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StocksMedium•26 June 2026•

1 min read

Cisco Drops 4.5% on FTSE Rebalancing and Valuation Concerns

Key Facts

1Cisco Systems stock fell 4.5%, wiping out $21 billion in market capitalization.

2The drop is largely attributable to FTSE Russell's rebalancing.

3KeyBanc raised the price target on the stock despite valuation pressures.

Reflecting the impact of periodic index rebalancing on major tech stocks, Cisco Systems shares fell 4.5% according to reports, wiping out $21 billion in market capitalization. The decline is largely attributed to FTSE Russell's rebalancing, even as KeyBanc raised its price target on the stock amid valuation pressures.

Before the drop, CSCO closed at $118.97 on June 25, 2026, per market data. The move comes as Cisco continues to see growth in AI-related orders, providing a fundamental buffer against valuation concerns. KeyBanc analysts noted that demand for AI-driven networking solutions could offset some selling pressure stemming from technical factors.

Traders should watch whether the temporary rebalancing effect has subsided, with the stock finding support near $117.56 (the June 25 low). Markets also await Cisco's next earnings report to gauge the contribution of AI business to overall revenue. Any positive commentary from management could help restore confidence.