CSCO Stock Analysis: Cisco Systems | NASDAQ
Communication Equipment | NASDAQ, USA | Market Cap: 444.436m USD | 12M Return: 72.2% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 2.53B
EPS Trend: -9.7%
Qual. Beats: 3
Rev. Trend: 36.3%
Qual. Beats: 3
Warnings
Tailwinds
Seasonality 10.5 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Cisco Systems (NASDAQ: CSCO) is a global provider of internet-related networking and connectivity technologies, serving customers across the Americas, Europe, the Middle East, Africa, Asia Pacific, Japan, and China. Its portfolio spans data center switching, network security and identity/access management, secure access service edge (SASE), threat detection and response, wireless products, the Webex collaboration suite, contact center and communication platform-as-a-service (CPaaS) software, and network assurance and observability tools. The company also offers professional services, technical support, hardware replacement, financing, and managed network services.
Ciscos revenue model combines hardware sales, perpetual and subscription software licenses, and recurring services and support. It sells to businesses, public institutions, governments, and service providers through direct sales, systems integrators, service providers, resellers, and distributors. As a long-standing leader in the Communications Equipment sub-industry within Information Technology, Cisco has historically been defined by enterprise networking hardware (routers, switches) but has been shifting its mix toward software, subscriptions, and security offerings. The company was incorporated in 1984, is headquartered in San Jose, California, and listed on NASDAQ in 1990.
- AI-driven data center switching revenue accelerates with webscale orders
- Splunk integration boosts security and observability subscription growth
- Enterprise networking demand softens on cautious IT budget cuts
| Net Income: 12.0b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA -0.64 > 1.0 |
| NWC/Revenue: -4.91% < 20% (prev -3.02%; Δ -1.89% < -1%) |
| CFO/TA 0.10 > 3% & CFO 13.0b > Net Income 12.0b |
| Net Debt (14.7b) to EBITDA (18.1b): 0.81 < 3 |
| Current Ratio: 0.92 > 1.5 & < 3 |
| Outstanding Shares: last quarter (3.99b) vs 12m ago -0.42% < -2% |
| Gross Margin: 64.33% > 18% (prev 65.24%; Δ -0.92% > 0.5%) |
| Asset Turnover: 49.52% > 50% (prev 46.44%; Δ 3.09% > 0%) |
| Interest Coverage Ratio: 10.61 > 6 (EBIT TTM 15.5b / Interest Expense TTM 1.47b) |
| A: -0.02 (Total Current Assets 36.6b - Total Current Liabilities 39.5b) / Total Assets 126b |
| B: 0.01 (Retained Earnings 704.0m / Total Assets 126b) |
| C: 0.13 (EBIT TTM 15.5b / Avg Total Assets 123b) |
| D: 0.64 (Book Value of Equity 48.9b / Total Liabilities 76.7b) |
| Altman-Z'' = 1.38 = BB |
| DSRI: 0.72 (Receivables 6.48b/8.23b, Revenue 60.7b/55.6b) |
| GMI: 1.01 (GM 65.24% / 64.33%) |
| AQI: 0.97 (AQ_t 0.69 / AQ_t-1 0.71) |
| SGI: 1.09 (Revenue 60.7b / 55.6b) |
| TATA: -0.01 (NI 12.0b - CFO 13.0b) / TA 126b) |
| Beneish M = -3.20 (Cap -4..+1) = AA |
As of July 28, 2026, the stock is trading at USD 114.57 with a total of 15,649,218 shares traded. Over the past week, the price has changed by +3.50%, over one month by -2.30%, over three months by +30.30% and over the past year by +72.18%.
Current recommended Stop Loss: 109.60 (which is 4.3% or 1.4 ATR below the current price).
Cisco Systems has received a consensus analysts rating of 3.92. Therefore, it is recommended to buy CSCO.
