Cisco AI Orders Top $2 Billion, But 2026 Outlook Leaves Investors Wanting More

Shares of Cisco Systems Inc CSCO came under some pressure in early trading on Thursday, after the company Wednesday reported upbeat fiscal fourth-quarter results.

Here are some key analyst takeaways.

• JPMorgan analyst Samik Chatterjee reiterated an Overweight rating, while raising the price target from $78 to $80.
• Goldman Sachs analyst Michael Ng maintained a Neutral rating, while raising the price target from $67 to $71.

Check out other analyst stock ratings.

JPMorgan: Cisco Systems reported revenues of $14.7 billion. It topped the consensus of $14.6 billion, driven by stronger-than-expected Networking revenues. The company's gross and operating margins of 68.4% and 34.3% surpassed consensus estimates of 68.2% and 34.1%, respectively.

Cisco tracked more than $2 billion in hyperscaler AI orders in fiscal 2025. The strong AI momentum is expected to continue in fiscal 2026, Chatterjee said. The company's fiscal 2026 growth outlook being less weighted toward Security could be a "source of modest concern," he added.

Goldman Sachs: Cisco Systems announced its fiscal 2026 revenue guidance in-line with consensus, which was slightly disappointing for investors expecting the outlook to reflect "contributions from the campus refresh cycle and AI," Ng said. Also, Security revenue growth of 9% year-on-year missed expectations, he added.

AI orders from large webscale customers crossed $800 million in the second quarter, while total full-year orders exceeded $2 billion, surpassing initial expectations of $1 billion, the analyst stated. "Cisco continues to gain traction within webscale, with triple-digit growth in orders for the fourth consecutive quarter, including at 4 out of the 6 top webscale customers," he further wrote.

CSCO Price Action: Shares of Cisco Systems had declined by 1.02% to $69.55 at the time of publication on Thursday.

Read More:

• Cisco’s AI Orders Surge Past $2 Billion—CEO Says ‘Well Positioned… For The AI Era,’ But Tariff Uncertainty Tempers Guidance

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