Cisco Systems Reports Strong Revenue Growth and Beats Estimates
Cisco Systems reported strong financial results for its fiscal fourth quarter of 2026, with revenue growing by 17.6% year over year to USD 17.25 billion. This performance surpassed expectations, as analysts had projected revenue of USD 16.84 billion. The company's earnings per share (EPS) also beat estimates, coming in at USD 1.22 compared to the expected USD 1.17. Product orders saw a significant increase of 35% year over year, highlighting robust demand.
On October 6, 2026, Cisco's stock was trading at USD 115.83 on the Nasdaq, up 2.67% during the session. The company's market capitalization stood at USD 456.5 billion. Analysts remain optimistic about Cisco's prospects, with 26 brokerages maintaining a Moderate Buy consensus. The average 12-month price target of USD 128.52 suggests an 11.0% upside from the current trading price. Notably, Zacks Research upgraded Cisco from Hold to Strong Buy.
Despite the positive outlook, some concerns remain. The stock's valuation at 33.59 times earnings may give investors pause. Additionally, management's fiscal 2027 EPS guidance of USD 5.050-5.110 leaves the market watching closely to see if AI-related demand can expand beyond networking orders. Cisco's current price is 11.1% below its 52-week high of USD 130.37 but well above the 52-week low of USD 66.81.