud infrastructure and edge computing solutions that help organizations build and manage modern IT environments.

In addition to hardware, Cisco offers a growing range of software platforms and subscription services for network management, security, analytics and collaboration.