Cisco Systems Reports Lower Free Cash Flow – But, Is CSCO Stock a Buy Here?

Cisco Systems Reports Lower Free Cash Flow – But, Is CSCO Stock a Buy Here?

By Mark R. Hake, CFA
Publication Date: 2026-02-13 18:07:00

Cisco Systems, Inc_ HQ-by Sundry Photography via iStock

Cisco Systems (CSCO) reported positive free cash flow (FCF) for the latest quarter ending Jan. 24, 2026, albeit lower than last year. Nevertheless, its FCF margin is still strong, and despite higher capex, management’s guidance was for higher earnings. 

As a result, analysts have higher target prices for CSCO stock. For example, Yahoo! Finance now reports that the average of 26 analysts’ price targets is $87.86. That’s 14% higher than today’s price.

CSCO is trading at $76.87, down from a recent peak of $86.78 on Feb. 9, just before the Feb. 11 earnings release.

CSCO stock – last 3 quarters – Barchart

Based on its strong FCF and FCF margins, despite higher AI-related investments and capital expenditures (capex), Cisco Systems’ stock has good upside. This article will show why…