Should I buy Cisco Systems stock in 2025?

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At HelloSafe, our expert has been monitoring Cisco Systems’ performance for more than three years. Each month, hundreds of thousands of users across the United States rely on us to interpret market trends and highlight the best investment opportunities. Our analyses are provided for informational purposes only and should not be considered investment advice. Consistent with our ethical guidelines, we have never received, and will never accept, any compensation from Cisco Systems.

What is Cisco Systems?

How much is Cisco Systems stock?

The price of Cisco Systems stock is rising this week. As of today, CSCO is trading at $58.12, reflecting a 0.68% gain in the last 24 hours, yet down 5.95% over the past week.

The stock currently holds a P/E ratio of 25.49, offers a 2.82% dividend yield, and displays a beta of 0.85, indicating less volatility than the broader market.

With its balance of growth potential and income, Cisco may appeal to investors seeking steady performance in a dynamic tech landscape.

Our full analysis on Cisco Systems stock

Cisco Systems (NASDAQ: CSCO) stands as a benchmark in the evolving technology landscape, and our latest review encompasses its most recent financial results, price action, and comparative sector analysis over the last three years. Leveraging a blend of fundamental data, technical indicators, market dynamics, and peer benchmarking processed via our proprietary quantitative models, we seek to illuminate Cisco's strategic positioning. So, why might Cisco Systems stock once again become a strategic entry point into the enterprise technology sector in 2025?

Recent Performance and Market Context

Cisco's share price has demonstrated a robust trajectory over the past year, recently trading at $58.12 (as of May 1, 2025), representing a notable 24.08% year-over-year gain and a healthy 4.72% return over the past six months. While the stock experienced short-term volatility—a one-week decline of 5.95% and a slight year-to-date drawdown of 1.82%—its resilience within a 52-week range of $44.50 to $66.50 underlines a capacity to absorb market shocks and capitalize on sector rebounds.

Several recent events have reignited investor confidence. The transformational $28 billion acquisition of Splunk and integration of advanced AI solutions signal a material pivot towards security and AI-driven services. Cisco’s Q2 FY2025 results reflect these initiatives, with a 9% increase in revenue year-over-year and a substantial 29% jump in product orders. These gains materialize against a favorable macro backdrop: enterprise IT budgets are expanding as digital transformation initiatives accelerate, and AI adoption is redefining network infrastructure and security requirements—both key domains for Cisco.

The broader technology sector, emboldened by steady GDP growth, declining interest rates, and sustained demand for cybersecurity, cloud connectivity, and AI solutions, provides a fertile context for Cisco’s continued expansion. These conditions reinforce the argument that sector leaders with scale and innovation capabilities, such as Cisco, are well-poised for durable growth.

Technical Analysis

Current technical signals for CSCO are nuanced but increasingly constructive. The share price is trading above the 20-day EMA ($57.11) and significantly above the longer-term 200-day SMA ($55.51)—classic indications of underlying bullish strength and long-term trend integrity. Intermediate moving averages (50-day EMA at $58.47 and 100-day EMA at $58.31) suggest a short-term consolidation zone, with the price currently just below these levels, indicating potential for a breakout upon renewed buying interest.

• RSI (14) stands at 50.96, a neutral reading that suggests neither overbought nor oversold conditions—often a precursor to upside moves once a fresh catalyst arrives.
• MACD is modestly negative (-0.73), but the flattening histogram hints at a waning of bearish momentum.
• ADX (14) is at 29.07, revealing moderate trend strength and signaling that a sustained directional move could materialize if momentum intensifies.

Crucially, established support at $56.82 has repeatedly held in recent trading sessions, providing a solid foundation for investors to accumulate. Immediate resistance levels ($58.01–$58.54) are within striking distance; a decisive close above these could trigger systematic and algorithmic buying, potentially driving the stock into a new bullish phase.

Fundamental Analysis

Cisco’s fundamentals underpin its reputation as a blue-chip technology leader. For Q2 FY2025, total revenue rose 9% year-over-year to $14.0 billion, outpacing many of its large-cap technology peers. While GAAP EPS dipped slightly (-6% YoY), non-GAAP EPS climbed by 8% (to $0.94), and gross margins remained robust (65.1% GAAP, 68.7% non-GAAP), reflecting effective cost discipline and the impact of a growing software mix.

Valuation is arguably one of Cisco’s most attractive attributes. The stock currently trades at a forward P/E of 14.73—noticeably lower than the broader tech sector and major networking/security peers—suggesting the market may be undervaluing Cisco's earnings power and growth prospects. The price/earnings-to-growth (PEG) and price/sales (P/S) ratios further underscore Cisco’s attractive risk/reward profile, particularly given expected synergy realization and cross-selling upside from the recent Splunk acquisition.

