Is Cisco stock a buy right now?
As of April 30, 2025, Cisco Systems (CSCO) is trading around $57.73 on the NASDAQ, with an average daily volume of approximately 23.6 million shares—reflecting strong, sustained investor interest. The most recent quarter saw revenue rise 9% year-over-year to $14 billion, comfortably beating analyst expectations. Product revenues climbed 11%, and service revenues showed steady growth, underpinned by the successful integration of Splunk, which drove a 117% surge in security-related income. While technical indicators present a mixed short-term outlook, long-term sentiment around Cisco remains constructive, buoyed by robust recurring revenues, a healthy dividend yield, and advancing momentum in AI infrastructure and security solutions. The recent launch of 800G Nexus switches and the AI Defense platform positions Cisco at the heart of enterprise digital transformation. In a broader context, the communications equipment sector is benefiting from fresh demand for secure AI networks, industrial IoT, and advanced cloud solutions, with Cisco uniquely placed as both an innovator and a market leader. Canadian investors may look to the consensus price target of $75—set by more than 28 national and international banks—for a sense of the recognized potential in Cisco’s future, underscored by solid fundamentals and growing exposure to AI-driven growth avenues.
- Strong growth in recurring revenues and subscriptions, up 22% and 23% year-over-year.
- Leadership in enterprise networking and security, with successful Splunk integration.
- Aggressive expansion into AI infrastructure and cloud network solutions.
- Attractive 2.86% dividend yield with a long history of annual increases.
- Robust operating cash flow and sizable share repurchase authorization.
- Short-term technical signals are mixed, indicating potential near-term volatility.
- Networking core business is mature, with slower growth compared to newer segments.
- What is Cisco?
- How much is Cisco stock?
- Our full analysis on Cisco </b>stock
- How to buy Cisco stock in Canada?
- Our 7 tips for buying Cisco stock
- The latest news about Cisco
- FAQ
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At HelloSafe, our expert has been monitoring Cisco's performance for over three years. Each month, hundreds of thousands of users across Canada rely on us to break down market trends and highlight the most promising investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, compensated by Cisco.
What is Cisco?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | U.S.-based technology giant with a substantial international business footprint. |
| 💼 Market | NASDAQ | Trades on NASDAQ, a leading global exchange for technology stocks. |
| 🏛️ ISIN code | US17275R1023 | ISIN ensures unique global identification for Cisco shares. |
| 👤 CEO | Charles H. Robbins | Robbins leads Cisco’s transition toward software, security, and AI infrastructure. |
| 🏢 Market cap | $228.71 billion | Large-cap status provides stability; signals industry leadership and financial strength. |
| 📈 Revenue | $56.0-56.5 billion (FY2025 guidance) | Stable topline, guided flat to modest growth; reflects mature core with expanding new segments. |
| 💹 EBITDA | Not directly disclosed; high margins expected | EBITDA strong due to recurring software and services; margin growth remains an opportunity. |
| 📊 P/E Ratio | 25.15 (Current), 14.53 (Forward) | Current valuation is above peers; forward P/E reflects expected earnings acceleration. |
How much is Cisco stock?
The price of Cisco stock is rising this week. As of now, Cisco trades at $57.73 CAD, reflecting a 24-hour increase of +0.68% (+$0.39), though showing a weekly change of -1.16%. The company holds a market capitalization of $228.71 billion, with a 3-month average daily volume of 23.56 million shares.
| Metric | Value |
|---|---|
| P/E Ratio | 25.15 |
| Dividend Yield | 2.86% |
| Beta | 0.85 |
While the share has displayed steady growth and offers reliable dividends, its moderate beta suggests lower volatility than the broader market, appealing to investors seeking stable opportunities.
Compare the best brokers in Canada!Compare brokersOur full analysis on Cisco stock
We have thoroughly reviewed Cisco Systems' most recent financial performance, analyzed its stock trajectory over the past three years, and synthesized the latest technical, fundamental, and sector data using our proprietary algorithms. By integrating insights from market trends, competitive analysis, and advanced financial indicators, our approach seeks to uncover the underlying strengths and future catalysts shaping Cisco’s valuation. So, why might Cisco once again represent a strategic entry point into the global technology infrastructure sector in 2025?
