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Cisco Systems Inc (CSCO) Stock

Cisco Systems Inc Stock Details, Movements and Public Alerts

Cisco Systems (CSCO): The Networking Giant Reinventing Itself for Cloud and AI

When Chuck Robbins became CEO of Cisco in 2015, the company was synonymous with networking hardware—routers and switches connecting the internet's backbone. Robbins recognized that enterprise IT was shifting to software-defined networking, cloud services, and subscription models. Over his tenure, he has orchestrated Cisco's transformation: acquiring cybersecurity assets (Duo, Splunk for $28B), building software platforms (Webex, ThousandEyes), and converting hardware sales to subscription licenses. Today, 55%+ of Cisco's revenue is recurring, with $33 billion in remaining performance obligations providing visibility into future revenue. As AI workloads demand specialized networking for GPU clusters and enterprises embrace hybrid cloud architectures, Cisco's infrastructure remains essential—making it a defensive technology play with income appeal.

52-Week Range

$80.82 - $51.49

-3.18% from high · +51.97% from low

Avg Daily Volume

19,225,847

20-day average

100-day avg: 19,942,526

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

30.96

Above market average

Forward P/E

19.57

Earnings expected to grow

PEG Ratio

1.90

Reasonably valued

Price to Book

6.76

EV/EBITDA

20.12

EPS (TTM)

$2.56

Price to Sales

5.43

Beta

0.86

Less volatile than market

How is CSCO valued relative to its earnings and growth?
Cisco Systems Inc trades at a P/E ratio of 30.96, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 19.57 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.90 indicates reasonable value when growth is considered.
What is CSCO's risk profile compared to the market?
With a beta of 0.86, Cisco Systems Inc is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 6.76 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

17.90%

Operating Margin

23.60%

EBITDA

$15.68B

Return on Equity

22.40%

Return on Assets

6.65%

Revenue Growth (YoY)

7.50%

Earnings Growth (YoY)

6.00%

How profitable and efficient is CSCO's business model?
Cisco Systems Inc achieves a profit margin of 17.90%, meaning it retains $17.90 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 23.60% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 22.40% and ROA at 6.65%, the company generates strong returns on invested capital.
What are CSCO's recent growth trends?
Cisco Systems Inc's revenue grew by 7.50% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 6.00% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against COMMUNICATION EQUIPMENT industry averages for proper context.

Dividend Information

Dividend Per Share

$1.63

Dividend Yield

2.03%

Ex-Dividend Date

Jan 2, 2026

Dividend Date

Jan 21, 2026

What dividend income can investors expect from CSCO?
Cisco Systems Inc offers a dividend yield of 2.03%, paying $1.63 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Jan 2, 2026.
How reliable is CSCO's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Cisco Systems Inc pays $1.63 per share in dividends against earnings of $2.56 per share, resulting in a payout ratio of 63.67%. This high payout ratio of 60-90% leaves limited earnings for reinvestment. While currently sustainable, there's less buffer for dividend growth or protection during earnings downturns. The next dividend payment is scheduled for Jan 21, 2026.

Company Size & Market

Market Cap

$313.2B

Revenue (TTM)

$57.70B

Revenue/Share (TTM)

$14.54

Shares Outstanding

3.95B

Book Value/Share

$11.90

Asset Type

Common Stock

What is CSCO's market capitalization and position?
Cisco Systems Inc has a market capitalization of $313.2B, classifying it as a mega-cap stock (over $200B). These are the largest, most established companies globally, typically offering stability and liquidity but with more modest growth potential. Mega-caps often pay dividends and weather economic downturns better than smaller companies. With 3.95B shares outstanding, the company's ownership is widely distributed. As a major player in the COMMUNICATION EQUIPMENT industry, it competes with other firms in this sector.
How does CSCO's price compare to its book value?
Cisco Systems Inc's book value per share is $11.90, while the current stock price is $78.25, resulting in a price-to-book (P/B) ratio of 6.58. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$84.81

8.38% upside potential

Analyst Recommendations

Strong Buy

4

Buy

10

Hold

11

Sell

0

Strong Sell

1

How reliable are analyst predictions for CSCO?
26 analysts cover CSCO with 54% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $84.81 implies 8.4% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on CSCO?
Current analyst recommendations:4 Strong Buy, 10 Buy, 11 Hold, 01 Strong Sell. The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:21 AM

