Cisco Poised for Strong FY2027 After Record Fiscal Year

Cisco Systems has closed its record fiscal year and is poised for another strong performance in FY2027. The networking giant's setup heading into the new fiscal year is arguably the strongest it has offered investors in over a decade.

The company's Q4 FY2026 report was marked by a 2.52% surprise on revenue, beating consensus estimates and growing 17.6% year-over-year. Non-GAAP EPS of $1.22 also topped estimates by 4.38%, marking the fifth consecutive beat.

According to our analysis, there are three key catalysts driving the bull case for Cisco: AI infrastructure orders, which hit $9.30 billion in FY2026 and are expected to reach $7.50 billion in FY2027; CEO Chuck Robbins' call of a 'multi-year, multi-billion dollar networking super cycle' tied to agentic AI adoption; and the FY2027 revenue guide of $72.2 billion to $73.4 billion, implying 15% growth at the midpoint.

Our price target for Cisco is $148.75, reflecting a 31.09% upside from the current quote of $113.47. We rate shares a buy with a 90% confidence level, our highest tier.