Cisco Systems CEO Chuck Robbins speaks at the 2026 Semafor World Economic Conference in Washington, DC on April 15, 2026.
Kent Nishimura | AFP | Getty Images
Cisco The stock fell nearly 5% on Tuesday after Piper Sandler cut its price target on the network equipment vendor from $132 to $125.
Analysts at Piper said they believe the price-to-earnings ratio has declined due to concerns that industry growth may be peaking.
The stock hit an all-time high in June and is up 57% over the past 12 months as profits soar due to the artificial intelligence boom. The stock’s closing price on Tuesday was $106.44.
Last month, Cisco announced stronger-than-expected fourth-quarter profits, reporting revenue of $17.25 billion, above expectations of $16.8 billion, according to LSEG.
Cisco stock price
The company announced strong forecasts for fiscal 2027 at its last earnings conference in August, but the reaction from analysts was lukewarm and the stock price fell.
Cisco had expected sales to grow nearly 15%, but analysts said sales growth would return to single digits. Piper analysts called the outlook “conservative” given growing market demand.
“We’re starting a new fiscal year, and we’re operating in an incredible market,” Robbins told CNBC’s Jim Cramer last month. “But it’s also a time to start the year a little more cautiously.”
Hyperscalers accounted for about $4 billion in revenue in fiscal year 2026, and Cisco expects that number to nearly double to $7.5 billion in fiscal year 2027.
Attention: AI agents require monitoring
