CSCOCisco Systems demonstrates strong fundamental performance with consistent profitability and a solid balance sheet. The company benefits from ongoing digital transformation trends. Technical indicators suggest a neutral to slightly bearish short-term outlook, but the long-term trend remains positive.
Cisco is a key player in network infrastructure, benefiting from secular growth trends in cloud computing, 5G, and cybersecurity. However, competition and evolving technology landscape present ongoing challenges.
Cisco exhibits robust financial health with consistent revenue generation, strong profitability, and a healthy balance sheet. The company also returns value to shareholders through dividends.
The stock is trading below its 52-week high and shows mixed signals across different timeframes. Key moving averages are providing resistance, while some oscillators suggest potential for a short-term bounce.
| Factor | Score |
|---|---|
| Network Infrastructure Demand | 85 |
| Cybersecurity Growth | 80 |
| Competition and Disruption | 65 |
| Enterprise IT Spending | 70 |
| Cloud Adoption | 75 |
| Factor | Score |
|---|---|
| Valuation | 70 |
| Profitability | 85 |
| Growth | 50 |
| Balance Sheet Health | 80 |
| Cash Flow | 85 |
| Shareholder Returns | 80 |
| Factor | Score |
|---|---|
| Trend Analysis | 55 |
| Momentum | 60 |
| Support and Resistance | 65 |
| Volume | 70 |
| Short-term Oscillators | 60 |
Consistent EPS Surprises
The company has consistently beaten Earnings Per Share (EPS) estimates in the last 10 reported quarters, with an average surprise of 4.0%. This indicates strong operational execution and forecasting.
Reasonable Valuation Metrics
The trailing Price-to-Earnings (P/E) ratio of 27.87 is comparable to its industry average and suggests the stock is reasonably valued relative to its earnings.
High Quarterly P/E Ratio
The quarterly P/E ratios (e.g., 91.2 in Q2 2025) are significantly elevated compared to the trailing P/E, suggesting potential overvaluation based on current short-term earnings expectations.
Declining Net Margin
The net profit margin has decreased from 22.9% in FY2022 to 19.2% in FY2024, indicating potential pressure on profitability due to increasing costs or competitive pricing.
July 2025
3
Ex-Dividend Date
July 2025
23
Next Dividend Date
August 2025
12
Next Earnings Date
H: $0.99
A: $0.98
L: $0.97
H: 14.73B
A: 14.63B
L: 14.56B
Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching, as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering connectivity to campus, data center, and branch networks; and wireless products, including indoor and outdoor wireless coverage designed for seamless roaming use of voice, video, and data applications. In addition, it provides security comprising network security, identity and access management, secure access service edge, and threat intelligence, detection, and response offerings; collaboration products, such as Webex Suite, collaboration devices, contact center, and communication platform as a service; end-to-end collaboration solutions through cloud, on-premise, or within hybrid cloud environments allowing customers to transition collaboration solutions from on-premise to the cloud; and network assurance, monitoring and analytics, and observability suite. Further, the company offers technical support and advisory services. It serves businesses, public institutions, governments, and service providers. The company sells its products and services directly, as well as through systems integrators, service providers, other resellers, and distributors. Cisco Systems, Inc. has strategic alliances with other companies. Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California.
71.05 USD
The 39 analysts offering 1 year price forecasts for CSCO have a max estimate of 80.00 and a min estimate of 56.00.