Cisco Slipped 3% Last Week. Here’s What’s Behind the Move

Nikko Henson3 minute read
Reviewed by: Thomas Richmond
Last updated Jan 21, 2026

Key Stats for Cisco Stock

  • Past-Week Performance: -3%
  • 52-Week Range: $52 to $81
  • Valuation Model Target Price: $95
  • Implied Upside: 28.9% over 2.5 years

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What Happened?

Cisco Systems, Inc. (CSCO) stock slipped about 3% over the past week after trading mostly flat early in the period before drifting lower late, with shares finishing near $73 and toward the lower end of their recent range.

The stock moved lower because there were no new earnings updates, guidance changes, or company announcements during the week to support buying interest, which allowed small amounts of profit-taking to push shares down in light trading.

Cisco entered the week trading near recent highs following a steady run, which increased sensitivity once momentum faded.

As the week progressed, selling pressure built gradually rather than sharply, resulting in a controlled pullback instead of a sudden drop.

With no identifiable negative news, the move reflects positioning after recent gains rather than a shift in expectations around Cisco’s business or near-term earnings outlook.

Cisco Systems stock
Cisco Systems Guided Valuation Model

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Is Cisco Undervalued?

Under valuation model assumptions, the stock is modeled using:

  • Revenue Growth (CAGR): 5.8%
  • Operating Margins: 34.9%
  • Exit P/E Multiple: 17x

Based on these inputs, the model estimates a target price of $95, implying 28.9% total upside from the current share price over the next 2.5 years.

Over the next 12 months, results hinge on whether enterprise and service-provider customers translate network upgrade plans into actual orders across switching, routing, and data center infrastructure.

Expansion of higher-margin software and subscription revenue across security, observability, and networking platforms supports earnings stability and recurring cash flow.

Software attach rates and bundled offerings influence profitability by increasing revenue per customer without relying on higher unit volumes.

Rising AI-driven data traffic continues to pressure network capacity, reinforcing demand for higher-performance infrastructure.

Consistent execution across these areas supports steady earnings growth, aligning with the upside implied by the valuation model.

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All it takes is three simple inputs:

  1. Revenue Growth
  2. Operating Margins
  3. Exit P/E Multiple

From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.

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