Cisco Rises After Evercore Sees Multi-Year Upside

Key Moments

Cisco shares traded about 1.6% higher in premarket trading after Evercore ISI raised its rating to Outperform.
Evercore ISI lifted its price target on Cisco to $100 from $80, citing attractive valuation at “under 20x P/E vs. large cap tech peers.”
The bank expects AI-related revenues of “~$3.0B in FY26E (~5% of sales)” supported by four major hyperscaler customers.

Upgrade Sparks Premarket Strength

Cisco Systems, Inc. (NASDAQ: CSCO) traded higher in premarket action, rising around 1.6%, after Evercore ISI upgraded the stock to Outperform. The firm argued that Cisco is positioned for “high single-digit sales and low-teens EPS growth on a multi-year basis.”

In its client note, Evercore ISI described Cisco’s valuation as compelling at “under 20x P/E vs. large cap tech peers” and increased its price target to $100 from $80.

#EVERCORE analyst Amit Daryanani who covers $CSCO has the current 1st biggest #pricetarget movement on AnaChart (26-Jan-2026 (7AM)) by upgrading from $80 to $100 with an increase in potential upside change from $5.41(7.25%) to $25.41(34.07%) with a rating of Outperform pic.twitter.com/u05N7QcoWi
— AnaChart (@anachartanalyst) January 26, 2026

Four Pillars Behind the Bullish Call

Evercore ISI outlined four main factors driving the more constructive stance on Cisco, starting with an improving cycle in enterprise networking.

The firm said its research indicates “sustained growth in campus markets through CY26 (~6-8%E industry growth)” as customers refresh infrastructure and upgrade to next-generation campus solutions roughly eight years after the prior major cycle.

Cisco’s transition toward End of Life and End of Services for its legacy Catalyst 4K and 6K platforms, which account for “~20% install base,” is expected to push additional demand as organizations move to newer hardware.

AI and Product Portfolio as Growth Catalysts

Evercore ISI also cited increasing demand tied to artificial intelligence as a significant driver. The firm estimates that Cisco is on pace to deliver “AI revenues of ~$3.0B in FY26E (~5% of sales) and orders of >$4.0B (vs. $2.0B LY),” with support from four major hyperscaler customers.

New offerings, including the P200, along with broader adoption of Cisco’s Silicon One technology, were highlighted as additional potential catalysts for the business.

End-Market Recovery and Profitability Outlook

The note indicated that traditional enterprise and telecom markets are showing signs of improvement, providing “better diversity of growth as we move forward.”

On the earnings front, Evercore ISI projected that Cisco can achieve “~50-100bps of EBIT margin expansion annually,” while acknowledging that execution in security and collaboration remains an area of risk.

Evercore ISI’s Cisco Investment View

Summarizing its stance, Evercore ISI said that the combination of accelerating campus upgrades, AI-driven momentum, and healthier end markets gives Cisco “plenty of tailwinds” to sustain a favorable growth trajectory over the coming years.

Evercore ISI Targets and Estimates Snapshot

Metric / Comment	Evercore ISI View
Rating	Outperform (upgraded)
Price target	$100 (from $80)
Expected multi-year performance	“high single-digit sales and low-teens EPS growth on a multi-year basis”
Valuation comment	“under 20x P/E vs. large cap tech peers”
Campus market growth outlook	“sustained growth in campus markets through CY26 (~6-8%E industry growth)”
Legacy Catalyst 4K/6K share of install base	“~20% install base”
Estimated AI revenues FY26E	“~$3.0B in FY26E (~5% of sales)”
Estimated AI orders FY26E	“>$4.0B (vs. $2.0B LY)”
EBIT margin outlook	“~50-100bps of EBIT margin expansion annually”