Cisco Systems, Inc. (CSCO)
Information Technology · Communications Equipment · US stock · S&P 500 component
$104.89
▼ -2.37 (2.21%)
Fair valueFair
$92 −12.0% to fair value
$46fair band $79–$112$138
Day's range
$103.58 – $106.30
52-week range
$69.85 – $130.37
About Cisco Systems, Inc.
Cisco Systems provides networking, security, collaboration and observability products. Its switches, routers, wireless equipment and software connect and protect the networks of large and small organisations, telecommunications providers, cloud operators and public bodies. The portfolio also includes Webex collaboration tools and the Splunk data analysis software that Cisco acquired, and the company increasingly offers its products through subscriptions.
Cisco earns revenue from hardware and software products and from recurring subscriptions, support and professional services. Revenue over the last twelve months was $63.3 billion, growing at 3.6% a year across the last three years. The operating margin is 24.3%, and the business earns a profit of 22% on the capital invested in it. It carries net debt of 0.6 times EBITDA. The company pays a dividend with a yield of 1.6%. On the site's X-Ray Score it receives 42 out of 100.
Price chart
52-wk range $69.85 – $130.37Volume 18,567,851Daily, split-adjusted
Vitals
Market cap$418.2B
52-week range$69.85 – $130.37
Volume (last day)18,567,851
P/E (TTM)31.5
EBIT / EV yield3.6%
Free-cash-flow yield3.1%
Dividend yield1.6%
Revenue (TTM)$63.3B
Net income (TTM)$13.3B
Operating margin24.3%
Return on capital21.6%
Debt incl. leases$24.5B
Cash & securities$15.9B
Debt = borrowings plus lease liabilities. Cash & securities = cash, equivalents and short-term marketable securities (long-term securities are not counted, so net cash can be understated for companies that hold large long-term investments). Net debt = debt minus cash & securities. Source: latest SEC 10-Q/10-K. EBIT / EV yield = operating profit divided by market cap plus net debt.
Fair value estimate
$92middle half of models $83 – $100
Fair
−12.0% to fair value
Average of the 15 valuation models that pass our checks: multiples, discounted cash flow, dividend discount and earnings power value. A model more than 100% above or 60% below the price is left out as unrealistic. Model uncertainty is High, based on how far apart the models are. Undervalued or Overvalued means the gap to fair value is more than 17.5%.
Price $105
Undervalued < $79Fair $79 – $112Overvalued > $112
P/E multiple
$100
P/B multiple
$86
P/S multiple
$92
EV/EBITDA multiple
$109
EV/EBIT multiple
$95
EV/revenue multiple
$95
10-year DCF, EBITDA exit
$97
5-year DCF, EBITDA exit
$102
10-year DCF, revenue exit
$96
5-year DCF, revenue exit
$101
10-year DCF, growth exit
$56
5-year DCF, growth exit
$54
Dividend discount, stable
$79
Dividend discount, multi-stage
$156
Earnings power value
$66
Growth the price implies
18.4%/yr
A model estimate, not a price target or recommendation. Inputs: risk-free 5.13%, equity risk premium 4.30% (Damodaran). How it works.
What this means
Weak business, fairly priced
The price sits inside our fair-value band. A high score does not guarantee a good outcome; it shifts the odds a little. Use the checklist as a prompt for your own research.
Before you invest · decision checklist
Ticked boxes are filled in from our data; the rest are yours to answer.
The five-lens scan
Every score explained in one sentence, ranked against Information Technology peers. Open a lens to see the numbers behind it.
Strong: 70 to 100Fair: 50 to 69Weak: under 50No score: not enough data
Valuation
Weak
45/100
Expensive against its sector on earnings and cash flow.
See the numbers →
EBIT / EV yield3.6%
Free-cash-flow yield3.1%
Fair value vs price0.9×
Growth
Weak
28/100
Growing slower than most of its sector.
See the numbers →
Revenue growth (3y)3.6%
EPS growth (3y)2.7%
Growth consistency70%
Profitability
Weak
49/100
Earns lower returns on its capital than most peers.