Technical Indicators

RSI (14-day)

59.65

Neutral

50-Day Moving Average

$67.74

15.52% above MA-50

200-Day Moving Average

$62.91

24.38% above MA-200

MACD Line

0.28

MACD Signal

0.08

MACD Histogram

0.20

Bullish

What does CSCO's RSI value tell investors?
The RSI (Relative Strength Index) for CSCO is currently 59.65, indicating the stock is in neutral territory (40-60 range). Neither buyers nor sellers have clear control, suggesting consolidation or balanced market forces. Combined with the price being above the 50-day moving average, this confirms bullish conditions.
How should traders interpret CSCO's MACD and moving average crossovers?
MACD analysis shows the MACD line at 0.28 above the signal line at 0.08, with histogram at 0.20. This bullish crossover suggests upward momentum is building. The 50-day MA ($67.74) is above the 200-day MA ($62.91), forming a golden cross pattern that typically signals a long-term uptrend. Price is currently above both MAs, confirming strength.

Indicators last updated: Oct 8, 2025, 12:58 AM

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Cisco Systems (CSCO) Stock Analysis 2025: Complete Investment Guide

Every email, video stream, and AI query traverses networking infrastructure connecting devices, servers, and data centers. Cisco Systems, under Chuck Robbins' leadership, supplies the switches, routers, and software that move 85% of internet traffic globally. While the company's core networking business remains dominant with 50%+ market share, Robbins has driven aggressive transformation: the $28 billion Splunk acquisition (closed March 2024) creates a cybersecurity and data analytics powerhouse, while Cisco's Silicon One custom networking chips position the company for AI data center buildouts requiring high-bandwidth, low-latency connectivity. For investors seeking defensive exposure to digital infrastructure with steady dividends and transformation upside, Cisco combines mature business cash generation with strategic positioning for cloud and AI networking growth.

Business Model & Competitive Moat

Cisco generates revenue through enterprise networking equipment (switches, routers, wireless access points), security products (firewalls, zero-trust solutions), collaboration tools (Webex conferencing), and observability/analytics (Splunk). The business model has shifted from one-time hardware sales to recurring software subscriptions—customers now purchase Cisco DNA (software-defined networking) licenses, Webex subscriptions, and Splunk Cloud on multi-year contracts. Revenue increasingly comes from renewals, support contracts, and software attach rates on hardware, creating predictable recurring streams.

Cisco's competitive moat stems from installed base, switching costs, ecosystem lock-in, and brand trust. With networking equipment embedded in 85% of Fortune 500 data centers, replacing Cisco infrastructure requires massive capital expenditure, network downtime, and IT staff retraining—creating prohibitive switching costs. Cisco's ecosystem of certifications (CCNA, CCNP) creates a workforce trained specifically on Cisco technologies, further entrenching the platform. Chuck Robbins has leveraged this foundation to cross-sell security and software, expanding wallet share beyond networking hardware. The company's reputation for reliability and enterprise support creates preference with CIOs prioritizing uptime over bleeding-edge features.

Financial Performance

  • •Revenue Scale: $57B annual revenue with low-single-digit growth, reflecting mature core business offset by software/security expansion
  • •Recurring Revenue: 55%+ of revenue from subscriptions and software, up from 30% in 2018, targeting 65%+ by 2027
  • •Gross Margins: 63% gross margins with software/subscriptions achieving 75%+ margins versus 55% for hardware
  • •Free Cash Flow: Generates $13B+ annual free cash flow (23% FCF margins), supporting $3.3B annual dividend and strategic M&A
  • •Backlog Strength: $33B remaining performance obligations (RPO) providing 12-18 months revenue visibility from existing contracts

Growth Catalysts

  • •Splunk Integration: $28B Splunk acquisition creates $7B+ security and observability platform, cross-selling to Cisco's enterprise base
  • •AI Networking Boom: Silicon One chips and Nexus 9000 switches connecting NVIDIA GPU clusters in AI data centers, 30%+ growth segment
  • •Subscription Acceleration: Hardware-to-software conversion driving recurring revenue mix from 55% to 65%+, improving margin and valuation
  • •5G Enterprise: Private 5G networks for enterprises requiring Cisco's wireless and security infrastructure for campus deployments
  • •Hybrid Cloud Wins: ThousandEyes and AppDynamics monitoring multi-cloud environments as enterprises adopt AWS/Azure alongside on-premise

