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BOSTON - Cisco (NASDAQ:CSCO), a $264 billion market cap leader in communications equipment with a perfect Piotroski Score of 9 according to InvestingPro, unveiled an enhanced AI-powered Splunk Observability portfolio at its annual .conf25 event on Tuesday, introducing new capabilities designed to help organizations monitor both traditional IT environments and AI systems. The company, which generated over $56 billion in revenue over the last twelve months, continues to strengthen its position in the enterprise technology market.
The updated offering includes AI Troubleshooting Agents that automatically analyze incidents and identify potential root causes, and Event iQ in Splunk IT Service Intelligence that reduces alert noise through automated correlation. The company is also introducing AI Agent Monitoring to track the performance, security, and cost of large language models and AI agents. With a robust gross profit margin of 65% and strong market presence, Cisco’s investment in AI capabilities reflects its commitment to innovation. [Discover more insights about Cisco’s financial health and growth potential with InvestingPro, which offers 10+ additional exclusive ProTips.]
"Our mission is clear - to help organizations put AI applications and agents to work, while retaining visibility and control," said Patrick Lin, SVP and GM of Splunk Observability, in a press release statement.
The enhanced portfolio aims to unify observability across environments by bringing together capabilities from Splunk AppDynamics and Splunk Observability Cloud. New features include Business Insights, which correlates application performance with real-time health of business processes, and Digital Experience Analytics for visibility into user journeys.
Cisco is also deepening integration with its ThousandEyes platform to help teams identify network impacts on application performance and user experience.
Several of the announced capabilities, including AI Agent Monitoring, AI Troubleshooting Agents, and Business Insights, are currently available or will soon be available in private preview (Alpha), while other features are now generally available globally.
The announcement comes as organizations increasingly deploy AI-enabled applications that require specialized monitoring to ensure models perform as intended while managing costs effectively.
Splunk was acquired by Cisco, which now positions the combined offering as part of its broader strategy to provide visibility across networks, infrastructure, and applications. Based on InvestingPro’s Fair Value analysis, Cisco’s stock currently appears to be trading near its fair value. [Access comprehensive analysis and detailed valuation metrics with InvestingPro’s Research Report, part of our coverage of 1,400+ top US stocks.]
In other recent news, Cisco’s fourth-quarter earnings results have drawn mixed reactions from analysts. KeyBanc Capital Markets maintained its Overweight rating on Cisco, highlighting strong performance in the Networking segment, which exceeded expectations, while also noting a 7% growth in product orders. However, Piper Sandler adjusted its price target for Cisco to $64.00 from $70.00, citing a modest growth outlook and fiscal year 2026 guidance that did not meet bullish expectations. Cisco has also expanded its Secure AI Factory by integrating VAST Data’s InsightEngine with Cisco AI PODs, aiming to enhance data extraction for enterprise AI applications. Additionally, a study by NTT DATA and Cisco emphasizes the importance of modern network infrastructure for AI, with 78% of companies considering networking capabilities crucial for AI implementation. Cisco’s board has approved amendments to the company’s bylaws to address deficiencies in director nomination notices, introducing a cure process for stockholders to correct issues. These developments highlight Cisco’s ongoing efforts in AI and corporate governance, amidst varied analyst perspectives on its financial outlook.
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