See the numbers →
Return on invested capital21.6%
Operating margin24.3%
Gross profitability31.5%
Financial health
Weak
44/100
Balance sheet is more stretched than most peers.
See the numbers →
Piotroski F-Score7 / 9
Net debt / EBITDA0.6×
Interest cover10.5×
Dividends
Weak
43/100
Dividend is modest or less certain than peers.
See the numbers →
Dividend yield1.6%
Dividends vs free cash flow52%
Dividend growth1.3%
Quarterly results: last 6 quarters
+11.4%
Apr '25
+7.6%
Jul '25
+7.5%
Oct '25
+9.7%
Jan '26
+12.0%
Apr '26
+17.6%
Jul '26
Revenue against the same quarter a year earlier. Latest quarter revenue $17.3B.
Compare with peers
ANET Arista Networks, Inc.62 FFIV F5, Inc.55 MSI Motorola Solutions, In...48 CIEN Ciena Corp40Other Communications Equipment companies by X-Ray Score.
SWOT analysis: Cisco Systems, Inc.
Strengthsinside the company
- Return on invested capital is 21.6%, against a median of 20.3% for industry peers.
- Passes 7 of the 9 Piotroski tests, which points to improving profitability, funding and efficiency.
Weaknessesinside the company
- Altman Z-score of 1.4 is in the zone linked with financial distress in past studies.
Opportunitiesvaluation and setting
- Revenue growth picked up to 11.8% last year from 3.6% a year over three years.
- Trades at 31.5x earnings, 42% below the 54.7x median of industry peers.
- Our Market Compass rates the backdrop for Information Technology as favourable.
Threatsvaluation and setting
- Valuation uncertainty is high: the models give widely different values, so the fair value range is wide.
Written by fixed rules from the figures on this page and the peer table below: filings, our fair value, the sector climate and the price trend. It summarises the data, it is not a forecast or advice.
Compare CSCO with peers and sector
Medians of 5 Communications Equipment peers and of 74 Information Technology stocks in our universe.
Largest peers (X-Ray Score): ANET 62, MSI 48, LITE 35, CIEN 40, FFIV 55.
| Metric | CSCO | Peers | Sector |
|---|---|---|---|
| X-Ray Score (out of 100) | 42 | 48 | 50 |
| Valuation | 45 | 34 | 52 |
| Growth | 28 | 54 | 54 |
| Profitability | 49 | 55 | 49 |
| Financial health | 44 | 54 | 50 |
| Dividends | 43 | – | 51 |
Sector leaders: highest X-Ray Score in Information Technology
CSCO ranks #56 of 75 in Information Technology and #4 of 6 in Communications Equipment by X-Ray Score. A higher score is stronger on our five pillars; it is a ranking of facts, not a forecast.
Green means better than the peer median, red worse (only where a higher or lower figure is clearly better). A dash means too few companies report the figure. P/E, EV/EBITDA and price changes are not graded: a different level is not good or bad by itself.
Factor ratings for CSCO
Each factor is rated by where CSCO stands among the 75 Information Technology stocks in our universe.
Rating against the sector
Goodthe top third of these stocks
Averagethe middle third of these stocks
Badthe bottom third of these stocks
"Beats" is the share of those stocks it is ahead of.
Against its own history
The last columns set today's figure against the company's own median of its last five financial years:
▲ Betterbetter than its usual level
▼ Worseworse than its usual level
≈ In linewithin its usual range
For valuation factors Good means cheaper than most of the sector and Better means cheaper than usual for this company, which is not the same as a bargain.
