Zacks Upgrades Cisco Systems to Strong Buy on AI Growth

Zacks Research has upgraded Cisco Systems (CSCO) from Hold to Strong Buy, according to an announcement on October 2, 2026. The move follows the company's fiscal fourth-quarter 2026 results, which exceeded expectations with revenue of $17.25 billion, a 17.60% year-over-year increase. Non-GAAP earnings per share came in at $1.22, beating the consensus estimate of $1.17.

The upgrade reflects Cisco's broader growth trajectory. Fiscal 2026 revenue reached $63.30 billion, up 12.00% from $56.65 billion in fiscal 2025, while GAAP net income rose to $13.27 billion from $10.18 billion. Management has guided fiscal 2027 revenue to a range of $72.20 billion to $73.40 billion, with non-GAAP earnings per share projected between $5.05 and $5.11.

AI infrastructure is a key growth driver for Cisco. The company expects $7.50 billion in AI infrastructure revenue for fiscal 2027, with fiscal 2026 hyperscaler AI infrastructure revenue representing 6.00% of total revenue. Additionally, Cisco's WebexOne event, scheduled for October 5 through October 8, 2026, in Austin, will focus on AI-powered collaboration and customer experience.

As of October 5, 2026, Cisco Systems stock was trading at EUR 99.73 at Lang & Schwarz, up 0.09% from the prior close of EUR 99.64. The primary Nasdaq listing stood at $112.20 on October 2, 2026, within a 52-week range of $66.81 to $130.37.