Cisco Falls 5% as Piper Sandler Cuts Price Target to $125 on Growth Peak Concerns

Piper Sandler analyst James Fish lowered his price target on Cisco Systems (CSCO) to $125 from $132 on September 23, 2026, maintaining a Neutral rating, citing reduced price-to-earnings multiple assumptions and concerns that industry growth may be nearing its ceiling. Cisco shares fell nearly 5%, closing at $106.44. The move follows Cisco's fiscal 2026 results: fourth-quarter revenue of $17.25 billion, above expectations, and full-year revenue of $63.3 billion, up 12%, with GAAP net income of $13.3 billion. Management guided fiscal 2027 revenue to $72.2 billion-$73.4 billion, implying nearly 15% growth, though skeptical analysts expect underlying sales growth to decelerate to single digits. Cisco shares hit an all-time high in June and have gained 57% over the past year, driven by AI-related infrastructure demand. Hyperscalers contributed roughly $4 billion in fiscal 2026 revenue, a figure expected to nearly double to $7.5 billion in fiscal 2027. Wall Street maintains a consensus Buy rating with an average price target of $133.86.