Cisco Stock Valuation Ignores Two Years of Forecasted Earnings

Cisco Systems (CSCO) trades at an elevated price of $106 per share, which is approximately 24.6 times its non-GAAP earnings per share for fiscal 2026.

This valuation is based on the same metrics that Cisco uses for its guidance and analysts use for their forecasts.

However, this high multiple ignores the fact that analysts have already forecast two years of earnings, with Cisco's fiscal 2027 guide implying a non-GAAP operating margin of about 35%, a company high-water mark.