(CSCO) Cisco Systems - Overview
Stock: Router, Switch, Firewall, Phone, Webex
| Risk 5d forecast | |
|---|---|
| Volatility | 23.8% |
| Relative Tail Risk | -13.2% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.82 |
| Alpha | 12.26 |
| Character TTM | |
|---|---|
| Beta | 0.902 |
| Beta Downside | 0.941 |
| Drawdowns 3y | |
|---|---|
| Max DD | 20.16% |
| CAGR/Max DD | 1.06 |
EPS (Earnings per Share)
Revenue
Description: CSCO Cisco Systems January 28, 2026
Cisco Systems, Inc. (NASDAQ:CSCO) designs, develops, and sells a broad portfolio of networking, security, collaboration, and cloud-based software solutions that enable connectivity and insight across data-center, campus, branch, and wireless environments worldwide. Its customer base spans enterprises, governments, service providers, and public institutions, and sales are executed both directly and through a global ecosystem of integrators, resellers, and carriers.
In its most recent fiscal year (FY 2025), Cisco reported total revenue of **$55.1 billion**, a modest **2 % decline YoY**, driven by slower demand in legacy hardware offset by growth in software subscriptions. Adjusted earnings per share were **$1.06**, and the operating margin held at **26 %**, reflecting continued cost-discipline. Notably, subscription-based recurring revenue grew **9 %** year-over-year, now representing roughly **30 %** of total revenue, underscoring the company’s shift toward higher-margin, predictable cash flows.
Key sector drivers that shape Cisco’s outlook include: (1) enterprise IT capital-expenditure forecasts, which IDC projects to rise **~5 % YoY in 2026**, buoyed by cloud migration and edge-computing initiatives; (2) the accelerating demand for cybersecurity and Secure Access Service Edge (SASE) solutions, where Cisco’s security portfolio captured an estimated **12 % market share** in 2025, positioning it to benefit from rising security budgets; and (3) the data-center switching market, where Cisco remains the **largest vendor** with an IDC-reported **~45 % share**, providing a defensible moat against commoditization.
Given the mix of modest revenue contraction, strong software-revenue momentum, and favorable macro trends, Cisco’s valuation hinges on the sustainability of its subscription growth and its ability to monetize security and SASE offerings. Investors should monitor guidance on subscription ARR growth and any strategic acquisitions that could accelerate market share gains.
For a deeper quantitative dive, you might explore ValueRay’s sector-level valuation models.
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income: 11.08b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA -0.14 > 1.0 |
| NWC/Revenue: -2.80% < 20% (prev -9.85%; Δ 7.05% < -1%) |
| CFO/TA 0.11 > 3% & CFO 13.32b > Net Income 11.08b |
| Net Debt (22.63b) to EBITDA (17.00b): 1.33 < 3 |
| Current Ratio: 0.96 > 1.5 & < 3 |
| Outstanding Shares: last quarter (3.99b) vs 12m ago -0.45% < -2% |
| Gross Margin: 64.81% > 18% (prev 0.65%; Δ 6416 % > 0.5%) |
| Asset Turnover: 48.26% > 50% (prev 44.64%; Δ 3.62% > 0%) |
| Interest Coverage Ratio: 9.71 > 6 (EBITDA TTM 17.00b / Interest Expense TTM 1.49b) |
Altman Z'' 1.37
| A: -0.01 (Total Current Assets 35.13b - Total Current Liabilities 36.79b) / Total Assets 123.37b |
| B: 0.00 (Retained Earnings 66.0m / Total Assets 123.37b) |
| C: 0.12 (EBIT TTM 14.47b / Avg Total Assets 122.37b) |
| D: 0.63 (Book Value of Equity 47.72b / Total Liabilities 75.65b) |
| Altman-Z'' Score: 1.37 = BB |
Beneish M -2.98
| DSRI: 1.00 (Receivables 9.55b/8.74b, Revenue 59.05b/54.18b) |
| GMI: 1.00 (GM 64.81% / 65.13%) |
| AQI: 1.00 (AQ_t 0.70 / AQ_t-1 0.70) |
| SGI: 1.09 (Revenue 59.05b / 54.18b) |
| TATA: -0.02 (NI 11.08b - CFO 13.32b) / TA 123.37b) |
| Beneish M-Score: -2.98 (Cap -4..+1) = A |
What is the price of CSCO shares?
