Cisco Systems (NASDAQ:CSCO) Trading Down 1.2% – What’s Next?

Cisco Systems, Inc. (NASDAQ:CSCO)’s share price dropped 1.2% during mid-day trading on Wednesday . The stock traded as low as $124.92 and last traded at $126.50. 29,550,205 shares traded hands during trading, an increase of 25% from the average daily volume of 23,690,123 shares. The stock had previously closed at $128.00.

More Cisco Systems News

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

• Positive Sentiment: Analyst coverage is turning more constructive, with Morgan Stanley reiterating a Buy rating and Goldman Sachs raising its price target, while other commentary points to Cisco’s growing AI revenue opportunity. Morgan Stanley Sticks to Their Buy Rating for Cisco Systems (CSCO)
• Positive Sentiment: Cisco’s recent product launches at Cisco Live, including AI-centric networking and security tools and a new automation platform with Quali, suggest it is monetizing AI infrastructure demand and could benefit from higher enterprise spending. Cisco’s AI Platforms And Cybersecurity Push Test Valuation For Investors
• Positive Sentiment: Commentary from Jim Cramer and others framed Cisco as a potential winner from Anthropic’s Mythos AI and from broader cybersecurity spending, adding momentum to the stock. Weeks of Manual Infrastructure Work, Condensed to Hours: Quali and Cisco Launch Stack Automation Platform at Cisco Live
• Neutral Sentiment: Cisco presented at the Bank of America Global Technology Conference, which likely helped keep investor attention on the company’s strategy but did not introduce a major new catalyst. Cisco Systems, Inc. (CSCO) Presents at Bank of America 2026 Global Technology Conference Transcript
• Neutral Sentiment: Some analysts still view the stock more cautiously, with Goldman Sachs maintaining only a Neutral/Hold stance despite lifting its target price, suggesting valuation remains a discussion point. Goldman Sachs adjusts price target on Cisco Systems to 125 from 116, maintains neutral rating

Analysts Set New Price Targets

Several equities research analysts recently issued reports on CSCO shares. Rosenblatt Securities reiterated a “buy” rating and set a $100.00 price target on shares of Cisco Systems in a report on Thursday, February 12th. DZ Bank upgraded shares of Cisco Systems to a “strong-buy” rating in a research note on Friday, February 13th. Morgan Stanley increased their price objective on Cisco Systems from $91.00 to $120.00 and gave the company an “overweight” rating in a report on Thursday, May 14th. Piper Sandler boosted their target price on Cisco Systems from $86.00 to $132.00 and gave the company a “neutral” rating in a research note on Thursday, May 14th. Finally, Evercore upped their price objective on shares of Cisco Systems from $110.00 to $150.00 and gave the company an “outperform” rating in a report on Thursday, May 14th. Two 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 $119.50.

Cisco Systems Price Performance

The business’s fifty day moving average price is $97.25 and its 200-day moving average price is $84.70. 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 capitalization of $492.32 billion, a P/E ratio of 40.59, a P/E/G ratio of 3.24 and a beta of 1.01.

Cisco Systems (NASDAQ:CSCO) last issued its quarterly earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 EPS for the quarter, beating analysts’ consensus estimates of $1.03 by $0.03. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The business had revenue of $15.84 billion for the quarter, compared to analysts’ expectations of $15.56 billion. During the same period last year, the business earned $0.96 earnings per share. The business’s quarterly revenue was up 12.0% on a year-over-year basis. 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. As a group, sell-side analysts predict that Cisco Systems, Inc. will post 3.52 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

The business also recently disclosed 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. The ex-dividend date is Monday, July 6th. This represents a $1.68 annualized dividend and a dividend yield of 1.3%. Cisco Systems’s payout ratio is currently 54.55%.

Insider Activity at Cisco Systems

In other news, EVP Oliver Tuszik sold 2,761 shares of the stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $114.61, for a total transaction of $316,438.21. Following the completion of the sale, the executive vice president owned 180,877 shares of the company’s stock, valued at approximately $20,730,312.97. This represents a 1.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,400 shares of Cisco Systems stock in a transaction 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 transaction, the chief executive officer directly owned 637,085 shares in the company, valued at approximately $76,469,312.55. The trade was a 3.25% 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 a total of 51,324 shares of company stock worth $5,559,834 over the last three months. Corporate insiders own 0.01% of the company’s stock.

Institutional Investors Weigh In On Cisco Systems

Large investors have recently added to or reduced their stakes in the company. Cozad Asset Management Inc. grew its holdings in shares of Cisco Systems by 0.3% during the 1st quarter. Cozad Asset Management Inc. now owns 26,203 shares of the network equipment provider’s stock valued at $2,033,000 after purchasing an additional 87 shares during the last quarter. Financial Insights Inc. grew its position in Cisco Systems by 1.5% in the 1st quarter. Financial Insights Inc. now owns 6,220 shares of the network equipment provider’s stock valued at $483,000 after purchasing an additional 92 shares during the period. Signature Resources Capital Management LLC boosted its stake in Cisco Systems by 2.3% during the 1st quarter. Signature Resources Capital Management LLC now owns 5,061 shares of the network equipment provider’s stock valued at $393,000 after purchasing an additional 116 shares during the last quarter. Smithfield Trust Co increased its holdings in Cisco Systems by 0.3% during the 4th quarter. Smithfield Trust Co now owns 33,666 shares of the network equipment provider’s stock worth $2,596,000 after purchasing an additional 117 shares in the last quarter. Finally, Pacific Sage Partners LLC lifted its holdings in shares of Cisco Systems by 0.7% in the first quarter. Pacific Sage Partners LLC now owns 16,185 shares of the network equipment provider’s stock valued at $1,256,000 after purchasing an additional 118 shares in the last quarter. Institutional investors own 73.33% of the company’s stock.

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.