Technology company Cisco (CSCO) is getting a warm cheer from Wall Street after delivering stronger-than-expected Q1 results for FY26. As a result, top-rated analysts at Morgan Stanley and BofA raised their price targets, pointing to solid AI-driven growth. Following the results, CSCO stock jumped over 7% in pre-market trading on Thursday.
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For context, Cisco reported adjusted earnings per share of $1.00, beating analyst estimates of $0.98. Revenue reached $14.88 billion, slightly above expectations of $14.8 billion.
Morgan Stanley Hikes CSCO’s Price Target
Four-star-rated analyst Meta Marshall at Morgan Stanley raised her price target from $77 to $82 with a Buy rating. She highlighted stronger-than-expected performance in two of Cisco’s three main growth areas, with AI emerging as a key upside driver.
Marshall further noted that Cisco secured $1.2 billion in AI-related orders, above the $1 billion level Morgan Stanley had flagged as a positive catalyst. Overall, she believes Cisco’s growing AI business, along with continued campus network upgrades, could support a potential stock rerating if sovereign demand gains momentum over the next year.
BofA Hikes Cisco Stock Price Target to $95
Likewise, Bank of America’s five-star-rated analyst Tal Liani boosted his price target on CSCO to $95, up from $85. The new target implies almost 30% upside from current levels.
Liani is impressed with Cisco’s new AI revenue target of $3 billion for fiscal year 2026, up from $1 billion in 2025, signaling strong growth in its AI networking business. However, he noted disappointment in the company’s security segment, which saw a 2% year-over-year decline despite recent platform launches and firewall updates.
Meanwhile, his price target values Cisco at 21 times its projected 2027 free cash flow, up from 19 times before. Liani said Cisco is well-positioned to benefit from the upcoming campus network upgrades and the growing use of AI in enterprise environments.
Is Cisco a Good Stock to Buy Now?
According to TipRanks, CSCO stock has a Moderate Buy consensus rating based on 10 Buys and five Holds assigned in the last three months. At $78.60, the Cisco average share price target implies an upside of 6.27% from the current level.
