Cisco Systems, Inc. Stock Price Targets
Comprehensive analysis of short, mid, and long-term price targets for Cisco Systems, Inc. (CSCO).
Give me a comprehensive price target analysis for Cisco Systems, Inc. (CSCO).
CSCO Comprehensive Analysis as of 2025-10-10
Notes on drawing: I’ve plotted horizontal trendlines on the CSCO price chart for the Low, Median, and High targets you provided. The lines are color-coded (Low = blue, Median = orange, High = red) and extend 30 days into the future from today. See the three target lines on the chart:
- Low Target (61.00) in blue
- Median Target (75.00) in orange
- High Target (87.00) in red
Executive Summary Cisco Systems, Inc. (CSCO) sits at a price of about 69.96 with a diversified business mix and robust cash generation. The stock trades above its 50-day moving average and shows positive near-term momentum as indicated by RSI and MACD indicators. With a forward P/E around 18x and a forward-looking growth profile, the stock trades near a key mid-range target (75) and has a high-end target (87). The consensus price target set (61–87) implies upside potential from current levels, especially if the company maintains solid revenue growth, healthy margins, and favorable EPS revisions. The near-term path will hinge on quarterly earnings delivery, balance-sheet discipline, and the sustainability of margins amid competitive pressures.
Fundamental Analysis Key Valuation and Balance-Sheet Metrics
| Metric | Value |
|---|---|
| Current Price | 69.96 |
| Market Cap | 276.57 B |
| Enterprise Value | 290.99 B |
| Trailing P/E | 27.44x |
| Forward P/E | 17.94x |
| PEG Ratio | n/a |
| Price to Book | 5.91x |
| Return on Equity | 22.06% |
| Return on Assets | 6.34% |
| Profit Margin | 17.97% |
| Gross Margin | 64.94% |
| Operating Margin | 21.28% |
| Debt to Equity | 63.28% |
| Total Cash | 16.67 B |
| Total Debt | 29.64 B |
| Dividend Yield | 2.33% |
| Five-Year Avg Dividend Yield | 2.95% |
| Beta | 0.966 |
Analyst Coverage & Price Targets
| Measure | Value |
|---|---|
| Number of Analysts (covering CSCO) | 21 |
| Target Low | 61.00 |
| Target Median | 75.00 |
| Target High | 87.00 |
| Target Mean | 76.10 |
| Current Price | 69.96 |
Earnings Analysis Recent Earnings Summary (quarterly, USD)
| Quarter End | Revenue | Net Income | Diluted EPS | Normalized Income |
|---|---|---|---|---|
| 2025-07-31 | 14.673 B | 2.55 B | 0.71 | 2.502 B |
| 2025-04-30 | 14.149 B | 2.491 B | 0.62 | 2.567 B |
| 2025-01-31 | 13.991 B | 2.428 B | 0.61 | 2.458 B |
| 2024-10-31 | 13.841 B | 2.711 B | 0.68 | 3.178 B |
| 2024-07-31 | 13.642 B | 2.162 B | 0.54 | 2.246 B |
EPS Trend
| Period | EPS (GAAP) / Diluted | Notes |
|---|---|---|
| 0q (current) | 0.9803 | Latest quarter EPS reported; trailing quarter |
| +1q | 0.98924 | Next quarter EPS expectation |
| 0y (12m trailing) | 4.04486 | Trailing twelve months |
| +1y (12m forward) | 4.35562 | Forward 12-month EPS estimate |
EPS Revisions
| Period | Up in Last7d | Up in Last30d | Down in Last30d | Down in Last7d |
|---|---|---|---|---|
| 0q | 0 | 14 | 2 | 0 |
| +1q | 0 | 0 | 4 | 1 |
| 0y | 1 | 17 | 5 | 1 |
| +1y | 0 | 1 | 2 | 1 |
Technical Analysis (Last 60 Days)
- 50-day Moving Average (recent): roughly 67.7–68.0 region, with current price above the MA (latest MA ~67.8 on 2025-10-09 data)
- RSI (14) at the latest reading: 65.9 (bullish but not extreme)
- MACD (12,26,9): Positive (MACD around 0.5 vs Signal around 0.2), reinforcing upside tilt
- Current price action: 69.96, trading above the 50-day MA, with momentum supportive but not overbought
Analyst Consensus & Price Targets
- Current Price: 69.96
- Number of Analysts: 21
- Target Low / Median / High / Mean: 61.00 / 75.00 / 87.00 / 76.10
- Implied Upside (vs current): Median target implies ~7.4% upside to 75; High target implies ~24% upside to 87
- Catalyst considerations: EPS revisions in positive direction; continued execution on product cycles; sustainable cash generation; favorable IT spend environment
Price Target Analysis (Short, Mid, Long-Term) Short-Term (3 months)
- Target: 75.00 (median)
- Justification: Near-term earnings stability with modest upside from continued margin discipline and cloud/IT spending tailwinds; price currently around 70, positioning it to test the 75 area if earnings momentum holds.
