NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-08-31
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Create your account →Broken: Primary pillar broken — Operating margin near 34.2% in fiscal 2026: TTM operating margin 23.4% vs 34.2% target.
Cisco grows revenue about 12% yearly, hitting $62.9B in fiscal 2026. Profit margins stay strong near 34%. AI and restructuring boost growth and competitive edge. Earnings per share target is $4.28 for fiscal 2026.
Margin headwinds could thin profit margins and hurt EPS. Competition remains tough despite AI gains. Revenue growth could slow below 12%.
The price is about 5% above our fair value near $108, reflecting roughly 12% revenue growth. Our fair value is below the Street median, so the market partly prices in strong growth but not overly so.
Breaks if: AI revenue growth stalls or declines in FY26
Breaks if: EPS falls below $4.00 in fiscal 2026
Breaks if: Operating margin falls below 32% in fiscal 2026
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on consistent revenue and earnings growth. The current thesis is intact, supported by strong recent financial performance, but it is influenced by broader sector dynamics.
The market appears to have priced in a neutral valuation relative to peers, with Cisco being viewed as cheap compared to others in the tech sector. There is a slight expectations gap, indicating that the market does not fully anticipate significant upside or downside.
Management is on track to achieve its goals of increasing revenue and maintaining profitability, with strong recent results supporting this trajectory. However, there is a moderate risk due to the potential for earnings guidance cuts, which could affect future performance.
The long-term thesis hinges on the performance of sector bellwethers like MSI, LITE, and NOK. If these companies continue to perform well, it could provide a favorable environment for Cisco. Conversely, any negative guidance from these peers could pose risks to Cisco's growth outlook.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports a more favorable outlook. Cisco is restructuring to invest in growth areas, particularly in AI and security. Analysts raised their price targets, citing strong AI networking demand.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Revenue falls below $60B in fiscal 2026
Overall, Cisco's fundamentals are strong, but the company must navigate sector challenges to maintain its momentum. Not investment advice.
