Key Stats for Cisco Stock
- 52-Week Range: $64 to $130
- Current Price: $122
- Street Mean Target: $126
- Street High Target: $150
- Analyst Consensus: 13 Buys, 4 Outperforms, 8 Holds, 1 Underperform
- TIKR Model Target (Dec. 2030): $144
Cisco Stock Hits an All-Time High After AI Infrastructure Orders Surged 80% in One Quarter
Cisco Systems (CSCO), the world’s largest provider of networking equipment, surged to an all-time high on May 14, 2026, after reporting record Q3 fiscal 2026 revenue of $15.84 billion, up 12% year over year, and raising its full-year AI infrastructure order forecast from $5 billion to $9 billion.
The AI order acceleration was the headline, but the underlying demand breadth was arguably more significant.
Total product orders grew 35% year over year in Q3, with hyperscaler and cloud customers growing 105% year over year, but non-hyperscaler product orders still grew 19%, signaling that the upgrade cycle is not a single-customer story.
Networking product orders specifically grew more than 50% year over year in Q3, the seventh consecutive quarter of double-digit growth for that portfolio.
Campus networking hit a record quarter, growing more than 25% year over year, with wireless orders up more than 40% and Wi-Fi 7 making up half the wireless mix.
AI infrastructure orders taken from hyperscalers totaled $1.9 billion in Q3 alone, compared with $600 million in the year-prior quarter, with the year-to-date total reaching $5.3 billion before a full quarter remained in fiscal 2026.
Cisco also secured five new hyperscaler design wins in Q3: two in optics and three in systems, including the first two wins for its Silicon One P200 chip designed for scale-across applications, connecting multiple AI data centers together.
“The companies that will win in the AI era will be those with focus, urgency, and the discipline to continuously shift investment toward the areas where demand and long-term value creation are strongest,” CEO Chuck Robbins said on the Q3 earnings call.
Alongside the results, Cisco announced a restructuring of fewer than 4,000 jobs in Q4, representing less than 5% of its workforce, expected to cost up to $1 billion, with the goal of reallocating capital toward silicon, optics, security, and internal AI tooling.
At Cisco Live in Las Vegas from May 31 to June 4, the company unveiled Cloud Control, an agentic platform for managing and defending IT infrastructure against AI-enabled threats, with North America availability beginning immediately and a third-party marketplace for tools including OpenAI Codex planned for the second half of 2026.
What Analysts Expect from Cisco Stock in FY2026 and FY2027 — and Where the Growth Has to Come From
Cisco stock’s revenue trajectory tells the most direct story of what the market is pricing in right now.
Revenue reached $15.84 billion in fiscal Q3 2026 (quarter ended April 25), up 12% year over year, and consensus projects around $16.83 billion for fiscal Q4 2026, implying roughly 15% year-over-year growth as the AI hyperscaler order wave begins converting to recognized revenue.
The Q4 guide alone confirms the acceleration: $16.7 billion to $16.9 billion in revenue with non-GAAP EPS of $1.16 to $1.18.
On the earnings call, CFO Mark Patterson said it is “reasonable to expect at least $6 billion of revenue on the AI hyperscale side in fiscal 2027,” with the balance of the portfolio expected to grow in line with Cisco’s long-term framework.
Consensus models the FY27 revenue build across four quarters at around $16.78 billion, $16.93 billion, $17.22 billion, and $17.81 billion, implying full-year growth that moderates gradually as hyperscaler comparables toughen.
EPS normalized came in at $1.06 in Q3, up 10.4% year over year, against the consensus estimate of $1.04, with Cisco guiding full-year fiscal 2026 non-GAAP EPS of $4.27 to $4.29.
Consensus projects forward EPS of around $1.17 for fiscal Q4 2026, then around $1.15 to $1.17 through the first half of FY27, before stepping up to around $1.20 and $1.26, implying roughly 12% to 18% year-over-year growth as the revenue build flows through.
The tension the Street is watching is margin stability.
Non-GAAP product gross margin was 64.3% in Q3, down 330 basis points year over year, driven by mix shift toward hardware as AI infrastructure scales and by elevated memory costs that Patterson confirmed are more acute in Q4 before price increases take hold.
Cisco has implemented more than 20 programs to reduce memory utilization, including a wireless product requiring 50% less memory, DDR4-to-DDR5 conversions, and a strategic investment in Nanya Technology with a three-year supply agreement.
Free cash flow was $3.34 billion in Q3, and consensus projects around $4.70 billion for Q4 2026, with FCF expanding as revenue scales and capital efficiency improves.
With 13 buy ratings, 4 outperforms, and 8 holds from 25 active analysts, the Street is broadly bullish, with a mean target of around $126 and a high target of $150.
At around $122, Cisco stock trades close to the Street mean, which puts the base case largely priced in and places the upside argument on whether FY27 AI hyperscaler revenue actually reaches or exceeds $6 billion and whether margins stabilize as management projects.
That convergence of data is why Cisco stock is fairly valued at the current price: the AI hyperscaler re-rating has been absorbed by the market, and the remaining gap to higher price targets belongs to execution risk, not valuation discovery.
Is Cisco Stock Undervalued in 2026? The TIKR Model at $144 Requires FY2027 Execution to Close the Gap
TIKR’s base case values Cisco Systems at around $144 by July 2030, implying roughly 18% total return from the current price of around $122, or approximately 4% annualized over around 4 years.
If revenue grows at around 6% annually, net income margins hold near 28%, and EPS compounds at roughly 6% with modest multiple expansion of around 2% per year, the TIKR model produces a stock price of around $158 by July 2034, implying roughly 30% total return and an IRR of approximately 3%.
If growth stalls at around 5% revenue CAGR with margins compressing toward 26%, the model produces around $127, with total return near 4% and an IRR of roughly 1% — the scenario where memory costs persist longer than expected and the Splunk cloud transition drags through FY27.
If Silicon One design wins accelerate, AI hyperscaler revenue exceeds $6 billion in FY27, and net income margins expand toward 29%, the model produces around $192, implying roughly 58% total return and an IRR of approximately 6%.
What is Cisco stock worth?
TIKR’s mid-case model sets a target of around $144 for Cisco stock, based on mid-case revenue and EPS growth assumptions through July 2030.
The current price of around $122 implies total return of roughly 18% over around 4 years at that base.
Is Cisco stock a buy in 2026?
The Street leans bullish with 13 buy ratings, 4 outperforms, and 8 holds, and a mean target of around $126. The bull case requires FY27 AI hyperscaler revenue of $6 billion or more and margin stabilization as memory cost programs take hold.
What is the price target for CSCO?
Analyst targets for CSCO range from around $85 to $150, with a Street mean of around $126 as of early June 2026. TIKR’s mid-case model target sits at around $144.
Is Cisco stock undervalued or overvalued?
At around $122, Cisco stock is fairly valued relative to the TIKR mid-case model. The AI hyperscaler re-rating is already absorbed, and the remaining path to the TIKR target of around $144 requires multi-year execution rather than near-term discovery.
Should You Invest in Cisco Systems, Inc.?
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