| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 27 | 32.6x | 18.2x | Bottom tier | |
Growth | 77 | 11.8% | 7.1% | Top tier | |
Quality | 85 | 16.3% | 4.5% | Top tier | |
Safety | 73 | 1.1x | 2.6x | Top tier | |
Capital Return | 35 | — | 2.10% | Bottom tier | |
Momentum | 86 | 71.9% | 2.9% | Top tier | |
Sentiment | 40 | 14 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Cisco Systems sells networking, communications, security, and enterprise observability infrastructure, combining Silicon One systems, Acacia optics, data center switches, wireless networking, security products, Splunk, and Webex. It generates revenue from products, services, software, and subscriptions; in Q4 fiscal 2026, product revenue totaled $13.5 billion, compared with $3.8 billion for services, while software revenue reached $6.2 billion, subscriptions represented 48% of total revenue, and annual recurring revenue reached $32.1 billion.
In Q4 fiscal 2026, Cisco reported record revenue of $17.3 billion, up 18% year over year, including 24% growth in product revenue and 28% growth in networking, while services revenue remained stable. Non-GAAP net income totaled $4.9 billion, and non-GAAP earnings per share were $1.22, with both growing 23%, while the non-GAAP gross margin reached 66.3% and the operating margin reached 35.9%.
The company concluded fiscal 2026 with record revenue of $63.3 billion, up 12%, non-GAAP net income of $17.2 billion, and non-GAAP earnings per share of $4.33. Product orders in Q4 fiscal 2026 grew 35%, comprising 95% growth among service provider and cloud customers, 30% in the public sector, and 21% in enterprises, showing that the acceleration was not limited to a single market.
The average analyst price target is $131.73, close to the upper end of the 52-week range of $130.37, while the target range extends from $110 to $150 and the consensus rating indicates a buy. A reliable price-to-earnings ratio is not available in the provided data, so the valuation of CSCO here is based on the breadth of the target range and the company's ability to achieve its fiscal 2027 guidance while containing pressure on hardware margins and memory costs.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
The most prominent driver is AI infrastructure for major cloud service providers, after Cisco recorded orders worth $9.3 billion in fiscal 2026, including $4 billion in Q4 alone. The company is targeting $7.5 billion in revenue associated with these customers in fiscal 2027, compared with approximately $4 billion in fiscal 2026. This is supported by three new design wins in Q4 fiscal 2026, including P200 and G200 systems and a managed optical networking solution.
No; enterprise orders rose 21%, public sector orders rose 30%, and telecommunications orders rose by more than 30% in Q4 fiscal 2026. Campus networking orders also grew 20%, and Wi-Fi 7 orders accounted for more than half of total wireless product orders. In addition, AI infrastructure orders from emerging cloud, sovereign, and enterprise customers exceeded $1 billion during fiscal 2026.
The higher hardware mix and memory costs reduced the non-GAAP gross margin to 66.3% in Q4 fiscal 2026, down 210 basis points year over year. The product margin fell 270 basis points to 64.8%, while the services margin rose 80 basis points to 71.6%. Nevertheless, lower operating expenses as a percentage of revenue increased the non-GAAP operating margin from 34.3% to 35.9%.
Automated analysis for informational purposes only — not investment advice.
Security revenue rose 14% in Q4 fiscal 2026, and orders across the entire security portfolio, including Splunk, grew at a double-digit rate. Splunk added more than 280 new customers during the quarter and exceeded its target of one thousand new customers for the year, while more than 1,500 customers purchased Cisco's new security products during the quarter. However, part of Splunk's growth came from large, long-term on-premises deals, so management expects mid- to high-single-digit security growth in Q1 fiscal 2027.
Cisco expects Q1 fiscal 2027 revenue of between $18.0 billion and $18.2 billion and non-GAAP earnings per share of between $1.32 and $1.34. It also expects a non-GAAP gross margin of between 65% and 66% and an operating margin of between 35.5% and 36.5% during that quarter. For fiscal 2027, it targets revenue of between $72.2 billion and $73.4 billion and non-GAAP earnings per share of between $5.05 and $5.11.
Cisco returned $3.2 billion to shareholders in Q4 fiscal 2026, comprising $1.7 billion in dividends and $1.5 billion in share repurchases. Total capital returns in fiscal 2026 reached approximately $12.7 billion, or 99% of free cash flow. The company also raised its dividend for the fifteenth consecutive year, with $8.1 billion remaining available under the share repurchase program.
