Cisco Systems (NASDAQ:CSCO) Shares Gap Down – Here’s Why

Cisco Systems, Inc. (NASDAQ:CSCO) shares gapped down before the market opened on Thursday . The stock had previously closed at $85.54, but opened at $79.61. Cisco Systems shares last traded at $77.24, with a volume of 17,262,863 shares.

Key Cisco Systems News

Here are the key news stories impacting Cisco Systems this week:

• Positive Sentiment: Q2 results beat and full‑year guide raised — Cisco reported record revenue (~$15.3B), beat top‑line estimates, delivered non‑GAAP EPS above consensus, and raised FY26 revenue/EPS ranges; that underpins the case for durable growth. CISCO REPORTS SECOND QUARTER EARNINGS
• Positive Sentiment: Robust AI demand: Cisco disclosed ~$2.1B of AI infrastructure orders from hyperscalers and launched the Silicon One G300 switch silicon aimed at large AI clusters — positive for future high‑margin product mix. Networking Giant Drops on Earnings: Time to Load Up on Cisco? Silicon One G300 Announcement Drives Sentiment
• Positive Sentiment: Analyst support: Multiple firms raised price targets or reaffirmed buy ratings today (UBS to $95, Citi to $90, BNP Paribas to $87, Rosenblatt $100), signaling confidence in Cisco’s long‑term AI/networking opportunity. Analyst Price Target Coverage
• Neutral Sentiment: Capital returns: Dividend increased modestly (quarterly $0.42), continuing Cisco’s shareholder‑friendly profile but not a near‑term catalyst versus margin concerns.
• Negative Sentiment: Margin headwinds from memory costs — management warned that rising memory prices are pressuring gross margins, a key reason for the sharp intraday drop as investors re‑price near‑term profitability. Cisco stock has worst day since 2022 as memory prices pressure margins Cisco Plunges Despite Earnings
• Negative Sentiment: Mediocre/uncertain near‑term outlook and market reaction — guidance for the coming quarter was viewed as mixed and gross margin dynamics disappointed traders, triggering a broader tech selloff and volatility spike. Cisco Triggers Tech Selloff, VIX Spikes 16%

Wall Street Analysts Forecast Growth

Several research analysts have commented on CSCO shares. Erste Group Bank raised Cisco Systems from a “hold” rating to a “buy” rating in a research report on Monday, November 10th. CICC Research lifted their target price on shares of Cisco Systems from $78.00 to $84.00 and gave the company an “outperform” rating in a report on Friday, November 14th. Wells Fargo & Company upped their price target on shares of Cisco Systems from $83.00 to $95.00 and gave the company an “overweight” rating in a research report on Thursday, November 13th. KeyCorp raised their price objective on shares of Cisco Systems from $77.00 to $87.00 and gave the stock an “overweight” rating in a research report on Thursday, November 13th. Finally, Zacks Research raised shares of Cisco Systems from a “hold” rating to a “strong-buy” rating in a report on Monday, January 26th. One analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Cisco Systems has an average rating of “Moderate Buy” and a consensus target price of $94.95.

Cisco Systems Stock Down 13.0%

The company has a quick ratio of 0.83, a current ratio of 0.93 and a debt-to-equity ratio of 0.46. The stock has a market capitalization of $293.96 billion, a PE ratio of 27.93, a PEG ratio of 3.26 and a beta of 0.87. The firm’s fifty day moving average is $77.91 and its 200-day moving average is $72.99.

Cisco Systems (NASDAQ:CSCO) last announced its quarterly earnings data on Wednesday, February 11th. The network equipment provider reported $1.04 earnings per share for the quarter, beating analysts’ consensus estimates of $1.02 by $0.02. The company had revenue of $15.35 billion for the quarter, compared to analyst estimates of $15.11 billion. Cisco Systems had a return on equity of 27.29% and a net margin of 18.38%.The firm’s revenue for the quarter was up 9.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.94 EPS. On average, equities research analysts predict that Cisco Systems, Inc. will post 3.04 earnings per share for the current year.

Cisco Systems Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 22nd. Shareholders of record on Thursday, April 2nd will be issued a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a yield of 2.3%. This is a boost from Cisco Systems’s previous quarterly dividend of $0.41. The ex-dividend date of this dividend is Thursday, April 2nd. Cisco Systems’s dividend payout ratio is 61.65%.

Insider Activity at Cisco Systems

In related news, CEO Charles Robbins sold 116,734 shares of the company’s stock in a transaction that occurred on Tuesday, November 18th. The stock was sold at an average price of $77.30, for a total value of $9,023,538.20. Following the sale, the chief executive officer owned 704,153 shares in the company, valued at $54,431,026.90. This represents a 14.22% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, SVP Maria Victoria Wong sold 428 shares of the firm’s stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $80.33, for a total value of $34,381.24. Following the completion of the transaction, the senior vice president directly owned 32,176 shares of the company’s stock, valued at $2,584,698.08. The trade was a 1.31% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 1,044,865 shares of company stock worth $81,397,635. 0.01% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Cisco Systems

Large investors have recently added to or reduced their stakes in the business. Intesa Sanpaolo S.p.A. purchased a new position in shares of Cisco Systems during the 4th quarter worth approximately $15,423,000. Asset Advisory Group Inc. acquired a new position in shares of Cisco Systems in the fourth quarter worth $341,000. Intesa Sanpaolo Wealth Management acquired a new position in shares of Cisco Systems in the fourth quarter worth $25,000. JT Stratford LLC boosted its stake in shares of Cisco Systems by 2.5% during the fourth quarter. JT Stratford LLC now owns 6,879 shares of the network equipment provider’s stock valued at $530,000 after acquiring an additional 168 shares during the last quarter. Finally, AlphaCentric Advisors LLC acquired a new stake in shares of Cisco Systems during the fourth quarter valued at $248,000. 73.33% of the stock is owned by institutional investors and hedge funds.

About Cisco Systems

Cisco Systems, Inc is a global technology company that designs, manufactures and sells networking hardware, software and telecommunications equipment. Its core business focuses on enabling enterprise and service-provider networks through products such as routers, switches, network security appliances and wireless systems. Over time Cisco has broadened its portfolio to emphasize software-defined networking, cybersecurity, cloud infrastructure and edge computing solutions that help organizations build and manage modern IT environments.

In addition to hardware, Cisco offers a growing range of software platforms and subscription services for network management, security, analytics and collaboration.