Quick verdict: AMAT vs CSCO in 2026

In this AMAT vs CSCO stock comparison 2026, Cisco Systems (CSCO) holds a slight overall edge according to our comprehensive metrics, securing 7 wins compared to Applied Materials’ (AMAT) 5 wins. CSCO emerges as the growth leader with slightly higher revenue growth and also stands out as the value leader, offering more attractive valuation multiples. Conversely, AMAT demonstrates superior profitability with significantly stronger net and EBITDA margins, and is the clear analyst favorite with a higher percentage of “Buy” ratings and greater projected price target upside. Not investment advice.

AMAT vs CSCO: key metrics side by side

Full side-by-side comparison of AMAT and CSCO across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-30.

AMAT vs CSCO valuation comparison

A key aspect of any amat vs csco stock comparison 2026 is their valuation. Applied Materials (AMAT) currently trades at a P/E ratio of 38.7x and a P/B ratio of 13.97x. These metrics suggest a premium valuation, likely reflecting investor optimism in the semiconductor equipment sector and AMAT’s specific market position. The discounted cash flow (DCF) analysis for AMAT shows a significantly negative upside of -196.4%, indicating that, by this model, the stock may be considerably overvalued at its current price of $382.59. Investors should carefully consider these multiples in context of its growth prospects.

In contrast, Cisco Systems (CSCO) appears to offer a more conservative valuation. CSCO’s P/E ratio stands at 31.98x, noticeably lower than AMAT’s, and its P/B ratio is 7.42x, approximately half of AMAT’s. This suggests that CSCO is currently available at a more attractive price relative to its earnings and book value. Furthermore, while CSCO’s DCF upside is also negative at -33.1%, it is considerably less bearish than AMAT’s. Based purely on traditional valuation metrics, Cisco Systems (CSCO) seems to be the cheaper stock in this amat vs csco fundamentals and valuation analysis, presenting a potentially better entry point for value-conscious investors looking for a more grounded valuation.

AMAT vs CSCO growth comparison

When evaluating the growth potential in an AMAT vs CSCO stock comparison 2026, both companies operate within the dynamic technology sector, though in different sub-segments. Applied Materials (AMAT), a leader in semiconductor manufacturing equipment, reported a year-over-year revenue growth of +4.4%. While solid, this growth rate can be influenced by the cyclical nature of the semiconductor industry, which sees periods of rapid expansion followed by consolidation. AMAT’s performance is closely tied to capital expenditure by chipmakers, making its growth trajectory dependent on broader industry investment cycles.

Cisco Systems (CSCO), a dominant player in networking hardware, software, and telecommunications equipment, demonstrated a slightly stronger revenue growth rate of +5.3% year-over-year. Cisco’s business, while mature, is benefiting from ongoing enterprise digital transformation, cloud adoption, and the increasing demand for secure networking solutions. This slightly higher growth, coupled with its immense scale ($56.65B in revenue compared to AMAT’s $28.37B), indicates a consistent, albeit modest, expansion. Between the two, CSCO currently exhibits a stronger growth momentum based on recent revenue figures, suggesting a more consistent upward trend in a broader and perhaps less cyclical market. Investors focused on current growth momentum might find CSCO more appealing.

AMAT vs CSCO profitability

Profitability is a critical factor in understanding the financial health of Applied Materials and Cisco Systems. AMAT showcases impressive margins, with a net margin of 27.78% and an EBITDA margin of 35.04%. These robust figures highlight AMAT’s operational efficiency and strong pricing power within the specialized semiconductor equipment market. Its ability to convert a significant portion of its revenue into profit is a clear indicator of its solid business model. However, the Return on Equity (ROE) for AMAT is currently N/A%, limiting a direct comparison on this specific metric.

In contrast, Cisco Systems (CSCO) records a net margin of 18.76% and an EBITDA margin of 28.79%. While still respectable for a company of its size and industry, these margins are lower than AMAT’s, suggesting that AMAT is more efficient at generating profit from its sales. When it comes to cash generation relative to share price, CSCO leads with a Free Cash Flow (FCF) yield of 3.63%, surpassing AMAT’s FCF yield of 2.04%. This indicates that CSCO generates more free cash flow per dollar of its market capitalization, which is attractive for investors looking for strong cash generation. Both companies have an N/A% for ROE, so this particular profitability metric cannot differentiate them. Despite CSCO’s higher FCF yield, AMAT clearly outperforms in terms of margin efficiency, indicating which company is more profitable on an operational basis.

Analyst ratings: AMAT vs CSCO

The perspective of financial analysts offers valuable insight into the expected performance and market sentiment for these stocks. For Applied Materials (AMAT), a substantial majority of analysts express confidence, with 79.3% out of 53 analysts issuing a “Buy” rating. The consensus target price for AMAT stands at $426.39, which implies an attractive upside of +11.4% from its current price of $382.59. This strong backing suggests that the analyst community anticipates continued growth and a positive trajectory for AMAT in the semiconductor sector.

Cisco Systems (CSCO), while also receiving a “Buy” consensus, shows a less enthusiastic endorsement from analysts. Out of 73 analysts covering CSCO, 50.7% have issued a “Buy” rating. The consensus target price for CSCO is $96.5, projecting a more modest upside of +7.7% from its current price of $89.57. Comparing the two, AMAT is clearly the analyst favorite in this amat vs csco stock comparison 2026, commanding a higher percentage of “Buy” ratings and a greater projected price target upside, suggesting a stronger conviction among analysts regarding its near-term appreciation potential.

Should I buy AMAT or CSCO stock in 2026?

The decision to buy AMAT or CSCO stock in 2026 depends heavily on an investor’s individual strategy and priorities. For growth-oriented investors, both companies offer different aspects of appeal. CSCO currently shows slightly higher revenue growth at 5.3% year-over-year, which might appeal to those looking for consistent, large-cap technology growth. However, AMAT, with its +11.4% analyst price target upside, suggests a greater potential for capital appreciation according to market experts. Those prioritizing higher potential price appreciation and exposure to the cyclical, yet high-growth, semiconductor industry might lean towards AMAT.

For value investors, the comparison on amat vs csco fundamentals and valuation points more favorably towards Cisco Systems. CSCO trades at a lower P/E ratio of 31.98x and a significantly lower P/B ratio of 7.42x compared to AMAT’s 38.7x and 13.97x, respectively. Furthermore, while both have negative DCF upsides, CSCO’s -33.1% is considerably less severe than AMAT’s -196.4%, implying that CSCO is less overvalued by this metric. Value investors looking for a strong, established tech company with more attractive valuation multiples might find CSCO to be a more suitable addition to their portfolio.

Income-focused investors will find a clear winner in Cisco Systems. CSCO offers a modest dividend yield of 0.02%, providing a small return to shareholders. In contrast, Applied Materials (AMAT) currently has a dividend yield of 0.0%, meaning it does not pay a dividend. Therefore, for investors seeking any form of regular income from their stock holdings, CSCO is the only option between these two. This is not investment advice; always conduct your own thorough research and consider your personal financial situation.

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