In total: 2 Good · 15 Average · 6 Bad of 23
Growth: 0 · 2 · 1
Profitability: 0 · 5 · 0
Financial strength: 1 · 1 · 2
Valuation: 0 · 5 · 0
Cash flow: 0 · 1 · 3
Efficiency: 1 · 1 · 0
| Factor | CSCO | Rating | Sector median | Own 5-year median | Against own history |
|---|---|---|---|---|---|
| Growth | |||||
| Revenue growth, 3 years a year | +3.6% | Bad beats 32% | +9.7% | – | – |
| Revenue growth, last year | +11.8% | Average beats 42% | +13.7% | +5.3% | ▲ Better |
| EPS growth, 3 years a year | +2.7% | Average beats 43% | +5.9% | – | – |
| Profitability | |||||
| Gross margin | 64.5% | Average beats 60% | 57.8% | 64.5% | ≈ In line |
| Operating margin | 24.3% | Average beats 53% | 20.3% | 24.3% | ≈ In line |
| Net margin | 21.0% | Average beats 57% | 17.8% | 21.0% | ≈ In line |
| Return on invested capital | 21.6% | Average beats 55% | 19.4% | – | – |
| Return on equity | 26.4% | Average beats 58% | 21.0% | 26.4% | ≈ In line |
| Financial strength | |||||
| Net debt / EBITDA | 0.6x | Average beats 62% | 0.8x | 0.2x | ▼ Worse |
| Interest cover | 10.5x | Bad beats 29% | 23.0x | 12.1x | ▼ Worse |
| Current ratio | 0.93 | Bad beats 19% | 1.57 | 1.00 | ≈ In line |
| Piotroski F-score | 7 / 9 | Good beats 68% | 6 / 9 | – | – |
| Valuation | |||||
| P/E ratio | 31.5x | Average beats 56% | 33.6x | 18.8x | ▼ Worse |
| Price / book | 8.3x | Average beats 49% | 8.3x | 4.8x | ▼ Worse |
| Price / sales | 6.6x | Average beats 53% | 6.9x | 3.8x | ▼ Worse |
| EV / EBITDA | 27.8x | Average beats 45% | 24.7x | 15.3x | ▼ Worse |
| Free cash flow yield | 3.1% | Average beats 49% | 3.4% | 5.2% | ▼ Worse |
| Cash flow | |||||
| Free cash flow margin | 20.2% | Average beats 37% | 22.3% | 23.5% | ▼ Worse |
| Cash from operations / net income | 1.07 | Bad beats 26% | 1.39 | 1.12 | ≈ In line |
| Free cash flow growth, 3 years a year | −12.5% | Bad beats 6% | +15.4% | – | – |
| Accruals (lower is better) | −0.7% | Bad beats 21% | −4.4% | – | – |
| Efficiency | |||||
| Inventory turnover | 3.9x | Average beats 55% | 3.9x | 5.8x | ▼ Worse |
| Days sales outstanding | 43 days | Good beats 81% | 63 days | 43 days | ≈ In line |
These ratings compare companies with each other and describe the past; they are not a forecast, a recommendation or part of the X-Ray Score. A factor is left out when its data is missing or meaningless (for example a P/E on negative earnings). A dash in the history columns means fewer than three usable years.
Fundamentals checklist
● 1 Good · ● 8 Average · ● 7 BadCash quality
Earnings backed by cashBad
Free-cash-flow yieldAverage
Risk models
Altman Z''Bad
Piotroski F-ScoreGood
Growth
EPS growth (3y)Average
Free-cash-flow growth (3y)Bad
Revenue growth (3y)Bad
Growth consistencyBad
Balance sheet
Current ratioBad
Net debt / EBITDAAverage
Interest coverBad
Valuation
Fair value vs priceAverage
EBIT / EV yieldAverage
Profitability
Return on invested capitalAverage
Operating marginAverage
Gross profitabilityAverage
Each check is graded against the company's sector, not a fixed number. Checklist score 39/100.
Financials
| FY22 | FY23 | FY24 | FY25 | FY26 | |
|---|---|---|---|---|---|
| Revenue | $51.6B | $57.0B | $53.8B | $56.7B | $63.3B |
| Operating income | $14.0B | $15.0B | $12.2B | $11.8B | $15.4B |
| Net income | $11.8B | $12.6B | $10.3B | $10.2B | $13.3B |
| Operating cash flow | $13.2B | $19.9B | $10.9B | $14.2B | $14.2B |
| Operating margin | 27.1% | 26.4% | 22.6% | 20.8% | 24.3% |
| Free cash flow | $12.7B | $19.0B | $10.2B | $13.3B | $12.8B |
| Diluted EPS | $2.82 | $3.07 | $2.54 | $2.55 | $3.33 |
Fiscal years, from SEC filings.
