- Piper Sandler lowered its Cisco price target to $125 from $132, pointing to lower P/E multiple expectations tied to concerns that growth is peaking in the networking industry.
- Cisco shares fell about 5% on the downgrade, after the stock hit a record in June and gained roughly 56% over the prior 12 months on AI-driven revenue growth.
- Cisco's fiscal Q4 2026 revenue of $17.25 billion beat the $16.8 billion LSEG estimate, and the company guided FY2027 revenue growth near 15%, which analysts argued would fall back to single digits.
- Hyperscalers contributed about $4 billion of Cisco revenue in FY2026, and the company expects that to almost double to $7.5 billion in FY2027.
Quotes
“We're starting a new fiscal year. We're operating in incredible markets”
“But it's also a time that we're going to start the year being a little bit prudent.”