- Key Drivers: Quarterly earnings beat/beat-by-?
- Potential catalysts: Better-than-expected ERP/Networking revenue contribution; share buybacks; favorable FX.
Mid-Term (12 months)
- Target: 78.00–82.00 (base case around 80)
- Justification: Forward P/E around 18x on a ~4.4x forward EPS trajectory supports continued multiple support given stable gross and operating margins, and robust cash flow. Analyst mean target (~76) and the high target (87) suggest potential for mid-teens percentage upside if execution remains solid.
- Key Drivers: Sustained revenue growth, improving profitability, and continued strong free cash flow enabling capital returns; ongoing share repurchases.
Long-Term (3+ years)
- Target: 87.00 (high case)
- Justification: High-end target reflects optionality from continued core networking/comms growth, potential further margin expansion, and able-to-underwrite a higher multiple given consistent cash flow generation and capital returns.
- Key Drivers: Structural growth in networking/IT infrastructure, durable-margin profile, and potential strategic acquisitions or product wins.
Key Risks & Opportunities
- Major Risks
- Competitive pressure from hyperscalers and alternative networking vendors
- Macro slowdown impacting IT budgets and capex cycles
- Currency headwinds and potential supply chain constraints
- Potential margin compression from product mix shifts or higher R&D/SGA spend
- Key Opportunities
- Further expansion in security/products and software/licensing models
- Stronger FCF enabling buybacks and dividend growth
- Multiyear IT budget tailwinds supporting durable demand for networking equipment and services
Investment Recommendation
- View: Hold to modestly Positive
- Time Horizon: 12–24 months
- Expected Return Potential: Base case upside to mid-70s to low-80s in 12–24 months (roughly 10–20% upside range), with high-case upside approaching the 87 target (~25%+) if momentum persists and EPS revisions stay favorable.
- Rationale: The stock trades around a mid-range forward multiple with strong cash generation and solid dividend support. The price targets imply meaningful upside if earnings momentum continues and macro IT demand holds. However, valuation remains near the mid-point of the current target range, so a constructive but patient stance is prudent given potential macro/industry headwinds and some sensitivity to EPS revisions.
Technical Recommendation Summary
- With the price trading above the 50-day MA and positive MACD, the near-term technical setup favors continued upside toward the median/upper target range, provided fundamental momentum stays positive.
- The charted lines (61.00, 75.00, 87.00) define key support and resistance bands. A break above ~75 could open the path toward the 87 resistance, while a move below 61 could reframe risk to the downside.
Earnings Summary & Commentary (key takeaways)
- Net income across recent quarters remained robust, with Q2 2025 showing Net Income of approximately $2.55B and diluted EPS around $0.71, aided by normalized income around $2.50B.
- The normalized income trend has been stable around the $2.46–$2.57B range across the latest quarters, supported by a revenue base around $13.99–$14.67B and gross margins near 64–65%.
- EPS revisions have shown a net positive tilt in recent periods, with more up revisions than down in the recent windows, particularly for the 0y and +1y periods, suggesting analysts remain constructive on longer-term earnings.
References to Data Used
- Price targets and current price: Analyst Targets section (current price 69.96; low 61; median 75; high 87; mean 76.10).
- Fundamental metrics: provided key metrics (market cap, EV, P/E, P/B, margins, debt, cash, yield, beta).
- Earnings data: quarterly totals and EPS from the Recent Earnings Summary (net income, EPS, normalized income, revenue for 2025-07-31; 2025-04-30; 2025-01-31; 2024-10-31; 2024-07-31).
- EPS trends and revisions: provided EPS Trend and EPS Revisions data.
- Technical indicators: 50-day MA, RSI (14), MACD (12,26,9) data across the last 60 days.
If you’d like, I can add a sensitivity table showing how the price targets translate to expected returns at different discount/premium scenarios or provide a scenario analysis emphasizing bull vs. base vs. bear paths with explicit EPS and revenue inputs.