Cisco Systems stock heads into earnings after Morgan Stanley cut

Cisco Systems enters earnings week with a lower Morgan Stanley rating and price target, while the broker still expects strong artificial-intelligence growth. The next test arrives after the US market close on Thursday, November 12.

AD HOC NEWS reported that Morgan Stanley moved Cisco from Overweight to Equal-weight and reduced its target from 135 US dollars to 120 US dollars. The report said the bank sees a higher hurdle for a positive surprise after the stock's strong run, while customers may have pulled orders forward ahead of planned price increases.

Cisco Systems stock traded at 86.67 euros on Lang & Schwarz at 16:06 CET on Monday, November 9, 1.52 percent above the Xetra close of 85.37 euros on Friday, November 6. The quote was also 2.82 percent above the 84.29-euro level in the latest relevant AD HOC NEWS report from 13:03 Berlin time on the same day.

AI growth meets margin pressure

According to the report, Cisco ended fiscal 2026 with revenue of 63.3 billion US dollars, while AI infrastructure orders reached 9.3 billion US dollars for the year. Morgan Stanley expects AI revenue of 9 billion US dollars in fiscal 2027 and 12 billion US dollars in fiscal 2028, above Cisco's 7.5 billion US dollar fiscal 2027 target.

The broker expects fiscal 2027 revenue of about 73.25 billion US dollars and earnings per share of 5.14 US dollars. For the coming quarter, its forecasts call for revenue of 18.3 billion to 18.4 billion US dollars, a 66 percent gross margin and adjusted earnings per share of 1.36 to 1.38 US dollars. Cisco's guidance is lower at 18.0 billion to 18.2 billion US dollars in revenue and adjusted earnings per share of 1.32 to 1.34 US dollars.

The November 12 release covers the fiscal first quarter ended October 24, 2026. Investors will focus on whether strong networking orders translate into profitable growth and whether management maintains its AI infrastructure targets.

Broader technology sentiment remains relevant for Cisco ahead of the report; investors can follow current S&P 500 market coverage.

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