CSCONASDAQ— Cisco Systems Inc Price & Analysis

Cisco Systems Inc

TECHNOLOGY — COMMUNICATION EQUIPMENT

$109.20

+$0.59+0.54%

Market Cap: $428.20B; Mega Cap
P/E Ratio: 32.91; Fwd: 20.45
EPS (TTM): $3.30
Div. Yield: 1.52%

Technical Summary

RSI (14)40.95Neutral

SMA (50)$114.28Bearish

SMA (200)$94.50Bullish

MACD-1.7619Bearish

Bollinger$103.93 – $121.17Mid

Stochastic21.84Neutral

Theo Outlook

Cisco Systems (CSCO) presents a bullish thesis with a trailing P/E of 32.79, market capitalization of $430.5 billion, TTM revenue of $63.3 billion showing 17.6% year-over-year quarterly growth, and diluted EPS of $3.33. The stock trades at a forward P/E of 20.24 with a dividend yield of 1.53%, supported by strong returns on equity of 27.3% and analyst ratings including 5 strong buys and 14 buys targeting $137.62. This valuation reflects Cisco's scale in networking hardware and software amid steady demand for enterprise connectivity solutions. Key catalysts include earnings momentum from the latest quarter ending July 31, 2026, with revenue per share of $16.02 and gross profit of $40.86 billion, alongside expansion in IoT, security, and cloud networking through subsidiaries like Webex and Jasper. Product innovation in telecommunications equipment and energy management, combined with 83.5% institutional ownership, positions Cisco for continued market share gains in high-growth segments. Risks encompass competitive pressures from rivals in communication equipment, potential regulatory scrutiny on acquisitions, and macro headwinds like interest rate sensitivity affecting IT spending; these are mitigated by Cisco's diversified revenue streams, robust balance sheet with book value of $12.74 per share, and focus on high-margin software services. Analysis generated by HeyTheo AI based on SEC filings, earnings transcripts, and market data.

Analysis generated by HeyTheo AI on Sep 7, 2026.

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: $63.33B
EBITDA: $18.63B
Gross Profit: $40.88B
Operating Margin: 27.7%
Profit Margin: 20.9%
ROE: 27.3%
Book Value: $12.73
Beta: 1
52-Wk High: $129.88
52-Wk Low: $64.79
Avg Volume: 11.68M
PEG Ratio: 1.01

Frequently Asked Questions

What is Cisco's business model?

Cisco Systems develops, manufactures, and sells networking hardware, software, and telecommunications equipment, with a focus on enterprise and service provider markets. It generates revenue through product sales and high-margin recurring services in IoT, security, and cloud solutions, supported by a TTM revenue of $63.3 billion.

What are Cisco's primary revenue sources?

Cisco's revenue primarily comes from networking hardware, software subscriptions, and services, with TTM revenue of $63.3 billion and gross profit of $40.86 billion. Key segments include communication equipment and solutions from acquisitions like Webex, contributing to 17.6% quarterly revenue growth.

What are Cisco's competitive advantages?

Cisco benefits from its dominant market position in networking, extensive patent portfolio, and integrated ecosystem of hardware and software. With 83.5% institutional ownership and a book value of $12.74, it maintains strong returns on equity of 27.3% and analyst support with a target price of $137.62.

What are the key risks for Cisco investors?

Key risks include intense competition in the communication equipment sector, potential regulatory hurdles on acquisitions, and macroeconomic slowdowns impacting IT budgets. These are offset by Cisco's diversified portfolio, P/E of 32.79, and upcoming dividend payment on October 21, 2026.

What is Cisco's growth outlook?

Cisco shows solid growth potential with 17.6% quarterly revenue growth, EPS of $3.33, and forward P/E of 20.24, driven by demand for secure networking and cloud services. Analysts rate it favorably with 19 buy/strong buy ratings and a target of $137.62, with the next earnings likely following the July 31 quarter.