CSCO AI Stock Analysis – Buy, Hold, or Avoid?

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Cisco Systems, Inc. (CSCO)

$80.01-0.86 (-1.06%) today

Open
$80.02
High
$81.17
Low
$79.05
Volume
26.82M
Mkt Cap
$316.13B
52W High
$88.19
AI Verdict
Confidence 90%
CSCOCisco Systems, Inc.
AlphaCrew AI
BUY
Overall
Summary

Cisco Systems (CSCO) offers a compelling investment case with strong fundamentals, robust earnings growth, and a bullish technical setup, supported by positive sentiment and fair valuation. While moderate liquidity and competitive risks exist, the company's leadership in AI infrastructure and recurring revenues provide meaningful upside for medium- and long-term investors. Near-term, a breakout or pullback entry is favored, with the long-term outlook underpinned by sustainable growth drivers.

By Timeframe
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HOLD
Short
BUY
Medium
BUY
Long
Agent Signals
32
Fund
Tech
Val
Sent
Risk

Fundamentals

Essentia
Essentia
Fundamental Analysis
BULLISH

Cisco Systems (CSCO) demonstrates robust fundamental health with consistent revenue and earnings growth, expanding margins, and a strong track record of meeting or exceeding earnings expectations. The company shows clear resilience amid changing tech cycles, leveraging its dominant position in networking and enterprise solutions. Overall, fundamentals point to high operational stability and a capacity for consistent shareholder returns.

Financial Highlights

Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025$0$4.0B$8.0B$12.0B$16.0BRevenue & Net Income ($)17.1%18%18.9%19.8%20.7%Net Margin (%)
  • Revenue
  • Net Income
  • Net Margin (%)

Revenue

$15.35B

9.71% YoY

Q4 2025

Net Income

$3.17B

30.77% YoY

Q4 2025

Net Margin

20.69%

Q4 2025

Growth Metrics

Revenue Growth YoY

9.71%

Latest Quarter: Q4 2025

Net Income Growth YoY

30.77%

Latest Quarter: Q4 2025

Revenue Per Share Growth YoY

10.43%

Latest Quarter: Q4 2025

EPS Growth YoY

32.79%

Latest Quarter: Q4 2025

Book Value Per Share Growth YoY

5.51%

Latest Quarter: Q4 2025

 Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue15.3B14.9B14.7B14.1B14.0B13.8B13.6B12.7B
Revenue Growth YoY+9.71%+7.53%+7.56%+11.39%+9.38%-5.64%-10.27%-12.83%
Net Income3.2B2.9B2.5B2.5B2.4B2.7B2.2B1.9B
Net Income Growth YoY+30.77%+5.50%+17.95%+32.08%-7.82%-25.48%-45.38%-41.28%
EPS$0.81$0.72$0.64$0.63$0.61$0.68$0.54$0.47
EPS Growth YoY+32.79%+5.88%+18.52%+34.04%-6.15%-24.44%-44.33%-40.51%

Profitability Metrics

Gross Margin

64.97%

TTM

Operating Margin

24.63%

TTM

Net Margin

20.69%

TTM

Return on Equity

23.64%

TTM

Return on Assets

19.84%

TTM

 Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Gross Margin64.97%65.48%63.25%65.57%65.12%65.90%64.37%65.13%
Operating Margin24.63%22.60%21.04%22.63%22.25%17.04%19.19%17.25%
Net Margin20.69%19.22%17.38%17.61%17.35%19.59%15.85%14.85%
Return on Equity (ROE)6.65%6.10%5.44%5.42%5.33%5.99%4.76%4.12%
Return on Assets (ROA)5.69%5.37%4.72%4.87%4.62%5.04%3.96%3.59%

Technical Analysis

Candela
Candela
Technical Analysis
BULLISH

Cisco Systems (CSCO) is currently exhibiting a strong bullish trend with price action above key moving averages and a confirmed golden cross. Momentum indicators like RSI remain neutral, suggesting balanced investor sentiment without exhaustion. The stock is in an advancing phase with institutional accumulation, indicating robustness in the ongoing uptrend.

