Cisco Upgraded to Strong Buy Amid Revenue Growth and AI Focus

Cisco Systems (ISIN US17275R1023) saw a slight uptick in its stock price, trading at EUR 100.40 on October 6, 2026, at 9:45 a.m. CEST, up 0.02 percent from the prior close of EUR 100.38. This follows a significant upgrade from Zacks Research, which elevated Cisco's rating from Hold to Strong Buy in a research note issued on September 30, 2026.

Cisco's recent performance has been marked by robust revenue growth, albeit with a tradeoff in margins. The company reported USD 17.252 billion in non-GAAP revenue for the fourth quarter of fiscal 2026, an 18 percent year-over-year increase. Non-GAAP earnings per share reached USD 1.22, surpassing the consensus estimate by USD 0.05. However, the shift toward AI infrastructure hardware led to a 210 basis points decline in non-GAAP gross margin to 66.3 percent.

Looking ahead to fiscal 2027, Cisco has set ambitious targets, projecting revenue between USD 72.20 billion and USD 73.40 billion, and non-GAAP earnings per share ranging from USD 5.05 to USD 5.11. For the first quarter of fiscal 2027, the company expects revenue of USD 18.00 billion to USD 18.20 billion and non-GAAP earnings per share of USD 1.32 to USD 1.34. AI infrastructure orders reached USD 9.30 billion in fiscal 2026, with projected revenue of USD 7.50 billion for fiscal 2027.

Analysts maintain a measured stance on Cisco's prospects. MarketBeat reported that 26 brokerages hold a Moderate Buy consensus, with an average 12-month target price of USD 128.52. Notably, Piper Sandler reduced its target from USD 132.00 to USD 125.00 on September 22, 2026. As of October 5, 2026, Cisco's stock was trading at USD 112.82 on Nasdaq, with a market capitalization of USD 444.7 billion.