Strategically, Cisco’s multi-decade legacy, high brand trust, and worldwide distribution network remain unmatched. The company’s pivot toward AI-powered security, network automation, and subscription-based models is increasing its exposure to secular trends and recurring revenue streams, providing a stable foundation for continued outperformance.

Volume and Liquidity

Cisco consistently demonstrates high market liquidity, with an average daily trading volume of 23.49 million shares over the past three months. This sustained turnover not only reflects broad investor interest and institutional participation but also ensures efficient price discovery and tight bid-ask spreads.

The substantial float enables dynamic valuation, facilitating swift absorption of both fundamental news and technical shifts. Critically, this liquidity profile lowers execution risk for both large institutional investors and individual traders seeking to build or adjust positions, further bolstering market confidence.

Catalysts and Positive Outlook

• Splunk Integration: The culmination of Cisco’s largest-ever acquisition exponentially bolsters its security analytics and observability footprint. Splunk's platform now enhances Cisco's threat detection and response capabilities, opening significant cross-selling opportunities across the Fortune 500.
• AI-Driven Innovation: Cisco’s rollouts of HyperShield and Foundation AI initiatives underline its determination to lead in AI-powered network and security. Early adoption by enterprise clients and growing AI infrastructure orders ($700 million in 1H FY2025) confirm real-world demand.
• Expanding Recurring Revenues: The shift toward software, SaaS, and subscription-based services is elevating revenue visibility and margin stability, thus appealing to a broader investor base seeking lower volatility and higher predictability.
• Security and ESG Leadership: Cisco’s fresh suite of AI-powered cybersecurity offerings positions it as a trusted partner amid the escalating global threat environment. Furthermore, ongoing ESG initiatives—ranging from green data center solutions to supply chain integrity—enhance its brand's appeal to sustainability-focused investors.
• Macroeconomic Tailwinds: Moderate inflation, resilient enterprise IT investment, anticipated interest rate cuts, and digital transformation imperatives continue to underpin sector-wide growth—especially for diversified, innovation-driven firms such as Cisco.

Investment Strategies

• Short-term: Recent technical consolidation above major moving averages and proximate to support provides a tactical entry for momentum and swing traders. Look for confirmation via a close above resistance ($58.54) or a bounce from the $56.82 support zone as high-probability triggers.
• Medium-term: The full integration of Splunk and ramp-up of AI product sales throughout FY2025 are likely to be reflected in upcoming earnings releases, setting the stage for fundamental re-rating and multiple expansion. Investors could benefit by positioning ahead of quarterly reports and key product launches.
• Long-term: For buy-and-hold investors, Cisco's 2.82% dividend yield (with a track record of stable, growing payouts), strong EBIT margins, and sustained investments in next-gen technologies form a compelling platform for capital appreciation and compounding income. Entry during technical pullbacks or periods of market softness may enhance risk-adjusted returns, especially as AI and security trends intensify over the next several years.

Is It the Right Time to Buy Cisco Systems?

Synthesizing the current analysis, Cisco Systems seems to represent an excellent opportunity for investors seeking not only exposure to enduring technology megatrends—such as AI, cybersecurity, and cloud—but also a combination of income, stability, and reasonable valuation. The company’s transition into a software- and services-led growth model, complemented by the transformative Splunk acquisition and relentless innovation in AI and network security, justifies renewed interest and optimism about its long-term prospects.

While acknowledging the integration and macro risks, Cisco’s scale, liquidity, operational execution, and commitment to capital returns place it in a strong position to outperform as digital, security, and AI investment cycles gather pace. Technical and fundamental factors alike suggest the stock may be entering a new bullish phase, and the convergence of strategic catalysts heightens the appeal of Cisco as a core holding in diversified technology portfolios.

For investors with a discerning eye on both risk and opportunity, Cisco Systems offers a highly credible, growth-oriented story within the tech sector’s blue-chip landscape at a time when market conditions seem uniquely favorable.

How to buy Cisco Systems stock in United States?

Buying Cisco Systems (CSCO) stock online is straightforward and secure when using a regulated U.S. brokerage. Investors have two primary options: spot (or “cash”) buying, where you purchase shares outright to own a slice of Cisco, and trading Contracts for Difference (CFDs), which let you speculate on price movements without owning the stock. Each method has its own risks and benefits, so it’s important to assess what best matches your investing goals. For a detailed broker comparison with up-to-date fees and features, check out the guide further down this page.

