Cisco Systems (CSCO) shares closed at $78.25, nearing its 52-week high of $80.82. In the past year, CSCO shares have surged 33.8%, outperforming the Computer & Technology sector and peers HPE and ANET. The aggressive AI push and security dominance are driving this growth.

AI infrastructure orders from hyperscalers hit $2 billion in fiscal 2025, double the initial forecast. Cisco expects $3 billion in AI infrastructure revenues in fiscal 2026. Networking product orders are growing, driven by hyperscale infrastructure, enterprise routing, and more, positioning CSCO for strong top-line growth in 2026.

CSCO expects non-GAAP earnings between $1.01 to $1.03 per share in Q2 of fiscal 2026 with revenues expected to be $15 billion-$15.2 billion. For fiscal 2026, CSCO forecasts revenues in the range of $60.2-$61 billion and non-GAAP earnings between $4.08 to $4.14 per share, showing growth prospects.

Cisco shares are considered overvalued with a Value Score of D. The stock is trading at a premium compared to industry peers. While CSCO has a strong AI push and security presence, modest growth projections and tough competition are concerns. Investors may want to wait for a better entry point.

Read more at Nasdaq: Cisco Trades Near 52-Week High: Buy, Sell or Hold the Stock in 2026?