HSBC Downgrades Cisco Systems (NASDAQ:CSCO) to Hold

Cisco Systems (NASDAQ:CSCO) was downgraded by stock analysts at HSBC from a “buy” rating to a “hold” rating in a note issued to investors on Friday. They presently have a $120.00 target price on the network equipment provider’s stock. HSBC’s price objective would suggest a potential upside of 5.75% from the stock’s current price.

CSCO has been the subject of a number of other reports. UBS Group lifted their price target on shares of Cisco Systems from $132.00 to $138.00 and gave the company a “buy” rating in a research report on Thursday. CICC Research upped their price objective on shares of Cisco Systems from $96.00 to $125.00 and gave the stock an “outperform” rating in a report on Monday, May 18th. Citic Securities raised their target price on shares of Cisco Systems from $90.00 to $130.00 in a research note on Friday, May 15th. Piper Sandler lifted their target price on shares of Cisco Systems from $86.00 to $132.00 and gave the company a “neutral” rating in a report on Thursday, May 14th. Finally, Argus boosted their price target on Cisco Systems from $100.00 to $150.00 and gave the stock a “buy” rating in a research report on Tuesday, May 19th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $129.43.

Cisco Systems Price Performance

CSCO opened at $113.47 on Friday. The stock has a fifty day simple moving average of $117.23 and a two-hundred day simple moving average of $99.00. The company has a current ratio of 0.92, a quick ratio of 0.81 and a debt-to-equity ratio of 0.40. The company has a market cap of $447.24 billion, a price-to-earnings ratio of 33.97, a price-to-earnings-growth ratio of 2.79 and a beta of 1.02. Cisco Systems has a 12-month low of $65.75 and a 12-month high of $130.37.

Cisco Systems (NASDAQ:CSCO) last announced its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, beating the consensus estimate of $1.17 by $0.05. Cisco Systems had a return on equity of 30.54% and a net margin of 20.95%.The business had revenue of $17.25 billion during the quarter, compared to analyst estimates of $16.84 billion. During the same quarter last year, the firm posted $0.99 earnings per share. The company’s revenue for the quarter 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. Research analysts predict that Cisco Systems will post 4 earnings per share for the current fiscal year.

Insider Transactions at Cisco Systems

In related news, EVP Thimaya K. Subaiya sold 7,127 shares of the stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $119.91, for a total transaction of $854,598.57. Following the transaction, the executive vice president owned 140,857 shares in the company, valued at $16,890,162.87. This represents a 4.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,400 shares of the firm’s stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $120.03, for a total transaction of $2,568,642.00. Following the completion of the sale, the chief executive officer owned 637,085 shares in the company, valued at $76,469,312.55. This represents a 3.25% 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 sold 31,134 shares of company stock worth $3,739,000 over the last three months. 0.01% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Cisco Systems

Hedge funds and other institutional investors have recently modified their holdings of the company. Intesa Sanpaolo Wealth Management bought a new stake in shares of Cisco Systems during the 4th quarter valued at about $25,000. MidAtlantic Capital Management Inc. bought a new position in shares of Cisco Systems in the 4th quarter worth approximately $25,000. Networth Advisors LLC boosted its holdings in shares of Cisco Systems by 276.4% in the first quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider’s stock worth $26,000 after buying an additional 246 shares during the last quarter. Manning & Napier Advisors LLC boosted its holdings in shares of Cisco Systems by 137.0% in the first quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider’s stock worth $27,000 after buying an additional 200 shares during the last quarter. Finally, Financial Life Planners bought a new stake in Cisco Systems during the first quarter valued at approximately $27,000. 73.33% of the stock is owned by institutional investors.

Key Stories Impacting Cisco Systems

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

• Positive Sentiment: Cisco exceeded estimates with fiscal Q4 non-GAAP earnings of $1.22 per share versus $1.17 expected, while revenue rose 18% year over year to approximately $17.3 billion, above the roughly $16.8 billion consensus. Cisco Reports Fourth Quarter and Fiscal Year 2026 Earnings
• Positive Sentiment: AI infrastructure demand remains a major growth catalyst. Cisco received $9.3 billion in hyperscaler AI orders during fiscal 2026, including $4 billion in Q4, and expects about $7.5 billion of related revenue in fiscal 2027. Networking product orders increased 40% year over year. Chuck Robbins Says AI Is Fueling a Networking Supercycle
• Positive Sentiment: Management forecast fiscal Q1 revenue of $18.0 billion to $18.2 billion and non-GAAP EPS of $1.32 to $1.34. Fiscal 2027 revenue guidance of $72.2 billion to $73.4 billion and EPS of $5.05 to $5.11 also exceeded analyst expectations. Cisco Forecasts Upbeat Annual Revenue
• Positive Sentiment: Several analysts raised their price targets, including Wells Fargo to $150, Rosenblatt to $165, UBS to $138 and Truist to $140, maintaining bullish ratings despite the market reaction. Analysts Raise Forecasts on Cisco
• Neutral Sentiment: Cisco declared a quarterly dividend of $0.42 per share, payable October 21 to shareholders of record October 2.
• Negative Sentiment: Investors remain concerned that AI-related growth could pressure profitability. Analysts highlighted squeezed gross margins and questioned whether Cisco’s AI acceleration can justify its premium valuation. Cisco Stock Falls on Margin Concerns
• Negative Sentiment: The earnings beat and guidance apparently did not clear the market’s high bar. Some analysts described the outlook as conservative relative to current demand, while services revenue reportedly missed expectations, intensifying skepticism about longer-term growth.

Cisco Systems Company Profile

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.