Citi's pre-performance forecast for Cisco (CSCO.US) “buy” ratings is the focus of the 2026 fiscal year guidance

The Zhitong Finance App learned that Citi published a research report to give Cisco (CSCO.US) a “buy” rating, with a target price of $71. Cisco will announce results for the fourth quarter of the 2025 fiscal year ending July on August 13, EST. Citi expects the company's Q4 revenue to increase 7% year-on-year to reach US$14.6 billion, in line with company guidelines and market consensus, thanks to strong growth trends in the network and security sector. Citi expects the company's Q4 earnings per share to be $0.98, which is at the upper end of the company's guidance range and in line with market consensus. Citi also expects gross margin/operating profit margins of 68%/34%, respectively.

Citi believes that investors are paying more attention to the 2026 fiscal year guidelines rather than the 4% to 6% year-on-year revenue growth target previously set. Citi currently expects Cisco's 2026 revenue and earnings per share to be $59.4 billion (up 5% year over year) and $4.02, respectively, in line with market consensus.

Citi said that Cisco will benefit from the expanding artificial intelligence network market, but its stock price increase may be limited, and believes that Wall Street's expectations for Cisco's campus equipment renewal plan seem a bit too high.

As of Wednesday's close, Cisco rose 2.5% to $69.21. The stock has accumulated a cumulative increase of 19% since this year.