Cisco Systems (NASDAQ:CSCO) Receives “Hold” Rating from HSBC

HSBC reaffirmed their hold rating on shares of Cisco Systems (NASDAQ:CSCO) in a research report sent to investors on Friday morning, MarketBeat reports. HSBC currently has a $120.00 price objective on the network equipment provider’s stock, down from their prior price objective of $137.00.

Several other analysts have also recently issued reports on the company. Barclays increased their target price on Cisco Systems from $121.00 to $123.00 and gave the company an “equal weight” rating in a research report on Thursday. JPMorgan Chase & Co. increased their price objective on shares of Cisco Systems from $95.00 to $96.00 in a research report on Monday, May 11th. Weiss Ratings raised shares of Cisco Systems from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, May 29th. Argus upped their price target on shares of Cisco Systems from $100.00 to $150.00 and gave the company a “buy” rating in a research note on Tuesday, May 19th. Finally, CICC Research lifted their price objective on shares of Cisco Systems from $96.00 to $125.00 and gave the stock an “outperform” rating in a research note on Monday, May 18th. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, Cisco Systems has a consensus rating of “Moderate Buy” and a consensus price target of $129.43.

Cisco Systems Stock Down 1.6%

Shares of NASDAQ:CSCO opened at $111.68 on Friday. The business’s 50 day moving average is $117.03 and its 200 day moving average is $99.09. The stock has a market cap of $440.18 billion, a P/E ratio of 33.44, a price-to-earnings-growth ratio of 2.56 and a beta of 1.02. Cisco Systems has a 52-week low of $65.75 and a 52-week high of $130.37. The company has a quick ratio of 0.81, a current ratio of 0.93 and a debt-to-equity ratio of 0.39.

Cisco Systems (NASDAQ:CSCO) last issued its earnings results on Wednesday, August 12th. The network equipment provider reported $1.22 earnings per share for the quarter, beating analysts’ consensus estimates of $1.17 by $0.05. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%.The business had revenue of $17.25 billion during the quarter, compared to analyst estimates of $16.84 billion. During the same period in the previous year, the company posted $0.99 EPS. Cisco Systems’s revenue was up 17.6% on a year-over-year basis. Cisco Systems has set its FY 2027 guidance at 5.050-5.110 EPS and its Q1 2027 guidance at 1.320-1.340 EPS. Sell-side analysts predict that Cisco Systems will post 4 EPS for the current year.

Cisco Systems Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 21st. Shareholders of record on Friday, October 2nd will be issued a $0.42 dividend. This represents a $1.68 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend is Friday, October 2nd. Cisco Systems’s dividend payout ratio is presently 54.55%.

Insiders Place Their Bets

In related news, EVP Oliver Tuszik sold 2,607 shares of Cisco Systems stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $121.12, for a total transaction of $315,759.84. Following the completion of the transaction, the executive vice president directly owned 172,727 shares in the company, valued at approximately $20,920,694.24. This trade represents a 1.49% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Robbins sold 21,400 shares of the company’s stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $120.03, for a total value of $2,568,642.00. Following the completion of the sale, the chief executive officer owned 637,085 shares in the company, valued at approximately $76,469,312.55. This represents a 3.25% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 31,134 shares of company stock valued at $3,739,000. Company insiders own 0.01% of the company’s stock.

Institutional Trading of Cisco Systems

A number of hedge funds have recently added to or reduced their stakes in the company. MidAtlantic Capital Management Inc. acquired a new position in Cisco Systems in the 4th quarter worth about $25,000. Intesa Sanpaolo Wealth Management acquired a new stake in Cisco Systems in the fourth quarter valued at approximately $25,000. Networth Advisors LLC increased its position in shares of Cisco Systems by 276.4% in the first quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider’s stock valued at $26,000 after buying an additional 246 shares in the last quarter. Financial Life Planners acquired a new position in shares of Cisco Systems during the 1st quarter worth approximately $27,000. Finally, Manning & Napier Advisors LLC lifted its position in shares of Cisco Systems by 137.0% during the 1st quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider’s stock valued at $27,000 after buying an additional 200 shares in the last quarter. 73.33% of the stock is owned by hedge funds and other institutional investors.

Cisco Systems News Summary

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

• Positive Sentiment: AI demand is accelerating. Cisco reported fiscal Q4 revenue of approximately $17.3 billion, up 18% year over year, and adjusted EPS of $1.22 versus the $1.17 consensus estimate. AI infrastructure orders increased 4.5 times to $9.3 billion for fiscal 2026, while management expects approximately $7.5 billion of hyperscaler AI infrastructure revenue in fiscal 2027. Chuck Robbins Says AI Is Fueling a Networking Supercycle
• Positive Sentiment: Fiscal 2027 guidance exceeded expectations. Management forecast roughly 15% revenue growth, supported by hyperscaler spending, data-center switching and broader networking upgrades. Several firms—including UBS, Truist, Wells Fargo, KeyCorp, Morgan Stanley and Rosenblatt—raised their price targets and maintained bullish ratings, suggesting long-term upside if the AI networking cycle continues. Cisco Just Gave Investors Three Big Reasons to Be Bullish
• Neutral Sentiment: The market is demanding faster growth. Despite the earnings beat and upbeat outlook, Cisco’s shares have decreased because expectations were already elevated after a substantial rally. Investors are questioning whether the company’s AI momentum can remain strong beyond the current infrastructure buildout and whether Cisco’s premium valuation is justified. Cisco Shares Slide Despite Earnings Beat and Strong Guidance
• Negative Sentiment: Margin pressure is the primary concern. AI infrastructure growth is arriving mainly through lower-margin hardware, creating mix-related gross-margin compression and raising questions about how profitably Cisco can scale orders. HSBC downgraded CSCO to Hold from Buy and reduced its price target to $120 from $137, citing a lack of near-term catalysts even after the strong quarter. Cisco Beat on Every Line, Then Fell on What AI Costs to Ship

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.