Technical summary
Daily
Bearish
4 bullish · 2 neutral · 10 bearish
Weekly
Neutral
6 bullish · 1 neutral · 5 bearish
Monthly
Strongly bullish
7 bullish · 0 neutral · 1 bearish
Moving averages (daily)
| SMA 10 | 110.5 | Bearish |
| EMA 10 | 108.9 | Bearish |
| SMA 20 | 110.7 | Bearish |
| EMA 20 | 110.0 | Bearish |
| SMA 50 | 110.1 | Bearish |
| EMA 50 | 110.7 | Bearish |
| SMA 100 | 113.7 | Bearish |
| EMA 100 | 108.9 | Bearish |
| SMA 200 | 99.47 | Bullish |
| EMA 200 | 101.0 | Bullish |
Oscillators (daily)
| RSI (14) | 37.90 | Neutral |
| MACD (12, 26) | -0.90 | Bearish |
| Momentum (12) | -11.06 | Bearish |
| Stochastic %K (14) | 8.69 | Bullish |
| Williams %R (14) | -91.31 | Bullish |
| CCI (20) | -99.85 | Neutral |
Pivot points (classic, last session)
S3 100.8 | S2 102.2 | S1 103.5 | Pivot 104.9 | R1 106.3 | R2 107.6 | R3 109.0 |
Signals describe what the chart is doing, not what to do. Moving averages: price above the average is bullish. Oscillators use the usual thresholds (RSI 30/70, Stochastic 20/80, CCI ±100, Williams %R −80/−20; MACD and momentum above zero are bullish). Weekly and monthly views use closing prices only.
Dividends
Paid, last 12 months
1.67 USD
Yield on today's price
1.59%
Frequency
Quarterly
Next ex-dividend date
Not announced
| Ex-dividend date | Amount per share |
|---|---|
| 0.4200 | |
| 0.4200 | |
| 0.4200 | |
| 0.4100 | |
| 0.4100 | |
| 0.4100 | |
| 0.4100 | |
| 0.4000 | |
| 0.4000 | |
| 0.4000 | |
| 0.4000 | |
| 0.3900 |
Ex-dividend dates and amounts from EODHD. Shown as declared, before tax.
ETFs that hold CSCO
| ETF | Share of the fund |
|---|---|
| IYZ iShares U.S. Telecommunications | 22.59% |
| FDN First Trust Dow Jones Internet Index | 8.54% |
| CIBR First Trust NASDAQ Cybersecurity | 7.75% |
| TRFK Pacer Data and Digital Revolution | 4.72% |
| VLUE iShares MSCI USA Value Factor | 4.65% |
| AIQ Global X Artificial Intelligence & Tec... | 3.82% |
| VALQ American Century STOXX U.S. Quality Va... | 3.77% |
| SPHQ Invesco S&P 500 Quality | 3.73% |
The eight funds with the largest weight in CSCO among the ETFs we cover, from each fund's latest SEC Form N-PORT (quarter-end positions, so they can be months old). All ETFs.
CSCO stock splits
CSCO has split its stock 9 times since 1991. The latest was a 2-for-1 split on 23 Mar 2000.
Full CSCO stock split history →CSCO SEC filings
8-KSEC EDGAR
Director or officer change
10-KSEC EDGAR
Annual report
8-KSEC EDGAR
Results of operations
10-QSEC EDGAR
Quarterly report
8-KSEC EDGAR
Results of operations; Exit or restructuring costs
8-KSEC EDGAR
Director or officer change
8-KSEC EDGAR
Director or officer change
10-QSEC EDGAR
Quarterly report
Where the numbers come from
Statements SEC EDGAR filings (10-K, 10-Q), quarters derived from year-to-date figures.
Prices end-of-day closes, split-adjusted.
Industry inputs beta, multiples and equity risk premium from Damodaran Online (NYU Stern).
StocksXray is for education only and is not financial advice. Scores and fair values are model estimates from public filings and carry uncertainty.