Company Reports

We view Cisco Systems as a dominant force in enterprise networking and expect it to retain strong positioning in legacy and future networks. Cisco holds high market shares across switching, routing, and wireless access, with strong complementary positions in security and collaboration. We believe Cisco’s portfolio is appropriately positioned to benefit from trends toward hybrid work and hybrid cloud environments. It offers the most comprehensive suite of capabilities across converging networking and security markets, and we deem its intertwined products as sticky and worthy of a wide economic moat.

Cisco's fourth-quarter results topped guidance, as revenue rose 18% year over year to $17.3 billion. Fiscal 2027 guidance implies another year of double-digit revenue and earnings growth, with hyperscaler artificial intelligence revenue expected to be $7.5 billion, up from $4 billion this year.

We've refreshed our model assumptions for Cisco Systems ahead of the firm's fiscal fourth-quarter earnings report on Aug. 12.

We view Cisco Systems as a dominant force in enterprise networking and expect it to retain strong positioning in legacy and future networks. Cisco holds high market shares across switching, routing, and wireless access, with strong complementary positions in security and collaboration. We believe Cisco’s portfolio is appropriately positioned to benefit from trends toward hybrid work and hybrid cloud environments. It offers the most comprehensive suite of capabilities across converging networking and security markets, and we deem its intertwined products as sticky and worthy of a wide economic moat.

Cisco Systems' April-quarter results were above guidance, with strong 12% year-over-year sales growth to $15.8 billion. Cisco raised its fiscal 2026 guidance, led by significantly higher AI revenue ($4 billion, up from $3 billion) and AI orders ($9 billion, up from $5 billion) targets.

We view Cisco Systems as the dominant force in enterprise networking and expect it to retain strong positioning in legacy and future networks. Cisco holds high market shares across switching, routing, and wireless access, with strong complementary positions in security and collaboration. We believe Cisco’s portfolio is appropriately positioned to benefit from trends toward hybrid work and hybrid cloud environments. It offers the most comprehensive suite of capabilities across converging networking and security markets, and we deem its intertwined products as sticky and worthy of a wide economic moat.

Cisco Systems' January-quarter results beat guidance, and management raised its full-year outlook. Sales of $15.3 billion rose 10% year over year, and fiscal 2026 growth guidance rose to 8%, from 7%. Management also raised its fiscal 2026 AI order outlook to $5 billion, up from more than $4 billion.

We view Cisco Systems as the dominant force in enterprise networking and expect it to retain strong positioning in legacy and future networks. Cisco holds high market shares across switching, routing, and wireless access, with strong complementary positions in security and collaboration. We believe Cisco’s portfolio is appropriately positioned to benefit from trends toward hybrid work and hybrid cloud environments. It offers the most comprehensive suite of capabilities across converging networking and security markets, and we deem its intertwined products as sticky and worthy of a wide economic moat.

We view Cisco Systems as the dominant force in enterprise networking and expect it to retain strong positioning in legacy and future networks. Cisco holds high market shares across switching, routing, and wireless access, with strong complementary positions in security and collaboration. We believe Cisco’s portfolio is appropriately positioned to benefit from trends toward hybrid work and hybrid cloud environments. It offers the most comprehensive suite of capabilities across converging networking and security markets, and we deem its intertwined products as sticky and worthy of a wide economic moat.

Cisco Systems' October-quarter results reached the top ends of guidance, with sales rising 8% year over year to $14.9 billion. January guidance calls for sequential growth, which is above FactSet consensus expectations. Cisco raised its fiscal 2026 sales guidance by $1 billion, or about 2%.

We view Cisco Systems as the dominant force in enterprise networking and expect it to retain strong positioning in legacy and future networks. Cisco holds high market shares across switching, routing, and wireless access, with strong complementary positions in security and collaboration. We believe Cisco’s portfolio is appropriately positioned to benefit from trends toward hybrid work and hybrid cloud environments. It offers the most comprehensive suite of capabilities across converging networking and security markets, and we deem its intertwined products as sticky and worthy of a wide economic moat.

