San Jose, California-based Cisco Systems, Inc. (CSCO) designs, manufactures, and sells Internet Protocol-based networking and other products related to the communications and information technology industry. With a market cap of $248 billion, the company offers enterprise network security, software development, data collaboration, cloud computing, and other related services.
Shares of this technology giant have outperformed the broader market over the past year. CSCO has gained 25.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.6%. In 2025, CSCO stock is up 5.2%, surpassing the SPX’s 2.5% rise on a YTD basis.
Zooming in further, CSCO’s outperformance looks less pronounced compared to iShares U.S. Telecommunications ETF (IYZ). The exchange-traded fund has gained about 23.7% over the past year. Moreover, CSCO’s gains on a YTD basis outshine the ETF’s 4.1% returns over the same time frame.
CSCO's strong performance can be credited to its shift towards a subscription-based business model, with subscriptions now making up over half of its total revenue providing a stable and predictable income for investors. The acquisition of Splunk has significantly expanded CSCO's software portfolio, and established the company as a major player in the software industry. Additionally, the introduction of the AI-powered Hypershield has enhanced CSCO's security offerings, further solidifying its position in the market.
On Nov. 13, CSCO shares closed up marginally after reporting its Q1 results. Its adjusted EPS of $0.91 beat Wall Street expectations of $0.87. The company’s revenue was $13.84 billion, topping Wall Street forecasts of $13.76 billion. CSCO expects full-year adjusted EPS in the range of $3.60 to $3.66, and expects revenue to be between $55.3 billion and $56.3 billion.
For the current fiscal year, ending in July, analysts expect CSCO’s EPS to decline 4.8% to $2.97 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 21 analysts covering CSCO stock, the consensus is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, two “Moderate Buys,” and 10 “Holds.”
This configuration is more bullish than a month ago, with eight analysts suggesting a “Strong Buy.”
On Jan. 31, Exane BNP Paribas upgraded to “Outperform” rating on CSCO with a price target of $72, implying a potential upside of 15.6% from current levels.
The mean price target of $64.68 represents a 3.9% premium to CSCO’s current price levels. The Street-high price target of $78 suggests an upside potential of 25.3%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.More news from Barchart
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