Cisco Systems today
As of 08/22/2025 04:00 pm
- 52 weeks
- 47.85 dollars
▼
72.55 dollars
- Profit
- 2.44 %
- P/E ratio.
- 25.69
- The target price
- 74.53 dollars
CISCO systems Nasdak: csco I recently mentioned strong profits, which increased the shares. But the largest news for investors was not the company’s profits in the fourth quarter 2025; The expectations for the fiscal year were 2026.
The administration expects revenues between $ 59 billion and 60 billion dollars, with an initial profit for the share (EPS) is expected between $ 4.00 and $ 4.06.
This optimism captured the attention of Wall Street, which prompted a major question from investors: Beyond a quarter of one strong, what is the basic strategy that gives administrative confidence in this bullish view, and is it sustainable? The answer is in three strong and distinct growth engines that mainly reshape the company’s future.
Amnesty International Bett
The most important catalyst for the optimistic expectations of CICO is its success, whose health has been validated in the AI. What was previously a strategic goal has become fast and installed. In the fiscal year 2025, Cisco got on 2 billion dollars on orders related to the absence of artificial intelligenceDouble its original goal one billion dollars.
This represents Cisco’s main role in the artificial intelligence revolution. When companies build huge data centers, they need a high -performance network texture that connects thousands of specialized processors. CICO provides this critical layer with ETHERNET 800G technology and Nexus switches.
This momentum is reflected in the amazing growth of the broader service provider and the cloud customer sector, as the product orders increased by 49 % year on an annual basis in the fourth quarter.
Decally, this demand expands beyond a handful of cloud giants. The company is now a major supplier for emerging and permanent growth areas:
- Amnesty International sovereign: National governments invest billions of dollars to build the capabilities of their artificial intelligence.
- New cloud service providers: A new category of companies builds the services of the specialized Amnesty International Cloud.
This diversification indicates a wide and sustainable request cycle. For investors, this successful success in the AI’s high -growth space helps to justify the target price promotions of the analyst and attracts a new category of investors who are in growth, which mainly changes the narration around the stock.
Cisco key for margins and higher stability
Cisco Systems today
74.53 dollars
10.70 % upModerate purchase
Based on 24 analyst classification
| The current price | 67.32 dollars |
|---|---|
| High expectations | $ 87.00 |
| Average expectations | 74.53 dollars |
| Low expectations | $ 63.00 |
Cisco Systems
The basic shift in the CISCO business model towards more high -end and marginal programs and services support its growth by artificial intelligence. This shift is shipped by successfully integrating its successful acquisition, Splung.
Results are clear: CISCO is proud now 31.1 billion dollars in repeated annual revenue (ARR). Increased the amount of this transformation, the total subscription revenue now represents 54 % of the total CISCO revenue, which exposes its low dependence on periodic devices sales.
Cooperation between the two companies shows effective.
During the last profit call, the administration highlighted 14 % increase on an annual basis in the new slogans of SplunkThis indicates that the huge sales channel in CISCO is working to expand the range of Splink’s access to the market.
This mixture places Cisco as an integrated leader in two of the most important areas in spending information technology today: cybersecurity and observation. When institutions publish complex AI applications, the ability to secure and monitor them becomes very important.
This integrated platform creates a decisive feature on smaller competitors. For the arrow, a mixture of software revenue increases the ability to predict financial prediction and supports stable and growing profits.
The constituent modernization course provides back winds
Although artificial intelligence and programs represent the new high -growth chapters of the CISCO story, its traditional basic works do not stop. The third pillar that supports its front guidance is a major multi -year -old upgrade course on the networks of institutions and campus. The operator for this is the launch of the new CISCO line for Catalyst 9000 “Smart Switches”.
The opportunity is huge, with dozens of billions of dollars in pre -catalyst systems that are still installed in customer networks, mature for upgrade.
Artificial intelligence leads the need for this upgrade. When companies begin to manage artificial intelligence applications in their workplaces, their internal networks require more energy, speed, advanced security and content. This creates a convincing reason for customers to update.
This update cycle provides a fixed and reliable flow of product revenue It removes the story of total growthGiving investors confidence that the founding business is still strong.
Growth, income and value: Cisco Trifta
When combining, these three columns create a uniquely convincing investment that balances multiple goals, all supported by a rocky rock financial institution. The General Monetary Flow of the year 2025 of CISCO 14.2 billion dollars provides a great ability to re -invest and shareholders ’returns.
- growth: Amnesty International’s infrastructure and software converting clear and concrete stimuli for the growth of revenues and their accelerating profits.
- income: Cisco offers reliable distributions of 2.45 %. Its sustainability is exceptionally strong, with profit profit payment rate of only 43.2 % of the cash flow, leaving a large room for future increases in addition to the 13 -year growth chain.
- value: With the price ratio to the profits (P/E) around 25.56 and the ratio of debts to healthy ownership rights (D/E) from only 0.49, the stock provides a reasonable entry point for a newly validated growth company, especially compared to the high assessments of many pure AI shares.
Investing in Tech Titan again
The strategy is clear. A combination of the verified artificial intelligence growth engine, a successful axis of the programs, has created the basic updates a new plan for CICO.
The company is now in the technology sector, as it provides investors a rare and convincing opportunity that mixes direct exposure to the revolution of artificial intelligence with financial stability and reliable income to lead the existing industry.
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