Cisco’s US$2 Billion Axonius Deal And AI Push Might Change The Case For Investing In Cisco Systems (CSCO)

Cisco Systems has recently been reported to be in advanced talks to acquire Israeli cybersecurity firm Axonius for about US$2.00 billion, while also expanding its AI infrastructure initiatives and preparing for its second annual AI Summit featuring major industry leaders. These developments highlight Cisco’s push to reposition itself from a legacy networking supplier into a central provider of AI-ready infrastructure, security, and recurring software services. Next, we’ll examine how Cisco’s accelerating AI-related orders and upcoming AI Summit shape the company’s existing investment narrative and expectations.

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Cisco Systems Investment Narrative Recap

Cisco’s investment case rests on its ability to turn AI infrastructure, security, and software into dependable, recurring revenue while managing exposure to a handful of large hyperscale customers. The rumored US$2.00 billion Axonius deal and the AI Summit underline this shift, but do not materially change the near term catalyst of converting AI orders into revenue or the key risk of order volatility and execution on newer software and security lines.

The upcoming second annual AI Summit, featuring leaders like Jensen Huang and Sam Altman, is the clearest tie to Cisco’s AI-centric narrative, as it showcases the company’s role in AI networking and infrastructure while investor expectations are anchored on reported US$1.3 billion in quarterly AI orders and management’s AI revenue targets for FY 2026.

Yet behind Cisco’s push into AI-ready infrastructure, investors should also be aware of…

Read the full narrative on Cisco Systems (it’s free!)

Cisco Systems’ narrative projects $65.2 billion revenue and $14.0 billion earnings by 2028.

Uncover how Cisco Systems’ forecasts yield a $85.43 fair value, a 14% upside to its current price.

Exploring Other PerspectivesCSCO 1-Year Stock Price Chart

Thirteen members of the Simply Wall St Community value Cisco between US$61.52 and US$85.43, reflecting a broad span of individual expectations. Against this, Cisco’s reliance on large AI infrastructure orders from a small group of hyperscalers could influence how those differing views on its future performance play out.

Explore 13 other fair value estimates on Cisco Systems – why the stock might be worth as much as 14% more than the current price!

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
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Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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