Risks & Challenges

  • •Cloud Disruption: Software-defined networking and cloud-native architectures reducing reliance on Cisco's proprietary hardware
  • •Revenue Stagnation: Core networking business growing low-single-digits; transformation to software must accelerate to offset hardware headwinds
  • •Competition Intensifying: Arista (cloud data centers), Palo Alto Networks (security), Microsoft Teams (collaboration) taking market share
  • •Splunk Integration Risk: Largest acquisition in company history; cultural integration and cross-selling execution remain unproven
  • •China Exposure: Geopolitical tensions and Chinese vendor preferences reducing Cisco's Asia-Pacific revenue and growth opportunities

Competitive Landscape

Cisco competes with Arista Networks (cloud data center switches), Juniper Networks (enterprise routing), Palo Alto Networks (network security), and Fortinet (firewalls). Arista has captured significant market share in hyperscale data centers with cloud-optimized switching, while Palo Alto dominates next-generation firewalls. In collaboration, Microsoft Teams has overtaken Webex in video conferencing market share. Chinese vendors like Huawei offer aggressive pricing but face geopolitical barriers limiting Western adoption.

Chuck Robbins' strategy emphasizes platform consolidation—offering networking, security, observability, and collaboration in an integrated stack that reduces vendor complexity. This approach differentiates Cisco from point-solution vendors and leverages the installed base for cross-selling. The Splunk acquisition particularly strengthens Cisco's security portfolio, creating a comprehensive cybersecurity platform combining network security, endpoint protection, and data analytics that competes more effectively with Palo Alto and CrowdStrike. Cisco's scale, brand, and enterprise relationships provide advantages in multi-product sales that smaller, specialized competitors cannot match.

Who Is This Stock Suitable For?

Perfect For

  • ✓Income investors seeking reliable dividends with 13-year growth track record (2.6% yield)
  • ✓Defensive technology investors wanting mature, cash-generative business with transformation upside
  • ✓Value investors seeking established franchises trading at 13x earnings with strong cash flow
  • ✓Retirees prioritizing capital preservation and dividend income over aggressive growth

Less Suitable For

  • ✗Growth investors seeking rapid revenue acceleration (low-single-digit organic growth)
  • ✗Momentum traders (stock moves slowly with fundamentals, limited volatility)
  • ✗Investors bearish on enterprise networking hardware facing cloud disruption
  • ✗Aggressive investors seeking 10x+ returns (large-cap mature business with steady growth)

Investment Thesis

Cisco Systems offers a rare combination of stability, income, and transformation potential in a single mature technology franchise. Chuck Robbins has successfully navigated the transition from hardware to software, evidenced by recurring revenue growing from 30% to 55%+ of total revenue. The company generates massive free cash flow ($13B+ annually) supporting a sustainable dividend while funding strategic acquisitions like Splunk that expand addressable markets. Cisco's installed base in 85% of Fortune 500 enterprises creates a foundation for cross-selling security, software, and AI networking solutions.

Near-term headwinds include low organic growth, cloud disruption of legacy hardware, and Splunk integration execution risk. However, the dividend yield (2.6%), free cash flow generation, and defensive positioning in essential infrastructure make Cisco suitable for conservative portfolios seeking income with moderate growth. The AI networking opportunity—where Cisco's Silicon One chips connect GPU clusters—provides potential upside surprise if AI infrastructure demand sustains. For investors prioritizing cash generation, dividends, and defensive technology exposure over rapid growth, Cisco represents a core holding suitable for long-term, income-focused portfolios. The stock is a BUY for dividend growth investors and a HOLD at current levels for those seeking pure growth.

Conclusion

Cisco deserves a BUY rating for dividend growth and defensive technology investors. The stock offers attractive total return prospects (2.6% yield plus mid-single-digit growth) with limited downside given strong cash flow and market position. For income-focused portfolios, Cisco represents a core holding suitable for 3-5% allocation. Monitor quarterly subscription revenue growth, Splunk cross-selling progress, and free cash flow generation as key metrics over the next 12-18 months.
Bull Case
$60 (14% upside if subscription transition accelerates and AI networking exceeds expectations)
Base Case
$55 (5% upside reflecting steady execution and moderate growth with dividend contribution)
Bear Case
$45 (14% downside on Splunk integration issues or accelerating cloud-driven hardware revenue declines)

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