Is It Time to Buy, Sell, or Hold Cisco Stock Ahead of Q1 Earnings?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 10 2025
0mins
Should l Buy CSCO?
Source: NASDAQ.COM
Upcoming Earnings Release: Cisco Systems is set to announce its first-quarter fiscal 2026 results on November 12, with expected revenues between $14.65 billion and $14.85 billion and non-GAAP earnings projected at 97 to 99 cents per share.
Growth Drivers: The anticipated results are expected to benefit from increased demand for networking products, particularly in switching and enterprise routing, as well as Cisco's advancements in AI and security solutions, including the integration of NVIDIA's technology.
Stock Performance and Valuation: Cisco shares have risen 20.1% year-to-date, underperforming some competitors but outperforming others. The stock is considered to have a stretched valuation, trading at a higher price/sales ratio compared to industry peers.
Challenges Ahead: Despite positive growth prospects, Cisco faces challenges such as slowing networking revenue momentum, stiff competition from companies like Arista Networks and Dell Technologies, and a challenging macroeconomic environment, leading to a Zacks Rank of #3 (Hold).
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Analyst Views on CSCO
Wall Street analysts forecast CSCO stock price to rise
13 Analyst Rating
10 Buy
3 Hold
0 Sell
Strong Buy
Current: 79.920
Low
76.00
Averages
91.30
High
100.00
Current: 79.920
Low
76.00
Averages
91.30
High
100.00
About CSCO
Cisco Systems, Inc. designs and sells a range of technologies that power the Internet. The Company is integrating its product portfolios across networking, security, collaboration, applications and cloud. The Company's segments include the Americas; Europe, Middle East, and Africa (EMEA), and Asia Pacific, Japan, and China (APJC). Its Networking product category represents its core networking technologies of switching, routing, wireless, fifth generation (5G), silicon, optics solutions and compute products. Its Security product category consists of its cloud and application security, industrial security, network security, and user and device security offerings. Its Collaboration product category consists of its meetings, collaboration devices, calling, contact center and platform as a service (CPaaS) offering. Its Observability product category consists of its full stack observability offerings.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Cisco Systems Stock Drops 3.6%, Optimistic Outlook Ahead
- Stock Movement: Cisco Systems (CSCO) closed at $77.04, down 3.6% from the previous trading session, underperforming the S&P 500's 0.4% decline, indicating market caution regarding its short-term performance.
- Earnings Expectations: Analysts anticipate Cisco will report an EPS of $1.03 in its upcoming earnings release, reflecting a 7.29% year-over-year increase, while projected net sales of $15.52 billion represent a 9.69% growth, highlighting the company's revenue growth potential.
- Valuation Metrics: Cisco's forward P/E ratio stands at 19.3, indicating a premium over the industry average of 17.36, suggesting market confidence in its future growth, although its PEG ratio of 2.47 exceeds the industry average of 1.62, reflecting cautious investor sentiment regarding growth expectations.
- Industry Ranking: The Computer Networking industry, where Cisco operates, holds a Zacks Industry Rank of 99, placing it in the top 41% of all industries, suggesting strong overall performance that may support Cisco's future growth.
See More
Nvidia Stock Decline and Market Outlook
- Stock Decline: Nvidia's stock has fallen nearly 20% from its 52-week high, despite a 50% increase over the past year, indicating that investors should carefully assess the timing for potential purchases given its current valuation.
- Valuation Analysis: With a current P/E ratio of 34x, down from a five-year average of 64x, and a P/B ratio of 26x compared to an average of 30x, Nvidia appears relatively cheap, yet still expensive compared to the average tech stock.
- Energy Cost Impact: Rising oil and natural gas prices due to geopolitical tensions in the Middle East could increase electricity costs, thereby raising expenses for AI infrastructure development and operations, which may affect overall economic conditions and consumer spending.
- Market Bubble Risk: As the AI bubble continues to deflate, Nvidia's stock may experience further declines, reminiscent of historical market corrections like the dot-com bubble, prompting investors to remain cautious for potentially better buying opportunities.
See More
Geopolitical Tensions Push Markets into Correction
- Market Correction: Major indices, including the Dow Jones and Nasdaq, fell over 10% due to escalating geopolitical tensions in the Middle East, indicating a significant deterioration in investor sentiment.
- Surge in Oil Prices: The geopolitical instability has led to rising oil prices, exacerbating inflation fears and prompting investors to anticipate a prolonged high-interest rate environment, which negatively impacted overall market performance.
- Stock Performance: HNI, an office furniture company, saw a 3.8% drop, while electronic components manufacturer Rogers fell 3.2%, and enterprise networking firm Cisco declined by 4.1%, reflecting a risk-off sentiment among investors.