Cisco Systems' fourth-quarter results reached the high ends of guidance. Revenue rose 8% year over year and 4% sequentially to $14.7 billion. Fiscal 2026 guidance calls for revenue growth of 5% and non-GAAP earnings growth of 6%, at the midpoints.

Cisco Systems' April-quarter results beat management guidance. Sales rose 11% year over year and 1% sequentially to $14.1 billion, while non-GAAP operating margin was 34.5%. July-quarter guidance includes sequential sales growth to a midpoint of $14.6 billion and tariff-driven margin compression.

We view Cisco Systems as the dominant force in enterprise networking and expect it to retain its strength in both legacy and future networks. Cisco holds leading market shares across switching, routing, and wireless access, with strong complementary positions in security and collaboration. We believe Cisco’s portfolio is appropriately positioned to benefit from trends toward hybrid work and hybrid cloud environments. It offers the most comprehensive suite of capabilities across converging networking and security markets, and we deem its intertwined products as sticky and worthy of a wide economic moat.

Cisco Systems' January-quarter revenue rose 9% year over year and 1% sequentially to $14 billion. Revenue and profitability came in above management's guidance ranges. April-quarter guidance implies flat revenue growth sequentially, and a slight tick down in profitability resulting from tariffs.

We view Cisco Systems as the dominant force in enterprise networking and expect it to retain its strength in both legacy and future networks. Cisco holds leading market shares across switching, routing, and wireless access, with strong complementary positions in security and collaboration. We believe Cisco’s portfolio is appropriately positioned to benefit from trends toward hybrid work and hybrid cloud environments. It offers the most comprehensive suite of capabilities across converging networking and security markets, and we deem its intertwined products as sticky and worthy of a wide economic moat.

We keep our $50 per share fair value estimate for wide-moat Cisco Systems, as we leave our long-term forecasts intact after October-quarter results. We believe Cisco is solidly back in a normal demand environment after two years of choppy results that stemmed from overordering and subsequent inventory digestion at customers. We still like the acquisition and integration of Splunk, but view this as a minority driver relative to the larger networking business. We also like Cisco’s emerging growth from artificial intelligence networking infrastructure, but we don’t expect this to be a massive driver, nor do we expect Cisco to hold a strong market share in AI networks. Shares look overvalued to us after rising more than 25% since Cisco’s last earnings release in August. We believe current levels overestimate the firm’s long-term growth opportunity, likely due to some overexuberance around the firm’s AI exposure.

We maintain our $50 per share fair value estimate of wide-moat Cisco Systems, as our long-term thesis is intact after the firm reported fiscal fourth-quarter results. Cisco’s fiscal year 2025 guidance was a little light compared with our model, but we continue to see a return to growth in fiscal 2025 favorably. Long term, we see Cisco as a low- to mid-single-digit revenue growth story, with ongoing strength in its core campus and enterprise networking markets. We don’t expect the firm to be a major winner from AI investment, but see a modest position growing over time. We like the integration with Splunk, which should bolster Cisco’s ecosystem of joined networking, security, and observability. Fiscal fourth quarter results and fiscal first quarter guidance were largely in line with our expectations. Shares are up 6% after-hours on growth guidance for fiscal 2025, and we see the stock as fairly valued.

We view Cisco Systems as the dominant force in enterprise networking and expect it to retain its strength in both legacy and future networks. Cisco holds leading market shares across switching, routing, and wireless access, with strong complementary positions in security and collaboration. We believe Cisco’s portfolio is appropriately positioned to benefit from trends toward hybrid work and hybrid cloud environments. It offers the most comprehensive suite of capabilities across converging networking and security markets, and we deem its intertwined products as sticky and worthy of a wide economic moat.

We keep our $50 per share fair value estimate for wide-moat Cisco Systems after a positive investor day aligned with our long-term thesis. We continue to like Cisco’s core portfolio between networking and security, which elicits strong switching costs for customers and generates strong profitability. We also like the prospects for the Splunk integration to accelerate Cisco’s software revenue growth. Management provided longer-term financial targets, all of which fit with our model. We see shares as slightly undervalued.