Cisco Systems (NASDAQ:CSCO) Shares Down 4.4% – What’s Next?

Posted by Stanley Muller on Jun 26th, 2026

Shares of Cisco Systems, Inc. (NASDAQ:CSCO – Get Free Report) fell 4.4% during mid-day trading on Friday . The company traded as low as $112.86 and last traded at $113.77. 50,102,184 shares were traded during mid-day trading, an increase of 109% from the average daily volume of 24,016,744 shares. The stock had previously closed at $118.97.

Key Cisco Systems News

Here are the key news stories impacting Cisco Systems this week:

Positive Sentiment: KeyCorp raised its price target on Cisco to $130 and reiterated an overweight rating, signaling continued analyst confidence in upside potential.
Positive Sentiment: Coverage around Cisco’s AI networking and Acacia optics business pointed to stronger execution in 800G AI infrastructure, which could support future revenue growth.
Positive Sentiment: A valuation update nudged Cisco’s fair value estimate higher, suggesting improving expectations tied to AI networking, campus refresh activity, and optical demand.
Neutral Sentiment: Q1 earnings roundup coverage placed Cisco alongside other IT and tech names, with investors comparing its growth and guidance to peers rather than reacting to a major new catalyst.
Neutral Sentiment: Several articles framed Cisco as a value or quality tech name in a volatile sector, which supports longer-term interest but does not by itself change the near-term thesis.
Negative Sentiment: Some commentary emphasized valuation concerns and the challenge of maintaining high-margin growth as Cisco shifts toward AI-related revenue, which could limit further upside if execution slows.

Analysts Set New Price Targets

Several analysts have weighed in on the company. Barclays raised their price target on Cisco Systems from $76.00 to $121.00 and gave the company an “equal weight” rating in a report on Thursday, May 14th. HSBC upgraded shares of Cisco Systems from a “hold” rating to a “buy” rating and upped their price objective for the stock from $77.00 to $137.00 in a research report on Friday, May 15th. KeyCorp raised their target price on shares of Cisco Systems from $125.00 to $130.00 and gave the company an “overweight” rating in a research note on Thursday. Wall Street Zen lowered shares of Cisco Systems from a “buy” rating to a “hold” rating in a research report on Saturday, March 14th. Finally, Weiss Ratings raised shares of Cisco Systems from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, May 29th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and eight have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $123.14.

Read Our Latest Research Report on Cisco Systems

Cisco Systems Stock Down 4.4%

The stock has a market cap of $448.42 billion, a P/E ratio of 36.94, a P/E/G ratio of 3.06 and a beta of 1.01. The company has a quick ratio of 0.81, a current ratio of 0.92 and a debt-to-equity ratio of 0.40. The company has a 50-day simple moving average of $109.17 and a two-hundred day simple moving average of $89.29.

Cisco Systems (NASDAQ:CSCO – Get Free Report) last released its quarterly earnings data on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.03 by $0.03. The firm had revenue of $15.84 billion for the quarter, compared to analysts’ expectations of $15.56 billion. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The company’s revenue for the quarter was up 12.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.96 earnings per share. Cisco Systems has set its Q4 2026 guidance at 1.160-1.180 EPS and its FY 2026 guidance at 4.270-4.290 EPS. On average, equities analysts forecast that Cisco Systems, Inc. will post 3.53 EPS for the current year.

Cisco Systems Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 22nd. Stockholders of record on Monday, July 6th will be given a $0.42 dividend. The ex-dividend date of this dividend is Monday, July 6th. This represents a $1.68 annualized dividend and a dividend yield of 1.5%. Cisco Systems’s dividend payout ratio is currently 54.55%.

Insiders Place Their Bets

In other Cisco Systems news, EVP Deborah L. Stahlkopf sold 6,586 shares of the business’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $117.31, for a total value of $772,603.66. Following the sale, the executive vice president directly owned 177,223 shares of the company’s stock, valued at approximately $20,790,030.13. The trade was a 3.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Oliver Tuszik sold 2,761 shares of the stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $114.61, for a total transaction of $316,438.21. Following the sale, the executive vice president directly owned 180,877 shares in the company, valued at $20,730,312.97. This trade represents a 1.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 47,650 shares of company stock valued at $5,668,823 in the last 90 days. Corporate insiders own 0.01% of the company’s stock.

Institutional Trading of Cisco Systems

A number of institutional investors have recently made changes to their positions in the stock. Cozad Asset Management Inc. lifted its holdings in shares of Cisco Systems by 0.3% during the 1st quarter. Cozad Asset Management Inc. now owns 26,203 shares of the network equipment provider’s stock valued at $2,033,000 after buying an additional 87 shares during the period. Financial Insights Inc. grew its holdings in shares of Cisco Systems by 1.5% in the first quarter. Financial Insights Inc. now owns 6,220 shares of the network equipment provider’s stock worth $483,000 after acquiring an additional 92 shares during the period. Southern Financial Group LLC increased its position in Cisco Systems by 1.1% during the first quarter. Southern Financial Group LLC now owns 9,159 shares of the network equipment provider’s stock valued at $711,000 after acquiring an additional 102 shares during the last quarter. Signature Resources Capital Management LLC increased its position in Cisco Systems by 2.3% during the first quarter. Signature Resources Capital Management LLC now owns 5,061 shares of the network equipment provider’s stock valued at $393,000 after acquiring an additional 116 shares during the last quarter. Finally, Smithfield Trust Co lifted its holdings in Cisco Systems by 0.3% in the fourth quarter. Smithfield Trust Co now owns 33,666 shares of the network equipment provider’s stock valued at $2,596,000 after acquiring an additional 117 shares during the period. Hedge funds and other institutional investors own 73.33% of the company’s stock.

Cisco Systems Company Profile

(Get Free Report)

Cisco Systems, Inc is a global technology company that designs, manufactures and sells networking hardware, software and telecommunications equipment. Its core business focuses on enabling enterprise and service-provider networks through products such as routers, switches, network security appliances and wireless systems. Over time Cisco has broadened its portfolio to emphasize software-defined networking, cybersecurity, cloud infrastructure and edge computing solutions that help organizations build and manage modern IT environments.

In addition to hardware, Cisco offers a growing range of software platforms and subscription services for network management, security, analytics and collaboration.