J.P. Morgan Sees Major Revenue Potential for Cisco From Next-Gen Products

Cisco Systems, Inc. (NASDAQ:CSCO) is one of the best Dow stocks to invest in.

According to a detailed report from J.P. Morgan, Cisco Systems, Inc. (NASDAQ:CSCO) is positioned for a potential boost in revenue as it prepares for a wave of upgrades and replacements in its Campus infrastructure, driven by the upcoming release of its next-generation Catalyst switch series, expected next week.

The firm has an Overweight rating on the stock and a price target of $73.

J.P. Morgan analysts, led by Samik Chatterjee, made the following comment:

"We expect to see the launch of Catalyst-2026 switches to support revenue tailwinds for the company, driven largely by an ASP uplift associated with the next-generation product and a faster adoption ramp for Catalyst-2026 relative to the Catalyst 9K series. We forecast +3% port shipment growth, in line with historical trends for Cisco, to remain consistent going forward, and to lead to a medium-term revenue growth CAGR of +6% in Campus revenue for Cisco relative to +3% in the past few years."

Cisco Systems, Inc. (NASDAQ:CSCO)'s fiscal third-quarter 2025 results, released in mid-May, led to several upward revisions in analyst ratings and price targets, fueled by strong performance in networking and growing momentum in artificial intelligence. Following the earnings, Wells Fargo raised its rating on the stock from Equal-weight to Overweight and increased its price target from $72 to $75.

The company has benefited from the global expansion of AI, securing new agreements in markets such as Saudi Arabia and the UAE. Cisco has also stepped into the quantum computing space. Chatterjee further said:

"Historically, Cisco has tended to upgrade its flagship Catalyst campus portfolio every 6-7 years. The company is likely to launch their next-generation Catalyst product portfolio—the next generation of the Catalyst 9K series—later this year (likely at Cisco Live 2025 next week) with the products being commercially available in 2026."

Its annual Cisco Live event is taking place from June 8 to 12 in San Diego.

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