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Cisco Hits 52-Week High: Should You Still Buy the CSCO Stock?
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Key Takeaways
Cisco hit a 52-week high and is up 61.2% in 12 months, boosted by its AI infrastructure push.
Rivals like Hewlett Packard Enterprise, Broadcom and Arista Networks beat Cisco's 12-month return.
CSCO guides Q3 revenue to $15.4-$15.6B and sees $61.2-$61.7B in FY26 on AI networking orders.
Cisco Systems (CSCO - Free Report) shares hit a 52-week high of $89.80 on Tuesday, eventually closing at $89.70. In the trailing 12-month period, Cisco shares have jumped 61.2%, outperforming the broader Zacks Computer & Technology sector’s return of 57%. The company has been benefiting from a strong AI push. However, CSCO has been facing stiff competition from the likes of Hewlett Packard Enterprise (HPE - Free Report) , Broadcom (AVGO - Free Report) and Arista Networks (ANET - Free Report) . CSCO shares are also trading at a premium. So, is the stock a buy at this level? Let’s find out.
Cisco Suffers From Stiff Competition
Cisco shares have lagged peers, including Hewlett Packard Enterprise, Broadcom and Arista Networks, in the trailing 12-month period. Shares of Hewlett Packard Enterprise, Broadcom and Arista Networks have returned 87.4%,127.3% and 144.3%, respectively.
Hewlett Packard Enterprise benefits from the Juniper Networks acquisition, elevating HPE’s competitive stance by expanding its networking domain in AI, cloud and hybrid solutions. Broadcom is experiencing strong momentum fueled by growth in AI semiconductors and continued success with its VMware integration. The versatility of Arista Networks’ unified software stack across various use cases, including WAN routing, campus and data center infrastructure, sets it apart from its competitors.
CSCO Stock’s Performance
Image Source: Zacks Investment Research
Cisco shares are trading at a premium, as suggested by the Value Score of D. In terms of the forward 12-month price/sales, CSCO is trading at a premium of 5.58X, higher than the Zacks Computer Networking industry’s 5.21X and Hewlett Packard Enterprise’s 0.92X.
However, Cisco shares are trading at a discount compared with Arista Networks and Broadcom. In terms of the forward 12-month P/S, Arista Networks and Broadcom shares are trading at 18.22X and 15.12X, respectively.
CSCO Stock’s Valuation
Image Source: Zacks Investment Research
AI Push & Strong Networking Portfolio Aids Cisco’s Prospects
Cisco expects more than $3 billion in AI infrastructure revenues from hyperscalers in fiscal 2026. The company plans to deploy Silicon One architecture across high-performance networking systems by fiscal year 2029. An expanding portfolio with the introduction of a 102.4 terabit per second G300 chip and two new pluggable optics, a 1.6 terabit per second OSFP and an 800-gig LPO (both built with Cisco silicon photonics technology), is driving CSCO’s footprint in high-performance AI infrastructure.
Cisco sees a growing pipeline of more than $2.5 billion in orders for its high-performance networking products across sovereign, Neocloud and enterprise customers ($350 million worth of orders in the second quarter of fiscal 2026). The joint venture with AMD and HUMAIN plans to deliver up to 1 gigawatt of AI infrastructure by 2030. Sovereign solutions are gaining traction as rapid AI adoption is accelerating concerns related to privacy, data governance and regulatory compliance.
Robust demand for AI infrastructure and campus networking solutions is expected to drive CSCO’s top-line growth. The company’s networking portfolio, powered by Silicon One, AI-native security solutions and operating systems, is expanding CSCO’s AI footprint. Networking product orders grew 20% in the reported quarter, which marked the sixth consecutive quarter of double-digit growth driven by hyperscale infrastructure, enterprise routing, campus switching, wireless, industrial IoT and servers. This bodes well for Networking revenues in fiscal 2026.
Increasing AI workloads at the network edge and the emergence of physical AI are benefiting the industrial IoT portfolio. Product orders in the second quarter of fiscal 2026 grew more than 18% year over year, with product orders from service providers and cloud customers surging 65%. Campus networking is benefiting from strong demand for next-gen solutions, including smart switches, secure routers and wireless products. Rapid acceleration in the capacity requirements of the network due to unprecedented levels of network traffic and an ever-evolving threat landscape bodes well for Cisco’s prospects.
CSCO Offers Positive Q3 & FY26 Guidance
Cisco expects non-GAAP earnings between $1.02 per share and $1.04 per share for the third quarter of fiscal 2026. Revenues are expected to be in the range of $15.4-$15.6 billion.
The Zacks Consensus Estimate for CSCO’s third-quarter fiscal 2026 revenues is pegged at $15.58 billion, indicating growth of 10.08% on a year-over-year basis. The consensus mark for CSCO’s earnings is currently pegged at $1.04 per share, unchanged over the past 30 days, indicating year-over-year growth of 8.3%.
For fiscal 2026, CSCO expects revenues to be in the $61.2-$61.7 billion range compared with $56.7 billion reported in fiscal 2025. Non-GAAP earnings are expected between $4.13 per share and $4.17 per share compared with $3.81 per share reported in fiscal 2025.
The Zacks Consensus Estimate for CSCO’s fiscal 2026 revenues is pegged at $61.26 billion, indicating growth of 8.1% from fiscal 2025. The consensus mark for CSCO’s fiscal 2026 earnings is currently pegged at $4.16 per share, up by a penny over the past 30 days, indicating year-over-year growth of 9.2%.
Conclusion
An expanding portfolio makes Cisco well-positioned for sustained growth in an evolving tech landscape. AI push is noteworthy, along with an expanding networking portfolio. These trends are expected to help the stock rally and bode well for CSCO’s long-term prospects.