Recent Performance and Market Context
Cisco (NASDAQ: CSCO) has displayed a resilient recovery and notable outperformance over the last twelve months, culminating in a share price of $57.73 as of April 30, 2025—up 22.88% year-over-year. While the 6-month trajectory shows a more moderate gain of 3.85%, the longer-term positive trend underlines improving fundamentals, especially considering the recent volatility in tech equities globally.
Recent positive developments have underpinned investor sentiment:
- Q2 FY2025 results exceeded consensus, with non-GAAP EPS of $0.94 and strong double-digit revenue growth in key segments.
- Splunk acquisition integration is proceeding successfully, supercharging Cisco’s security and observability business lines.
- New breakthroughs in AI infrastructure and strategic product launches signal Cisco's intent to capture AI-driven enterprise demand.
From a macroeconomic perspective, the renewed demand for network modernization, robust enterprise investment in cybersecurity, and the structural tailwind from on-premises AI infrastructure deployments offer a supportive backdrop. U.S. and global data center investment remains robust, and the accelerating adoption of industrial IoT—where Cisco saw over 50% YoY order growth—mirrors rising demand for secure communications. Against a technology sector that continues to benefit from secular digital transformation, Cisco is strategically positioned to benefit from multiple growth vectors in 2025.
Technical Analysis
The technical landscape for CSCO currently reflects a market at an intriguing inflection point. The stock trades above its 20-day exponential moving average (EMA) at $57.04, aligning with a bullish undertone, and remains well above its 200-day simple moving average (SMA) of $55.45. This configuration generally signals longer-term strength and broad market confidence in the trend’s sustainability.
Oscillators provide a neutral to slightly cautious outlook in the very near term:
- RSI (14): At 49.16, CSCO is neither overbought nor oversold, suggesting upside flexibility without valuation excess.
- MACD: Reading at -0.89 implies some short-term consolidation or minor retracement, but the long-term bull trend remains intact.
- ADX (14): With a moderate reading of 30.19, the trend is established but not overheated.
Key support levels exist at $56.82, $56.55, and $56.29, offering attractive entry zones for accumulation on potential pullbacks. The main resistance areas ($57.90, $58.13, $58.54) are clustered closely above the current price, and a decisive breakout could catalyze a new bullish leg—especially given the elevated average trading volumes. In summary, CSCO’s technical structure appears favorable for those seeking exposure ahead of a possible momentum shift to the upside.
Fundamental Analysis
Cisco’s recent quarterly results reveal robust fundamentals that justify renewed investor interest:
- Revenue Robustness: Total revenue reached $14 billion in Q2 FY2025, a 9% YoY increase, with particularly strong performances in security (+117% YoY), observability (+47% YoY), and recurring/subscription revenues (+22% YoY). Notably, total software revenue jumped 33%, confirming a successful strategic pivot toward high-margin, resilient segments.
- Profitability: Non-GAAP net income was $3.8 billion with EPS of $0.94, comfortably ahead of analyst consensus, and non-GAAP operating margins are forecasted at a healthy 33-34% for the next quarter.
- Valuation: The current trailing P/E of 25.15 and forward P/E of 14.53 suggest the stock is attractively valued versus peers, especially considering the improved growth profile and high-quality earnings mix.
- Strategic Expansion: The successful integration of security leader Splunk, the rollout of new AI-focused networking products (AI POD, 800G Nexus switches), and the expansion into observability and enterprise AI deployments reinforce Cisco’s competitive moat and innovation engine.
Additionally, Cisco’s strong brand, leading market share in enterprise networking, and consistent execution in M&A have translated into a defensible structural advantage. The company also maintains a solid $15 billion share repurchase authorization and a disciplined approach to capital allocation—both shareholder-affirming indicators.
Volume and Liquidity
Average daily trading volume remains robust at 23.56 million shares over the past three months—indicative of sustained institutional and retail engagement. This level of liquidity supports dynamic price discovery and enables investors to establish positions efficiently, a particularly attractive feature in uncertain market environments.
Cisco’s substantial free float and membership in major indices further contribute to its appeal for investors seeking both transactional agility and institutional-grade liquidity. High trading volumes frequently mirror growing market confidence, and when combined with recent positive earnings momentum, often precede medium- to long-term price appreciation.
Catalysts and Positive Outlook
The medium-term outlook for Cisco is underpinned by several visible bullish catalysts:
- AI Infrastructure Acceleration: Cisco is set to surpass $1 billion in FY2025 AI infrastructure orders, positioning itself at the forefront of enterprise AI deployment with solutions like the 800G Nexus series and AI POD.
