Zacks Upgrades Cisco Systems to Strong Buy After Blowout Q4 Earnings

Cisco Systems stock has been upgraded to Strong Buy by Zacks Research. This upgrade comes after Cisco's fiscal fourth quarter results exceeded expectations, with revenue growing 18% year-over-year to $17.25 billion.

The company's non-GAAP earnings per share reached $1.22, a 23% increase from the prior year and 4.27% above consensus estimates. This growth was not limited to one product line, with networking revenue increasing 28% to $9.79 billion and security revenue rising 14% to $2.23 billion.

Cisco guided for fiscal 2027 revenue of $72.20 billion to $73.40 billion and non-GAAP earnings per share of $5.05 to $5.11, implying growth of 14.99%. However, the margin pressure in the latest quarter leaves execution and product mix as key variables.