Bullish Cisco Eyes Rebound as AI Infrastructure Drives Growth
Cisco Systems has delivered its fifth consecutive earnings beat, and its AI infrastructure orders are growing faster than expected. Despite this success, the stock remains nearly 18% below its 52-week high.
The company's fiscal fourth-quarter revenue came in at $17.25B, up 17.6% from last year and exceeding analyst estimates of $16.83B. Non-GAAP EPS of $1.22 also beat the estimated $1.17 per share.
Cisco is benefiting from its strong AI infrastructure business, with orders reaching $4B in the quarter and $9.3B for the fiscal year. Management has raised guidance for fiscal 2027 to $72.2B-$73.4B in revenue and $5.05-$5.11 per share in non-GAAP EPS.
Analysts are bullish on Cisco, with five Strong Buy ratings, 14 Buy ratings, and no Sell ratings. The average price target is $137.26, although our model suggests a more conservative price target of $125.42 for the next 12 months.