ATLAS
CSCO

Cisco Systems

Strategic Compounder
Networking & interconnect·US·San Jose, CA·#6 / 10 in segment·5.3% of segment mcap
$114.35
53.8% vs S&P 12m

Incumbent enterprise networking and security vendor pivoting hard into AI campus and DC fabric, plus Splunk-led security/observability.

Slow AI ramp story but cheap; meaningful AI orders disclosed at hyperscalers and Splunk synergy is the swing factor.

Products
  • Catalyst/Nexus switches
  • Webex
  • Splunk
  • Security portfolio
Customers (3)
  • Enterprises
  • Telecoms
  • Hyperscalers
Competitors (3)

Composite score

Higher = stronger overall research case

65
Fundamental64
Technical85
Valuation74
AI relevance50
Risk-adjusted (higher = safer)57
Segment-relative fundamental percentile: 40

Synthetic 1Y price action

Deterministic price series; 50d (yellow) and 200d (orange) MAs shown

3M RS: 37.3%6M RS: 35.7%12M RS: 53.8%Vol30d: 44%DD52w: -3.8%

Financial summary

Curated, illustrative

Revenue
$60.75B
Growth (YoY)
12.0%
Gross margin
64.3%
Operating margin
25.0%
FCF
$9.29B
Capex
$3.74B
Net cash / (debt)
$-16.36B
ROIC
7.3%
Customer conc.
Medium

Valuation

Market cap
$450.70B
Enterprise value
$467.06B
P/E (TTM)
38.1x
Forward P/E
24.0x
EV / Sales
7.7x
EV / EBITDA
27.5x
P / FCF
48.5x
PEG
1.6x
Rule of 40

Risks

Severity 1 (low) to 5 (severe)

  • 3
    Splunk integration friction
  • 3
    Slow AI fabric share

Score components

What drove the composite

Growth54
Profitability75
Cash generation61
Balance sheet69
Moat / AI relevance62
Capital intensity (higher = lighter)70
Customer diversification60
Valuation discipline (dilution)65
Trend (MA50/MA200)95
Momentum (3/6/12m)80
Relative strength100
Realized vol (higher = lower vol)48