CSCO

Cisco Systems, Inc.

Fundamental data last updated:May 12, 2026

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company profile

SECTOR

Technology

industry

Communication Equipment

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

05/13/2026

Business Summary

Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; and wireless products include indoor and outdoor wireless coverage designed for seamless roaming use of voice, video, and data applications. In addition, it provides security, which comprising network security, identity and access management, secure access service edge, and threat intelligence, detection, and response offerings; collaboration products, such as Webex Suite, collaboration devices, contact center, and communication platform as a service; end-to-end collaboration solutions that can be delivered from the cloud, on-premise or within hybrid cloud environments allowing customers to transition their collaboration solutions from on-premise to the cloud; and observability offers network assurance, monitoring and analytics and observability suite. Further, the company offers a range of service and support options for its customers, including technical support and advanced services and advisory services. It serves businesses of various sizes, public institutions, governments, and service providers. The company sells its products and services directly, as well as through systems integrators, service providers, other resellers, and distributors. Cisco Systems, Inc. has strategic alliances with other companies. Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California.

 


VALUATION

P/E

35.03

Market Cap ($M USD)

$387.52B

Forward P/E

20.12

PEG

0.27

PRICE TO SALES

6.56

PRICE TO BOOK

8.13

EV / EBITDA

24.13

5-Year Average P/E

Free Cash Flow Yield

3.32%

DCF Value

$55.66

Graham Number

$27.57

Price to FCF

30.16

EV to FCF

31.93

Earnings Yield

2.85%

FCF Yield

3.32%

DIVIDEND

Yield

1.68%

Annual Payout

$1.65

Payout Ratio

58.56%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.80

Next Year EPS Growth Estimate

$4.88

Next Year Revenue Growth Estimate

$6.82T

Return on Equity (ROE)

23.64%

FREE CASH FLOW

Operating Margin

22.75%

Debt-to-Equity

0.60

Piotroski F-Score

7

Altman Z-Score

3.88

Return on Invested Capital (ROIC)

15.51%

Current Ratio

0.96

Quick Ratio

0.85

Net Debt to EBITDA

1.33

Interest Coverage

9.01

Gross Profit margin

64.81%

FCF PER SHARE

$3.25

REVENUE PER SHARE

$14.93

Gainseekers Quantitative Analysis

Summary

The market seems to be pricing Cisco Systems, Inc. with a level of optimism that may not align with its intrinsic value. Recent pricing indicated it traded significantly above its DCF value and Graham Number, suggesting a potential overvaluation. The Forward P/E of 19.80 is more reasonable compared to its current P/E, hinting at expected earnings growth. However, the Earnings Yield of 2.90% is underwhelming, raising questions about its attractiveness compared to risk-free rates. The Altman Z-score of 3.87 indicates financial stability, but investors should be cautious of the valuation premium.

AI Exposure / Tech Reliance

Positioned within the Communication Equipment industry, Cisco is well-placed to leverage AI and tech advancements. Its robust infrastructure and focus on networking solutions provide a solid foundation for integrating AI capabilities. This adaptability is crucial in maintaining relevance in a rapidly evolving tech landscape.

The Bull Case

For value and GARP investors, Cisco offers compelling reasons to buy. A strong ROIC of 15.51% reflects efficient capital allocation, while a Piotroski F-Score of 7 signals solid financial health. The company's operating margin of 22.75% and a decent FCF Yield suggest effective cost management and cash generation. These metrics underscore Cisco's pricing power and operational efficiency, making it an attractive proposition for those seeking growth at a reasonable price.

The Bear Case

Despite its strengths, Cisco's high valuation multiples raise concerns. The Price/Book ratio of 8.00 and Price/Sales of 6.46 suggest the stock is priced for perfection, leaving little room for error. Its proximity to the 52-week high indicates potential overextension, and the low Current Ratio of 0.95 highlights liquidity risks. Investors should be wary of these structural vulnerabilities, which could impact future performance if market conditions shift.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$99.00

Institutional Ownership %

1-Year Beta

0.91

Insider Buying % (6 Mo)

Distance to 52-Week High

0.03%

Distance to 52-Week Low

37.98%

EARNINGS SURPRISE %

1.96%

50-DAY SMA

$83.22

200-DAY SMA

$75.69

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.