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Markets jolted as President Donald Trump Trump unveiled “reciprocal tariffs” on all U.S. imports. The threat of recession grew louder, sending tech stocks into retreat. Cisco Systems (CSCO), the networking titan behind much of the world’s internet plumbing, felt the sting. Shares slipped as investors braced for supply chain snarls and weakened global demand.
Then, a surprise 90-day tariff pause offered markets a breather. Stocks surged in relief, and Cisco caught some of that upswing. But euphoria fades fast in today’s markets. Reality crept back in as uncertainty remains high and the threat of retaliatory trade moves still looms.
With CSCO stock currently trading below $60, dipping and bouncing in sync with the headlines, is this a buy-the-dip moment for investors, or just the calm before the storm?
About Cisco Stock
Based in San Jose with a $228 billion market cap, Cisco Systems (CSCO) is a global pillar in networking technology. Renowned for its innovations in enterprise network security, wireless connectivity, and cloud infrastructure, Cisco delivers comprehensive IP-based solutions.
But Cisco’s latest edge is security. With Cisco Secure Access and XDR gaining over 1,000 customers and 1 million users each, it’s charging into cyber defense. Hypershield is heating up, too, amplifying its reach.
CSCO looked strong in February, riding high at a 52-week high of $66.50 - a peak powered by impressive Q2 earnings and a confident outlook.
Despite its global footprint and deep roots in networking and cybersecurity, CSCO has slipped 14% since that high. Over just the past month, it has fallen 5.3%, now trading below $60.
Trading at 18.7 times forward earnings, CSCO also looks like a relative bargain in a pricey tech landscape. For income seekers and value hunters alike, Cisco may be worth a closer look.
Cisco Tops Q2 Earnings Results
Cisco’s Q2 earnings, reported on Feb. 12, told a story of steady momentum and a shift toward stability. The tech giant pulled in $14 billion in revenue, up 9% year over year. Non-GAAP EPS rose 8% to $0.94 and also a beat. What really stood out was a 29% spike in new product orders, marking the fourth straight quarter of accelerating demand. The company’s product portfolio is clearly resonating.
Cisco’s annualized recurring revenue (ARR) surged 22% to $30.1 billion, with product ARR jumping 41%. Subscriptions now make up 56% of total revenue, signaling a clear pivot from one-off hardware to dependable cash flow. Plus, RPO - contracted revenue not yet recognized - grew 16% annually to $41.3 billion, with short-term RPO at $21 billion, signaling a healthy backlog.
Looking ahead, Cisco’s management guided Q3 revenue between $13.9 billion and $14.1 billion, while non-GAAP EPS is projected to be between $0.90 and $0.92. Meanwhile, fiscal 2025 revenue is expected to be between $56 billion and $56.5 billion, and non-GAAP EPS is estimated to be between $3.68 and $3.74.
Analysts tracking Cisco predict its fiscal 2025 EPS to decline by 1.9% year-over-year to $3.06, but then grow by 6.2% annually to $3.25 in fiscal 2026.
What Do Analysts Expect for Cisco Stock?
Wall Street hasn’t gone all-in on Cisco, but it’s leaning bullish. Overall, CSCO has a consensus “Moderate Buy” rating. Of the 20 analysts covering the stock, 10 advise a “Strong Buy,” two suggest a “Moderate Buy,” and the remaining eight analysts are on the sidelines, giving it a “Hold” rating.
The average analyst price target for CSCO is $71.50, indicating potential upside of 25%. The Street-high target price of $80 suggests that the stock could rally as much as 40%.
