Cisco Systems, Inc. (CSCO) AI Stock Analysis

Cisco Systems, Inc. designs, manufactures, and distributes networking and communication solutions globally. Its portfolio includes switching and routing systems, wireless technologies, and computing devices for enterprise networks, data centers, and remote offices. The company delivers solutions for routed optical networking, 5G, silicon, and optics, alongside collaboration tools such as meeting platforms, communication devices, and contact center solutions. Cisco also provides security products spanning network security, cloud protection, unified threat management, and zero-trust architecture. In addition, it offers full-stack application visibility, cloud-native platforms, and customer technical consulting services.

Cisco's revenue expanded to $63.33B in FY2026, up 11.8% year-over-year, following $56.65B in FY2025 and $53.80B in FY2024. Over the 5-year period from FY2021 to FY2026, revenue increased at a CAGR of 4.9%. Gross margin stood at 64.5% in FY2026, compared to 64.9% in FY2025 and 64.7% in FY2024. Operating margin reached 24.3% in FY2026, up from 20.8% in FY2025. Annual net income rose to $13.27B with diluted EPS of $4.18 in FY2026. In the latest quarter ended July 31, 2026, quarterly revenue grew 17.6% year-over-year, while quarterly earnings increased 52.1%.

As of July 31, 2026, Cisco held $15.92B in cash and short-term investments against total debt of $29.53B, resulting in net debt of $13.62B. Shareholders' equity was $50.28B, yielding a debt-to-equity ratio of 0.59 and a current ratio of 0.93. Operating cash flow in FY2026 reached $14.18B, supporting free cash flow of $12.77B after capital expenditures of $1.41B. Capital returns included $6.55B in dividends paid and $6.11B in share buybacks, which helped reduce the share count by 6.0% over 5 years.

Cisco trades at a trailing P/E of 32.2x and a forward P/E of 19.8x, both below the median of its Nasdaq-100 Technology peers at 43.3x and 25.7x, respectively. The company's price-to-sales ratio is 6.7x, compared to 12.4x for the peer median, and its EV/EBITDA multiple is 21.6x versus the peer median of 32.8x. Cisco's PEG ratio stands at 0.98. Over the past year, Cisco shares gained 58.3%, outpacing the S&P 500 (SPY) return of 16.8%, and its 5-year return of 122.9% exceeded the index benchmark return of 83.0%.

Cisco pays an annualized forward dividend of $1.68 per share, representing a dividend yield of 1.56% and a payout ratio of 40.0%. The dividend is paid quarterly and has been distributed for 16 consecutive years, achieving an annualized 5-year dividend growth rate of 2.7%. The last ex-dividend date was October 2, 2026.

Wall Street coverage consists of 14 Strong Buy, 5 Buy, and 10 Hold ratings, with zero Sell or Strong Sell recommendations. The mean price target of $136.16 sits 26.8% above the October 16, 2026 closing price of $107.39. For the current fiscal year ending July 31, 2027, consensus estimates project revenue of $73.17B and EPS of $5.15, implying 18.8% earnings growth. Cisco beat EPS expectations in all 4 of the last 4 quarters, and the next earnings date is November 11, 2026.

This page is an AI-written research summary of Cisco Systems, Inc. (CSCO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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