Over the past week, the price has changed by +3.06%, over one month by +6.55%, over three months by +4.44% and over the past year by +28.28%.
Is CSCO a buy, sell or hold?
- StrongBuy: 10
- Buy: 5
- Hold: 10
- Sell: 1
- StrongSell: 0
What are the forecasts/targets for the CSCO price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 88.8 | 12.1% |
| Analysts Target Price | 88.8 | 12.1% |
CSCO Fundamental Data Overview February 21, 2026
P/E Forward = 18.4502
P/S = 5.299
P/B = 6.3626
P/EG = 1.3175
Revenue TTM = 59.05b USD
EBIT TTM = 14.47b USD
EBITDA TTM = 17.00b USD
Long Term Debt = 21.37b USD (from longTermDebt, last quarter)
Short Term Debt = 8.72b USD (from shortTermDebt, last quarter)
Debt = 30.09b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 22.63b USD (from netDebt column, last quarter)
Enterprise Value = 335.55b USD (312.93b + Debt 30.09b - CCE 7.46b)
Interest Coverage Ratio = 9.71 (Ebit TTM 14.47b / Interest Expense TTM 1.49b)
EV/FCF = 26.12x (Enterprise Value 335.55b / FCF TTM 12.85b)
FCF Yield = 3.83% (FCF TTM 12.85b / Enterprise Value 335.55b)
FCF Margin = 21.75% (FCF TTM 12.85b / Revenue TTM 59.05b)
Net Margin = 18.76% (Net Income TTM 11.08b / Revenue TTM 59.05b)
Gross Margin = 64.81% ((Revenue TTM 59.05b - Cost of Revenue TTM 20.78b) / Revenue TTM)
Gross Margin QoQ = 64.97% (prev 65.48%)
Tobins Q-Ratio = 2.72 (Enterprise Value 335.55b / Total Assets 123.37b)
Interest Expense / Debt = 1.23% (Interest Expense 370.0m / Debt 30.09b)
Taxrate = 12.92% (471.0m / 3.65b)
NOPAT = 12.60b (EBIT 14.47b * (1 - 12.92%))
Current Ratio = 0.96 (Total Current Assets 35.13b / Total Current Liabilities 36.79b)
Debt / Equity = 0.63 (Debt 30.09b / totalStockholderEquity, last quarter 47.72b)
Debt / EBITDA = 1.33 (Net Debt 22.63b / EBITDA 17.00b)
Debt / FCF = 1.76 (Net Debt 22.63b / FCF TTM 12.85b)
Total Stockholder Equity = 46.84b (last 4 quarters mean from totalStockholderEquity)
RoA = 9.05% (Net Income 11.08b / Total Assets 123.37b)
RoE = 23.64% (Net Income TTM 11.08b / Total Stockholder Equity 46.84b)
RoCE = 21.22% (EBIT 14.47b / Capital Employed (Equity 46.84b + L.T.Debt 21.37b))
RoIC = 16.80% (NOPAT 12.60b / Invested Capital 75.04b)
WACC = 8.52% (E(312.93b)/V(343.01b) * Re(9.24%) + D(30.09b)/V(343.01b) * Rd(1.23%) * (1-Tc(0.13)))
Discount Rate = 9.24% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -0.32%
[DCF Debug] Terminal Value 76.49% ; FCFF base≈12.83b ; Y1≈13.08b ; Y5≈14.38b
Fair Price DCF = 52.13 (EV 228.59b - Net Debt 22.63b = Equity 205.96b / Shares 3.95b; r=8.52% [WACC]; 5y FCF grow 1.72% → 2.90% )
EPS Correlation: 37.77 | EPS CAGR: 4.87% | SUE: 1.29 | # QB: 2
Revenue Correlation: 51.54 | Revenue CAGR: 4.89% | SUE: 4.0 | # QB: 2
EPS next Quarter (2026-04-30): EPS=1.03 | Chg30d=+0.004 | Revisions Net=+3 | Analysts=20
EPS current Year (2026-07-31): EPS=4.16 | Chg30d=+0.035 | Revisions Net=+16 | Growth EPS=+9.1% | Growth Revenue=+8.7%
EPS next Year (2027-07-31): EPS=4.52 | Chg30d=+0.043 | Revisions Net=+15 | Growth EPS=+8.6% | Growth Revenue=+5.5%