Quick Read
Cisco (CSCO) booked $9.3B in FY2026 AI infrastructure orders and carries a BUY rating with a $139.67 price target implying 25% upside.
Arista (ANET) trades at a much higher forward P/E than Cisco’s 22x with a narrower product stack, while HPE lacks Cisco’s Splunk cross-sell advantage.
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Cisco Systems (NASDAQ:CSCO) has quietly become one of the most compelling AI infrastructure stories on the Dow. After booking $9.30 billion in AI infrastructure orders for FY2026 and guiding to $7.50 billion in AI revenue for FY2027, Cisco is a hyperscaler supplier trading at a reasonable multiple.
Our 24/7 Wall St. price target for Cisco is $139.67, implying 25.03% upside from the current price of $111.69. Our recommendation is buy, with high confidence.
24/7 Wall St. Price Target Summary
A Blowout Q4 Reset the AI Narrative
Cisco reported Q4 FY2026 on August 12, 2026, delivering revenue of $17.25 billion, up 17.58% year over year, and non-GAAP EPS of $1.22, the fifth consecutive beat. Networking revenue jumped 28% to $9.79 billion, and Q4 networking orders grew 40% year over year. Hyperscaler AI orders hit $4 billion in the quarter.
The stock gained 44.33% year to date and 66.66% over the past year, though shares cooled 3.42% in the past week as investors digested tariff commentary and margin mix. Shares sit near the $129.88 52-week high.
Why Bulls See a Breakout Ahead
CEO Chuck Robbins stated: “We believe the accelerating adoption of agentic AI is fueling a networking super cycle.” The numbers support him. AI infrastructure was less than 2% of revenue in FY2025 and is guided to $7.5 billion in FY2027.
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Four of the top hyperscalers each grew AI infrastructure orders in the triple digits in Q4. FY2027 guidance calls for revenue of $72.2 billion to $73.4 billion and non-GAAP EPS of $5.05 to $5.11.
The consensus analyst target sits at $136.05, with 4 Strong Buys and 13 Buys. Our bull case points to $145.26 within 12 months if AI order momentum extends and campus refresh accelerates.
What Could Go Wrong
Non-GAAP gross margin compressed to 66.3% from 68.4% as AI hardware carries lower margins than software. Operating margin still expanded, and management framed AI hardware as generating outsized operating leverage.
