Cisco Systems (CSCO) AI Stock Analysis

• Market Cap: $309.84B
• Dividend Yield: 2.08%
• Average Volume (3M): 24.15M
• Price to Earnings (P/E): 29.6
• Beta (1Y): 0.89
• Revenue Growth: 8.91%
• EPS Growth: 14.53%
• Country: US
• Employees: 90,400
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 1.00
• Shares Outstanding: 3,951,094,500
• 10 Day Avg. Volume: 25,542,810
• 30 Day Avg. Volume: 24,153,359
• PEG Ratio: 68.41
• Price to Book (P/B): 5.83
• Price to Sales (P/S): 4.82
• P/FCF Ratio: 20.55
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 5.13
• Enterprise Value/Gross Profit: 7.91
• Enterprise Value/Ebitda: 18.07
• 1Y Price Target: $89.36
• Price Target Upside: 13.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $84.00 ▲(7.12% Upside)

Cisco's strong financial performance and positive earnings call sentiment are the most significant factors driving the stock score. Technical indicators support a bullish outlook, although the high valuation may limit upside potential. The company's strategic focus on AI and robust shareholder returns further enhance its investment appeal.

Positive Factors

AI Integration

Cisco's focus on AI integration positions it to capitalize on growing demand for AI-driven solutions, enhancing its competitive edge in tech innovation.

Strong Product Orders

Robust growth in product orders, especially from cloud customers, indicates strong demand and supports sustained revenue growth.

Cash Flow and Shareholder Return

Strong cash flow generation and substantial shareholder returns highlight Cisco's financial strength and commitment to rewarding investors.

Negative Factors

Decline in Public Sector Orders

A decline in public sector orders could signal challenges in this segment, potentially impacting future revenue from government contracts.

Flat Services Revenue

Stagnant services revenue growth suggests challenges in expanding this segment, which could limit overall revenue diversification.

Security Growth Challenges

Limited growth in security orders indicates potential issues in this critical area, which may affect Cisco's competitive positioning in cybersecurity.

Cisco Systems Business Overview & Revenue Model

Company Description

Cisco Systems, Inc. is a leading global technology company headquartered in San Jose, California, specializing in networking hardware, telecommunications equipment, and high-technology services and products. Founded in 1984, Cisco is best known for its role in the development of Internet Protocol (IP)-based networking technologies. The company operates in several segments, including Infrastructure Platforms, Applications, Security, and Services, offering a wide range of products such as routers, switches, and cybersecurity solutions, along with software and services that enhance network performance and security.

How the Company Makes Money

Cisco generates revenue primarily through the sale of its networking hardware and software solutions, which include routers, switches, and security products. The company's revenue model is diversified across several key segments: Infrastructure Platforms, where it earns from its hardware and software products; Applications, which includes collaboration and cloud-based services; Security, focusing on cybersecurity solutions; and Services, encompassing technical support and consulting. Cisco also benefits from subscription-based services that provide recurring revenue streams. Additionally, strategic partnerships with other technology firms and cloud service providers enhance its market reach and contribute to its earnings.

Cisco Systems Financial Statement Overview

Summary

Cisco Systems exhibits strong financial health with solid profitability, efficient operations, and a stable balance sheet. Despite modest revenue growth and slightly negative cash flow growth, the company's overall financial position remains robust, supporting its competitive stance in the communication equipment industry.

Income Statement

Cisco Systems demonstrates strong profitability with a consistent gross profit margin around 65% and a net profit margin of approximately 18.5% in the TTM. The revenue growth rate is modest at 1.8% TTM, indicating stable but slow growth. EBIT and EBITDA margins are healthy, reflecting efficient operations.

Balance Sheet

The company's balance sheet is solid with a manageable debt-to-equity ratio of 0.63 TTM, indicating moderate leverage. Return on equity is robust at 22.8%, showcasing effective use of equity to generate profits. The equity ratio is not explicitly provided, but the overall financial stability is evident.

Cash Flow

Cisco's cash flow is strong with a high free cash flow to net income ratio of 0.94 TTM, indicating efficient cash generation relative to net income. However, the free cash flow growth rate is slightly negative, suggesting a need for improvement in cash flow expansion.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	56.65B	53.80B	57.00B	51.56B	49.82B
Gross Profit	36.79B	34.83B	35.75B	32.25B	31.89B
EBITDA	15.38B	15.75B	17.47B	16.79B	15.56B
Net Income	10.18B	10.32B	12.61B	11.81B	10.59B
Balance Sheet
Total Assets	122.29B	124.41B	101.85B	94.00B	97.50B
Cash, Cash Equivalents and Short-Term Investments	17.24B	19.37B	26.15B	19.27B	24.52B
Total Debt	29.64B	32.23B	8.39B	10.56B	11.53B
Total Liabilities	75.45B	78.96B	57.50B	54.23B	56.22B
Stockholders Equity	46.84B	45.46B	44.35B	39.77B	41.27B
Cash Flow
Free Cash Flow	13.29B	10.21B	19.04B	12.75B	14.76B
Operating Cash Flow	14.19B	10.88B	19.89B	13.23B	15.45B
Investing Cash Flow	1.73B	-20.48B	-5.11B	1.55B	-5.29B
Financing Cash Flow	-15.81B	6.84B	-11.63B	-15.96B	-12.10B

Cisco Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSCO, the sentiment is Positive. The current price of 78.42 is above the 20-day moving average (MA) of 77.55, above the 50-day MA of 74.42, and above the 200-day MA of 66.61, indicating a bullish trend. The MACD of 0.90 indicates Positive momentum. The RSI at 57.22 is Neutral, neither overbought nor oversold. The STOCH value of 24.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSCO.

Cisco Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANET	83 Outperform	$165.12B	49.90	31.74%	―	27.75%	25.42%
CSCO	77 Outperform	$309.84B	29.57	23.01%	2.08%	8.91%	14.53%
FFIV	74 Outperform	$14.92B	21.77	20.60%	―	9.66%	23.87%
FTNT	71 Outperform	$59.67B	33.04	228.04%	―	14.78%	22.52%
HPE	68 Neutral	$32.60B	-320.60	0.23%	2.18%	14.17%	-102.25%
NOK	66 Neutral	$35.70B	36.58	4.03%	2.27%	5.05%	115.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Cisco Systems Corporate Events

Cisco Systems Director Wesley G. Bush to Depart

On October 15, 2025, Wesley G. Bush informed Cisco Systems of his decision not to seek re-election at the company’s 2025 annual stockholders meeting. He will continue his role as a director until the meeting, marking a notable change in the board’s composition.