Cisco Systems gave investors plenty to like in its fiscal fourth-quarter report, but the market's reaction showed how high expectations have become for one of 2026's strongest AI infrastructure trades. Cisco Systems (CSCO) reported record quarterly revenue and stronger-than-expected earnings, while management laid out another year of double-digit growth. The stock still fell sharply after the report and closed Aug. 18 at $112.90, leaving shares well below the $123.88 price used in Bank of America's latest research note.
BofA analyst Tal Liani sees an opportunity in that disconnect. Liani reiterated a Buy rating and $150 price target on Cisco in a note given to TheStreet, arguing that broad networking demand and growing AI revenue could leave room for further upside. The target now implies roughly 33% upside from Cisco's Aug. 18 closing price.
Cisco reported fiscal fourth-quarter revenue of $17.3 billion, up 18% from a year ago, while adjusted earnings reached $1.22 per share. Networking revenue jumped 28% to $9.8 billion as customers continued spending on data center and AI infrastructure. Orders were even stronger.
Total product orders rose 35%, while networking orders climbed 40%. Cisco said product orders still increased 25% when hyperscaler customers were excluded, giving investors another sign that demand is spreading beyond the largest cloud companies. Trump FCC gives Tesla a leg up in critical technology race Apple's $249 AirPods may be about to learn how to see Bank of America doubles down on Nvidia stock despite big risk Management expects that strength to carry into the new fiscal year.
Cisco guided for first-quarter revenue of $18 billion to $18.2 billion and adjusted earnings of $1.32 to $1.34 per share, while full-year revenue is expected to rise to as much as $73.4 billion. That broader strength sits at the center of BofA's bullish view. Liani noted that ex-hyperscaler order growth accelerated from 19% in the fiscal third quarter to 25% in the fourth quarter.
Orders from Cisco's four largest hyperscalers grew more than 100%, according to the note. BofA believes those trends support Cisco's decision to double its core growth outlook for fiscal 2027 to 10% from an earlier 5% estimate. Cisco booked $4 billion of AI infrastructure orders from hyperscalers during the fourth quarter, lifting full-year orders to $9.3 billion.
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