- Airlines Benefit: Positive market sentiment linked to falling oil prices boosted shares of American Airlines and United Airlines by 4.9% and 4.5%, respectively, indicating that lower fuel costs will significantly enhance profit margins in these sectors.
See More
Nvidia Stock Volatility and AI Future Analysis
- Stock Performance Analysis: Nvidia's stock has risen 50% over the past year but has fallen nearly 20% from its 52-week high, indicating market concerns about its future, particularly amid intensifying competition in the AI sector.
- Valuation Comparison: Although Nvidia's current P/E ratio of 34x is lower than its five-year average of 64x, it still appears relatively expensive compared to the average tech stock's P/E of 34x and the S&P 500's 28x, which may deter value investors.
- Energy Price Impact: Rising oil and gas prices due to geopolitical tensions in the Middle East could increase electricity costs, thereby raising the overall expenses associated with AI usage, posing challenges for AI infrastructure development that relies heavily on power.
- Cautious Market Outlook: Given the risks of economic slowdown and the potential bursting of the AI bubble, investors may need to keep Nvidia on their watchlist rather than rushing to buy, to avoid losses amid market volatility.
See More
Market Recap: Trump's Comments and Tech Stock Rebound
- Trump's Comments Impact: Trump's statement about serious discussions with Iran led to a rise in the S&P 500, but Jim Cramer cautioned investors against rushing to buy, as Trump's claims are often later denied by Iran, indicating market uncertainty.
- Meta Stock Surge: Meta was named a top pick by Morgan Stanley, with shares rising over 2%, as analysts argue that despite AI investment and regulatory risks, Meta remains competitively strong; Jim Cramer supports this view, suggesting investors should not sell due to regulatory concerns.
- Cybersecurity Stock Rebound: CrowdStrike and Palo Alto Networks rebounded after significant declines last Friday, with CrowdStrike up nearly 5% following an upgrade to buy-equivalent by Wolfe Research, as analysts believe advancements in AI models will increase demand for cybersecurity.
- Executive Buy Signal: Palo Alto Networks CEO Nikesh Arora purchased about $10 million in shares on Friday, resulting in a 7% stock increase, with Jim Cramer noting that the market is mispricing the stock, reflecting executive confidence in the company's future.
See More
Jim Cramer's Charitable Trust Exits Cisco Position
- Share Sale: Jim Cramer's Charitable Trust sold 600 shares of Cisco (CSCO) at approximately $80.48 each shortly after the market opened, aiming to replenish cash reserves after a $298,017 annual charitable distribution reduced cash levels from 15% to 6.5%.
- Market Performance: Despite a broader market downturn, Cisco's stock has risen about 4% year-to-date, outperforming the S&P 500's 6% decline and the Nasdaq 100's 8% drop, indicating resilience amid heightened uncertainty.
- Security Business Concerns: While Cisco shows positive growth in networking orders, ongoing weaknesses in its cybersecurity segment raise concerns, with analysts predicting potential market share losses in the coming years as the company transitions to a cloud subscription model, which could pressure stock performance.
- Locking in Gains: The sale will realize an average gain of approximately 18%, reflecting the Charitable Trust's strategy to secure profits in light of current market uncertainties, particularly given the escalating conflict in the Middle East.
See More
Cisco Systems Stock Drops 3.6%, Optimistic Outlook Ahead
- Stock Movement: Cisco Systems (CSCO) closed at $77.04, down 3.6% from the previous trading session, underperforming the S&P 500's 0.4% decline, indicating market caution regarding its short-term performance.
- Earnings Expectations: Analysts anticipate Cisco will report an EPS of $1.03 in its upcoming earnings release, reflecting a 7.29% year-over-year increase, while projected net sales of $15.52 billion represent a 9.69% growth, highlighting the company's revenue growth potential.
- Valuation Metrics: Cisco's forward P/E ratio stands at 19.3, indicating a premium over the industry average of 17.36, suggesting market confidence in its future growth, although its PEG ratio of 2.47 exceeds the industry average of 1.62, reflecting cautious investor sentiment regarding growth expectations.
- Industry Ranking: The Computer Networking industry, where Cisco operates, holds a Zacks Industry Rank of 99, placing it in the top 41% of all industries, suggesting strong overall performance that may support Cisco's future growth.
See More
Nvidia Stock Decline and Market Outlook
- Stock Decline: Nvidia's stock has fallen nearly 20% from its 52-week high, despite a 50% increase over the past year, indicating that investors should carefully assess the timing for potential purchases given its current valuation.