RSI
Hold
Neutral53

No extreme reading

03070100
Trend
Buy
Strong Uptrend

Price in uptrend

+11.4% from 200 SMA
ADX
Hold
Moderate Trend20

Trend developing

Moderate
MA Cross
Buy
Above 50/200

50 above 200 - bullish

50
200

Key Technical Values

Price
$80.01
50 SMA
$78.06
150 SMA
$73.56
200 SMA
$71.80
52W High
$88.19
52W Low
$52.11

Price with Moving Averages

50-day, 150-day and 200-day simple moving averages

Price
50 SMA
150 SMA
200 SMA

Relative Strength Index

Momentum oscillator measuring speed and magnitude of price changes

RSI (14)

≤30 Oversold
≥70 Overbought
53Neutral

Earnings

Essentia
Essentia
Fundamental Analysis
BULLISH

Cisco Systems (CSCO) demonstrates robust fundamental health with consistent revenue and earnings growth, expanding margins, and a strong track record of meeting or exceeding earnings expectations. The company shows clear resilience amid changing tech cycles, leveraging its dominant position in networking and enterprise solutions. Overall, fundamentals point to high operational stability and a capacity for consistent shareholder returns.

Latest Earnings

Q4 2025 Earnings (Jan 24, 2026)

Earnings Per Share (EPS)

Beat

Actual

$1.04

Estimated

$1.02

Surprise

+$0.02

Surprise %

+1.96%

Revenue

Beat

Actual

$15.35B

Estimated

$15.11B

Surprise

+$236.51M

Surprise %

+1.57%

Historical Earnings

 Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Earnings Per Share
EPS (Actual)$1.04$1.00$0.99$0.96$0.94$0.91$0.87$0.88
EPS (Estimated)$1.02$0.98$0.98$0.92$0.91$0.87$0.85$0.83
EPS Surprise+$0.02+$0.02+$0.01+$0.04+$0.03+$0.04+$0.02+$0.05
% Diff+2.0%+1.8%+1.3%+4.7%+3.3%+4.4%+2.5%+6.3%
Revenue
Revenue (Actual)$15.35B$14.88B$14.67B$14.15B$13.99B$13.84B$13.64B$12.7B
Revenue (Estimated)$15.11B$14.78B$14.62B$14.05B$13.87B$13.78B$13.53B$12.53B
Revenue Surprise+$236.51M+$107.53M+$57.44M+$101.02M+$120.19M+$65.62M+$107.31M+$167.59M
% Diff+1.6%+0.7%+0.4%+0.7%+0.9%+0.5%+0.8%+1.3%

Valuation

Valorem
Valorem
Valuation Analysis
FAIRLY VALUED

Cisco Systems currently shows a valuation profile consistent with a mature technology company experiencing moderate growth. Its valuation multiples, while elevated compared to some historical levels, remain within a reasonable range given steady earnings and revenue expansion driven by strong demand in networking and AI infrastructure. Analysts generally rate the stock as a Buy with price targets suggesting upside potential in the near term.

Valuation Metrics

Price to Earnings

28.57

TTM

Price to Sales

5.35

TTM

Price to Book

6.63

TTM

Enterprise Value to EBITDA

19.93

TTM

Enterprise Value to Revenue

5.74

TTM

 Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q2 2024
Price to Earnings23.2324.4226.6722.6625.5120.5122.5122.25
Price to Sales19.2218.7718.5415.9617.7116.0714.2714.10
Price to Book6.185.965.814.915.444.914.284.23
Enterprise Value to EBITDA67.9468.8172.9062.0966.6970.6259.9159.35
Enterprise Value to Revenue20.6920.1019.8817.4519.3117.7215.9715.82

Sentiment & Analyst Ratings

Pulse
Pulse
Sentiment Analysis
POSITIVE

The sentiment around Cisco Systems (CSCO) is broadly positive, supported by strong analyst buy recommendations and robust recent financial performance including notable growth in AI-driven product orders. While optimism prevails due to advancements in AI infrastructure and solid earnings results, some concerns linger around hardware sales declines and margin pressures. Overall, investor confidence is steady with upbeat retail and institutional interest, driven by the company's strategic pivot towards AI and services.

