Cisco Systems (NASDAQ:CSCO) Stock Price Down 6.4% – What’s Next?

Cisco Systems, Inc. (NASDAQ:CSCO)’s stock price was down 6.4% during mid-day trading on Friday . The company traded as low as $121.55 and last traded at $121.64. Approximately 32,526,878 shares changed hands during trading, an increase of 37% from the average daily volume of 23,773,289 shares. The stock had previously closed at $130.00.

Cisco Systems News Summary

Here are the key news stories impacting Cisco Systems this week:

• Positive Sentiment: Jim Cramer highlighted Cisco as a top Dow performer, saying older tech names like Cisco are benefiting from the AI data-center boom. Jim Cramer Highlights Cisco Systems as the Top Dow Performer
• Positive Sentiment: Analysts and media reports pointed to Cisco’s AI opportunity, including expectations for about $6 billion in FY2027 AI revenue, reinforcing the view that AI could accelerate growth. Analyst Upgrades Cisco Systems As It Anticipates $6 Billion in FY2027 AI Revenue
• Positive Sentiment: Jim Cramer also said Cisco could benefit from Anthropic’s cybersecurity-focused AI model, Mythos, which may lift demand for networking and security products. Cisco And Palo Alto Could Be Major Winners From Anthropic’s Mythos AI, According To Jim Cramer
• Neutral Sentiment: Cisco presented at Bank of America’s Global Technology Conference, keeping attention on its AI platforms, cybersecurity initiatives, and valuation, but the event itself did not include a major new catalyst. Cisco Systems, Inc. (CSCO) Presents at Bank of America 2026 Global Technology Conference Transcript
• Neutral Sentiment: Broader market headlines on rising yields and a tech sell-off may be creating some pressure on the stock, even as Cisco’s AI story remains strong. Equities Fall, Yields Jump Intraday After Jobs Report; Tech Leads Sell-Off
• Negative Sentiment: Some commentary is echoing past “Cisco bubble” comparisons as Wall Street debates whether the current AI spending boom is sustainable, which could temper enthusiasm. Strategist Defends Semiconductor Rally Despite Bubble Fears: ‘Price Might Be Understanding Something You Don’t Quite Get’

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on CSCO shares. Truist Financial initiated coverage on shares of Cisco Systems in a research report on Tuesday, March 31st. They set a “buy” rating and a $94.00 price objective for the company. Bank of America upped their price target on shares of Cisco Systems from $114.00 to $135.00 and gave the stock a “buy” rating in a research report on Tuesday, May 26th. Citic Securities raised their price target on shares of Cisco Systems from $90.00 to $130.00 in a research note on Friday, May 15th. Wall Street Zen lowered Cisco Systems from a “buy” rating to a “hold” rating in a research note on Saturday, March 14th. Finally, Citigroup raised their target price on Cisco Systems from $90.00 to $112.00 and gave the company a “buy” rating in a research report on Thursday, May 14th. Two analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat, Cisco Systems currently has a consensus rating of “Moderate Buy” and a consensus target price of $119.50.

Cisco Systems Stock Performance

The company has a market cap of $479.44 billion, a PE ratio of 39.49, a PEG ratio of 3.24 and a beta of 1.01. The company has a debt-to-equity ratio of 0.40, a quick ratio of 0.81 and a current ratio of 0.92. The firm’s 50 day moving average is $97.25 and its 200-day moving average is $84.70.

Cisco Systems (NASDAQ:CSCO) last released its earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share for the quarter, topping analysts’ consensus estimates of $1.03 by $0.03. The business had revenue of $15.84 billion for the quarter, compared to analyst estimates of $15.56 billion. Cisco Systems had a net margin of 20.14% and a return on equity of 28.44%. The business’s revenue was up 12.0% on a year-over-year basis. During the same period last year, the company posted $0.96 EPS. Cisco Systems has set its Q4 2026 guidance at 1.160-1.180 EPS and its FY 2026 guidance at 4.270-4.290 EPS. On average, research analysts anticipate that Cisco Systems, Inc. will post 3.52 earnings per share for the current fiscal year.

Cisco Systems Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 22nd. Shareholders of record on Monday, July 6th will be paid a dividend of $0.42 per share. The ex-dividend date of this dividend is Monday, July 6th. This represents a $1.68 dividend on an annualized basis and a yield of 1.4%. Cisco Systems’s payout ratio is 54.55%.

Insiders Place Their Bets

In other news, EVP Thimaya K. Subaiya sold 1,744 shares of Cisco Systems stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $77.07, for a total transaction of $134,410.08. Following the transaction, the executive vice president owned 156,693 shares in the company, valued at $12,076,329.51. The trade was a 1.10% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Charles Robbins sold 21,400 shares of the firm’s stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $120.03, for a total transaction of $2,568,642.00. Following the sale, the chief executive officer owned 637,085 shares of the company’s stock, valued at approximately $76,469,312.55. The trade was a 3.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 51,324 shares of company stock worth $5,559,834. 0.01% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. MidAtlantic Capital Management Inc. purchased a new stake in Cisco Systems during the 4th quarter worth approximately $25,000. Intesa Sanpaolo Wealth Management acquired a new position in shares of Cisco Systems in the fourth quarter worth $25,000. Networth Advisors LLC grew its stake in shares of Cisco Systems by 276.4% in the first quarter. Networth Advisors LLC now owns 335 shares of the network equipment provider’s stock worth $26,000 after acquiring an additional 246 shares in the last quarter. Financial Life Planners purchased a new stake in shares of Cisco Systems during the first quarter worth $27,000. Finally, Manning & Napier Advisors LLC raised its stake in shares of Cisco Systems by 137.0% in the first quarter. Manning & Napier Advisors LLC now owns 346 shares of the network equipment provider’s stock valued at $27,000 after acquiring an additional 200 shares in the last quarter. Hedge funds and other institutional investors own 73.33% of the company’s stock.

About Cisco Systems

Cisco Systems, Inc is a global technology company that designs, manufactures and sells networking hardware, software and telecommunications equipment. Its core business focuses on enabling enterprise and service-provider networks through products such as routers, switches, network security appliances and wireless systems. Over time Cisco has broadened its portfolio to emphasize software-defined networking, cybersecurity, cloud infrastructure and edge computing solutions that help organizations build and manage modern IT environments.

In addition to hardware, Cisco offers a growing range of software platforms and subscription services for network management, security, analytics and collaboration.