UBS maintains Cisco stock Neutral with $70 price target

On Thursday, UBS analyst David Vogt maintained a Neutral rating for Cisco Systems, Inc. (NASDAQ:CSCO), with a consistent price target of $70.00. The company, currently trading near its 52-week high of $66.50 with a market capitalization of $258 billion, has demonstrated strong financial performance with annual revenue of $55.6 billion. According to InvestingPro data, Cisco maintains a robust position as a prominent player in the Communications Equipment industry. Vogt’s assessment followed Cisco’s third fiscal quarter report, where the company posted a modest outperformance on both revenue and earnings per share (EPS). The better-than-expected results were attributed to robust growth in the Networking segment and benefits from a more favorable tariff environment and a lower tax rate than initially projected. InvestingPro analysis shows that Cisco has maintained dividend payments for 14 consecutive years, with a current dividend yield of 2.68%.

In the third fiscal quarter, Cisco’s guidance for the fourth fiscal quarter also slightly exceeded expectations. A significant highlight was Cisco’s achievement of over $600 million in artificial intelligence (AI) orders during the quarter, which contributed to surpassing the $1 billion target for total AI orders a quarter ahead of schedule. The demand for Webscale was widespread, with three of the top six Webscale customers experiencing triple-digit growth. The larger systems business saw a notable increase in orders, representing two-thirds of the total in the third fiscal quarter compared to half in the second fiscal quarter.

Cisco also drew attention to its recent collaborations with entities in Saudi Arabia and the United Arab Emirates, emphasizing the sovereign sector as a new catalyst for the company’s burgeoning AI business. Despite these positive trends in AI and the acceleration of the core business, which slightly uplifted the forecast for fiscal year 2026, Vogt suggested that the current stock price adequately reflects the company’s enhanced performance, trading at approximately 16 times UBS’s estimated fiscal year 2026 EPS of $4.00. Based on InvestingPro’s comprehensive Fair Value analysis, Cisco appears to be trading slightly above its Fair Value. Discover more insights and 8 additional ProTips about Cisco’s financial health and growth potential with an InvestingPro subscription, including access to the detailed Pro Research Report available for over 1,400 US stocks.

In other recent news, Cisco Systems Inc. reported strong financial results for the third quarter of 2025, with earnings per share (EPS) of $0.96 and revenue totaling $14.1 billion, both surpassing analyst expectations. The company also provided optimistic guidance for the upcoming quarter, forecasting revenue between $14.5 billion and $14.7 billion and a non-GAAP EPS of $0.96 to $0.98. Cisco’s performance was bolstered by significant growth in its AI orders, which exceeded $1 billion, highlighting strong demand in the AI infrastructure sector. Citi, Evercore ISI, and JPMorgan have all raised their price targets for Cisco, now set at $71, $72, and $73 respectively, reflecting confidence in the company’s growth prospects, particularly in AI and networking. Citi and Evercore ISI maintained positive ratings, while Raymond (NSE:RYMD) James reaffirmed a Market Perform rating, noting the company’s robust performance amidst macroeconomic concerns. Additionally, Cisco announced the retirement of its Chief Financial Officer, with Mark Patterson, a long-time executive, set to take over, ensuring a smooth transition. The company’s strategic focus on AI and networking innovations continues to position it favorably in the tech industry.

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