Cisco Systems (CSCO) Stock Forecast & Price Target

Cisco Systems has demonstrated a robust financial performance, with total product orders increasing by 13% year-over-year and a revenue of $14.67 billion for Q4 2025, which reflects an 8% increase compared to the previous year. Notably, the service provider segment experienced exceptional growth, with a 49% year-over-year increase in orders, propelled by significant orders from major Webscale customers, contributing to a substantial backlog growth of over 60% year-over-year. Overall, the strong demand for AI infrastructure and networking solutions, along with a solid performance in product orders and backlog, supports a positive outlook for Cisco Systems in the competitive technology market.

Cisco Systems faces several fundamental challenges that contribute to a negative outlook on its stock. The decline in hardware sales and the complications surrounding the shift to recurring software and services revenue raise concerns about sustained revenue growth. Additionally, persistent supply chain issues could adversely affect revenue and gross margins, compounding existing vulnerabilities evidenced by a decline in public sector orders and lagging security revenue growth.