Cisco Systems (NASDAQ:CSCO) Stock Rating Raised to Strong-Buy at Zacks Research

Zacks Research upgraded shares of Cisco Systems (NASDAQ:CSCO) from a hold rating to a strong-buy rating in a research report released on Wednesday morning,Zacks reports.

Other analysts have also issued research reports about the company. Rosenblatt Securities upped 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. Barclays upped their price target on shares of Cisco Systems from $121.00 to $123.00 and gave the company an “equal weight” rating in a research report on Thursday, August 13th. Piper Sandler lowered their price objective on shares of Cisco Systems from $132.00 to $125.00 and set a “neutral” rating on the stock in a research report on Tuesday, September 22nd. Sanford C. Bernstein began coverage on shares of Cisco Systems in a research note on Wednesday. They set a “market perform” rating and a $110.00 target price on the stock. Finally, UBS Group increased their target price on Cisco Systems from $132.00 to $138.00 and gave the company a “buy” rating in a report on Thursday, August 13th. Three analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat, Cisco Systems has a consensus rating of “Moderate Buy” and a consensus price target of $128.52.

Cisco Systems Stock Up 1.0%

CSCO stock opened at $108.76 on Wednesday. Cisco Systems has a 52 week low of $66.81 and a 52 week high of $130.37. The company has a market capitalization of $428.80 billion, a price-to-earnings ratio of 32.56, a price-to-earnings-growth ratio of 2.25 and a beta of 0.99. The firm’s 50-day moving average is $112.04 and its two-hundred day moving average is $106.40. The company has a current ratio of 0.93, a quick ratio of 0.79 and a debt-to-equity ratio of 0.39.

Cisco Systems (NASDAQ:CSCO) last posted its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.17 by $0.05. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The business had revenue of $17.25 billion during the quarter, compared to analysts’ expectations of $16.84 billion. During the same period last year, the firm posted $0.99 earnings per share. The business’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, analysts forecast that Cisco Systems will post 4.41 earnings per share for the current fiscal year.

Cisco Systems Dividend Announcement

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

Insider Buying and Selling at Cisco Systems

In related news, EVP Oliver Tuszik sold 2,760 shares of the stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $112.46, for a total value of $310,389.60. Following the completion of the sale, the executive vice president owned 165,276 shares in the company, valued at approximately $18,586,938.96. This trade represents a 1.64% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Deborah Stahlkopf sold 6,487 shares of the firm’s stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $111.53, for a total value of $723,495.11. Following the completion of the sale, the executive vice president owned 167,116 shares of the company’s stock, valued at $18,638,447.48. This represents a 3.74% 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. Insiders have sold 44,869 shares of company stock valued at $5,005,620 in the last three months. Company insiders own 0.01% of the company’s stock.

Institutional Investors Weigh In On Cisco Systems

A number of institutional investors have recently bought and sold shares of the business. Versant Capital Management Inc raised its stake in shares of Cisco Systems by 43.7% in the 3rd quarter. Versant Capital Management Inc now owns 33,365 shares of the network equipment provider’s stock valued at $3,591,000 after buying an additional 10,146 shares in the last quarter. QRG Capital Management Inc. boosted its position in shares of Cisco Systems by 8.4% during the 2nd quarter. QRG Capital Management Inc. now owns 726,999 shares of the network equipment provider’s stock valued at $86,704,000 after acquiring an additional 56,088 shares in the last quarter. Envestnet Portfolio Solutions Inc. boosted its position in shares of Cisco Systems by 24.6% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 363,506 shares of the network equipment provider’s stock valued at $47,287,000 after acquiring an additional 71,774 shares in the last quarter. Envestnet Asset Management Inc. increased its stake in Cisco Systems by 6.4% in the second quarter. Envestnet Asset Management Inc. now owns 10,702,020 shares of the network equipment provider’s stock valued at $1,320,657,000 after acquiring an additional 644,534 shares during the period. Finally, State Street Corp increased its stake in Cisco Systems by 7.0% in the second quarter. State Street Corp now owns 207,106,569 shares of the network equipment provider’s stock valued at $25,278,492,000 after acquiring an additional 13,512,872 shares during the period. Institutional investors and hedge funds own 73.33% of the company’s stock.

Key Headlines Impacting Cisco Systems

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

• Positive Sentiment: Cisco reported a fifth consecutive earnings beat, with AI infrastructure orders growing faster than expected. Product orders increased 35% year over year in fiscal Q4 2026, reinforcing investor optimism about demand for networking equipment supporting artificial intelligence. The Boring Tech Stock With an AI Tailwind Has 17% Upside
• Positive Sentiment: Cisco’s planned sovereign AI infrastructure platform with Bell Canada could expand its networking, security, observability, and critical-infrastructure businesses in regulated markets requiring data residency and control. Did Bell–Cisco Sovereign AI Pact Just Recast Cisco Systems’ Regulated-Market Strategy?
• Positive Sentiment: Cisco remains attractive to income-focused investors after announcing a quarterly dividend of $0.42 payable October 21. Its dividend growth and exposure to AI networking are supporting the case for the stock as a combination of income and technology exposure. Cisco Systems to Distribute Quarterly Dividend
• Neutral Sentiment: The industrial-control-system security market is forecast to grow at a 16.5% annual rate through 2031, offering a favorable long-term market backdrop for Cisco’s cybersecurity business, although the report does not provide a new company-specific forecast. Industrial Control System Security Market Forecasts Growth
• Neutral Sentiment: Bernstein initiated coverage with a “market perform” rating and a $110 price target, implying limited near-term upside from the referenced $108.76 level. Bernstein Initiates Coverage of Cisco Systems
• Negative Sentiment: Management described its fiscal 2027 AI revenue forecast as prudent, raising questions about how quickly AI-related sales can materially affect overall results. AI represented only about 6% of fiscal 2026 revenue, so Cisco still depends heavily on slower-growing enterprise and telecom businesses. Are There Signs Cisco Stock Is Going To Swing Big?
• Negative Sentiment: Piper Sandler lowered its price target to $125, while analysts and commentary have highlighted valuation risk after CSCO’s strong 12-month advance. At roughly 29 times earnings, investors may require sustained growth beyond current AI optimism to justify additional upside. Piper Sandler Cuts Target for Cisco Systems Stock

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.