Market Cap: 444.4362B; Mega Cap
P/E Ratio: 37.46; Fwd: 23.64
EPS (TTM): $3.01
Div. Yield: 1.47%

CSCONASDAQ— Cisco Systems Inc Price & Analysis

Cisco Systems Inc

TECHNOLOGY — COMMUNICATION EQUIPMENT

$114.17

+$1.41+1.25%

Market Cap: 444.4362B; Mega Cap
P/E Ratio: 37.46; Fwd: 23.64
EPS (TTM): $3.01
Div. Yield: 1.47%

Technical Summary

RSI (14)49.11Neutral

SMA (50)$117.62Bearish

SMA (200)$88.00Bullish

MACD-1.0329Bearish

Bollinger$108.27 – $120.69Mid

Stochastic39.18Neutral

Theo Outlook

Cisco Systems (CSCO) presents a moderately bullish thesis with a $441B market cap, trailing P/E of 37.31, forward P/E of 23.58, TTM EPS of $3.00, and 12% year-over-year quarterly revenue growth to $60.75B. The stock trades at a premium to historical averages yet offers value on forward earnings amid stabilizing enterprise spending. Strong profitability metrics including 19.7% profit margin and 25.2% ROE support the case for continued outperformance versus peers. Key catalysts include accelerating adoption of AI-driven networking solutions, expansion in cybersecurity and IoT verticals through recent acquisitions, and positive earnings momentum with 37% quarterly EPS growth. Management guidance points to sustained double-digit software revenue growth and margin expansion as the company shifts toward subscription models. Analyst consensus target of $130.23 implies upside from current levels with 17 buy ratings. Risks center on intense competition from Huawei and Arista in networking hardware, potential regulatory scrutiny on acquisitions, and macro headwinds from delayed enterprise capex. Mitigation comes from Cisco's dominant installed base, recurring revenue streams exceeding 50% of total, and diversified exposure across 100+ countries that cushions regional slowdowns. The 1.5% dividend yield and upcoming July 22 payment provide downside support.

Company Overview

Cisco Systems, Inc. is an American multinational technology conglomerate headquartered in San Jose, California, in the center of Silicon Valley. Cisco develops, manufactures and sells networking hardware, software, telecommunications equipment and other high-technology services and products. Through its numerous acquired subsidiaries, such as OpenDNS, Webex, Jabber and Jasper, Cisco specializes in specific tech markets, such as the Internet of Things (IoT), domain security and energy management. On January 25, 2021, Cisco reincorporated in Delaware.

Fundamental Snapshot

Revenue: 60.746B
EBITDA: 17.007B
Gross Profit: 39.058B
Operating Margin: 25.0%
Profit Margin: 19.7%
ROE: 25.2%
Book Value: $12.4
Beta: 1.007
52-Wk High: $129.88
52-Wk Low: $64.42
Avg Volume: 18.0166M
PEG Ratio: 1.557

Frequently Asked Questions

What is Cisco's core business model?

Cisco Systems develops and sells networking hardware, software, and services focused on enterprise connectivity, security, and collaboration. It generates revenue through product sales, subscription software, and maintenance contracts, with over 50% now recurring.

Where does Cisco derive most of its revenue?

TTM revenue of $60.75B comes primarily from networking products (routers, switches), security solutions, and collaboration tools like Webex. Software and services now represent the fastest-growing segment at double-digit rates.

What are Cisco's main competitive advantages?

Cisco benefits from a massive installed base, global scale across 100+ countries, and leadership in enterprise networking with 25.2% ROE. Its shift to AI-enabled platforms and acquisitions in IoT/security create sticky, high-margin recurring revenue.

What are the key risks for CSCO investors?

Primary risks include competition from Arista and Huawei, potential delays in enterprise spending, and regulatory hurdles on M&A. The 37.31 trailing P/E leaves limited margin of safety if growth slows below the current 12% quarterly revenue pace.

What is the growth outlook for Cisco?

Analysts project continued 10-12% revenue growth driven by AI networking and cybersecurity demand, with EPS expected to rise toward the $4+ range. The $130.23 consensus target and 1.5% dividend yield support a constructive multi-year outlook through 2027.

Trading Data

Open: $112.37
Previous Close: $112.76
Day Range: $112.2 – $114.57
Volume: 18.0383M
Shares Outstanding: 3.9414B
Analyst Target: $130.23

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Company Overview

Cisco Systems, Inc. is an American multinational technology conglomerate headquartered in San Jose, California, in the center of Silicon Valley. Cisco develops, manufactures and sells networking hardware, software, telecommunications equipment and other high-technology services and products. Through its numerous acquired subsidiaries, such as OpenDNS, Webex, Jabber and Jasper, Cisco specializes in specific tech markets, such as the Internet of Things (IoT), domain security and energy management. On January 25, 2021, Cisco reincorporated in Delaware.

Fundamental Snapshot

Revenue: 60.746B
EBITDA: 17.007B
Gross Profit: 39.058B
Operating Margin: 25.0%
Profit Margin: 19.7%
ROE: 25.2%
Book Value: $12.4
Beta: 1.007
52-Wk High: $129.88
52-Wk Low: $64.42
Avg Volume: 18.0166M
PEG Ratio: 1.557

Theo Outlook

Cisco Systems (CSCO) presents a moderately bullish thesis with a $441B market cap, trailing P/E of 37.31, forward P/E of 23.58, TTM EPS of $3.00, and 12% year-over-year quarterly revenue growth to $60.75B. The stock trades at a premium to historical averages yet offers value on forward earnings amid stabilizing enterprise spending. Strong profitability metrics including 19.7% profit margin and 25.2% ROE support the case for continued outperformance versus peers. Key catalysts include accelerating adoption of AI-driven networking solutions, expansion in cybersecurity and IoT verticals through recent acquisitions, and positive earnings momentum with 37% quarterly EPS growth. Management guidance points to sustained double-digit software revenue growth and margin expansion as the company shifts toward subscription models. Analyst consensus target of $130.23 implies upside from current levels with 17 buy ratings. Risks center on intense competition from Huawei and Arista in networking hardware, potential regulatory scrutiny on acquisitions, and macro headwinds from delayed enterprise capex. Mitigation comes from Cisco's dominant installed base, recurring revenue streams exceeding 50% of total, and diversified exposure across 100+ countries that cushions regional slowdowns. The 1.5% dividend yield and upcoming July 22 payment provide downside support.

Frequently Asked Questions

What is Cisco's core business model?

Cisco Systems develops and sells networking hardware, software, and services focused on enterprise connectivity, security, and collaboration. It generates revenue through product sales, subscription software, and maintenance contracts, with over 50% now recurring.

Where does Cisco derive most of its revenue?

TTM revenue of $60.75B comes primarily from networking products (routers, switches), security solutions, and collaboration tools like Webex. Software and services now represent the fastest-growing segment at double-digit rates.

What are Cisco's main competitive advantages?

Cisco benefits from a massive installed base, global scale across 100+ countries, and leadership in enterprise networking with 25.2% ROE. Its shift to AI-enabled platforms and acquisitions in IoT/security create sticky, high-margin recurring revenue.

What are the key risks for CSCO investors?

Primary risks include competition from Arista and Huawei, potential delays in enterprise spending, and regulatory hurdles on M&A. The 37.31 trailing P/E leaves limited margin of safety if growth slows below the current 12% quarterly revenue pace.

What is the growth outlook for Cisco?

Analysts project continued 10-12% revenue growth driven by AI networking and cybersecurity demand, with EPS expected to rise toward the $4+ range. The $130.23 consensus target and 1.5% dividend yield support a constructive multi-year outlook through 2027.