Spot Buying

A cash, or “spot,” purchase of Cisco Systems stock means you buy actual shares on the NASDAQ exchange and become a legal shareholder. You’ll typically pay a fixed brokerage commission per trade—usually from $0 up to $7 per order at most major U.S. brokerages. Some brokers even offer $0 commissions on U.S. stocks.

Important example

Example: Suppose Cisco’s current share price is $58.12. With a $1,000 investment, and factoring in a $5 trading commission, you could buy approximately 17 shares ($995/$58.12 = 17.12, rounded down to whole shares).
✔️ Gain scenario:
If Cisco’s share price rises by 10%, your holdings would be valued at $1,100.
Result: +$100 gross gain—an increase of 10% on your investment (before taxes & expenses).

Trading via CFD

CFD (Contract for Difference) trading allows you to speculate on Cisco Systems’ price movements without actually owning the shares. With CFDs, you can use leverage, meaning you control a larger position with less capital. The main fees are the spread (the broker’s built-in cost between buy/sell prices) and potential overnight financing charges if you keep positions open after market hours.

Important example

Example: You open a CFD position on Cisco Systems shares with a $1,000 deposit and 5x leverage—so your exposure is $5,000.
✔️ Gain scenario:
If Cisco’s stock rises by 8%, your CFD position returns 8% × 5 = 40%.
Result: +$400 gain on a $1,000 stake (before accounting for spreads and overnight fees).

Final Advice

Before investing, always compare broker fees, trading conditions, and platform reliability—costs can vary significantly and reduce your returns over time. Your choice between spot buying and CFD trading should depend on your investment horizon, risk tolerance, and objectives. For in-depth broker comparisons and further guidance, be sure to consult the thorough comparator located below on this page.

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51% of CFD accounts lose money. You will never lose more than your investment.

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On the broker's website

Our 7 tips for buying Cisco Systems stock

The latest news about Cisco Systems

Cisco has successfully completed its $28 billion acquisition of Splunk, reinforcing its position in AI-powered security and observability. The integration boosts Cisco’s product offerings for U.S. enterprises, enabling advanced threat detection, real-time monitoring, and enhanced cybersecurity solutions crucial for large U.S. organizations’ digital resilience. Early strategic moves include the joint launch of new AI-based security systems—most notably the HyperShield platform—targeting growing demands for comprehensive, AI-driven protection in the evolving threat landscape. This acquisition marks the largest in Cisco’s history and is widely viewed by industry analysts as a value-creating development for long-term growth in domestic and international markets.

Cisco reported strong Q2 FY2025 results, with revenue up 9% year-over-year and product orders surging 29%. The solid financial performance demonstrates robust demand for Cisco’s core solutions across U.S. and global markets, driven particularly by the rapid adoption of AI and cloud technologies. AI infrastructure orders exceeded $350 million in the quarter, a clear indication of ongoing investments by American enterprises in next-generation networking and security infrastructure. Despite a modest decrease in GAAP EPS due to acquisition-related costs, non-GAAP EPS grew by 8% and gross margins remain healthy at above 65%, underscoring effective cost management and pricing power in core markets.

Cisco’s pivot to software- and subscription-based revenue models continues to produce more predictable, recurring income streams. The company’s transformation away from purely hardware-centric sales has led to higher margins and greater stability in cash flows, attributes increasingly valued by U.S. investors seeking exposure to less volatile technology stocks. This evolution aligns with market demands for flexible and scalable solutions, while supporting ongoing development in AI and digital security product suites tailored for enterprise deployments in the United States.

Technical indicators highlight a mixed but constructive outlook, with Cisco’s stock price above the 200-day moving average and neutral Relative Strength Index. While the 50- and 100-day moving averages suggest some short-term caution, the price remaining above the critical 200-day SMA points to sustained long-term investor confidence. The company’s 1-year performance (+24%) and robust trading volume on Nasdaq reinforce its appeal for U.S.-based institutional and retail investors, even as short-term volatility persists amid evolving macroeconomic trends.

Cisco upholds its commitment to investors through a stable 2.82% dividend yield and sound fiscal guidance for FY2025. With a forward P/E of 14.73 and profit margin near 17%, Cisco maintains a balanced profile of growth and income, attractive within the U.S. equity landscape. The company’s full-year guidance projects steady revenues and healthy non-GAAP EPS, reflecting management confidence and signaling continued financial resilience in the face of competitive and economic headwinds.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.

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