Cisco's stock price dropped about 5% after Piper Sandler lowered its price target from $132 to $125, citing worries that growth in the networking equipment industry may be reaching its peak. The company's stock had previously surged by 56% over the past year, driven by a boom in artificial intelligence, and reached a record high in June.
Cisco reported fourth-quarter earnings of $17.25 billion, exceeding the $16.8 billion estimate, and provided strong guidance for fiscal year 2027, projecting nearly 15% revenue growth. However, analysts expressed skepticism, suggesting that actual sales growth might revert to single digits. Piper analysts described Cisco's growth projection as 'conservative' given the strong market demand.
Cisco's revenue from hyperscalers is expected to nearly double from $4 billion in fiscal year 2026 to $7.5 billion in fiscal year 2027, indicating potential for significant growth despite current market concerns