Analyst Recommendations

As of Mar 1, 2026
Strong SellSellHoldBuyStrong Buy
Buy
3.8 / 5.0
Based on 26 analyst ratings
Strong Sell
0
Sell
0
Hold
9
Buy
13
Strong Buy
4

Risk Assessment

Sentinel
Sentinel
Risk Assessment
MODERATE

Cisco Systems presents a moderate risk profile with solid financial health but liquidity slightly below the ideal benchmark. It benefits from robust demand in AI infrastructure yet faces competitive and technological risks that could pressure margins and growth. Market sentiment is positive, supported by strong revenue growth and favorable analyst ratings, suggesting potential upside despite some near-term operational challenges.

Liquidity & Solvency

Current Ratio

0.96

Latest Quarter: Q4 2025

Quick Ratio

0.85

Latest Quarter: Q4 2025

Debt-to-Equity

0.63

Latest Quarter: Q4 2025

Debt-to-Assets

0.24

Latest Quarter: Q4 2025

 Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q2 2024
Liquidity Metrics
Current Ratio0.960.931.000.950.870.880.910.91
Quick Ratio0.850.830.910.870.790.800.830.83
Solvency Metrics
Debt-to-Equity0.630.600.600.640.680.710.710.68
Debt-to-Assets0.240.230.230.240.260.260.260.25

Liquidity Assessment

Current Ratio: 0.96(Weak)

Quick Ratio: 0.85(Adequate)

The company has relatively weak liquidity and may face challenges meeting short-term obligations.

Solvency Assessment

Debt-to-Equity: 0.63(Moderate)

Debt-to-Assets: 0.24(Low)

The company maintains a balanced capital structure with manageable debt levels.

Frequently Asked Questions about CSCO

AI Answers: Common Questions About CSCO

Get AI-powered answers to the questions investors ask most about Cisco Systems, Inc.

Cisco is a good buy for medium- and long-term investors, with a P/E of 28.4 (above its historical average but below sector peers), strong recurring revenues, and robust EPS growth (~12.1% TTM). The current price ($78.96) is just below resistance, offering a favorable entry on breakout or pullback.

There is no compelling reason to sell now unless you are a short-term trader seeking to lock in gains at resistance; fundamentals, sentiment, and technicals all support holding or adding on strength. Only consider trimming if liquidity concerns or a technical breakdown below $77.95 emerge.

The biggest risks are moderate liquidity (current/quick ratio just below 1), potential margin compression from competitive and supply chain pressures, and execution risk in AI/software transition. Debt-to-equity is moderate (0.63), and interest coverage is strong, mitigating solvency concerns.

Analyst median price target is $90 (13% upside), with technical resistance at $88.19 and potential extension to $90-$92 if a breakout is confirmed. Key support is at $77.95 (50 SMA), with further support at $73.40.

Cisco is fairly valued: its P/E (28.4) is above historical lows but below sector averages, and EV/EBITDA is elevated but justified by strong margins and cash flow. The price-to-sales ratio reflects moderate growth expectations for a mature tech leader.

Fundamentals are strong, with gross margins near 65%, operating margins above 24%, net margins over 20%, and ROE around 25%. Revenue and EPS are growing steadily, and recurring revenues are increasing, supporting high earnings quality.

Technically, CSCO is bullish: price is above all major moving averages with a golden cross, RSI is neutral (~50), and the stock is in an advancing phase. Watch for a breakout above $79.50 with volume or a pullback to $77.95 for optimal entry.

Key catalysts include upcoming earnings reports, continued AI infrastructure order growth, new product launches (e.g., Silicon One G300), and participation in major industry events. A breakout above resistance or positive guidance could drive further upside.

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