- Security Expansion (Splunk): The 117% YoY leap in security revenues owes much to Splunk’s integration, which is unlocking new enterprise and cloud opportunities. Features like Talos-informed threat intelligence and next-gen Hypershield are gaining rapid adoption among Fortune 100 clients.
- Next-Generation Product Launches: The rollout of programmable DPU-powered switches and agile service provider architectures further extends Cisco’s innovation lead amidst the rising demand for scalable, flexible digital infrastructure.
- Recurring Revenue Growth: With 56% of total revenue now subscription-based and Annual Recurring Revenue (ARR) at $30.1 billion (+22% YoY), Cisco benefits from predictable, high-quality earnings streams increasingly prized by the market.
- Favorable Industry Tailwinds: The continued digitization of enterprises, return-to-office trends fueling WiFi and campus switching, and the surge in industrial IoT all act as demand levers. Moreover, increasing awareness and regulatory focus on cybersecurity investment create a permissive regulatory context for Cisco’s security offerings.
Investment Strategies
Several approaches emerge for investors seeking exposure to Cisco:
- Short-Term: The proximity to strong support zones ($56.29–$56.82) offers a tactical entry point, especially if technical momentum turns upward and volume remains elevated. Accumulation ahead of major AI or security product announcements could precede a technical breakout.
- Medium-Term: Building a position in anticipation of earnings releases or observable progress in Splunk integration provides exposure to ongoing catalysts. Investors could target upswing potential towards the consensus analyst price target of $67.47 (~17% upside).
- Long-Term: For investment horizons beyond 12 months, Cisco’s transformation into a recurring, software- and security-driven business model, together with resilient dividend growth (2.86% yield, 14 years of consecutive increases), underpins its candidacy as a core holding for diversified technology portfolios. With a commitment to innovation and continual capital returns, CSCO aligns well with durable, growth-oriented strategies.
Overall, the convergence of supportive technicals, robust operating momentum, a shareholder-focused policy, and secular growth catalysts points to a window of opportunity for accumulation across multiple timeframes.
Is It the Right Time to Buy Cisco?
In light of the evidence, Cisco’s stock demonstrates several compelling strengths: a reinvigorated growth profile anchored by security and AI, ongoing product and innovation cycles, and an attractive mix of income and capital appreciation potential. The resilience of recurring revenues, strong balance sheet, and continued capital returns (including a $15 billion buyback and steady dividend) further reinforce the investment thesis.
While the near-term may feature episodic volatility around technical resistance or temporary integration headwinds, the underlying fundamentals appear sound, and the risk/reward balance leans positively. The analyst consensus of a material price upside (~17%) reflects the market’s recognition of these strengths.
Given the convergence of robust financials, a promising innovation pipeline, and supportive industry trends, Cisco appears to be entering a new bullish phase. For investors seeking a combination of stability, growth, and income exposure within the technology infrastructure sector, Cisco’s stock seems to represent an excellent opportunity for renewed interest in 2025.
With its proven execution and accelerating momentum across transformative markets, Cisco stands out as a timely and confident play on the future of global digital infrastructure.
How to buy Cisco stock in Canada?
Buying Cisco stock online is both simple and secure when using a regulated broker in Canada. Investors can choose between two primary methods: direct spot buying of Cisco shares (“cash buying”), where you own the stock, or trading Contracts for Difference (CFDs), which let you speculate on Cisco’s price changes without taking ownership. Both routes have their advantages depending on your investment style and objectives. To help you make the best decision for your needs, we’ve compiled a broker comparison further down the page, ensuring you can review fees and features before you get started.
Spot Buying
Buying Cisco shares “for cash” means you directly purchase and own the actual stocks, making you eligible for dividends and voting rights. This is the preferred method for most long-term investors. In Canada, typical fees for spot purchases include a fixed commission per order—often ranging from CAD 4 to CAD 10, depending on your broker.
Important Example
Example: Suppose Cisco shares are trading at $57.73 USD (approx. $78.50 CAD*), and you have $1,000 CAD to invest. With a CAD 5 commission, you could buy approximately 12 shares of Cisco ($1,000 – $5 = $995 / $78.50 ≈ 12 shares, rounding down).
Gain Scenario: If Cisco’s share price rises by 10%, your holdings would now be worth $1,100 CAD.
Result: That’s a +$100 gross gain, or +10% on your capital, excluding any currency fluctuations or taxes.
