Cisco Systems, Inc. (NASDAQ:CSCO – Get Free Report) dropped 2.2% during mid-day trading on Friday. The stock traded as low as $107.14 and last traded at $107.39. Approximately 15,856,722 shares changed hands during mid-day trading, a decline of 29% from the average daily volume of 22,282,000 shares. The stock had previously closed at $109.85.
More Cisco Systems News
Here are the key news stories impacting Cisco Systems this week:
- Positive Sentiment: Cisco reported 17.6% year-over-year revenue growth in its latest quarter, the company’s fastest quarterly sales expansion in a decade. Earnings and revenue also exceeded analyst expectations, while management issued fiscal 2027 EPS guidance of $5.05–$5.11. How Rare Is Cisco’s Record Sales Growth?
- Positive Sentiment: Cisco and NVIDIA are collaborating on a 400G optical standard for AI data centers. The proposed ultra-small-form-factor technology is intended to increase bandwidth density and support an open hardware ecosystem for large-scale AI workloads, potentially strengthening Cisco’s position in AI networking. Cisco Backs a New 400G Optical Standard for AI Data Centers
- Positive Sentiment: Cisco reportedly led Morgan Stanley’s chief information officer survey, suggesting it remains a preferred networking supplier even as technology customers moderate spending. Analysts also see Cisco as offering more valuation support than faster-rising AI infrastructure peer Astera Labs. Cisco Systems Leads in Morgan Stanley’s CIO Survey
- Neutral Sentiment: Cisco’s multimillion-dollar donation to the White House ballroom project has attracted attention. The contribution is unlikely to affect near-term fundamentals but could create reputational or political discussion among investors. Nvidia and Cisco Confirm Donations to White House Ballroom
- Negative Sentiment: Investors are questioning whether Cisco can sustain software renewals once the current equipment-upgrade cycle slows. That creates concern about recurring-revenue growth after AI infrastructure and campus-upgrade spending normalizes. Can Software Renewals Outlast the Networking Upgrade Cycle?
- Negative Sentiment: Competitive pressure remains visible as Arista Networks has outperformed Cisco in AI networking, while Astera Labs has posted much stronger stock momentum. This may encourage investors to favor more concentrated AI beneficiaries over Cisco’s broader, more mature business. AI Networking Stock Outperforming Nvidia and Cisco
- Negative Sentiment: At roughly 32 times earnings, Cisco is not inexpensive despite its mature profile, making the stock more sensitive to signs of slower customer spending or weaker forward growth. Recent coverage noted that Cisco underperformed the broader market during the prior session. Why Cisco Systems Fell More Than the Broader Market
Analyst Ratings Changes
Several equities research analysts have commented on the company. Rosenblatt Securities boosted their price objective on Cisco Systems from $150.00 to $165.00 and gave the stock a “buy” rating in a research note on Thursday, August 13th. Zacks Research upgraded Cisco Systems from a “hold” rating to a “strong-buy” rating in a report on Wednesday, September 30th. Freedom Capital raised shares of Cisco Systems from a “hold” rating to a “strong-buy” rating in a report on Sunday, August 16th. Sanford C. Bernstein began coverage on shares of Cisco Systems in a research report on Wednesday, September 30th. They issued a “market perform” rating and a $110.00 target price for the company. Finally, Morgan Stanley raised their price target on shares of Cisco Systems from $130.00 to $135.00 and gave the stock an “overweight” rating in a research note on Thursday, August 13th. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat.com, Cisco Systems currently has an average rating of “Moderate Buy” and a consensus price target of $128.52.
Get Our Latest Stock Report on CSCO
Cisco Systems Stock Performance
The firm has a fifty day moving average price of $111.66 and a 200 day moving average price of $108.88. The company has a current ratio of 0.93, a quick ratio of 0.79 and a debt-to-equity ratio of 0.39. The firm has a market cap of $423.39 billion, a PE ratio of 32.15, a price-to-earnings-growth ratio of 2.37 and a beta of 0.99.
Cisco Systems (NASDAQ:CSCO – Get Free Report) last announced its quarterly earnings data on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.17 by $0.05. Cisco Systems had a net margin of 20.95% and a return on equity of 30.16%. The firm had revenue of $17.25 billion during the quarter, compared to analyst estimates of $16.84 billion. During the same quarter in the prior year, the firm posted $0.99 earnings per share. Cisco Systems’s quarterly revenue was up 17.6% on a year-over-year basis. Cisco Systems has set its FY 2027 guidance at 5.050-5.110 EPS and its Q1 2027 guidance at 1.320-1.340 EPS. As a group, equities research analysts expect that Cisco Systems, Inc. will post 4.42 earnings per share for the current fiscal year.
Cisco Systems Dividend Announcement
The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 21st. Stockholders of record on Friday, October 2nd will be paid a $0.42 dividend. The ex-dividend date of this dividend is Friday, October 2nd. This represents a $1.68 annualized dividend and a dividend yield of 1.6%. Cisco Systems’s dividend payout ratio is 50.30%.
Insider Buying and Selling at Cisco Systems
In other news, insider Jeetendra Patel sold 7,170 shares of the firm’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $111.57, for a total transaction of $799,956.90. Following the completion of the sale, the insider owned 230,593 shares in the company, valued at $25,727,261.01. This trade represents a 3.02% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,628 shares of Cisco Systems stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $111.54, for a total transaction of $2,412,387.12. Following the sale, the chief executive officer directly owned 602,710 shares in the company, valued at approximately $67,226,273.40. The trade was a 3.46% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 44,869 shares of company stock worth $5,005,620. Insiders own 0.01% of the company’s stock.
Institutional Inflows and Outflows
Hedge funds have recently bought and sold shares of the stock. Rise Advisors LLC grew its stake in shares of Cisco Systems by 13.4% in the third quarter. Rise Advisors LLC now owns 11,059 shares of the network equipment provider’s stock worth $1,190,000 after acquiring an additional 1,305 shares in the last quarter. Cyr Financial Inc. increased its stake in Cisco Systems by 4.1% in the third quarter. Cyr Financial Inc. now owns 17,244 shares of the network equipment provider’s stock valued at $1,856,000 after purchasing an additional 684 shares during the last quarter. Cyndeo Wealth Partners LLC boosted its holdings in shares of Cisco Systems by 9.6% in the 3rd quarter. Cyndeo Wealth Partners LLC now owns 155,688 shares of the network equipment provider’s stock valued at $18,201,000 after buying an additional 13,616 shares in the last quarter. Selective Wealth Management Inc. grew its position in shares of Cisco Systems by 48.5% in the 3rd quarter. Selective Wealth Management Inc. now owns 2,687 shares of the network equipment provider’s stock valued at $295,000 after buying an additional 878 shares during the last quarter. Finally, Hanson & Doremus Investment Management lifted its position in Cisco Systems by 0.7% in the third quarter. Hanson & Doremus Investment Management now owns 54,147 shares of the network equipment provider’s stock valued at $5,883,000 after acquiring an additional 395 shares during the last quarter. Hedge funds and other institutional investors own 73.33% of the company’s stock.
About Cisco Systems
Cisco Systems, Inc is a global technology company that develops networking, cybersecurity, collaboration, observability and data center solutions. Its products and services help businesses, governments, educational institutions and other organizations connect users and devices, manage infrastructure, protect digital environments and support cloud-based operations.
Cisco’s portfolio includes routers and switches, wireless networking equipment, network management software, firewalls, identity and access tools, endpoint security products, collaboration applications and observability platforms.
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