Cisco Systems (CSCO) Stock Forecast & Price Target

Cisco Systems has demonstrated robust financial performance with total product orders increasing by 13% year-over-year and revenue for 4Q25 reaching $14.67 billion, reflecting an 8% growth compared to the previous year. The company's service provider orders surged by 49% year-over-year, largely fueled by significant demand from major Webscale customers. Additionally, high-quality product remaining performance obligations (RPO) accelerated by 10%, indicating strong future revenue potential and an overall healthy backlog growth trajectory of over 60%.

Cisco Systems is facing significant challenges that could adversely impact its future financial performance, particularly in hardware sales, which may decline more rapidly than anticipated. Additionally, the company's transition to recurring Software and Services revenue is expected to be more difficult, compounded by ongoing supply chain issues that could further depress revenue and gross margins. With public sector orders experiencing a year-over-year decline and security revenue missing expectations, these factors contribute to a negative outlook for Cisco's stock performance moving forward.