Cisco Systems (CSCO) Stock Forecast & Price Target

Cisco Systems has demonstrated solid growth in its core product offerings, with a notable 10% increase in product revenue, driven primarily by networking hardware and software, which remains a dominant force in the market. The company reported a total revenue of $14.67 billion for 4Q25, reflecting an 8% year-over-year and 4% quarter-over-quarter increase, supported by strong service provider order growth of 49% year-over-year. Additionally, Cisco's remaining performance obligations (RPO) grew 6% to $43.5 billion, indicating a robust demand for both products and services and reflecting the company’s potential for sustained revenue generation moving forward.

Cisco Systems faces a negative outlook primarily due to anticipated declines in hardware sales, which could occur more rapidly than expected, coupled with difficulties in transitioning to recurring software and services revenue models. Additionally, public sector orders have decreased by 6% year-over-year, contrasting sharply with an 8% increase in the previous period, signaling potential softening demand. The ongoing supply chain challenges may further exacerbate negative revisions in revenue and gross margins, compounding the company’s financial difficulties.