Key statistics

Is CSCO a good stock to buy in 2026?

CSCO stock presents a mixed outlook, with a P/E ratio of 31.98x indicating it’s relatively cheap compared to the Communication Equipment sector average of 54.1x. However, a discounted cash flow (DCF) fair value of $59.92 suggests a significant -33.1% overvaluation against the current price. While 50.7% of analysts rate it a Buy, investors should consider both the CSCO valuation metrics and market sentiment before deciding if CSCO is a good stock for their portfolio. Not investment advice.

2026 CSCO price scenarios

Based on analyst consensus of $96.5 from 73 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 connectivity to campus, data center and branch networks; and wireless products include indoor and outdoor wireless coverage designed for seamless roaming use of voice, video, and data applications.

Under the leadership of CEO Charles H. Robbins, Cisco Systems, Inc., with its 90,400 employees, has solidified its position as a global leader in networking hardware and software. The company’s distinctive strengths lie in its entrenched position within enterprise and service provider networks, a vast installed base, and a strong pivot towards software subscriptions, security, and AI-driven solutions. Its robust brand recognition and extensive global distribution network also contribute to its enduring market presence, underpinning the long-term potential for CSCO stock.

CSCO competitive moat and business analysis

Cisco benefits from a powerful competitive moat characterized by high switching costs and network effects, stemming from the deeply integrated and complex nature of its networking infrastructure products. Its impressive net margin of 18.76% underscores the company’s operational efficiency and pricing power within the Communication Equipment industry. While specific ROE or ROIC figures are unavailable, Cisco’s consistent profitability enables continuous investment in research and development, fortifying its technological leadership.

While specific segment and geographic revenue breakdowns for fiscal year 2025 are not detailed, Cisco’s business generally spans across core networking (switches, routers), security, collaboration, and services. The company generates revenue from significant operations across the Americas, Europe, the Middle East, Africa, and the Asia Pacific, Japan, and China regions. This broad diversification across product categories and global markets helps mitigate risks associated with reliance on any single product line or geographical market, contributing to the stability of CSCO stock.

Despite a moderate year-over-year revenue growth of 5.3%, Cisco is actively working to evolve its business model from hardware-centric sales to a more recurring software and subscription-based revenue stream. As CEO Chuck Robbins noted during the Q4 2025 earnings call, “We will discuss product results in terms of revenue and geographic and customer results in terms of product orders. Unless stated otherwise, all comparisons will be made on a year-over-year basis.” This strategic pivot aims to enhance predictability and stability in its revenue streams, strengthening its long-term competitive moat against emerging challengers and underpinning the future CSCO valuation.

In the highly competitive Technology sector, Cisco faces formidable rivals. When considering CSCO stock, investors often compare its performance and strategic initiatives with companies like Applied Materials (AMAT), a leader in semiconductor equipment, Arista Networks (ANET), a formidable competitor in cloud networking, and Salesforce (CRM), a software giant increasingly relevant in enterprise solutions. These comparisons offer vital insights into CSCO valuation, growth prospects, and technological positioning within the broader industry. Investors can conduct a more detailed comparison using our dedicated tools: CSCO vs AMAT, CSCO vs ANET, and CSCO vs CRM.

Cisco Systems, Inc. analyst rating

Based on 73 analysts. 50.7% rate CSCO Buy or Strong Buy.

A 50.7% Buy rating from analysts for CSCO stock is generally considered a strong positive signal within the Technology sector, indicating significant confidence in its future performance. This level of endorsement suggests that a majority of market professionals see upside potential for Cisco Systems, Inc. in the coming year, contributing to positive sentiment around its CSCO valuation.

Is CSCO undervalued or overvalued?

Assessing CSCO valuation reveals a mixed picture for potential investors. With a P/E ratio of 31.98x, Cisco appears attractively priced compared to its Communication Equipment sector average of 54.1x, suggesting a significant discount of 22.1x. This relative undervaluation on an earnings basis could make CSCO stock an interesting prospect for value-oriented investors seeking exposure to a stable technology giant.

However, a discounted cash flow (DCF) analysis points to a fair value of $59.92, indicating that the current CSCO stock price is overvalued by a substantial -33.1%. Furthermore, a P/B ratio of 7.42x also positions Cisco as relatively expensive from a book value perspective. These contrasting metrics highlight the complexity in determining whether CSCO stock is truly a good buy in 2026, necessitating a deeper look into its growth drivers and future prospects.

CSCO financial health & key metrics

For value investors, CSCO stock presents a somewhat intriguing yet cautious profile. Its P/E ratio of 31.98x appears favorable against a sector average of 54.1x, signaling a potential undervaluation based on earnings multiples. The healthy net margin of 18.76% underscores the company’s operational efficiency. However, the absence of ROE/ROIC data and a DCF fair value of $59.92, which is significantly below the current price, suggest that the stock might be overvalued by traditional intrinsic valuation methods. While its debt-to-equity of 0.63x is moderate and revenue growth of 5.3% is steady, a tight current ratio of 0.96x warrants careful consideration of its short-term liquidity, making a thorough analysis essential before concluding on whether is CSCO a good stock for your portfolio.

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.

Cisco Systems, Inc. recently reported a strong performance, with EPS of $1.04, surpassing analyst estimates by 1.96%. Investors and analysts will keenly watch the upcoming earnings report on 2026-05-13, where the EPS estimate is also $1.04. Key areas to focus on during the next report will be updates on its transition to a subscription-based model, growth in its security and software segments, and any insights into enterprise IT spending trends, all of which will influence future CSCO stock performance and CSCO valuation.

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?

To thoroughly assess the investment potential of CSCO stock, it’s beneficial to compare it against key competitors and other significant players in the broader Technology sector. This allows investors to gauge its relative strength, growth prospects, and CSCO valuation within the industry landscape.

FAQ — Cisco Systems, Inc. (CSCO) stock