With an industry-leading networking portfolio, AI-native security solutions, and operating systems, Cisco (CSCO) is well-positioned to provide the critical infrastructure for the AI era.
The stock sports the highly coveted Zacks Rank #1 (Strong Buy), with EPS revisions remaining robust across all timeframes.
Image Source: Zacks Investment Research
Cisco Sees Record Demand
Cisco shares have been red-hot in 2026 on the back of favorable quarterly results, up nearly 60% and seeing a nice pop following its latest quarterly release. The company posted a double-beat relative to our consensus expectations, with both EPS and sales seeing rock-solid growth on the back of a favorable demand environment.
Sales of $15.8 billion reflected a record, also exceeding the high end of its prior guidance. Cisco noted broad-based, record-high demand for its technology, with overall product orders growing by a sizable 35% YoY. Importantly, data center switching orders grew 40% from the year-ago period, underpinning its important role amid the AI infrastructure buildout.
Sales revisions have followed a similarly bullish path, with the above-mentioned quarterly results in mid-May reflecting an inflection point for expectations.
Image Source: Zacks Investment Research
Keep in mind that the company also pays a solid, growing dividend, currently sporting a 2.6% five-year annualized dividend growth rate. Shares currently yield 1.4% annually, with the stock overall reflecting a nice blend of tech growth and income-generating abilities.
Dividend payouts have remained on a steady uptrend over the past decade, as shown below. Please note that the final value is currently calculated on a trailing twelve-month basis, as its FY26 has not yet ended.
Image Source: Zacks Investment Research
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Cisco Systems (CSCO) would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
— Derek Lewis
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Source: Zacks
