Cisco Systems, Inc. (CSCO) saw a 16% YoY decrease in free cash flow, with a FCF margin drop from 24.9% to 19.4%. Despite a price target 6% above the current price, concerns arise if CSCO has peaked. Trading at $78.28, up from a low of $71.06 in November, analysis suggests a potential 6.7% increase to $83.49 per share over the next 12 months.

In its fiscal Q1 2026 report, Cisco revealed a 7.97% revenue growth to $14.9 billion, driven by Networking product revenue. Although operating and free cash flow decreased, stock prices continued to rise, hinting at a potential peak. If FCF margins improve from 19.41% to the TTM rate of 22.07%, Cisco could be valued at $83.49 per share.

Read more at Barchart: Cisco Delivered Strong, But Lower Free Cash Flow and FCF Margins