Bank of America resets Cisco price target after earnings

Core Insights - Cisco's Q1 earnings reflect a strong start to fiscal 2026, driven by the demand for secure networking and AI deployment [1][3] - The company anticipates $3 billion in AI infrastructure revenue from hyperscalers for fiscal year 2026 [4] - Analysts have raised Cisco's revenue growth guidance for 2026 to 7%, up from the Street's 5.3%, although security revenue declined by 2% year-over-year [5][6] Financial Performance - Total revenue increased by 8% year-over-year to $14.9 billion [7] - Operating income rose by 43% to $3.4 billion, while net income increased by 5% to $2.9 billion [7] - Diluted Earnings per Share (EPS) grew by 6% to $0.72, with Q2 revenue expected between $15.0 billion and $15.2 billion [7] Market Outlook - Cisco's management is optimistic about benefiting from the Campus refresh and the AI cycle as AI expands into enterprise environments [8] - Bank of America raised the price target for Cisco stock from $85 to $95, reflecting a positive outlook based on enterprise-value to free-cash-flow ratio estimates for 2027 [8]