On May 14, 2026, analyst firm HSBC upgraded its rating on Cisco Systems (NASDAQ: CSCO) to Buy from Hold. This global technology company, specializing in networking hardware, software, and telecommunications equipment, saw its stock price at $115.53 at the time of the upgrade, reflecting new confidence in the company's direction and financial health.
The upgrade follows a strong third-quarter fiscal 2026 report where Cisco Systems announced non-GAAP earnings of $1.06 per share on revenues of $15.84 billion. These impressive figures beat analyst estimates and represent a 10% and 12% increase, respectively, from the same period last year. This robust performance prompted several Wall Street firms to raise their price targets for the tech giant.
This growth is fueled by a significant jump in networking and AI orders, as highlighted by Zacks. Networking revenues rose by 25%, supported by a 25% increase in campus orders and a 40% surge in data center switching. Overall, total product orders for Cisco Systems accelerated by 35% year-over-year, showing strong demand for its core networking products.
Looking ahead, Cisco Systems raised its fiscal 2026 guidance for AI infrastructure orders to approximately $9 billion. The company's strategic shift to a subscription model also shows significant progress, with annualized recurring revenues (ARR) reaching $31.2 billion. This predictable income from ongoing subscriptions now makes up 51% of total revenue, highlighting the success of its business model transformation.
The market reacted strongly to these positive results, with Cisco Systems stock hitting a new 52-week high of $119.36. The company's market capitalization, which represents the total value of all its outstanding shares, is approximately $456.33 billion. This positive market movement occurred despite a simultaneous announcement of a restructuring plan that includes job cuts, demonstrating investor confidence in Cisco's future.
