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Investing.com - Evercore ISI raised its price target on Cisco (NASDAQ:CSCO) to $74.00 from $72.00 on Thursday, while maintaining an "In Line" rating on the networking equipment maker’s stock. The stock, currently trading near its 52-week high of $72.55, has delivered an impressive 59.18% return over the past year. According to InvestingPro analysis, Cisco appears slightly overvalued at current levels.
The price target adjustment follows Cisco’s July quarter results, which showed revenue of $14.7 billion and earnings per share of $0.99, slightly exceeding street expectations of $14.6 billion and $0.98. The company reported overall revenue growth of approximately 8% year-over-year, with its core networking segment growing more than 12%. With a market capitalization of $278.78 billion and a P/E ratio of 28.81, Cisco maintains its position as a prominent player in the Communications Equipment industry. InvestingPro subscribers can access 10+ additional key insights about Cisco’s financial health and market position.
Cisco’s artificial intelligence orders for the quarter reached $800 million, with fiscal year 2025 total orders exceeding $2.0 billion. The company recognized approximately $1 billion in back-end AI revenue in fiscal year 2025, likely a combination of optics, switching, and routing products.
For the first quarter of fiscal year 2026 and the full fiscal year 2026, Cisco provided guidance largely in line with street expectations, projecting 5% growth for fiscal year 2026 and an earnings per share range of $4.00-4.06.
From an order perspective, Cisco reported overall orders increased by 7%, with cloud orders up 45% and enterprise orders rising 5%.
In other recent news, Cisco Systems Inc. reported its fiscal fourth-quarter earnings, which surpassed Wall Street expectations. The company posted an earnings per share (EPS) of $0.99, exceeding the forecast of $0.98, and generated revenue of $14.7 billion, slightly above the anticipated $14.62 billion. In a separate development, BofA Securities raised its price target for Cisco to $85 from $76, maintaining a Buy rating on the stock. The firm highlighted Cisco’s revamped portfolio and a significant infrastructure cycle driven by AI and data growth as reasons for the upgrade. These recent developments indicate a positive outlook for the company, as suggested by BofA Securities.
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