TLDR
- Cisco stock hit an all-time high of $97.02 on Friday, closing at $96.57, up 4.8% on the day
- Earnings are due soon, with options data pointing to a possible 5.8% move on the announcement
- UBS has a Buy rating and expects revenue at the high end of guidance, between $15.4B and $15.6B
- Evercore ISI raised its price target to $110, citing expected growth in AI-related revenue
- Cisco also raised its quarterly dividend to $0.42 per share and reported 9.7% revenue growth last quarter
Cisco Systems (CSCO) stock surged 4.8% on Friday, hitting an intraday high of $97.02 before closing at $96.57. That’s a new all-time high for the stock, which had previously closed at $92.16.
Volume was heavy. About 24.5 million units changed hands during the session, around 10% above the daily average of 22.2 million.
The move came with earnings on the horizon. Options market data suggests traders are pricing in a move of roughly 5.8% when results drop.
Cisco’s last quarterly report gave the bulls plenty to like. The company posted earnings of $1.04 per share, beating the $1.02 consensus. Revenue came in at $15.35 billion, up 9.7% year over year and ahead of analyst estimates of $15.11 billion.
The stock has now climbed around 58% over the past year. Its 50-day moving average sits at $82.32, and the 200-day at $78.56 — both well below where it’s trading now.
What Analysts Are Saying
UBS maintained its Buy rating ahead of earnings and is projecting revenue at the high end of guidance, in the $15.4B to $15.6B range. The firm also pointed to strong data center investment trends as a tailwind.
Evercore ISI went further, raising its price target to $110 while keeping an Outperform rating. The firm highlighted expected growth in AI-focused revenue as a key driver over the coming years.
The overall analyst picture is broadly positive. Of the firms tracked by MarketBeat, three have the stock at Strong Buy, fourteen at Buy, and eight at Hold.
The consensus target sits at $90.29 — already below Friday’s close, which may prompt further target upgrades.
Wall Street Zen did move to Hold from Buy back in March, so there’s some mixed sentiment in the mix.
Dividends and Other Developments
Cisco also recently bumped its quarterly dividend to $0.42 per share, up from $0.41. The payment went out on April 22nd. That puts the annualized dividend at $1.68 and the yield at around 1.7%.
Beyond earnings prep, Cisco has a few other irons in the fire. The company unveiled a research prototype called the Universal Quantum Switch, aimed at improving how quantum networks route information.
It’s also reportedly in talks to acquire Astrix Security, a privately held Israeli cybersecurity firm. UBS put the potential deal value between $250 million and $350 million.
On the institutional side, PNC Financial Services added to its position in Q1, picking up an additional 237,187 units to bring its total to over 6.6 million. DJE Kapital made a much bigger move, adding 655,240 units in the same period. Institutional investors now hold 73.33% of the stock.
Cisco’s market cap stands at $381.44 billion, with a P/E of 33.88 and a beta of 0.92.
Analysts predict full-year earnings of $3.42 per share for the current fiscal year.
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