By Trefis Team
Publication Date: 2026-10-27 13:14:00
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Cisco Systems (CSCO) stock trades at 27.9 times its adjusted earnings for the four quarters to July 2026, with stock-based compensation added back after tax. That multiple looks steep following a 59.8% return over the past year. While that is a high price for one year of profit, the valuation reads differently against the profit expected over Cisco’s next two fiscal years. So what is a buyer at today’s price counting on Cisco to earn?
Cisco Is Forecast To Sell More At Wider Margins
A buyer today is counting on the consensus forecast, which expects Cisco’s sales to rise 15.2% in fiscal 2027 from the sales Cisco reported for fiscal 2026, followed by another 6.9% in fiscal 2028. In the forecast, Cisco’s net margin sits at 27.9% in fiscal 2027, against 27.1% in fiscal 2026. It then reaches 28.3% in fiscal 2028, so profit that year rises 8.3%, a little faster than sales. Those…
