Zacks Research Upgrades Cisco Systems (NASDAQ:CSCO) to “Strong-Buy”

Cisco Systems (NASDAQ:CSCO) was upgraded by analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a research note issued on Wednesday, Zacks reports.

A number of other equities analysts have also recently weighed in on the company. Freedom Capital raised Cisco Systems from a “hold” rating to a “strong-buy” rating in a report on Sunday, August 16th. Bank of America boosted their price objective on Cisco Systems from $135.00 to $150.00 and gave the company a “buy” rating in a research report on Monday, June 8th. Truist Financial upped their target price on Cisco Systems from $125.00 to $140.00 and gave the stock a “buy” rating in a research note on Thursday, August 13th. KeyCorp lifted their price target on shares of Cisco Systems from $130.00 to $135.00 and gave the company an “overweight” rating in a research note on Thursday, August 13th. Finally, The Goldman Sachs Group boosted their price target on shares of Cisco Systems from $116.00 to $125.00 and gave the stock a “neutral” rating in a report on Wednesday, June 3rd. Three analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat, Cisco Systems has a consensus rating of “Moderate Buy” and a consensus target price of $128.52.

Cisco Systems Stock Up 1.0%

CSCO stock opened at $108.76 on Wednesday. The firm has a market cap of $428.80 billion, a PE ratio of 32.56, a P/E/G ratio of 2.25 and a beta of 0.99. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.79 and a current ratio of 0.93. The firm’s fifty day moving average is $112.04 and its 200 day moving average is $106.40. Cisco Systems has a one year low of $66.81 and a one year high of $130.37.

Cisco Systems (NASDAQ:CSCO) last released its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share for the quarter, beating 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 quarter in the previous year, the company earned $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. On average, research analysts forecast that Cisco Systems will post 4.41 EPS for the current year.

Insider Activity at Cisco Systems

In other news, EVP Oliver Tuszik sold 680 shares of the company’s stock in a transaction on Monday, September 14th. The shares were sold at an average price of $110.18, for a total transaction of $74,922.40. Following the completion of the sale, the executive vice president owned 163,337 shares of the company’s stock, valued at $17,996,470.66. This represents a 0.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya Subaiya sold 312 shares of the stock in a transaction dated Monday, September 14th. The shares were sold at an average price of $110.18, for a total transaction of $34,376.16. Following the completion of the sale, the executive vice president owned 127,661 shares of the company’s stock, valued at $14,065,688.98. This trade represents a 0.24% 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. Insiders have sold a total of 44,869 shares of company stock worth $5,005,620 over the last 90 days. Corporate insiders own 0.01% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in CSCO. Bridgewater Advisors Inc. purchased a new position in Cisco Systems during the 2nd quarter worth $6,442,000. Beacon Pointe Advisors LLC acquired a new stake in shares of Cisco Systems during the second quarter worth about $60,009,000. Vise Technologies Inc. grew its holdings in shares of Cisco Systems by 47.1% during the fourth quarter. Vise Technologies Inc. now owns 200,341 shares of the network equipment provider’s stock worth $15,432,000 after buying an additional 64,144 shares during the last quarter. ABN AMRO Bank N.V. purchased a new position in shares of Cisco Systems during the second quarter worth about $19,114,000. Finally, Western Wealth Management LLC increased its position in Cisco Systems by 60.5% in the 1st quarter. Western Wealth Management LLC now owns 76,372 shares of the network equipment provider’s stock valued at $5,926,000 after acquiring an additional 28,792 shares during the period. 73.33% of the stock is currently owned by institutional investors and hedge funds.

Cisco Systems News Summary

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.