Cisco Systems, Inc. (NASDAQ:CSCO) is included among the 15 Best Passive Income Stocks to Buy Right Now.
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On November 10, Erste Group’s Hans Engel moved Cisco Systems, Inc. (NASDAQ:CSCO) to a Buy rating from Hold, as reported by The Fly. He told investors that the company is likely to maintain an operating margin that stays above the industry average, along with a strong return on equity. He also noted that Cisco’s management has provided “an optimistic outlook for the new fiscal year 2026,” and the firm views the company’s forecast as conservative, expecting the company to perform better than its stated target.
For fiscal Q1 2026, Cisco Systems, Inc. (NASDAQ:CSCO) posted record revenue of 14.88 billion dollars, reflecting a 7.53% increase from the same quarter last year. This level of growth keeps the company on course for what it believes could be its strongest full year yet. Product revenue rose 10%, helped by steady demand for AI infrastructure and campus networking solutions. AI infrastructure orders from hyperscalers reached $1.3 billion in the quarter, and the company expects to recognize around $3 billion from hyperscaler AI infrastructure revenue in FY26.
Cisco Systems, Inc. (NASDAQ:CSCO) continues to reward shareholders with dividends and has raised its payouts for 18 straight years. The company remains a well-established name in IT infrastructure, with a portfolio that includes switches, routers, and firewalls. It also provides a range of artificial intelligence solutions that help businesses manage both the opportunities and the risks that come with adopting AI.
While we acknowledge the potential of CSCO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None.