Cisco Systems, Inc. (CSCO)

FairStock Score: 70/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable businesses bought with a margin of safety. Cisco has a broad installed base in networking, data-center switching, and security, which can create switching costs and a real competitive moat. The filed figures show a good year: in FY2026, the year ended 2026-07-25, revenue was $63.3B, net income $13.3B, and diluted EPS $3.33, up from $56.7B, $10.2B, and $2.55 in FY2025. That is roughly 11.6% revenue growth and 30.4% net income growth. Free cash flow was $12.8B, the Piotroski F-Score is 8/9, Altman Z is 3.42, and ROE is 27.32%, so the balance sheet and profitability look sound. But FairStock's Lynch category is SLOW GROWER, with profit up 4.6% a year and revenue 4.9% a year over five years; one strong year does not erase that record. Valuation is the rub. At the 2026-10-26 close of $110.24, FairStock calculates a P/E of 33.11, P/B of 8.65, EV/EBITDA of 22.09, FCF yield of 2.9%, and a Graham Number of $30.90, a -244.66% margin of safety. ROCE is only 7.98%, and debt/equity is 0.62. Cisco is a stronger business than its long-term growth rate suggests, but the price already assumes improvement. I would want a wider gap between price and conservative value before calling it a Graham-style bargain.

In plain English: Cisco sells networking, security, and communications equipment and software to businesses and governments. The business looks financially strong, with rising recent profits and solid cash generation, but its long-term growth has been slow. At $110.24 on 2026-10-26, the shares look expensive compared with the company's earnings and accounting value.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-04-25) · fiscal Q2 2026 10-Q (period ended 2026-01-24) · fiscal Q1 2026 10-Q (period ended 2025-10-25) · fiscal Q3 2025 10-Q (period ended 2025-04-26) · FY2026 10-K (period ended 2026-07-25) · FY2025 10-K (period ended 2025-07-26) · FY2024 10-K (period ended 2024-07-27)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer