UBS Boosts Cisco Price Target to $138 Amid Strong Quarter and AI Growth

UBS has upgraded its price target for Cisco Systems Inc. (NASDAQ:CSCO) to $138 from $132, while maintaining a Buy rating on the shares.

The upgrade comes after Cisco delivered a strong quarter with product orders, revenue, and diluted earnings per share exceeding expectations.

Investor focus has shifted to the initial fiscal 2027 outlook, particularly the implied gross margin and anticipated revenue deceleration from more than 20% growth in the first quarter of fiscal 2027 to low double digits in the second half of fiscal 2027 due to tougher comparisons.

UBS views the increase in fiscal 2027 AI revenue guidance to $7.5 billion from $6 billion as appropriately conservative, given last-twelve-months AI orders and only $4 billion of AI revenue recognized in fiscal 2026.