Cisco Systems (NASDAQ:CSCO) Trading Up 2.3% – Still a Buy?

Cisco Systems, Inc. (NASDAQ:CSCO)’s stock price rose 2.3% on Thursday . The company traded as high as $111.44 and last traded at $110.24. 15,796,919 shares were traded during trading, a decline of 30% from the average session volume of 22,593,549 shares. The stock had previously closed at $107.74.

Key Stories Impacting Cisco Systems

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

• Positive Sentiment: AI networking demand remains a key catalyst. Cisco reportedly delivered 18% fiscal fourth-quarter revenue growth, while hyperscaler AI infrastructure orders increased 4.5 times during fiscal 2026. Accelerating remaining performance obligations and strong AI-related demand support the company’s growth outlook. Cisco Stock Could Soon Wake From Its Summer Slumber
• Positive Sentiment: Splunk is strengthening Cisco’s AI security strategy. New Splunk AI products, cloud alliances and tools designed to track AI usage and token costs could improve Cisco’s positioning in cybersecurity, observability and enterprise AI management. Analysts view the effort as a potential competitive response to Datadog and CrowdStrike. The Bull Case For Cisco Systems Could Change Following New Splunk AI POD And Cloud Alliances
• Positive Sentiment: Cybersecurity demand could attract investors seeking quality technology stocks. Cisco executives emphasized that security defenses must evolve alongside AI threats, reinforcing the strategic importance of Cisco’s security portfolio. A favorable analyst view also highlights cybersecurity as a possible source of durable growth. The Flight To Quality In Tech Will Run Through Cybersecurity
• Neutral Sentiment: Carbon 9 Defense received Splunk’s 2026 Public Sector Partner of the Year award, highlighting partner momentum around Splunk and AI solutions. The recognition is strategically supportive but has no disclosed direct financial impact for Cisco. Carbon 9 Defense Recognized in 2026 Splunk Regional Partner Awards
• Negative Sentiment: Market conditions and execution risks remain concerns. Cisco faced pressure alongside a 2.1% Nasdaq decline, while gross margin contracted to 66.3% because of memory costs and competition. An executive’s sale of 680 shares is a minor negative sentiment signal, though not a material change to the investment case. Cisco Systems Stock Heads Into the Open After a 2.1% Nasdaq Drop

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the stock. Wells Fargo & Company upped their target price on shares of Cisco Systems from $130.00 to $150.00 and gave the company an “overweight” rating in a report on Thursday, August 13th. Freedom Capital upgraded Cisco Systems from a “hold” rating to a “strong-buy” rating in a research report on Sunday, August 16th. Deutsche Bank Aktiengesellschaft assumed coverage on Cisco Systems in a research report on Tuesday, September 1st. They set a “buy” rating and a $135.00 price objective for the company. Zacks Research lowered shares of Cisco Systems from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, August 4th. Finally, The Goldman Sachs Group upped their price objective on shares of Cisco Systems from $116.00 to $125.00 and gave the stock a “neutral” rating in a research report on Wednesday, June 3rd. Two analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $129.68.

Cisco Systems Stock Performance

The stock’s 50 day moving average price is $113.42 and its two-hundred day moving average price is $104.13. The company has a current ratio of 0.93, a quick ratio of 0.79 and a debt-to-equity ratio of 0.39. The firm has a market capitalization of $434.63 billion, a price-to-earnings ratio of 33.01, a PEG ratio of 2.29 and a beta of 1.00.

Cisco Systems (NASDAQ:CSCO) last released its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 EPS for the quarter, topping analysts’ consensus estimates of $1.17 by $0.05. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The firm had revenue of $17.25 billion for the quarter, compared to the consensus estimate of $16.84 billion. During the same quarter in the previous year, the firm earned $0.99 earnings per share. The firm’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, Inc. will post 4.43 EPS for the current year.

Cisco Systems Announces Dividend

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

Insider Activity at Cisco Systems

In other news, insider Jeetendra Patel sold 7,170 shares of the business’s stock in a transaction on Friday, August 14th. The stock was sold at an average price of $111.57, for a total value of $799,956.90. Following the completion of the transaction, the insider directly owned 230,593 shares of the company’s stock, valued at $25,727,261.01. The trade was a 3.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Deborah Stahlkopf sold 6,487 shares of the business’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $111.53, for a total transaction of $723,495.11. Following the completion of the transaction, the executive vice president directly owned 167,116 shares of the company’s stock, valued at approximately $18,638,447.48. This represents a 3.74% decrease in their position. 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 valued at $5,005,620 in the last ninety days. 0.01% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in CSCO. Bridgewater Advisors Inc. acquired a new position in shares of Cisco Systems during the second quarter valued at about $6,442,000. WCG Wealth Advisors LLC lifted its position in shares of Cisco Systems by 101.8% in the 4th quarter. WCG Wealth Advisors LLC now owns 107,306 shares of the network equipment provider’s stock worth $8,266,000 after acquiring an additional 54,141 shares during the period. Beacon Pointe Advisors LLC acquired a new stake in shares of Cisco Systems during the 2nd quarter worth approximately $60,009,000. Vise Technologies Inc. raised its stake in shares of Cisco Systems by 47.1% in the fourth quarter. Vise Technologies Inc. now owns 200,341 shares of the network equipment provider’s stock valued at $15,432,000 after purchasing an additional 64,144 shares in the last quarter. Finally, ABN AMRO Bank N.V. acquired a new position in shares of Cisco Systems in the 2nd quarter valued at $19,114,000. Hedge funds and other institutional investors own 73.33% of the company’s stock.

Cisco Systems Company Profile

Cisco Systems, Inc is a global technology company that provides networking, cybersecurity, collaboration, observability and other information technology solutions. Its offerings include routers, switches, wireless networking equipment, data center infrastructure, security platforms, unified communications tools and software designed to help organizations connect, manage and protect their digital environments.

Cisco serves businesses, government agencies, educational institutions, telecommunications providers and other organizations worldwide.