Key Stats for Cisco Stock
- Price change for Cisco stock in last 6 months: 35%
- $CSCO Stock Price as of Sep. 22: $106
- 52-Week High: $130
- $CSCO Stock Price Target: $137
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What Happened?
Cisco (CSCO) stock dropped almost 5% on Tuesday after Piper Sandler cut its price target on the networking company to $125 from $132.
The firm’s analysts pointed to lower price-to-earnings multiple expectations, driven by worries that growth across the networking industry may be peaking.
The move comes despite the stock’s strong run. Shares hit a record high back in June and are up 57% over the past 12 months, fueled by revenue growth tied to the AI boom.
Cisco stock closed at $106.44 on Tuesday.
Just last month, Cisco posted a strong Q4 report that beat expectations. Revenue came in at $17.25 billion, topping the $16.8 billion analysts had expected, according to LSEG.
That result capped a record fiscal year, with full-year revenue reaching $63.3 billion, up 12% from the prior year.
Cisco also issued guidance for fiscal 2027, projecting revenue growth of nearly 15%, with the company guiding to a range of $72.2 billion to $73.4 billion.
But that guidance drew a lukewarm reaction from analysts, some of whom argued sales growth could slow back into single digits.
Piper Sandler took a different view, calling Cisco’s own projection “conservative” given how strong demand looks across the market.
CEO Chuck Robbins addressed the cautious tone during an interview with CNBC’s Jim Cramer last month.
“We’re starting a new fiscal year. We’re operating in incredible markets,” he said, “but it’s also a time that we’re going to start the year being a little bit prudent.”
A big piece of that growth story is AI infrastructure sold to hyperscalers.
Cisco brought in about $4 billion in hyperscaler revenue in fiscal 2026, and the company expects that number to nearly double to $7.5 billion in fiscal 2027.
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What the Market Is Telling Us About Cisco Stock
Piper Sandler’s price target cut shows that even strong fundamentals aren’t fully shielding Cisco stock from broader worries about whether the AI-driven networking cycle can keep growing at its current pace.
Analysts are split. Some think Cisco’s own guidance is too cautious given real demand trends, while others worry the easy growth phase might be behind the company.
For investors watching Cisco stock, the tension here is worth understanding.
On one hand, Cisco just delivered record revenue, operating margin, and earnings per employee over the past 30 years, according to the company’s recent results.
On the other hand, a stock that’s already up 57% over the past year and recently hit an all-time high naturally invites more scrutiny over what happens next.
Tuesday’s drop in Cisco stock suggests the market is still digesting how much of the AI infrastructure buildout is already priced in, versus how much room is left to run.
With hyperscaler revenue expected to nearly double next year, the next few quarters should offer a clearer read on whether Piper Sandler’s caution or Cisco’s own confidence proves right.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
