Cisco Stock Jumps 3.2% After Upgrade and Strong Q4 Earnings
CSCO climbed to $112.20 following a Zacks 'strong buy' upgrade and a Q4 beat, though one analyst trimmed its price target.
Cisco Systems stock surged 3.2% to $112.20 Thursday after Zacks issued a "strong buy" upgrade and investors responded warmly to the networking giant's better-than-expected fourth-quarter 2026 results, driven in part by growing optimism around its AI infrastructure order pipeline.
The company posted Q4 earnings per share of $1.22 and revenue of $17.25 billion, both clearing Wall Street's estimates and reinforcing confidence that Cisco's pivot toward AI-driven networking products is gaining commercial traction. The results underscored demand for high-capacity infrastructure as enterprises accelerate AI deployment across data centers.
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Cisco also declared a quarterly dividend of $0.42 per share, signaling management's comfort with cash generation even as the company navigates a competitive and fast-evolving technology landscape. The dividend announcement added an income dimension that likely attracted a broader base of institutional buyers on the session.
Not all sentiment was uniformly bullish, however. Piper Sandler reduced its price target on CSCO, citing a cautious near-term outlook on AI-related revenue conversion. That measured skepticism tempers the overall picture and suggests some analysts want to see Cisco translate its order momentum into recognized revenue before fully re-rating the stock higher.
Despite that caveat, the Street's consensus remains a "Moderate Buy" with an average price target of $128.52 — implying roughly 14% upside from current levels. Whether the rally holds will depend on how convincingly Cisco's AI infrastructure narrative converts into durable top-line growth in coming quarters. Continue reading at MarketBeat.