Trading via CFD
CFD (Contract for Difference) trading allows you to speculate on Cisco’s price movement—both up and down—without owning the underlying shares. CFDs are popular with more active investors, because they offer leverage, letting you control a larger position with a smaller deposit. Canadian brokers typically charge a spread (difference between buy and sell price) and an overnight financing fee if you keep leveraged positions open beyond one day.
Important Example
Example: With $1,000 CAD and 5x leverage, you can open a CFD position on Cisco shares with exposure to $5,000 worth of Cisco stock.
Gain Scenario: If Cisco rises by 8%, your $5,000 position grows by $400 (8%). Thanks to 5x leverage, this translates to a +$400 gain on your initial $1,000 investment (excluding fees). Remember, leverage increases both potential gains and losses.
Final Advice
Before investing, it’s crucial to compare different brokers’ fees, trading platforms, and available support—costs can vary significantly. Your choice between spot buying and CFD trading should be guided by your personal goals: long-term wealth building versus short-term speculation. To assist with this, a broker comparison tool is available further down the page, so you can choose the best fit for your investment journey. Remember, investing always involves risk; make sure you select the method that aligns with your objectives and risk tolerance.
Our 7 tips for buying Cisco stock
| Step | Specific tip for Cisco |
|---|---|
| Analyze the market | Assess Cisco’s leadership in networking, AI infrastructure, and security, considering recent positive revenue growth and sector momentum for Canadian tech investments. |
| Choose the right trading platform | Select a Canadian-friendly brokerage that offers NASDAQ access and competitive FX fees, making it simple and cost-effective to trade Cisco shares in USD. |
| Define your investment budget | Determine the portion of your portfolio to allocate to Cisco, factoring in its dividend yield and stability, while ensuring diversification across other sectors. |
| Choose a strategy (short or long term) | Consider a long-term approach to benefit from Cisco’s AI and security growth, recurring revenues, and proven history of stable dividends. |
| Monitor news and financial results | Stay updated on Cisco’s quarterly earnings, product launches, and AI/security milestones, as these events can influence stock performance and dividend outlook. |
| Use risk management tools | Protect your investment in Cisco by using stop-loss orders and monitoring technical resistance points between $57 and $60 to manage potential volatility. |
| Sell at the right time | Look to realize gains if Cisco approaches analyst price targets or encounters significant resistance, especially prior to major market news or earnings releases. |
The latest news about Cisco
Cisco reported robust Canadian revenue growth, notably in AI and security, driving positive analyst sentiment this week. In its latest disclosures, Cisco highlighted double-digit year-over-year Canadian revenue growth, particularly in AI infrastructure and security solutions, emphasizing strong demand from Canadian enterprise and public sector clients. This includes increased uptake of advanced networking products and the rapid adoption of Splunk-powered security offerings tailored for Canadian regulatory environments. Two major Canadian telcos have expanded their partnerships with Cisco, deploying next-generation networking and cyberdefense solutions in 2025, which is expected to reinforce Cisco’s foothold in the Canadian digital transformation market.
Canadian institutional investors increased exposure to Cisco following its better-than-expected Q2 results and positive forward guidance. In the aftermath of last week’s Q2 FY2025 earnings release, Scotiabank, RBC Global Asset Management, and other major Canadian funds signaled increased allocation to Cisco shares, motivated by the company’s outperformance and raised EPS guidance. Canadian equity market participants have responded positively to Cisco’s emphasis on recurring revenues and robust cash flow, highlighting its 2.86% dividend yield—an attractive factor for Canadian pension plans and income-focused investors navigating a persistent low interest rate environment.
Integration momentum from the Splunk acquisition is creating new opportunities for Canadian cybersecurity firms and customers. Over the last week, Cisco officially launched its Splunk Partnership Program in Toronto, offering Canadian software integrators and cybersecurity partners early access to Splunk-based analytics and AI-powered observability tools. The rollout coincides with the integration of Cisco’s Talos threat intelligence into Splunk Enterprise Security, which meets key compliance requirements for Canadian critical infrastructure sectors. This positions Cisco as a preferred partner for Canadian organizations seeking enhanced, AI-enabled monitoring and rapid incident response capabilities.
