Cisco Systems (NASDAQ:CSCO) Trading Down 2.9% – What’s Next?

Cisco Systems, Inc. (NASDAQ:CSCO)’s stock price fell 2.9% on Tuesday . The stock traded as low as $114.79 and last traded at $115.38. 32,240,803 shares changed hands during trading, an increase of 38% from the average session volume of 23,423,938 shares. The stock had previously closed at $118.88.

Trending Headlines about Cisco Systems

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

• Positive Sentiment: HSBC upgraded Cisco to Buy from Hold and nearly doubled its price target to $137 from $77, reinforcing the bullish case after earnings. HSBC nearly doubles Cisco stock price target for 2026
• Positive Sentiment: Argus also raised its target to $150 and kept a Buy rating, while CICC Research lifted its target to $125 with an Outperform rating, adding to analyst momentum. Argus adjusts price target on Cisco Systems to 150 from 100
• Positive Sentiment: Cisco’s latest quarterly report beat expectations on both revenue and EPS, and management raised guidance, with AI infrastructure orders now expected to reach $9 billion in fiscal 2026. Cisco Systems (CSCO) Is Up 20.4% After Record Q3, AI Outlook Hike And Restructuring Shift – Has The Bull Case Changed?
• Positive Sentiment: Several articles highlighted Cisco as a beneficiary of surging AI networking demand and hyperscaler orders, with a restructuring that focuses investment on silicon, optics, security, and AI-related products. Cisco Job Cuts Reshape AI Infrastructure And Security Investment Story
• Neutral Sentiment: Cisco remains one of the most-watched stocks among investors and has been featured in several “best ideas” and AI-infrastructure comparisons, which helps keep attention on the name but does not add new fundamental news. Cisco Systems, Inc. (CSCO) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Some commentary questioned whether Cisco’s free cash flow and margins have peaked, but this appears secondary to the stronger earnings and guidance narrative. Cisco Systems Reported Lower FCF and Margins – Has CSCO Stock Peaked?

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Wall Street Zen cut shares of Cisco Systems from a “buy” rating to a “hold” rating in a report on Saturday, March 14th. HSBC upgraded shares of Cisco Systems from a “hold” rating to a “buy” rating and raised their target price for the stock from $77.00 to $137.00 in a report on Friday. The Goldman Sachs Group raised their target price on shares of Cisco Systems from $75.00 to $116.00 and gave the stock a “neutral” rating in a report on Thursday, May 14th. New Street Research raised their target price on shares of Cisco Systems from $82.00 to $122.00 and gave the stock a “neutral” rating in a report on Thursday, May 14th. Finally, UBS Group raised their target price on shares of Cisco Systems from $95.00 to $132.00 and gave the stock a “buy” rating in a report on Thursday, May 14th. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $118.14.

Cisco Systems Stock Down 2.9%

The business’s 50-day moving average price is $86.18 and its 200-day moving average price is $80.33. The company has a quick ratio of 0.81, a current ratio of 0.92 and a debt-to-equity ratio of 0.40. The firm has a market capitalization of $455.74 billion, a PE ratio of 37.46, a price-to-earnings-growth ratio of 3.61 and a beta of 0.92.

Cisco Systems (NASDAQ:CSCO) last posted its quarterly earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.03 by $0.03. The business had revenue of $15.84 billion during the quarter, compared to analyst estimates of $15.56 billion. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The firm’s revenue was up 12.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.96 earnings per share. Cisco Systems has set its Q4 2026 guidance at 1.160-1.180 EPS and its FY 2026 guidance at 4.270-4.290 EPS. As a group, equities research analysts predict that Cisco Systems, Inc. will post 3.42 EPS for the current fiscal year.

Cisco Systems Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 22nd. Stockholders of record on Monday, July 6th will be given a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend is Monday, July 6th. Cisco Systems’s dividend payout ratio is 54.55%.

Insider Activity at Cisco Systems

In other news, EVP Thimaya K. Subaiya sold 1,744 shares of the stock in a transaction that occurred on Thursday, March 12th. The shares were sold at an average price of $77.07, for a total value of $134,410.08. Following the completion of the sale, the executive vice president directly owned 156,693 shares of the company’s stock, valued at $12,076,329.51. This represents a 1.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Deborah L. Stahlkopf sold 7,981 shares of the stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $79.50, for a total transaction of $634,489.50. Following the completion of the sale, the executive vice president directly owned 187,097 shares of the company’s stock, valued at $14,874,211.50. This trade represents a 4.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 15,587 shares of company stock valued at $1,230,765 over the last ninety days. 0.01% of the stock is owned by company insiders.

Hedge Funds Weigh In On Cisco Systems

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Orographic Financial Advisors LLC bought a new position in Cisco Systems during the first quarter valued at approximately $3,847,000. Paragon Private Wealth Management LLC raised its position in Cisco Systems by 13.5% during the first quarter. Paragon Private Wealth Management LLC now owns 12,249 shares of the network equipment provider’s stock valued at $950,000 after acquiring an additional 1,453 shares in the last quarter. Royal Fund Management LLC raised its position in Cisco Systems by 1.1% during the first quarter. Royal Fund Management LLC now owns 73,435 shares of the network equipment provider’s stock valued at $5,699,000 after acquiring an additional 790 shares in the last quarter. Financial Insights Inc. raised its position in Cisco Systems by 1.5% during the first quarter. Financial Insights Inc. now owns 6,220 shares of the network equipment provider’s stock valued at $483,000 after acquiring an additional 92 shares in the last quarter. Finally, Kensington Investment Counsel LLC raised its position in Cisco Systems by 775.5% during the first quarter. Kensington Investment Counsel LLC now owns 71,387 shares of the network equipment provider’s stock valued at $5,539,000 after acquiring an additional 63,233 shares in the last quarter. Institutional investors own 73.33% of the company’s stock.

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.