Cisco (CSCO) Unlikely to Pursue Axonius Acquisition, Says TD Cowen Analyst

Cisco Systems, Inc. (NASDAQ:CSCO) is included among the 12 Best DOW Stocks to Buy in 2026.

On January 5, TD Cowen analyst Shaul Eyal said the firm’s channel checks and industry conversions suggest that Cisco Systems, Inc. (NASDAQ:CSCO) acquiring Axonius “is not imminent and is currently not in our cards.”

TD Cowen also noted that names like SentinelOne, Varonis, and Tenable could attract interest from strategic and financial sponsors. Lower interest rates and the push to broaden security capabilities are driving those conversions, the analyst said.

Cisco Systems, Inc. (NASDAQ:CSCO)’s stock jumped more than 28% in 2025, and early signs from fiscal 2026 point to continued momentum.

First-quarter revenue rose 8% year-over-year. The pace may look modest for a company trading near a 30x P/E, but investors are focused on AI. Cisco said its infrastructure orders reached $1.3 billion, “reflecting a significant acceleration in growth.” Big tech spent heavily on AI this year, and the budgets are expected to rise again next year.

Net income increased 5% from a year earlier. At this point, Cisco’s case as an undervalued dividend stock largely rests on the durability of its AI infrastructure sales.

Cisco Systems, Inc. (NASDAQ:CSCO) designs and sells technologies that power the Internet. The company brings together networking, security, collaboration, applications, and cloud products into a single, integrated portfolio.

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.