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LONDON - NTT DATA and Cisco (NASDAQ: CSCO), a prominent player in the Communications Equipment industry with a market capitalization of $272 billion, released a new IDC InfoBrief titled "Wired for Intelligence: A CIO Guide to Enterprise Networking for AI," offering strategic guidance for organizations looking to modernize their network infrastructure for AI implementation. According to InvestingPro data, Cisco maintains strong financial health with a perfect Piotroski Score of 9, indicating robust operational efficiency and financial stability.
The study highlights that 78% of companies consider networking capabilities important or very important when selecting providers for generative AI infrastructure, underscoring the critical role of modern networks in supporting AI workloads. This market positioning has contributed to Cisco’s impressive 38.5% stock return over the past year, with the stock currently trading near its 52-week high.
"Network modernization is about more than replacing old hardware—it’s about allowing enterprises to lead in an AI-driven world," said Brink Sanders, Senior Vice President of Global Networking Sales at Cisco.
The research indicates that legacy infrastructure is increasingly insufficient to support the scale and complexity of AI applications across industries including manufacturing, healthcare, and financial services. Modern networks need to handle high-speed, low-latency data transfers while maintaining security for AI workloads.
Dilip Kumar, Global Head of Technology Solutions at NTT DATA, stated that "the network exists as a catalyst for growth" for organizations implementing AI-driven business transformation.
In response to these findings, NTT DATA offers a suite of services spanning advisory, strategic technology sourcing, professional services, software-defined infrastructure, adoption services, and managed network services. The company recently launched AI-powered Software Defined Infrastructure services specifically for Cisco products.
The IDC InfoBrief was sponsored by NTT DATA and Cisco, with input from Chris Barnard, Vice President of European Telecoms and Infrastructure at IDC, who emphasized that "your network will make or break your AI transformation."
This press release-based article outlines how organizations can transform enterprise networking from a potential bottleneck into a business advantage as AI adoption accelerates across industries. With 15 consecutive years of dividend growth and strong market presence, Cisco demonstrates long-term stability in the evolving tech landscape. For detailed analysis and additional insights, including 10 more exclusive ProTips, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Cisco Systems reported fourth-quarter earnings with a revenue of $14.7 billion and earnings per share of $0.99, slightly surpassing expectations of $14.6 billion in revenue and $0.98 per share. The company experienced overall revenue growth of approximately 8% year-over-year, with its core networking segment growing more than 12%. Following these results, Evercore ISI raised its price target for Cisco to $74, while BofA Securities increased its target to $85, citing Cisco’s revamped portfolio and growth in AI and data infrastructure. KeyBanc Capital Markets maintained an Overweight rating and a $77 price target, highlighting strong performance in the Networking segment. However, Piper Sandler lowered its price target to $64, maintaining a Neutral rating due to a modest growth outlook and fiscal year 2026 guidance that raised questions about peak growth. Additionally, Cisco’s board approved amendments to its bylaws to address deficiencies in director nomination notices, allowing stockholders an opportunity to correct any issues.
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