- Valuation Analysis: With a current P/E ratio of 34x, down from a five-year average of 64x, and a P/B ratio of 26x compared to an average of 30x, Nvidia appears relatively cheap, yet still expensive compared to the average tech stock.
- Energy Cost Impact: Rising oil and natural gas prices due to geopolitical tensions in the Middle East could increase electricity costs, thereby raising expenses for AI infrastructure development and operations, which may affect overall economic conditions and consumer spending.
- Market Bubble Risk: As the AI bubble continues to deflate, Nvidia's stock may experience further declines, reminiscent of historical market corrections like the dot-com bubble, prompting investors to remain cautious for potentially better buying opportunities.
See More
Geopolitical Tensions Push Markets into Correction
- Market Correction: Major indices, including the Dow Jones and Nasdaq, fell over 10% due to escalating geopolitical tensions in the Middle East, indicating a significant deterioration in investor sentiment.
- Surge in Oil Prices: The geopolitical instability has led to rising oil prices, exacerbating inflation fears and prompting investors to anticipate a prolonged high-interest rate environment, which negatively impacted overall market performance.
- Stock Performance: HNI, an office furniture company, saw a 3.8% drop, while electronic components manufacturer Rogers fell 3.2%, and enterprise networking firm Cisco declined by 4.1%, reflecting a risk-off sentiment among investors.
- Airlines Benefit: Positive market sentiment linked to falling oil prices boosted shares of American Airlines and United Airlines by 4.9% and 4.5%, respectively, indicating that lower fuel costs will significantly enhance profit margins in these sectors.
See More
Nvidia Stock Volatility and AI Future Analysis
- Stock Performance Analysis: Nvidia's stock has risen 50% over the past year but has fallen nearly 20% from its 52-week high, indicating market concerns about its future, particularly amid intensifying competition in the AI sector.
- Valuation Comparison: Although Nvidia's current P/E ratio of 34x is lower than its five-year average of 64x, it still appears relatively expensive compared to the average tech stock's P/E of 34x and the S&P 500's 28x, which may deter value investors.
- Energy Price Impact: Rising oil and gas prices due to geopolitical tensions in the Middle East could increase electricity costs, thereby raising the overall expenses associated with AI usage, posing challenges for AI infrastructure development that relies heavily on power.
- Cautious Market Outlook: Given the risks of economic slowdown and the potential bursting of the AI bubble, investors may need to keep Nvidia on their watchlist rather than rushing to buy, to avoid losses amid market volatility.
See More
Market Recap: Trump's Comments and Tech Stock Rebound
- Trump's Comments Impact: Trump's statement about serious discussions with Iran led to a rise in the S&P 500, but Jim Cramer cautioned investors against rushing to buy, as Trump's claims are often later denied by Iran, indicating market uncertainty.
- Meta Stock Surge: Meta was named a top pick by Morgan Stanley, with shares rising over 2%, as analysts argue that despite AI investment and regulatory risks, Meta remains competitively strong; Jim Cramer supports this view, suggesting investors should not sell due to regulatory concerns.
- Cybersecurity Stock Rebound: CrowdStrike and Palo Alto Networks rebounded after significant declines last Friday, with CrowdStrike up nearly 5% following an upgrade to buy-equivalent by Wolfe Research, as analysts believe advancements in AI models will increase demand for cybersecurity.
- Executive Buy Signal: Palo Alto Networks CEO Nikesh Arora purchased about $10 million in shares on Friday, resulting in a 7% stock increase, with Jim Cramer noting that the market is mispricing the stock, reflecting executive confidence in the company's future.
See More
Jim Cramer's Charitable Trust Exits Cisco Position
- Share Sale: Jim Cramer's Charitable Trust sold 600 shares of Cisco (CSCO) at approximately $80.48 each shortly after the market opened, aiming to replenish cash reserves after a $298,017 annual charitable distribution reduced cash levels from 15% to 6.5%.
- Market Performance: Despite a broader market downturn, Cisco's stock has risen about 4% year-to-date, outperforming the S&P 500's 6% decline and the Nasdaq 100's 8% drop, indicating resilience amid heightened uncertainty.
- Security Business Concerns: While Cisco shows positive growth in networking orders, ongoing weaknesses in its cybersecurity segment raise concerns, with analysts predicting potential market share losses in the coming years as the company transitions to a cloud subscription model, which could pressure stock performance.
- Locking in Gains: The sale will realize an average gain of approximately 18%, reflecting the Charitable Trust's strategy to secure profits in light of current market uncertainties, particularly given the escalating conflict in the Middle East.
See More
