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Cisco (CSCO): Can Software Renewals Outlast the Networking Upgrade Cycle?

Cisco (CSCO): Can Software Renewals Outlast the Networking Upgrade Cycle?

By Jeff Lewis
Publication Date: 2026-10-16 18:20:00

Cisco Systems, Inc. (NASDAQ:CSCO) sells networking equipment, software, and support to enterprises and service providers. AI infrastructure spending and campus upgrades are lifting demand. The question is how much customers will keep paying after equipment purchases slow. As an established networking leader, Cisco Systems, Inc. (NASDAQ:CSCO) is among the 10 Most Active Blue Chip Stocks to Buy Right Now.

Cisco Systems, Inc. (NASDAQ:CSCO) trades at 20x forward P/E and 32x trailing P/E. Its premium to Hewlett Packard Enterprise Company (NYSE:HPE), at 14x forward P/E, requires durable renewal profits and cash generation.

Why Customers Would Keep Paying

Cisco Systems, Inc. (NASDAQ:CSCO) packages network-management capabilities with hardware and software support. Standard new subscriptions have a three-year minimum term and multiple feature tiers. Older equipment still needs software updates and troubleshooting. Familiar tools and trained staff…

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