- StrongBuy: 10
- Buy: 5
- Hold: 10
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 130.2 | 13.7% |
P/E Trailing = 37.4618
P/E Forward = 23.6407
P/S = 7.3163
P/B = 9.0516
P/EG = 1.5572
Revenue TTM = 60.7b USD
EBIT TTM = 15.5b USD
EBITDA TTM = 18.1b USD
Long Term Debt = 19.4b USD (from longTermDebt, last quarter)
Short Term Debt = 11.9b USD (from shortTermDebt, last quarter)
Debt = 31.3b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 14.7b USD (calculated: Debt 31.3b - CCE 16.6b)
Enterprise Value = 459b USD (444b + Debt 31.3b - CCE 16.6b)
Interest Coverage Ratio = 10.61 (Ebit TTM 15.5b / Interest Expense TTM 1.47b)
EV/FCF = 36.39x (Enterprise Value 459b / FCF TTM 12.6b)
FCF Yield = 2.75% (FCF TTM 12.6b / Enterprise Value 459b)
FCF Margin = 20.77% (FCF TTM 12.6b / Revenue TTM 60.7b)
Net Margin = 19.69% (Net Income TTM 12.0b / Revenue TTM 60.7b)
Gross Margin = 64.33% ((Revenue TTM 60.7b - Cost of Revenue TTM 21.7b) / Revenue TTM)
Gross Margin QoQ = 63.63% (prev 64.97%)
Tobins Q-Ratio = 3.66 (Enterprise Value 459b / Total Assets 126b)
Interest Expense / Debt = 4.68% (Interest Expense 1.47b / Debt 31.3b)
Taxrate = 15.04% (2.12b / 14.1b)
NOPAT = 13.2b (EBIT 15.5b * (1 - 15.04%))
Current Ratio = 0.92 (Total Current Assets 36.6b / Total Current Liabilities 39.5b)
Debt / Equity = 0.64 (Debt 31.3b / totalStockholderEquity, last quarter 48.9b)
Debt / EBITDA = 0.81 (Net Debt 14.7b / EBITDA 18.1b)
Debt / FCF = 1.16 (Net Debt 14.7b / FCF TTM 12.6b)
Total Stockholder Equity = 47.6b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.75% (Net Income 12.0b / Total Assets 126b)
RoE = 25.14% (Net Income TTM 12.0b / Total Stockholder Equity 47.6b)
RoCE = 23.21% (EBIT 15.5b / Capital Employed (Equity 47.6b + L.T.Debt 19.4b))
RoIC = 13.91% (NOPAT 13.2b / Invested Capital 94.9b)
WACC = 8.85% (E(444b)/V(476b) * Re(9.19%) + D(31.3b)/V(476b) * Rd(4.68%) * (1-Tc(0.15)))
Discount Rate = 9.19% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -92.57 | Cagr: -0.94%
[DCF] Terminal Value 73.50% ; FCFF base≈12.7b ; Y1≈12.6b ; Y5≈13.0b
[DCF] Fair Price = 43.75 (EV 187b - Net Debt 14.7b = Equity 172b / Shares 3.94b; r=8.85% [WACC]; 5y FCF grow -1.46% → 2.50% )
EPS Correlation: -9.71 | EPS CAGR: -0.57% | SUE: 1.25 | # QB: 3
Revenue Correlation: 36.31 | Revenue CAGR: 1.62% | SUE: 4.0 | # QB: 3
EPS current Quarter (2026-10-31): EPS=1.14 | Chg30d=-0.95% | Revisions=+83% | Analysts=20
EPS current Year (2026-07-31): EPS=4.28 | Chg30d=+0.02% | Revisions=+88% | GrowthEPS=+12.3% | GrowthRev=+11.0%
EPS next Year (2027-07-31): EPS=4.79 | Chg30d=+0.33% | Revisions=+88% | GrowthEPS=+12.0% | GrowthRev=+9.3%
[Analyst] Revisions Ratio: +95% (up=59, down=0)