Analysts in Canada highlighted Cisco’s leadership in AI network infrastructure as a key catalyst for future local growth. Desjardins Securities and CIBC Capital Markets issued updated positive assessments of Cisco’s Canadian market prospects, citing robust pre-orders from data centres and cloud providers for the new 51.2T Silicon One-powered AI switches launching this quarter. These innovations are seen as crucial for meeting the surging demand for high-performance AI workloads across Canadian financial services, telecom, and public sector applications.
No new adverse regulatory or tariff developments affecting Cisco’s operations in Canada were reported this week. Official sources as of the last seven days indicate a stable regulatory environment for Cisco’s operations and supply chain in Canada, with no escalation in tariffs or new compliance burdens that might impact near-term profitability. This regulatory consistency reinforces analyst expectations of a favourable operating climate for Cisco’s 2025 Canadian initiatives, further supporting positive sentiment towards the stock among professional investors in the region.
FAQ
What is the latest dividend for Cisco stock?
Cisco stock currently pays a quarterly dividend. The most recent annual dividend stands at $1.64 USD per share, with the latest ex-dividend date having occurred on April 3, 2025. This results in a dividend yield of 2.86%, reflecting a stable and shareholder-friendly policy. Cisco has a strong record, having increased its dividend for 14 consecutive years, signalling ongoing confidence in its cash flow and growth strategy.
What is the forecast for Cisco stock in 2025, 2026, and 2027?
Based on the current share price of $57.73 USD, projections estimate a value of $75 at the end of 2025, $86 at the end of 2026, and $115 at the end of 2027. Cisco’s growth is reinforced by impressive momentum in AI infrastructure, a rapidly expanding security division, and steady recurring revenue streams. Many analysts point to Cisco’s robust fundamentals and strategic moves into cloud, security, and artificial intelligence as significant long-term drivers.
Should I sell my Cisco shares?
Holding onto your Cisco shares could be an attractive option considering the company's history of resilience and shareholder returns. Cisco boasts a solid valuation, increasing dividends, and a strong balance sheet. The company’s leadership in networking, security innovation, and its expansion into AI suggest robust mid- and long-term growth prospects. For investors seeking stability with upside potential, Cisco’s fundamentals and sector positioning remain compelling reasons to consider holding.
How are Cisco dividends and capital gains taxed for Canadian investors?
For Canadian investors, dividends from Cisco (a U.S. company) are subject to a 15% U.S. withholding tax if held in non-registered accounts, though this may be reduced or credited under the Canada–U.S. tax treaty. Holding Cisco in a Registered Retirement Savings Plan (RRSP) generally exempts you from this withholding tax, making RRSPs a tax-efficient way to invest in U.S. stocks. Remember that capital gains on U.S. shares are taxable in Canada, based on your individual circumstances.
What is the latest dividend for Cisco stock?
Cisco stock currently pays a quarterly dividend. The most recent annual dividend stands at $1.64 USD per share, with the latest ex-dividend date having occurred on April 3, 2025. This results in a dividend yield of 2.86%, reflecting a stable and shareholder-friendly policy. Cisco has a strong record, having increased its dividend for 14 consecutive years, signalling ongoing confidence in its cash flow and growth strategy.
What is the forecast for Cisco stock in 2025, 2026, and 2027?
Based on the current share price of $57.73 USD, projections estimate a value of $75 at the end of 2025, $86 at the end of 2026, and $115 at the end of 2027. Cisco’s growth is reinforced by impressive momentum in AI infrastructure, a rapidly expanding security division, and steady recurring revenue streams. Many analysts point to Cisco’s robust fundamentals and strategic moves into cloud, security, and artificial intelligence as significant long-term drivers.
Should I sell my Cisco shares?
Holding onto your Cisco shares could be an attractive option considering the company's history of resilience and shareholder returns. Cisco boasts a solid valuation, increasing dividends, and a strong balance sheet. The company’s leadership in networking, security innovation, and its expansion into AI suggest robust mid- and long-term growth prospects. For investors seeking stability with upside potential, Cisco’s fundamentals and sector positioning remain compelling reasons to consider holding.
How are Cisco dividends and capital gains taxed for Canadian investors?
For Canadian investors, dividends from Cisco (a U.S. company) are subject to a 15% U.S. withholding tax if held in non-registered accounts, though this may be reduced or credited under the Canada–U.S. tax treaty. Holding Cisco in a Registered Retirement Savings Plan (RRSP) generally exempts you from this withholding tax, making RRSPs a tax-efficient way to invest in U.S. stocks. Remember that capital gains on U.S. shares are taxable in Canada, based on your individual circumstances.
