Cisco Systems' big run over the past year has run its course, says an Evercore ISI analyst who downgraded the computer networking giant on Monday amid views that the company needs to disclose revenue from artificial intelligence products. Cisco stock has advanced 16% in 2025.
Evercore analyst Amit Daryanani downgraded Cisco stock to in-line from buy. "The stock has performed well recently with a 46% move over the last 12 months," he said in a report. "The upside has been driven by a cyclical recovery in their core enterprise networking business as well as a more compelling narrative around cloud and artificial intelligence markets."
He added: "Other AI-levered names have seen more sizable multiple expansion, but we think Cisco will struggle to get credited as an AI winner without disclosing AI revenue numbers. Thus far, they have only disclosed AI orders and it does not look as though they plan to disclose revenue. We think the management team has done a solid job in gaining traction in cloud/AI markets and the overall company strategy remains solid, but we think the upside is largely priced in, creating a more balanced risk/reward over the next twelve months."
Cisco Stock: Earnings Due Mid-August
On the stock market today, Cisco stock retreated more than 1% to 67.90 in morning action.
Cisco reports fiscal fourth quarter earnings in mid-August.
In the quarter that ended in April, Cisco said AI network infrastructure orders exceeded $600 million, up from $350 million in the January quarter. New AI-centric data centers being built by cloud computing companies are driving demand for Ethernet networking upgrades, Cisco said.
The company owns a Relative Strength rating of 85 out of a best-possible 99, according to IBD Stock Checkup.
In addition, Cisco has shifted away from its core business of selling network switches and routers. With acquisitions, Cisco aims to increase revenue from software and services.
Cisco last year acquired software company Splunk for $25 billion in cash. With roots in data analytics software, Splunk has expanded into cybersecurity.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
