Cisco Shares Fall 5% Following Piper Sandler Price Target Cut

Shares of Cisco dropped about 5% on Tuesday after Piper Sandler reduced its price target on the networking equipment maker to $125 from $132, as reported by CNBC Business (https://www.cnbc.com/2026/09/22/cisco-stock-piper-sandler-price-target.html).

Piper Sandler analysts pointed to lower price-to-earnings multiple expectations, driven by concerns that industrywide growth may be peaking. Despite Tuesday's pullback, Cisco reached a record high in June and remains up about 56% over the trailing 12 months, lifted by demand linked to artificial intelligence infrastructure.

The revision follows Cisco's fiscal fourth-quarter results reported last month, in which the company posted $17.25 billion in revenue against an estimated $16.8 billion, according to data from LSEG.

Cisco provided fiscal 2027 guidance during its August earnings call that included projected revenue growth of nearly 15%. However, the outlook met a muted response from Wall Street, where some analysts warned sales growth could slow to single digits. Piper analysts characterized Cisco's projection as conservative given overall market demand.

Addressing the guidance during an appearance on CNBC's program with Jim Cramer last month, Robbins said, "We're starting a new fiscal year. We're operating in incredible markets," before adding, "But it's also a time that we're going to start the year being a little bit prudent."

Sales to hyperscalers accounted for roughly $4 billion of Cisco's revenue in fiscal year 2026. The company forecasts that total will nearly double to $7.5 billion in fiscal 2027.