Cisco Hints At Big AI Ramp — JPMorgan Says 2026 Orders Could Surprise To The Upside

Author: Priya Nigam | November 17, 2025 11:13am

Following Cisco Systems Inc's (NASDAQ:CSCO) earnings release for the fiscal first quarter, JPMorgan hosted an investor meeting with the Head of Investor Relations, Sami Badri.

The Cisco Systems Analyst: Analyst Samik Chatterjee reiterated an Overweight rating on the stock.

Check out other analyst stock ratings.

The Cisco Systems Thesis: Chatterjee mentioned the following takeaways after the meeting:

• The company's fiscal 2026 guidance for hyperscaler AI order of more than $4 billion is "a minimum-level target."
• Most of the AI opportunity pipeline, which is worth over $2 billion and includes NeoCloud and Enterprise AI, was produced over the last quarter.
• The Sovereign AI pipeline is not reflected in the over $2 billion estimates.
• The gross margin pressure experienced in the fiscal first quarter was mostly due to mix and year-on-year comps.
• The telco vertical strength is more durable than the 4G cycle.
• A significant mix shift to new products is required for the company to meet its security target growth rate of 15%-17%.

CSCO Price Action: Cisco Systems shares were up 1.42% at $79.11 at the time of publication on Monday. The stock is trading near its 52-week high of $79.50, according to Benzinga Pro data.

Cisco Systems, with a market cap of $311.75 billion, is positioned in the communications equipment sector, where its P/E ratio of 30.1 indicates a premium valuation relative to historical averages.

The stock has approached its 52-week high of $79.50, reflecting strong investor confidence amid a broader industry trend towards digital transformation and increased demand for networking solutions.

Additionally, a dividend yield of 2.1% highlights its commitment to returning value to shareholders, which is particularly appealing in a competitive market.

Read More:

• Cisco Beats Q1 On Strong AI Demand, Execution; Analysts Raise Price Targets

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Posted In: CSCO