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Piper analysts cited lower price-to-earnings multiple expectations stemming from concerns that growth is peaking in the industry.
The stock hit a record high in June, and is up 57% over the past 12 months as revenue has surged along with the artificial intelligence boom. The shares closed on Tuesday at $106.44.
Last month, Cisco posted strong fourth-quarter earnings that beat estimates, reporting $17.25 billion in revenue that topped a $16.8 billion estimate, according to LSEG.
Cisco’s stock price
The company issued strong guidance for its FY2027 during its last earnings call in August, but shares sank as it was met with a lackluster reception from analysts.
While Cisco projected nearly 15% revenue growth, analysts argued sales growth would dip back into single digits. Piper analysts called the projection “conservative” in the context of greater market demand.
“We’re starting a new fiscal year. We’re operating in incredible markets,” Robbins told CNBC’s Jim Cramer last month. “But it’s also a time that we’re going to start the year being a little bit prudent.”
Hyperscalers made up about $4 billion in revenue in fiscal year 2026, and Cisco expects that number to almost double in fiscal 2027 to $7.5 billion.
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