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Cisco Hits 52-Week High: Should You Still Buy the CSCO Stock?
Key Takeaways
Cisco Systems (CSCO - Free Report) shares hit a 52-week high of $89.80 on Tuesday, eventually closing at $89.70. In the trailing 12-month period, Cisco shares have jumped 61.2%, outperforming the broader Zacks Computer & Technology sector’s return of 57%. The company has been benefiting from a strong AI push. However, CSCO has been facing stiff competition from the likes of Hewlett Packard Enterprise (HPE - Free Report) , Broadcom (AVGO - Free Report) and Arista Networks (ANET - Free Report) . CSCO shares are also trading at a premium. So, is the stock a buy at this level? Let’s find out.
Cisco Suffers From Stiff Competition
Cisco shares have lagged peers, including Hewlett Packard Enterprise, Broadcom and Arista Networks, in the trailing 12-month period. Shares of Hewlett Packard Enterprise, Broadcom and Arista Networks have returned 87.4%,127.3% and 144.3%, respectively.
Hewlett Packard Enterprise benefits from the Juniper Networks acquisition, elevating HPE’s competitive stance by expanding its networking domain in AI, cloud and hybrid solutions. Broadcom is experiencing strong momentum fueled by growth in AI semiconductors and continued success with its VMware integration. The versatility of Arista Networks’ unified software stack across various use cases, including WAN routing, campus and data center infrastructure, sets it apart from its competitors.
CSCO Stock’s Performance
Image Source: Zacks Investment Research
Cisco shares are trading at a premium, as suggested by the Value Score of D. In terms of the forward 12-month price/sales, CSCO is trading at a premium of 5.58X, higher than the Zacks Computer Networking industry’s 5.21X and Hewlett Packard Enterprise’s 0.92X.
However, Cisco shares are trading at a discount compared with Arista Networks and Broadcom. In terms of the forward 12-month P/S, Arista Networks and Broadcom shares are trading at 18.22X and 15.12X, respectively.
CSCO Stock’s Valuation
Image Source: Zacks Investment Research
AI Push & Strong Networking Portfolio Aids Cisco’s Prospects
Cisco expects more than $3 billion in AI infrastructure revenues from hyperscalers in fiscal 2026. The company plans to deploy Silicon One architecture across high-performance networking systems by fiscal year 2029. An expanding portfolio with the introduction of a 102.4 terabit per second G300 chip and two new pluggable optics, a 1.6 terabit per second OSFP and an 800-gig LPO (both built with Cisco silicon photonics technology), is driving CSCO’s footprint in high-performance AI infrastructure.
Cisco sees a growing pipeline of more than $2.5 billion in orders for its high-performance networking products across sovereign, Neocloud and enterprise customers ($350 million worth of orders in the second quarter of fiscal 2026). The joint venture with AMD and HUMAIN plans to deliver up to 1 gigawatt of AI infrastructure by 2030. Sovereign solutions are gaining traction as rapid AI adoption is accelerating concerns related to privacy, data governance and regulatory compliance.
Robust demand for AI infrastructure and campus networking solutions is expected to drive CSCO’s top-line growth. The company’s networking portfolio, powered by Silicon One, AI-native security solutions and operating systems, is expanding CSCO’s AI footprint. Networking product orders grew 20% in the reported quarter, which marked the sixth consecutive quarter of double-digit growth driven by hyperscale infrastructure, enterprise routing, campus switching, wireless, industrial IoT and servers. This bodes well for Networking revenues in fiscal 2026.
Increasing AI workloads at the network edge and the emergence of physical AI are benefiting the industrial IoT portfolio. Product orders in the second quarter of fiscal 2026 grew more than 18% year over year, with product orders from service providers and cloud customers surging 65%. Campus networking is benefiting from strong demand for next-gen solutions, including smart switches, secure routers and wireless products. Rapid acceleration in the capacity requirements of the network due to unprecedented levels of network traffic and an ever-evolving threat landscape bodes well for Cisco’s prospects.
CSCO Offers Positive Q3 & FY26 Guidance
Cisco expects non-GAAP earnings between $1.02 per share and $1.04 per share for the third quarter of fiscal 2026. Revenues are expected to be in the range of $15.4-$15.6 billion.
The Zacks Consensus Estimate for CSCO’s third-quarter fiscal 2026 revenues is pegged at $15.58 billion, indicating growth of 10.08% on a year-over-year basis. The consensus mark for CSCO’s earnings is currently pegged at $1.04 per share, unchanged over the past 30 days, indicating year-over-year growth of 8.3%.
Cisco Systems, Inc. Price and Consensus
Cisco Systems, Inc. price-consensus-chart | Cisco Systems, Inc. Quote
For fiscal 2026, CSCO expects revenues to be in the $61.2-$61.7 billion range compared with $56.7 billion reported in fiscal 2025. Non-GAAP earnings are expected between $4.13 per share and $4.17 per share compared with $3.81 per share reported in fiscal 2025.
The Zacks Consensus Estimate for CSCO’s fiscal 2026 revenues is pegged at $61.26 billion, indicating growth of 8.1% from fiscal 2025. The consensus mark for CSCO’s fiscal 2026 earnings is currently pegged at $4.16 per share, up by a penny over the past 30 days, indicating year-over-year growth of 9.2%.
Conclusion
An expanding portfolio makes Cisco well-positioned for sustained growth in an evolving tech landscape. AI push is noteworthy, along with an expanding networking portfolio. These trends are expected to help the stock rally and bode well for CSCO’s long-term prospects.
CSCO currently carries a Zacks Rank #2 (Buy), suggesting that it is the right time to start accumulating the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.