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Cisco Stock Hits Record, Boosts AI Revenue Target to $4B

5/16/2026

35 5 Full Breakdown

Summary

Cisco Stock Soars

Cisco Systems shares rose more than 13% on Thursday to a record $119.36 per share.
The company posted Q3 revenue of $15.8 billion, up 12% YoY, and non-GAAP EPS of $1.06.
Cisco lifted its fiscal 2026 AI revenue target to $4 billion, AI orders target to $9 billion, and full-year revenue outlook to $62.8-$63.0 billion.
It will cut fewer than 4,000 jobs, under 5% of staff, at an expected cost of about $1 billion.

Summary

Cisco Shares Surge

Cisco’s shares closed the week at an all-time high of $118.21, up 2.32% after earlier peaking at $118.78.
Polymarket gives a 70% chance of no U.S. interest-rate cuts in 2026, a factor that could affect Cisco’s financing as Treasury yields rise.
Cisco says AI demand is moving from processors to networking hardware—switches, routers, optics and silicon—indicating broader infrastructure adoption.

Summary

Cisco Upgrade

HSBC upgraded Cisco to Buy and raised its price target to $137 from $77.
Analyst Stephen Bersey said Cisco’s AI role is structural and its AI revenue impact exceeds expectations.
HSBC cited the Silicon One platform and Acacia optical products as key AI-momentum drivers.
The 20-day realized volatility is 48.5% annualized, implying a roughly 3.13% daily move.

History

Historical Context

Cisco’s 1999 $7 billion purchase of Cerent launched its optical-transport unit, the largest deal it had made at the time. That expansionist model resurfaces as the company sets a fiscal-2026 AI revenue goal of $4 billion, aiming to replicate the growth impact of the Cerent acquisition while reshaping its high-margin networking portfolio.

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Cisco Stock Soars

Cisco Systems shares rose more than 13% on Thursday to a record $119.36 per share.
The company posted Q3 revenue of $15.8 billion, up 12% YoY, and non-GAAP EPS of $1.06.
Cisco lifted its fiscal 2026 AI revenue target to $4 billion, AI orders target to $9 billion, and full-year revenue outlook to $62.8-$63.0 billion.
It will cut fewer than 4,000 jobs, under 5% of staff, at an expected cost of about $1 billion.

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