Cisco Price Target Raised to $137 as Q3 AI Orders Soar to $1.9B
CSCO•HSBC upgraded Cisco to Buy with a price target of $137 from $77 after Q3 AI infrastructure orders jumped to $1.9B from $600M, boosting YTD orders to $5.3B. Management forecasts $4B in AI revenue for 2026 and at least $6B in 2027, implying roughly 50% AI yoy growth.
1. HSBC Upgrade and Valuation Rerating
HSBC elevated Cisco to Buy and lifted its price target from $77 to $137, reflecting newfound momentum in AI infrastructure demand. The bank also raised its non-GAAP EPS CAGR forecast for fiscal 2026–29 to 13.6% from 9.8% and applied a 29× P/E multiple to capture Cisco’s transition to an AI infrastructure leader.
2. AI Infrastructure Order Growth
Cisco reported $1.9 billion in AI infrastructure orders for fiscal Q3, up from $600 million a year earlier, driving year-to-date orders to $5.3 billion. Management increased the full-year AI orders target to $9 billion from $5 billion, anticipating a substantial step-up in Q4.
3. Increased AI Revenue Forecasts
The company raised its full-year 2026 AI revenue guidance to $4 billion from $3 billion and set a 2027 AI revenue target of at least $6 billion, implying roughly 50% year-over-year growth. Cisco also expects total company revenue to grow by about 9% in fiscal 2027.
