Key statistics

Is CSCO a good stock to buy in 2026?

The P/E ratio of 28.96x for CSCO stock is significantly below the Communication Equipment sector average of 48.2x, suggesting it may be undervalued on this earnings multiple. However, our Discounted Cash Flow (DCF) fair value of $62.11 indicates a 23.4% overvaluation against the current price. With 51.4% of analysts recommending a Buy, the sentiment for CSCO stock remains moderately positive despite the DCF signal. Not investment advice.

2026 CSCO price scenarios

Based on analyst consensus of $96.5 from 72 analysts. Not a prediction by Alert Invest.

About Cisco Systems, Inc. (CSCO)

Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable con

Led by CEO Charles H. Robbins, Cisco Systems, Inc. operates as a global technology conglomerate with approximately 90,400 employees, specializing in networking hardware, software, and telecommunications equipment. The company is renowned for its foundational role in building and securing internet infrastructure worldwide, providing indispensable solutions for enterprise, public sector, and service provider customers. Its distinctive strengths lie in its comprehensive portfolio, vast installed base, and ongoing innovation in areas like cybersecurity, collaboration, and IoT.

CSCO competitive moat and business analysis

Cisco Systems, Inc. maintains a significant competitive advantage through its entrenched position in enterprise networking and strong brand loyalty, underpinned by a robust net margin of 18.76%. While specific figures for Return on Equity (ROE) and Return on Invested Capital (ROIC) are not available in the provided data, the company’s consistent profitability points to efficient capital deployment. Its extensive intellectual property and global distribution network further solidify its economic moat against competitors.

While specific segment and geographical revenue breakdowns are not detailed in the provided data, Cisco’s business model is typically diversified across several key product categories: Infrastructure Platforms (including switching, routing, and wireless solutions), Applications (such as collaboration and IoT offerings), Security (firewalls, advanced malware protection), and Services (technical support and advanced services). Geographically, Cisco boasts a broad international presence, with significant sales across the Americas, Europe, the Middle East, Africa, Asia Pacific, Japan, and China, demonstrating its global reach and diversified revenue streams.

Cisco’s moat trend indicates a steady evolution, reflected in its recent revenue growth of 5.3%. The company is actively shifting its business model towards more recurring software and subscription revenue, which is crucial for enhancing its competitive advantage by creating stickier customer relationships and more predictable income streams. This strategic pivot helps mitigate reliance on hardware sales cycles and strengthens its long-term market position.

When evaluating Cisco, investors often consider its performance relative to peers in the broader technology and communication equipment space. Comparisons like CSCO vs AMAT, CSCO vs ANET, and CSCO vs CRM highlight how Cisco navigates a diverse competitive landscape, from semiconductor equipment suppliers to cloud networking specialists and enterprise software providers.

Cisco Systems, Inc. analyst rating

Based on 72 analysts. 51.4% rate CSCO Buy or Strong Buy.

A “Buy” rating from 51.4% of analysts for CSCO stock is a moderately strong endorsement for a large-cap technology company, suggesting a solid outlook for its performance. This indicates a general confidence in Cisco’s strategic direction and its ability to deliver returns, aligning with its mature market presence.

Is CSCO undervalued or overvalued?

The current CSCO valuation presents a mixed picture, which is crucial for determining if CSCO stock is undervalued or overvalued. Its P/E ratio of 28.96x stands significantly below the Communication Equipment sector average of 48.2x, suggesting that CSCO stock could be considered relatively cheap compared to its peers based on earnings. This 19.2x discount might appeal to value-oriented investors seeking entry into the technology space.

However, a Discounted Cash Flow (DCF) analysis estimates a fair value of $62.11, indicating a 23.4% overvaluation against the current stock price. This divergence highlights the importance of considering multiple valuation methodologies when assessing CSCO valuation. While market multiples suggest a discount, intrinsic value calculations point to a premium, warranting careful investor due diligence.

CSCO financial health & key metrics

For value investors, CSCO stock presents a somewhat conflicting financial health profile. While its P/E ratio is attractive relative to the sector, indicating a potentially cheaper entry point, the DCF analysis suggests an overvaluation. The company’s strong net margin points to efficient operations, but a moderate debt-to-equity ratio and the unavailability of ROE/ROIC figures require a deeper dive to fully assess its intrinsic value and long-term financial stability.

Cisco Systems, Inc. earnings history & next report

Cisco Systems, Inc. reported EPS of $1.04, beating estimates by 1.96%. Next earnings: 2026-05-13 with EPS estimate of $1.04.

Investors should watch the upcoming earnings report on 2026-05-13, with an EPS estimate of $1.04, closely for signs of continued strength in recurring revenue growth, performance of newer segments like cybersecurity, and any updates on macro-economic headwinds or tailwinds impacting enterprise IT spending. A beat or miss on this estimate could significantly sway market sentiment for CSCO stock, impacting its short-term price trajectory.

CSCO daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

CSCO insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent CSCO analyst rating changes

Cisco Systems, Inc. stock news today

How does CSCO compare to its peers?

When considering CSCO stock, it is valuable to evaluate how it stacks up against other prominent players in the broader Technology sector. Investors often compare Cisco to companies offering different yet complementary or competing enterprise solutions, helping to contextualize its market position and potential.

FAQ — Cisco Systems, Inc. (CSCO) stock