Wall Street Sees 16% Upside in Cisco (CSCO) Despite Recent 9.4% Selloff

"Cisco Systems ( NASDAQ: CSCO) has dropped 9.4% over the past week. That's seven times worse than the S&P 500's 1.28% decline over the same period. Yet Wall Street analysts still see the stock climbing to an average target of $88.81, implying roughly 16% upside from current levels. The question: is this a buying opportunity or are analysts missing something the market already knows?"

"What makes this selloff unusual is that Cisco actually beat earnings expectations. The company reported $1.04 per share on February 10, topping the consensus estimate of $1.02. Revenue came in at $15.35 billion, up 8.5% year-over-year, though it did miss the Street's $15.42 billion target by a hair. Management raised full-year guidance and highlighted $2.1 billion in AI infrastructure orders from hyperscalers. By traditional metrics, this was a solid quarter."

"So why did the stock crater? The answer appears to be a fundamental shift in how investors are valuing networking and software companies in 2026. According to a February 16 analysis, the market is experiencing what some are calling a "SaaSpocalypse", where traditional SaaS and infrastructure companies are being repriced based on concerns about AI disruption. The thesis: autonomous AI agents could eventually disintermediate human workflows and seat-based licensing models, threatening the long-term revenue sustainability of companies like Cisco."

Cisco Systems' stock fell 9.4% in the past week despite beating earnings and raising guidance. The company reported $1.04 per share versus a $1.02 consensus, and revenue of $15.35 billion, up 8.5% year-over-year but slightly below the $15.42 billion Street target. Management cited $2.1 billion in AI infrastructure orders from hyperscalers. The selloff reflects a market repricing of networking and software firms amid concerns that autonomous AI agents could disrupt seat-based licensing and long-term revenue, a so-called "SaaSpocalypse". Investors also flagged near-term margin pressure from memory cost shortages while competitors signaled stronger cost management.

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